                                 CODE OF VIRGINIA

DUTY OF SECURITIES INTERMEDIARY TO COMPLY WITH ENTITLEMENT ORDER (§ 8.8A-507)

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 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 comply with the
   entitlement order.

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.

HISTORY: 1996, c. 216.