2006 Minnesota Statutes

336.8-504 DUTY OF SECURITIES INTERMEDIARY TO MAINTAIN FINANCIAL
ASSET.
(a) A securities intermediary shall promptly obtain and thereafter maintain a financial asset
in a quantity corresponding to the aggregate of all security entitlements it has established in favor
of its entitlement holders with respect to that financial asset. The securities intermediary may
maintain those financial assets directly or through one or more other securities intermediaries.
(b) Except to the extent otherwise agreed to by its entitlement holder, a securities
intermediary may not grant any security interests in a financial asset it is obligated to maintain
pursuant to subsection (a).
(c) A securities intermediary satisfies the duty in subsection (a) if:
(1) the securities intermediary acts with respect to the duty as agreed upon by the entitlement
holder and the securities intermediary; or
(2) in the absence of agreement, the securities intermediary exercises due care in accordance
with reasonable commercial standards to obtain and maintain the financial asset.
(d) This section does not apply to a clearing corporation that is itself the obligor of an option
or similar obligation to which its entitlement holders have security entitlements.
History: 1995 c 194 art 1 s 44