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Can you summarize MNST 336.8-504?
UNIFORM COMMERCIAL CODE > DUTY OF SECURITIES INTERMEDIARY TO MAINTAIN FINANCIAL ASSET.
Short Summary
This legal document, part of the Minnesota Statutes under the Uniform Commercial Code, governs the duty of securities intermediaries to promptly obtain and maintain a financial asset corresponding to the aggregate of all security entitlements established in favor of its entitlement holders. Securities intermediaries are allowed to maintain these financial assets directly or through other intermediaries. However, they are prohibited from granting any security interests in the financial asset they are obligated to maintain, unless otherwise agreed upon by the entitlement holder. The duty is considered satisfied if the securities intermediary acts as agreed upon or exercises due care in obtaining and maintaining the financial asset. It is important to note that this section does not apply to clearing corporations that are obligors of options or similar obligations held by their entitlement holders.
Whom does it apply to?
Securities intermediaries
What does it govern?
Duty of securities intermediary to maintain financial asset
What are exemptions?
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.
What are the Penalties?
No penalties mentioned.
Jurisdiction
Minnesota