California · Commercial Code

COM §8505: (a) A securities intermediary shall take action to obtain a payment or distribution made by the issuer of a financial asset.

What this law says, in plain English

A securities intermediary must take steps to obtain payments or distributions from the issuer of a financial asset on behalf of its clients.

Read the full statutory text

(a) A securities intermediary shall take action to obtain a payment or distribution made by the issuer of a financial asset. A securities intermediary satisfies the duty if it does either of the following: (1) The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary. (2) In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to attempt to obtain the payment or distribution. (b) A securities intermediary is obligated to its entitlement holder for a payment or distribution made by the issuer of a financial asset if the payment or distribution is received by the securities intermediary.

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This page is legal information, not legal advice. Code text is sourced from official publications and may lag amendments — always confirm at the official source linked above. Plain-English summaries and relationship data are AI-derived and reviewed on an ongoing basis; verify with a licensed attorney before acting.