Tex. Bus. & Com. Code Section 8.510
Rights of Purchaser of Security Entitlement from Entitlement Holder


(a)

In a case not covered by the priority rules in Chapter 9 (Applicability of Law to Commercial Transactions) or the rules stated in Subsection (c), an action based on an adverse claim to a financial asset or security entitlement, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against a person who purchases a security entitlement, or an interest therein, from an entitlement holder if the purchaser gives value, does not have notice of the adverse claim, and obtains control.

(b)

If an adverse claim could not have been asserted against an entitlement holder under Section 8.502 (Assertion of Adverse Claim Against Entitlement Holder), the adverse claim cannot be asserted against a person who purchases from the entitlement holder a security entitlement or an interest therein.

(c)

In a case not covered by the priority rules in Chapter 9 (Applicability of Law to Commercial Transactions), a purchaser for value of a security entitlement, or an interest therein, who obtains control has priority over a purchaser of a security entitlement, or an interest therein, who does not obtain control. Except as otherwise provided in Subsection (d), purchasers who have control rank according to priority in time of:

(1)

the purchaser’s becoming the person for whom the securities account, in which the security entitlement is carried, is maintained, if the purchaser obtained control under Section 8.106 (Control)(d)(1);

(2)

the securities intermediary’s agreement to comply with the purchaser’s entitlement orders with respect to security entitlements carried or to be carried in the securities account in which the security entitlement is carried, if the purchaser obtained control under Section 8.106 (Control)(d)(2); or

(3)

if the purchaser obtained control through another person under Section 8.106 (Control)(d)(3), the time on which priority would be based under this subsection if the other person were the secured party.

(d)

A securities intermediary as purchaser has priority over a conflicting purchaser who has control unless otherwise agreed on by the securities intermediary.
Added by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1999, 76th Leg., ch. 414, Sec. 2.31, eff. July 1, 2001.

Source: Section 8.510 — Rights of Purchaser of Security Entitlement from Entitlement Holder, https://statutes.­capitol.­texas.­gov/Docs/BC/htm/BC.­8.­htm#8.­510 (accessed Mar. 23, 2024).

8.101
Short Title
8.102
Definitions
8.103
Rules for Determining Whether Certain Obligations and Interests Are Securities or Financial Assets
8.104
Acquisition of Security or Financial Asset or Interest Therein
8.105
Notice of Adverse Claim
8.106
Control
8.107
Whether Indorsement, Instruction, or Entitlement Order Is Effective
8.108
Warranties in Direct Holding
8.109
Warranties in Indirect Holding
8.110
Applicability
8.111
Clearing Corporation Rules
8.112
Creditor’s Legal Process
8.113
Statute of Frauds Inapplicable
8.114
Evidentiary Rules Concerning Certificated Securities
8.115
Securities Intermediary and Others Not Liable to Adverse Claimant
8.116
Securities Intermediary as Purchaser for Value
8.201
Issuer
8.202
Issuer’s Responsibility and Defenses
8.203
Staleness as Notice of Defect or Defense
8.204
Effect of Issuer’s Restriction on Transfer
8.205
Effect of Unauthorized Signature on Security Certificate
8.206
Completion or Alteration of Security Certificate
8.207
Rights and Duties of Issuer with Respect to Registered Owners
8.208
Effect of Signature of Authenticating Trustee, Registrar, or Transfer Agent
8.209
Issuer’s Lien
8.210
Overissue
8.301
Delivery
8.302
Rights of Purchaser
8.303
Protected Purchaser
8.304
Indorsement
8.305
Instruction
8.306
Effect of Guaranteeing Signature, Indorsement, or Instruction
8.307
Purchaser’s Right to Requisites for Registration of Transfer
8.401
Duty of Issuer to Register Transfer
8.402
Assurance that Indorsement or Instruction Is Effective
8.403
Demand that Issuer Not Register Transfer
8.404
Wrongful Registration
8.405
Replacement of Lost, Destroyed, or Wrongfully Taken Security Certificate
8.406
Obligation to Notify Issuer of Lost, Destroyed, or Wrongfully Taken Security Certificate
8.407
Authenticating Trustee, Transfer Agent, and Registrar
8.501
Securities Account
8.502
Assertion of Adverse Claim Against Entitlement Holder
8.503
Property Interest of Entitlement Holder in Financial Asset Held by Securities Intermediary
8.504
Duty of Securities Intermediary to Maintain Financial Asset
8.505
Duty of Securities Intermediary with Respect to Payments and Distributions
8.506
Duty of Securities Intermediary to Exercise Rights as Directed by Entitlement Holder
8.507
Duty of Securities Intermediary to Comply with Entitlement Order
8.508
Duty of Securities Intermediary to Change Entitlement Holder’s Position to Other Form of Security Holding
8.509
Specification of Duties of Securities Intermediary by Other Statute or Regulation
8.510
Rights of Purchaser of Security Entitlement from Entitlement Holder
8.511
Priority Among Security Interests and Entitlement Holders

Accessed:
Mar. 23, 2024

§ 8.510’s source at texas​.gov