Code of Alabama
Ala. Code § 7-8-508 (2026)
Duty of Securities Intermediary to Change Entitlement Holder’s Position to Other Form of Security Holding.
✓ official Alabama Legislature (ALISON) text, current July 2026
A securities intermediary shall act at the direction of an entitlement holder to change a security entitlement into another available form of holding for which the entitlement holder is eligible, or to cause the financial asset to be transferred to a securities account of the entitlement holder with another securities intermediary. A securities intermediary satisfies the duty if:
(1) the securities intermediary acts 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 follow the direction of the entitlement holder.
(Acts 1996, No. 96-742, p. 1241, §1.)