reglab/statecodes huggingface dataset:
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 8 - Investment Securities › Subchapter E. Security Entitlements › Section 8.501. Securities Account; Acquisition of Security Entitlement From Securities Intermediary

Sec. 8.501.  SECURITIES ACCOUNT;  ACQUISITION OF SECURITY ENTITLEMENT FROM SECURITIES INTERMEDIARY.  (a)  "Securities account" means an account to which a financial asset is or may be credited in accordance with an agreement under which the person maintaining the account undertakes to treat the person for whom the account is maintained as entitled to exercise the rights that comprise the financial asset.
(b)  Except as otherwise provided in Subsections (d) and (e), a person acquires a security entitlement if a securities intermediary:
(1)  indicates by book entry that a financial asset has been credited to the person's securities account;
(2)  receives a financial asset from the person or acquires a financial asset for the person and, in either case, accepts it for credit to the person's securities account;  or
(3)  becomes obligated under other law, regulation, or rule to credit a financial asset to the person's securities account.
(c)  If a condition of Subsection (b) has been met, a person has a security entitlement even though the securities intermediary does not itself hold the financial asset.
(d)  If a securities intermediary holds a financial asset for another person, and the financial asset is registered in the name of, payable to the order of, or specially indorsed to the other person and has not been indorsed to the securities intermediary or in blank, the other person is treated as holding the financial asset directly rather than as having a security entitlement with respect to the financial asset.
(e)  Issuance of a security is not establishment of a security entitlement.
Added by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. Sept. 1, 1995.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 8 - Investment Securities › Subchapter E. Security Entitlements › Section 8.502. Assertion of Adverse Claim Against Entitlement Holder

Sec. 8.502.  ASSERTION OF ADVERSE CLAIM AGAINST ENTITLEMENT HOLDER.  An action based on an adverse claim to a financial asset, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against a person who acquires a security entitlement under Section 8.501 for value and without notice of the adverse claim.
Added by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. Sept. 1, 1995.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 8 - Investment Securities › Subchapter E. Security Entitlements › Section 8.503. Property Interest of Entitlement Holder in Financial Asset Held by Securities Intermediary

Sec. 8.503.  PROPERTY INTEREST OF ENTITLEMENT HOLDER IN FINANCIAL ASSET HELD BY SECURITIES INTERMEDIARY.  (a)  To the extent necessary for a securities intermediary to satisfy all security entitlements with respect to a particular financial asset, all interests in that financial asset held by the securities intermediary are held by the securities intermediary for the entitlement holders, are not property of the securities intermediary, and are not subject to claims of creditors of the securities intermediary, except as otherwise provided in Section 8.511.
(b)  An entitlement holder's property interest with respect to a particular financial asset under Subsection (a) is a pro rata property interest in all interests in that financial asset held by the securities intermediary, without regard to the time the entitlement holder acquired the security entitlement or the time the securities intermediary acquired the interest in that financial asset.
(c)  An entitlement holder's property interest with respect to a particular financial asset under Subsection (a) may be enforced against the securities intermediary only by exercise of the entitlement holder's rights under Sections 8.505-8.508.
(d)  An entitlement holder's property interest with respect to a particular financial asset under Subsection (a) may be enforced against a purchaser of the financial asset or interest therein only if:
(1)  insolvency proceedings have been initiated by or against the securities intermediary;
(2)  the securities intermediary does not have sufficient interests in the financial asset to satisfy the security entitlements of all of its entitlement holders to that financial asset;
(3)  the securities intermediary violated its obligations under Section 8.504 by transferring the financial asset or interest therein to the purchaser;  and
(4)  the purchaser is not protected under Subsection (f).
(e)  The trustee or other liquidator, acting on behalf of all entitlement holders having security entitlements with respect to a particular financial asset, may recover the financial asset, or interest therein, from the purchaser.  If the trustee or other liquidator elects not to pursue that right, an entitlement holder whose security entitlement remains unsatisfied has the right to recover its interest in the financial asset from the purchaser.
(f)  An action based on the entitlement holder's property interest with respect to a particular financial asset under Subsection (a), whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against any purchaser of a financial asset or interest therein who gives value, obtains control, and does not act in collusion with the securities intermediary in violating the securities intermediary's obligations under Section 8.504.
Added by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. Sept. 1, 1995.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 8 - Investment Securities › Subchapter E. Security Entitlements › Section 8.504. Duty of Securities Intermediary to Maintain Financial Asset

