Tex. Bus. & Com. Code § 8.501 · Subchapter E. SECURITY ENTITLEMENTS
SECURITIES ACCOUNT; ACQUISITION OF SECURITY ENTITLEMENT FROM SECURITIES INTERMEDIARY.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(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.
Notes and commentary — not statutory text
History
Added by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. Sept. 1, 1995.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BC/htm/BC.8.htm
- Text hash
- sha256 d8607ba6368b2dd9f0ecbc475ca0fb75a7981e2ee61440884cba773e17495a17
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Cited by 4 provisions
Provisions in this library whose text cites Tex. Bus. & Com. Code § 8.501. Each shows the citation as that text prints it.
Business & Commerce Code
- Tex. Bus. & Com. Code § 8.102DEFINITIONS.Printed as Section 8.501 | Section 8.501(b)(2)
- Tex. Bus. & Com. Code § 8.104ACQUISITION OF SECURITY OR FINANCIAL ASSET OR INTEREST THEREIN.Printed as Section 8.501
- Tex. Bus. & Com. Code § 8.502ASSERTION OF ADVERSE CLAIM AGAINST ENTITLEMENT HOLDER.Printed as Section 8.501
- Tex. Bus. & Com. Code § 9.102DEFINITIONS AND INDEX OF DEFINITIONS.Printed as Section 8.501
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.