2007 Minnesota Statutes

336.8-507 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 intermediary; or
(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 pursuant to an ineffective
entitlement order, the securities intermediary shall reestablish a security entitlement in favor of
the person entitled to it, and pay or credit any 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.
History: 1995 c 194 art 1 s 47