Texas Business & Commerce Code
§ 8.501 — SECURITIES ACCOUNT; ACQUISITION OF SECURITY ENTITLEMENT FROM SECURITIES INTERMEDIARY
BC § 8.501Title 1. UNIFORM COMMERCIAL CODE · Ch. 8. INVESTMENT SECURITIES · Art. E. SECURITY ENTITLEMENTS
Statute text
View on source(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.
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Legislative history
Added by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. Sept. 1, 1995.