California · Commercial Code
COM §8506: A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder.
What this law says, in plain English
A securities intermediary must exercise rights regarding financial assets when an entitlement holder directs them to do so.
Read the full statutory text
A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder. 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 either places the entitlement holder in a position to exercise the rights directly or exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.
Verify at the official source: California legislative text
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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.