(810 ILCS 5/8-504)
Duty of securities intermediary to
maintain financial asset.
(a) A securities intermediary shall promptly obtain and thereafter
maintain a financial asset in a quantity corresponding to the aggregate of all
security entitlements it has established in favor of its entitlement holders
with respect to that financial asset. The securities intermediary may
maintain those financial assets directly or through one or more other
(b) Except to the extent otherwise agreed by its entitlement holder,
a securities intermediary may not grant any security interests in a financial
asset it is obligated to maintain pursuant to subsection (a).
(c) A securities intermediary satisfies the duty in subsection (a) 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 obtain and maintain the financial asset.
(d) This Section does not apply to a clearing corporation that is
itself the obligor of an option or similar obligation to which its entitlement
holders have security entitlements.
(Source: P.A. 89-364, eff. 1-1-96.)