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What obligations should the custodian perform

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What obligations should the custodian perform


        

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  • 2024-06-02 06:00:03

    In the custody contract, the custodian has the following obligations:

    1. Obligation to pay custody certificates; Where the depositor delivers the deposit to the depository, the depository shall issue a safekeeping certificate, except where there are other trading customs.

    2. Obligation to keep the deposit properly; The depository may not transfer the deposit to a third person for safekeeping, unless otherwise agreed by the parties. Where the depository, in violation of the provisions of the preceding paragraph, transfers the deposit to a third person for safekeeping, thereby causing losses to the deposit, it shall be liable for compensation.

    3. Obligation not to transfer custody; The depository shall keep the deposit properly. The parties may agree on the place or method of safekeeping. Except in an emergency or in order to safeguard the interests of the depositor, the place or method of safekeeping may not be changed without authorization.

    4. Obligation not to use. The depository may not use or permit a third party to use the deposit, except as otherwise agreed by the parties.

    [Legal Basis]

    In Article 892 of the Civil Code, the depository shall properly keep the deposit. The parties may agree on the place or method of safekeeping. Except in an emergency or in order to safeguard the interests of the depositor, the place or method of safekeeping may not be changed without authorization.

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