(810 ILCS 5/8-507)
Sec. 8-507.
Duty of securities intermediary to
comply with entitlement order.
(a) A securities intermediary shall comply with an entitlement order
if the entitlement order is originated by the appropriate person, the
securities intermediary has had reasonable opportunity to assure itself that
the entitlement order is genuine and authorized, and the securities
intermediary has had reasonable opportunity to comply with the entitlement
order. A securities intermediary satisfies the duty if:
(1) the securities intermediary acts with respect to | ||
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(2) in the absence of agreement, the securities | ||
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(b) If a securities intermediary transfers a financial asset pursuant
to an ineffective entitlement order, the securities intermediary shall
reestablish a security entitlement in favor of the person entitled to it, and
pay or credit any payments or distributions that the person did not receive
as a result of the wrongful transfer. If the securities intermediary does not
reestablish a security entitlement, the securities intermediary is liable to
the entitlement holder for damages.
(Source: P.A. 89-364, eff. 1-1-96.)
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