Sec. 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.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 8 - Investment Securities › Subchapter E. Security Entitlements › Section 8.505. Duty of Securities Intermediary With Respect to Payments and Distributions

Sec. 8.505.  DUTY OF SECURITIES INTERMEDIARY WITH RESPECT TO PAYMENTS AND DISTRIBUTIONS.  (a)  A securities intermediary shall take action to obtain a payment or distribution made by the issuer of a financial asset.  A securities intermediary satisfies the duty 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 attempt to obtain the payment or distribution.
(b)  A securities intermediary is obligated to its entitlement holder for a payment or distribution made by the issuer of a financial asset if the payment or distribution is received by the securities intermediary.
Added by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. Sept. 1, 1995.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 8 - Investment Securities › Subchapter E. Security Entitlements › Section 8.506. Duty of Securities Intermediary to Exercise Rights as Directed by Entitlement Holder

Sec. 8.506.  DUTY OF SECURITIES INTERMEDIARY TO EXERCISE RIGHTS AS DIRECTED BY ENTITLEMENT HOLDER.  A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder.  A securities intermediary satisfies the duty 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 either places the entitlement holder in a position to exercise the rights directly or exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.
Added by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. Sept. 1, 1995.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 8 - Investment Securities › Subchapter E. Security Entitlements › Section 8.507. Duty of Securities Intermediary to Comply With Entitlement Order

Sec. 8.507.  DUTY OF SECURITIES INTERMEDIARY TO COMPLY WITH ENTITLEMENT ORDER.  (a)  A securities intermediary shall comply with an entitlement order if the entitlement order is originated by the appropriate person, the securities intermediary has had reasonable opportunity to assure itself that the entitlement order is genuine and authorized, and the securities intermediary has had reasonable opportunity to comply with the entitlement order.  A securities intermediary satisfies the duty 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 comply with the entitlement order.
(b)  If a securities intermediary transfers a financial asset pursuant to an ineffective entitlement order, the securities intermediary shall reestablish a security entitlement in favor of the person entitled to it and pay or credit any payments or distributions that the person did not receive as a result of the wrongful transfer.  If the securities intermediary does not reestablish a security entitlement, the securities intermediary is liable to the entitlement holder for damages.
Added by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. Sept. 1, 1995.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 8 - Investment Securities › Subchapter E. Security Entitlements › Section 8.508. Duty of Securities Intermediary to Change Entitlement Holder's Position to Other Form of Security Holding

Sec. 8.508.  DUTY OF SECURITIES INTERMEDIARY TO CHANGE ENTITLEMENT HOLDER'S POSITION TO OTHER FORM OF SECURITY HOLDING.  A securities intermediary shall act at the direction of an entitlement holder to change a security entitlement into another available form of holding for which the entitlement holder is eligible or to cause the financial asset to be transferred to a securities account of the entitlement holder with another securities intermediary.  A securities intermediary satisfies the duty if:
(1)  the securities intermediary acts 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 follow the direction of the entitlement holder.
Added by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. Sept. 1, 1995.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 8 - Investment Securities › Subchapter E. Security Entitlements › Section 8.509. Specification of Duties of Securities Intermediary by Other Statute or Regulation; Manner of Performance of Duties of Securities Intermediary and Exercise of Rights of Entitlement Holder

Sec. 8.509.  SPECIFICATION OF DUTIES OF SECURITIES INTERMEDIARY BY OTHER STATUTE OR REGULATION;  MANNER OF PERFORMANCE OF DUTIES OF SECURITIES INTERMEDIARY AND EXERCISE OF RIGHTS OF ENTITLEMENT HOLDER.  (a)  If the substance of a duty imposed on a securities intermediary by Sections 8.504-8.508 is the subject of another statute, regulation, or rule, compliance with that statute, regulation, or rule satisfies the duty.
(b)  To the extent that specific standards for the performance of the duties of a securities intermediary or the exercise of the rights of an entitlement holder are not specified by another statute, regulation, or rule or by agreement between the securities intermediary and the entitlement holder, the securities intermediary shall perform its duties and the entitlement holder shall exercise its rights in a commercially reasonable manner.
(c)  The obligation of a securities intermediary to perform the duties imposed by Sections 8.504-8.508 is subject to:
(1)  rights of the securities intermediary arising out of a security interest under a security agreement with the entitlement holder or otherwise;  and
(2)  rights of the securities intermediary under another law, regulation, rule, or agreement to withhold performance of its duties as a result of unfulfilled obligations of the entitlement holder to the securities intermediary.
(d)  Sections 8.504-8.508 do not require a securities intermediary to take any action that is prohibited by another statute, regulation, or rule.
Added by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. Sept. 1, 1995.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 8 - Investment Securities › Subchapter E. Security Entitlements › Section 8.510. Rights of Purchaser of Security Entitlement From Entitlement Holder

