Del. C. » Title 6 — SUBTITLE I · Commerce and Trade · Part 5
Delaware Code

6 Del. C. § 8-505 (2026)

Duty of securities intermediary with respect to payments and distributions

✓ current as of May 2026
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(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.

71 Del. Laws, c. 75, §  1; 
Notes of Decisions
Cited in 2 cases, 2015–2015 · leading case: In re Appraisal of Dell Inc. (Del. Ch. 2015).
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In re Appraisal of Dell Inc. (Del. Ch. 2015). “Under Article 8 of the UCC, a securities intermediary is required by law to ―take action to obtain a payment or distribution made by the issuer of a financial asset‖ and is ―obligated to its entitlement holder for a payment or distribution made by the issuer of a financial asset…”
In Re Appraisal of Dell Inc. (Del. Ch. 2015). “Under Article 8 of the UCC, a securities intermediary is required by law to ―take action to obtain a payment or distribution made by the issuer of a financial asset‖ and is ―obligated to its entitlement holder for a payment or distribution made by the issuer of a financial asset…”
— 6 Del. C. § 8-505(a) — 2 cases
In re Appraisal of Dell Inc. (Del. Ch. 2015). “Under Article 8 of the UCC, a securities intermediary is required by law to ―take action to obtain a payment or distribution made by the issuer of a financial asset‖ and is ―obligated to its entitlement holder for a payment or distribution made by the issuer of a financial asset…”
In Re Appraisal of Dell Inc. (Del. Ch. 2015). “Under Article 8 of the UCC, a securities intermediary is required by law to ―take action to obtain a payment or distribution made by the issuer of a financial asset‖ and is ―obligated to its entitlement holder for a payment or distribution made by the issuer of a financial asset…”
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