Texas Business and Commerce Code

Sec. § 8.115
Securities Intermediary and Others Not Liable to Adverse Claimant


A securities intermediary that has transferred a financial asset pursuant to an effective entitlement order, or a broker or other agent or bailee that has dealt with a financial asset at the direction of its customer or principal, is not liable to a person having an adverse claim to the financial asset, unless the securities intermediary, or broker or other agent or bailee:

(1)

took the action after it had been served with an injunction, restraining order, or other legal process enjoining it from doing so issued by a court of competent jurisdiction and had a reasonable opportunity to act on the injunction, restraining order, or other legal process;

(2)

acted in collusion with the wrongdoer in violating the rights of the adverse claimant; or

(3)

in the case of a security certificate that has been stolen, acted with notice of the adverse claim.
Added by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. Sept. 1, 1995.
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Last accessed
Jun. 7, 2021