Sec. 8.510.  RIGHTS OF PURCHASER OF SECURITY ENTITLEMENT FROM ENTITLEMENT HOLDER.  (a)  In a case not covered by the priority rules in Chapter 9 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, 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, 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(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(d)(2);  or
(3)  if the purchaser obtained control through another person under Section 8.106(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.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 8 - Investment Securities › Subchapter E. Security Entitlements › Section 8.511. Priority Among Security Interests and Entitlement Holders

Sec. 8.511.  PRIORITY AMONG SECURITY INTERESTS AND ENTITLEMENT HOLDERS.  (a)  Except as otherwise provided in Subsections (b) and (c), if a securities intermediary does not have sufficient interests in a particular financial asset to satisfy both its obligations to entitlement holders who have security entitlements to that financial asset and its obligation to a creditor of the securities intermediary who has a security interest in that financial asset, the claims of entitlement holders, other than the creditor, have priority over the claim of the creditor.
(b)  A claim of a creditor of a securities intermediary who has a security interest in a financial asset held by a securities intermediary has priority over claims of the securities intermediary's entitlement holders who have security entitlements with respect to that financial asset if the creditor has control over the financial asset.
(c)  If a clearing corporation does not have sufficient financial assets to satisfy both its obligations to entitlement holders who have security entitlements with respect to a financial asset and its obligation to a creditor of the clearing corporation who has a security interest in that financial asset, the claim of the creditor has priority over the claims of entitlement holders.
Added by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. Sept. 1, 1995.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter A. Short Title, Definitions, and General Concepts › Section 9.101. Short Title

Sec. 9.101.  SHORT TITLE.  This chapter may be cited as Uniform Commercial Code--Secured Transactions.
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter A. Short Title, Definitions, and General Concepts › Section 9.104. Control of Deposit Account

Sec. 9.104.  CONTROL OF DEPOSIT ACCOUNT.  (a)  A secured party has control of a deposit account if:
(1)  the secured party is the bank with which the deposit account is maintained;
(2)  the debtor, secured party, and bank have agreed in an authenticated record that the bank will comply with instructions originated by the secured party directing disposition of the funds in the deposit account without further consent by the debtor;  or
(3)  the secured party becomes the bank's customer with respect to the deposit account.
(b)  A secured party that has satisfied Subsection (a) has control, even if the debtor retains the right to direct the disposition of funds from the deposit account.
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001;  Acts 2001, 77th Leg., ch. 705, Sec. 2, eff. June 13, 2001.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter A. Short Title, Definitions, and General Concepts › Section 9.105. Control of Electronic Chattel Paper

Sec. 9.105.  CONTROL OF ELECTRONIC CHATTEL PAPER.  (a)  A secured party has control of electronic chattel paper if a system employed for evidencing the transfer of interests in the chattel paper reliably establishes the secured party as the person to which the chattel paper was assigned.
(b)  A system satisfies Subsection (a), and a secured party has control of electronic chattel paper, if the record or records comprising the chattel paper are created, stored, and assigned in such a manner that:
(1)  a single authoritative copy of the record or records exists that is unique, identifiable, and, except as otherwise provided in Subdivisions (4), (5), and (6), unalterable;
(2)  the authoritative copy identifies the secured party as the assignee of the record or records;
(3)  the authoritative copy is communicated to and maintained by the secured party or its designated custodian;
(4)  copies or amendments that add or change an identified assignee of the authoritative copy can be made only with the consent of the secured party;
(5)  each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative copy; and
(6)  any amendment of the authoritative copy is readily identifiable as authorized or unauthorized.
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 67 (S.B. 782), Sec. 2, eff. July 1, 2013.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter A. Short Title, Definitions, and General Concepts › Section 9.106. Control of Investment Property

Sec. 9.106.  CONTROL OF INVESTMENT PROPERTY.  (a)  A person has control of a certificated security, uncertificated security, or security entitlement as provided in Section 8.106.
(b)  A secured party has control of a commodity contract if:
(1)  the secured party is the commodity intermediary with which the commodity contract is carried;  or
(2)  the commodity customer, secured party, and commodity intermediary have agreed that the commodity intermediary will apply any value distributed on account of the commodity contract as directed by the secured party without further consent by the commodity customer.
(c)  A secured party having control of all security entitlements or commodity contracts carried in a securities account or commodity account has control over the securities account or commodity account.
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter A. Short Title, Definitions, and General Concepts › Section 9.107. Control of Letter-of-Credit Right

