Sec. 8.205. EFFECT OF UNAUTHORIZED SIGNATURE ON SECURITY CERTIFICATE. An unauthorized signature placed on a security certificate before or in the course of issue is ineffective, but the signature is effective in favor of a purchaser for value of the certificated security if the purchaser is without notice of the lack of authority and the signing has been done by:
(1) an authenticating trustee, registrar, transfer agent, or other person entrusted by the issuer with the signing of the security certificate or of similar security certificates or with the immediate preparation for signing of any of them; or
(2) an employee of the issuer, or of any of the persons listed in Subdivision (1), entrusted with responsible handling of the security certificate.
Amended 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 B. Issue and Issuer
Section 8.202. Issuer's Responsibility and Defenses; Notice of Defect or Defense
Section 8.203. Staleness as Notice of Defect or Defense
Section 8.204. Effect of Issuer's Restriction on Transfer
Section 8.205. Effect of Unauthorized Signature on Security Certificate
Section 8.206. Completion or Alteration of Security Certificate
Section 8.207. Rights and Duties of Issuer With Respect to Registered Owners
Section 8.208. Effect of Signature of Authenticating Trustee, Registrar, or Transfer Agent