                                 CODE OF VIRGINIA

DUTY OF SECURITIES INTERMEDIARY TO MAINTAIN FINANCIAL ASSET (§ 8.8A-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).

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.

HISTORY: 1996, c. 216.