(8-506) Duty of securities intermediary to exercise rights as directed by entitlement holder
N.D. Cent. Code § 41-08-46
in effect41-08-46. (8-506) Duty of securities intermediary to exercise rights as directed by
entitlement holder.
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.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t41c08.pdf#nameddest=41-08-46Fetched: 10/16/2026