- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 8. Investment Securities
- Section 507. Duty of Securities Intermediary to Comply With Entitlement Order.
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AS 45.08.507. Duty of Securities Intermediary to Comply With Entitlement Order.
- (a) A securities intermediary shall comply with an entitlement order if the entitlement order is originated by the
appropriate person, the securities intermediary has had reasonable opportunity to assure itself that the entitlement
order is genuine and authorized, and the securities intermediary has had reasonable opportunity to comply with the
entitlement order. A securities intermediary satisfies the duty if
- (1) the securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities
- (2) in the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial
standards to comply with the entitlement order.
- (b) If a securities intermediary transfers a financial asset under an ineffective entitlement order, the securities
intermediary shall reestablish a security entitlement in favor of the person entitled to the entitlement order, and pay
or credit payments or distributions that the person did not receive as a result of the wrongful transfer. If the
securities intermediary does not reestablish a security entitlement, the securities intermediary is liable to the
entitlement holder for damages.
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