no data condition with dynamic result set - response (2) by j355ga

Did some testing and the NOT FOUND handler does not trigger for a dynamic result set.
When the NOT FOUND handler is removed then the update returns a run time error: invalid statement specified in a dynamic declare cursor.
Seems counter intuitive that NOT FOUND is triggered for run-time errors.  The manual says "NOT FOUND is a generic condition that represents the SQLSTATE codes for all 'no data
found' completion conditions." 
Thanks