Sec. 9.107.  CONTROL OF LETTER-OF-CREDIT RIGHT.  A secured party has control of a letter-of-credit right to the extent of any right to payment or performance by the issuer or any nominated person if the issuer or nominated person has consented to an assignment of proceeds of the letter of credit under Section 5.114(c) or otherwise applicable law or practice.
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter A. Short Title, Definitions, and General Concepts › Section 9.1071. Control of Virtual Currency

Sec. 9.1071.  CONTROL OF VIRTUAL CURRENCY.  A secured party has control of virtual currency as provided by Section 12.004.
Added by Acts 2021, 87th Leg., R.S., Ch. 739 (H.B. 4474), Sec. 2, eff. September 1, 2021.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter A. Short Title, Definitions, and General Concepts › Section 9.108. Sufficiency of Description

Sec. 9.108.  SUFFICIENCY OF DESCRIPTION.  (a)  Except as otherwise provided in Subsections (c), (d), and (e), a description of personal or real property is sufficient, whether or not it is specific, if it reasonably identifies what is described.
(b)  Except as otherwise provided in Subsection (d), a description of collateral reasonably identifies the collateral if it identifies the collateral by:
(1)  specific listing;
(2)  category;
(3)  except as otherwise provided in Subsection (e), a type of collateral defined in this title;
(4)  quantity;
(5)  computational or allocational formula or procedure;  or
(6)  except as otherwise provided in Subsection (c), any other method, if the identity of the collateral is objectively determinable.
(c)  A description of collateral as "all the debtor's assets" or "all the debtor's personal property" or using words of similar import does not reasonably identify the collateral.
(d)  Except as otherwise provided in Subsection (e), a description of a security entitlement, securities account, or commodity account is sufficient if it describes:
(1)  the collateral by those terms or as investment property;  or
(2)  the underlying financial asset or commodity contract.
(e)  A description only by type of collateral defined in this title is an insufficient description of:
(1)  a commercial tort claim;  or
(2)  in a consumer transaction, consumer goods, a security entitlement, a securities account, or a commodity account.
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter A. Short Title, Definitions, and General Concepts › Section 9.110. Security Interests Arising Under Chapter 2 or 2a

Sec. 9.110.  SECURITY INTERESTS ARISING UNDER CHAPTER 2 OR 2A.  A security interest arising under Section 2.401, 2.505, 2.711(c), or 2A.508(e) is subject to this chapter.  However, until the debtor obtains possession of the goods:
(1)  the security interest is enforceable, even if Section 9.203(b)(3) has not been satisfied;
(2)  filing is not required to perfect the security interest;
(3)  the rights of the secured party after default by the debtor are governed by Chapter 2 or 2A;  and
(4)  the security interest has priority over a conflicting security interest created by the debtor.
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter B. Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement › Section 9.201. General Effectiveness of Security Agreement

Sec. 9.201.  GENERAL EFFECTIVENESS OF SECURITY AGREEMENT.  (a)  Except as otherwise provided by this title, a security agreement is effective according to its terms between the parties, against purchasers of the collateral, and against creditors.
(b)  A transaction subject to this chapter is subject to any applicable rule of law that establishes a different rule for consumers and to:
(1)  Title 4, Finance Code;  and
(2)  Subchapter E, Chapter 17.
(c)  In case of conflict between this chapter and a rule of law, statute, or regulation described in Subsection (b), the rule of law, statute, or regulation controls.  Failure to comply with a statute or regulation described in Subsection (b) has only the effect the statute or regulation specifies.
(d)  This chapter does not:
(1)  validate any rate, charge, agreement, or practice that violates a rule of law, statute, or regulation described in Subsection (b);  or
(2)  extend the application of the rule of law, statute, or regulation to a transaction not otherwise subject to it.
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter B. Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement › Section 9.202. Title to Collateral Immaterial

Sec. 9.202.  TITLE TO COLLATERAL IMMATERIAL.  Except as otherwise provided with respect to consignments or sales of accounts, chattel paper, payment intangibles, or promissory notes, the provisions of this chapter with regard to rights and obligations apply whether title to collateral is in the secured party or the debtor.
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter B. Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement › Section 9.204. After-Acquired Property; Future Advances

