Section 8.506 - Duty of Securities Intermediary to Exercise Rights As Directed By Entitlement Holder A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder. A securities intermediary satisfies the duty if:
(1) the securities intermediary acts with respect to the duty as agreed on by the entitlement holder and the securities intermediary; or(2) in the absence of agreement, the securities intermediary either places the entitlement holder in a position to exercise the rights directly or exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.Tex. Bus. and Comm. Code § 8.506
Added by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. 9/1/1995.