Texas Business & Commerce Code

§ 8.108 — WARRANTIES IN DIRECT HOLDING

BC § 8.108Title 1. UNIFORM COMMERCIAL CODE · Ch. 8. INVESTMENT SECURITIES · Art. A. SHORT TITLE AND GENERAL MATTERS

Statute text

(a)A person who transfers a certificated security to a purchaser for value warrants to the purchaser, and an indorser, if the transfer is by indorsement, warrants to any subsequent purchaser, that:

(1)the certificate is genuine and has not been materially altered;

(2)the transferor or indorser does not know of any fact that might impair the validity of the security;

(3)there is no adverse claim to the security;

(4)the transfer does not violate any restriction on transfer;

(5)if the transfer is by indorsement, the indorsement is made by an appropriate person, or if the indorsement is by an agent, the agent has actual authority to act on behalf of the appropriate person; and

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Legislative history

Amended by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. Sept. 1, 1995.