Tex. Bus. & Com. Code Section 8.504
Duty of Securities Intermediary to Maintain Financial Asset

(a)

A securities intermediary shall promptly obtain and thereafter maintain a financial asset in a quantity corresponding to the aggregate of all security entitlements it has established in favor of its entitlement holders with respect to that financial asset. The securities intermediary may maintain those financial assets directly or through one or more other securities intermediaries.

(b)

Except to the extent otherwise agreed on by its entitlement holder, a securities intermediary may not grant any security interests in a financial asset it is obligated to maintain pursuant to Subsection (a).

(c)

A securities intermediary satisfies the duty in Subsection (a) if:

(1)

the securities intermediary acts with respect to the duty as agreed on by the entitlement holder and the securities intermediary; or

(2)

in the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to obtain and maintain the financial asset.

(d)

This section does not apply to a clearing corporation that is itself the obligor of an option or similar obligation to which its entitlement holders have security entitlements.
Added by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. Sept. 1, 1995.

Source: Section 8.504 — Duty of Securities Intermediary to Maintain Financial Asset, https://statutes.­capitol.­texas.­gov/Docs/BC/htm/BC.­8.­htm#8.­504 (accessed Jun. 5, 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
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 8.504’s source at texas​.gov