N.Y. UCC Law § 8-507

Section 8--507. Duty of Securities Intermediary to comply with\n Entitlement Order.\n (a) A securities intermediary shall comply with an entitlement order\nif the entitlement order is originated by the appropriate person, the\nsecurities intermediary has had reasonable opportunity to assure itself\nthat the entitlement order is genuine and authorized, and the securities\nintermediary has had reasonable opportunity to comply with the\nentitlement order. A securities intermediary satisfies the duty if:\n (1) the securities intermediary acts with respect to the duty as\n agreed upon by the entitlement holder and the securities\n intermediary; or\n (2) in the absence of agreement, the securities intermediary\n exercises due care in accordance with reasonable commercial\n standards to comply with the entitlement order.\n (b) If a securities intermediary transfers a financial asset pursuant\nto an ineffective entitlement order, the securities intermediary shall\nreestablish a security entitlement in favor of the person entitled to\nit, and pay or credit any payments or distributions that the person did\nnot receive as a result of the wrongful transfer. If the securities\nintermediary does not reestablish a security entitlement, the securities\nintermediary is liable to the entitlement holder for damages.\n