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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>378350</law_id><section_number>8.8A-509</section_number><catch_line>Specification of duties of securities intermediary by other statute or regulation; manner of performance of duties of securities intermediary and exercise of rights of entitlement holder</catch_line><edition url="https://vacode.org/2026/" slug="2026" current="TRUE" last_updated="2026-08-02">2026</edition><structure><unit label="title" level="1" order_by="28" identifier="8.8A">Commercial Code &#x2014; Investment Securities</unit><unit label="part" level="2" order_by="5" identifier="5">Security Entitlements</unit></structure><text>
						<section id="a"><p><span class="prefix-number">a.</span> If the substance of a duty imposed upon a securities intermediary by &#xA7;&#xA7; <a class="law" title="Duty of securities intermediary to maintain financial asset" href="/8.8A-504/">8.8A-504</a> through <a class="law" title="Duty of securities intermediary to change entitlement holder's position to other form of security holding" href="/8.8A-508/">8.8A-508</a> is the subject of other <span class="dictionary">statute</span>, regulation, or rule, compliance with that <span class="dictionary">statute</span>, regulation, or rule satisfies the duty. <a id="paragraph-1411732" class="section-permalink" href="https://vacode.org/8.8A-509/#a"><i class="fa fa-link"/></a></p></section>
						<section id="b"><p><span class="prefix-number">b.</span> To the extent that specific standards for the performance of the duties of a securities intermediary or the exercise of the rights of an entitlement holder are not specified by other <span class="dictionary">statute</span>, regulation, or rule or by agreement between the securities intermediary and entitlement holder, the securities intermediary shall perform its duties and the entitlement holder shall exercise its rights in a commercially reasonable manner. <a id="paragraph-1411733" class="section-permalink" href="https://vacode.org/8.8A-509/#b"><i class="fa fa-link"/></a></p></section>
						<section id="c"><p><span class="prefix-number">c.</span> The obligation of a securities intermediary to perform the duties imposed by &#xA7;&#xA7;&#xA0;<a class="law" title="Duty of securities intermediary to maintain financial asset" href="/8.8A-504/">8.8A-504</a> through <a class="law" title="Duty of securities intermediary to change entitlement holder's position to other form of security holding" href="/8.8A-508/">8.8A-508</a> is subject to: <a id="paragraph-1411734" class="section-permalink" href="https://vacode.org/8.8A-509/#c"><i class="fa fa-link"/></a></p></section>
						<section id="c1" class="indent-1"><p><span class="prefix-number">1.</span> rights of the securities intermediary arising out of a security interest under a security agreement with the entitlement holder or otherwise; and <a id="paragraph-1411735" class="section-permalink" href="https://vacode.org/8.8A-509/#c1"><i class="fa fa-link"/></a></p></section>
						<section id="c2" class="indent-1"><p><span class="prefix-number">2.</span> rights of the securities intermediary under other <span class="dictionary">law</span>, regulation, rule, or agreement to withhold performance of its duties as a result of unfulfilled obligations of the entitlement holder to the securities intermediary. <a id="paragraph-1411736" class="section-permalink" href="https://vacode.org/8.8A-509/#c2"><i class="fa fa-link"/></a></p></section>
						<section id="d"><p><span class="prefix-number">d.</span> Sections <a class="law" title="Duty of securities intermediary to maintain financial asset" href="/8.8A-504/">8.8A-504</a> through <a class="law" title="Duty of securities intermediary to change entitlement holder's position to other form of security holding" href="/8.8A-508/">8.8A-508</a> do not require a securities intermediary to take any action that is prohibited by other <span class="dictionary">statute</span>, regulation, or rule. <a id="paragraph-1411737" class="section-permalink" href="https://vacode.org/8.8A-509/#d"><i class="fa fa-link"/></a></p></section></text><history>1996, c. 216.</history><metadata></metadata></law>
