Code of Alabama
Ala. Code § 7-8-506 (2026)
Duty of Securities Intermediary to Exercise Rights as Directed by Entitlement Holder.
✓ official Alabama Legislature (ALISON) text, current July 2026
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:
(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 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.
(Acts 1996, No. 96-742, p. 1241, §1.)