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Texas Business & Commerce Code - Section 8.210. Overissue

Legal Research Home > Texas Laws > Business & Commerce Code > Texas Business & Commerce Code - Section 8.210. Overissue

§ 8.210. OVERISSUE.  (a) In this section, "overissue" 
means the issue of securities in excess of the amount the issuer has 
corporate power to issue, but an overissue does not occur if 
appropriate action has cured the overissue.
	(b)  Except as otherwise provided in Subsections (c) and (d), 
the provisions of this chapter that validate a security or compel 
its issue or reissue do not apply to the extent that validation, 
issue, or reissue would result in overissue.
	(c)  If an identical security not constituting an overissue 
is reasonably available for purchase, a person entitled to issue or 
validation may compel the issuer to purchase the security and 
deliver it if certificated or register its transfer if 
uncertificated, against surrender of any security certificate the 
person holds.
	(d)  If a security is not reasonably available for purchase, 
a person entitled to issue or validation may recover from the issuer 
the price the person or the last purchaser for value paid for it 
with interest from the date of the person's demand.

Added by Acts 1995, 74th Leg., ch. 962, § 1, eff. Sept. 1, 1995.           

Last modified: August 11, 2007