Sec. 8.109. WARRANTIES IN INDIRECT HOLDING. (a) A person who originates an entitlement order to a securities intermediary warrants to the securities intermediary that:
(1) the entitlement order is made by an appropriate person, or if the entitlement order is by an agent, the agent has actual authority to act on behalf of the appropriate person; and
(2) there is no adverse claim to the security entitlement.
(b) A person who delivers a security certificate to a securities intermediary for credit to a securities account or originates an instruction with respect to an uncertificated security directing that the uncertificated security be credited to a securities account makes to the securities intermediary the warranties specified in Section 8.108(a) or (b).
(c) If a securities intermediary delivers a security certificate to its entitlement holder or causes its entitlement holder to be registered as the owner of an uncertificated security, the securities intermediary makes to the entitlement holder the warranties specified in Section 8.108(a) or (b).
Added by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. Sept. 1, 1995.
Structure Texas Statutes
Title 1 - Uniform Commercial Code
Chapter 8 - Investment Securities
Subchapter A. Short Title and General Matters
Section 8.104. Acquisition of Security or Financial Asset or Interest Therein
Section 8.105. Notice of Adverse Claim
Section 8.107. Whether Indorsement, Instruction, or Entitlement Order Is Effective
Section 8.108. Warranties in Direct Holding
Section 8.109. Warranties in Indirect Holding
Section 8.110. Applicability; Choice of Law
Section 8.111. Clearing Corporation Rules
Section 8.112. Creditor's Legal Process
Section 8.113. Statute of Frauds Inapplicable
Section 8.114. Evidentiary Rules Concerning Certificated Securities
Section 8.115. Securities Intermediary and Others Not Liable to Adverse Claimant
Section 8.116. Securities Intermediary as Purchaser for Value