New Jersey § 12a:8-504
Full text of New Jersey New Jersey Statutes § 12a:8-504, with citation guidance and answers to common questions.
§ 12a:8-504.
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 securities intermediaries. 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. of this section. c. A securities intermediary satisfies the duty in subsection a. of this section 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.
Frequently Asked Questions About New Jersey § 12a:8-504
What does New Jersey Statutes § 12a:8-504 cover?
Section 12a:8-504 is part of the New Jersey Statutes, the codified statutory law of New Jersey. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite New Jersey § 12a:8-504?
A common citation format is "New Jersey Statutes § 12a:8-504" (New Jersey). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of New Jersey law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the New Jersey official source linked on this page or consult a licensed New Jersey attorney.
How does New Jersey § 12a:8-504 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in New Jersey can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in New Jersey.