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Can you summarize MNST 336.8-507?
UNIFORM COMMERCIAL CODE > DUTY OF SECURITIES INTERMEDIARY TO COMPLY WITH ENTITLEMENT ORDER.
Short Summary
This legal document, part of the Minnesota Statutes under the Uniform Commercial Code, governs the duty of securities intermediaries to comply with entitlement orders. It requires securities intermediaries to comply with an entitlement order if it is originated by the appropriate person, genuine, and authorized. The securities intermediary must act as agreed upon by the entitlement holder and themselves or exercise due care in accordance with reasonable commercial standards. If a securities intermediary transfers a financial asset based on an ineffective entitlement order, they must reestablish a security entitlement in favor of the entitled person and compensate for any payments or distributions not received due to the wrongful transfer. Failure to reestablish a security entitlement may result in liability for damages. There are no specific exemptions mentioned in this document.
Whom does it apply to?
Securities intermediaries
What does it govern?
Securities Intermediary's duty to comply with entitlement orders
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Securities intermediary is liable to the entitlement holder for damages if they do not reestablish a security entitlement.
Jurisdiction
Minnesota