New Jersey Statutes 12A:8-508. Duty of Securities Intermediary to Change Entitlement Holder’s Position to Other Form of Security Holding
Current as of: 2024 | Check for updates
|
Other versions
Terms Used In New Jersey Statutes 12A:8-508
- Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
A securities intermediary shall act at the direction of an entitlement holder to change a security entitlement into another available form of holding for which the entitlement holder is eligible, or to cause the financial asset to be transferred to a securities account of the entitlement holder with another securities intermediary. A securities intermediary satisfies the duty if:
a. the securities intermediary acts as agreed upon by the entitlement holder and the securities intermediary; or
b. in the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.
L.1997,c.252,s.1.