Court Opinions

State Laws

US Code

US Constitution

Texas Business & Commerce Code - Section 8.501. Securities Account; Acquisition Of Security Entitlement From Securities Intermediary

Legal Research Home > Texas Laws > Business & Commerce Code > Texas Business & Commerce Code - Section 8.501. Securities Account; Acquisition Of Security Entitlement From Securities Intermediary

§ 8.501. SECURITIES ACCOUNT;  ACQUISITION OF SECURITY 
ENTITLEMENT FROM SECURITIES INTERMEDIARY.  (a) "Securities 
account" means an account to which a financial asset is or may be 
credited in accordance with an agreement under which the person 
maintaining the account undertakes to treat the person for whom the 
account is maintained as entitled to exercise the rights that 
comprise the financial asset.
	(b)  Except as otherwise provided in Subsections (d) and (e), 
a person acquires a security entitlement if a securities 
intermediary:
		(1)  indicates by book entry that a financial asset has 
been credited to the person's securities account;
		(2)  receives a financial asset from the person or 
acquires a financial asset for the person and, in either case, 
accepts it for credit to the person's securities account;  or
		(3)  becomes obligated under other law, regulation, or 
rule to credit a financial asset to the person's securities 
account.
	(c)  If a condition of Subsection (b) has been met, a person 
has a security entitlement even though the securities intermediary 
does not itself hold the financial asset.
	(d)  If a securities intermediary holds a financial asset for 
another person, and the financial asset is registered in the name 
of, payable to the order of, or specially indorsed to the other 
person and has not been indorsed to the securities intermediary or 
in blank, the other person is treated as holding the financial asset 
directly rather than as having a security entitlement with respect 
to the financial asset.
	(e)  Issuance of a security is not establishment of a 
security entitlement.  

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

Last modified: August 11, 2007