554.8507 Duty of securities intermediary to comply with entitlement order. 1. A securities intermediary shall comply with an entitlement order if the entitlement order is originated by the appropriate person, the securities intermediary has had reasonableopportunity to assure itself that the entitlement order is genuine and authorized, and thesecurities intermediary has had reasonable opportunity to comply with the entitlementorder. A securities intermediary satisfies the duty if: a. the securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or b. in the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to comply with the entitlement order. 2. If a securities intermediary transfers a financial asset pursuant to an ineffective entitlement order, the securities intermediary shall reestablish a security entitlement in favorof the person entitled to it, and pay or credit any payments or distributions that the persondid not receive as a result of the wrongful transfer. ary shall reestablish a security entitlement in favorof the person entitled to it, and pay or credit any payments or distributions that the persondid not receive as a result of the wrongful transfer. If the securities intermediary does notreestablish a security entitlement, the securities intermediary is liable to the entitlementholder for damages. 96 Acts, ch 1138, §54, 84Referred to in §554.8503, 554.8509 Sat Dec 23 01:58:49 2023 Iowa Code 2024, Section 554.8507 (24, 0)
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