Code of Alabama
Ala. Code § 7-8-505 (2026)
Duty of Securities Intermediary with Respect to Payments and Distributions.
✓ official Alabama Legislature (ALISON) text, current July 2026
(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:
(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 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.
(Acts 1996, No. 96-742, p. 1241, §1.)