The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 9A V.S.A. § 8-507)
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§ 8—507. Duty of securities intermediary to comply with entitlement order
(a) A securities intermediary shall comply with an entitlement order if the entitlement
order is originated by the appropriate person, the securities intermediary has had
reasonable opportunity to assure itself that the entitlement order is genuine and
authorized, and the securities intermediary has had reasonable opportunity to comply
with the entitlement order. A securities intermediary satisfies the duty if:
(1) the securities intermediary acts with respect to the duty as agreed upon by the entitlement
holder and the securities intermediary; or
(2) in the absence of agreement, the securities intermediary exercises due care in accordance
with reasonable commercial standards to comply with the entitlement order.
(b) If a securities intermediary transfers a financial asset pursuant to an ineffective
entitlement order, the securities intermediary shall reestablish a security entitlement
in favor of the person entitled to it, and pay or credit any payments or distributions
that the person did not receive as a result of the wrongful transfer. If the securities
intermediary does not reestablish a security entitlement, the securities intermediary
is liable to the entitlement holder for damages. (Added 1995, No. 92 (Adj. Sess.), § 1, eff. Jan. 1, 1997.)