Sec. 9.204.  AFTER-ACQUIRED PROPERTY;  FUTURE ADVANCES.  (a)  Except as provided in Subsection (b), a security agreement may create or provide for a security interest in after-acquired collateral.
(b)  A security interest does not attach under a term constituting an after-acquired property clause to:
(1)  consumer goods, other than an accession when given as additional security, unless the debtor acquires rights in them within 10 days after the secured party gives value;  or
(2)  a commercial tort claim.
(c)  A security agreement may provide that collateral secures, or that accounts, chattel paper, payment intangibles, or promissory notes are sold in connection with, future advances or other value, whether or not the advances or value are given pursuant to commitment.
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter B. Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement › Section 9.205. Use or Disposition of Collateral Permissible

Sec. 9.205.  USE OR DISPOSITION OF COLLATERAL PERMISSIBLE.  (a)  A security interest is not invalid or fraudulent against creditors solely because:
(1)  the debtor has the right or ability to:
(A)  use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;
(B)  collect, compromise, enforce, or otherwise deal with collateral;
(C)  accept the return of collateral or make repossessions; or
(D)  use, commingle, or dispose of proceeds; or
(2)  the secured party fails to require the debtor to account for proceeds or replace collateral.
(b)  This section does not relax the requirements of possession if attachment, perfection, or enforcement of a security interest depends upon possession of the collateral by the secured party.
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter B. Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement › Section 9.206. Security Interest Arising in Purchase or Delivery of Financial Asset

Sec. 9.206.  SECURITY INTEREST ARISING IN PURCHASE OR DELIVERY OF FINANCIAL ASSET.  (a)  A security interest in favor of a securities intermediary attaches to a person's security entitlement if:
(1)  the person buys a financial asset through the securities intermediary in a transaction in which the person is obligated to pay the purchase price to the securities intermediary at the time of the purchase;  and
(2)  the securities intermediary credits the financial asset to the buyer's securities account before the buyer pays the securities intermediary.
(b)  The security interest described in Subsection (a) secures the person's obligation to pay for the financial asset.
(c)  A security interest in favor of a person that delivers a certificated security or other financial asset represented by a writing attaches to the security or other financial asset if:
(1)  the security or other financial asset:
(A)  in the ordinary course of business is transferred by delivery with any necessary indorsement or assignment;  and
(B)  is delivered under an agreement between persons in the business of dealing with such securities or financial assets;  and
(2)  the agreement calls for delivery against payment.
(d)  The security interest described in Subsection (c) secures the obligation to make payment for the delivery.
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter B. Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement › Section 9.207. Rights and Duties of Secured Party Having Possession or Control of Collateral

Sec. 9.207.  RIGHTS AND DUTIES OF SECURED PARTY HAVING POSSESSION OR CONTROL OF COLLATERAL.  (a)  Except as otherwise provided in Subsection (d), a secured party shall use reasonable care in the custody and preservation of collateral in the secured party's possession.  In the case of chattel paper or an instrument, reasonable care includes taking necessary steps to preserve rights against prior parties unless otherwise agreed.
(b)  Except as otherwise provided in Subsection (d), if a secured party has possession of collateral:
(1)  reasonable expenses, including the cost of insurance and payment of taxes or other charges, incurred in the custody, preservation, use, or operation of the collateral are chargeable to the debtor and are secured by the collateral;
(2)  the risk of accidental loss or damage is on the debtor to the extent of any deficiency in any effective insurance coverage;
(3)  the secured party shall keep the collateral identifiable, but fungible collateral may be commingled;  and
(4)  the secured party may use or operate the collateral:
(A)  for the purpose of preserving the collateral or its value;
(B)  as permitted by an order of a court having competent jurisdiction;  or
(C)  except in the case of consumer goods, in the manner and to the extent agreed by the debtor.
(c)  Except as otherwise provided in Subsection (d), a secured party having possession of collateral or control of collateral under Section 7.106, 9.104, 9.105, 9.106, or 9.107:
(1)  may hold as additional security any proceeds, except money or funds, received from the collateral;
(2)  shall apply money or funds received from the collateral to reduce the secured obligation, unless remitted to the debtor; and
(3)  may create a security interest in the collateral.
(d)  If the secured party is a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a consignor:
(1)  Subsection (a) does not apply unless the secured party is entitled under an agreement:
(A)  to charge back uncollected collateral;  or
(B)  otherwise to full or limited recourse against the debtor or a secondary obligor based on the nonpayment or other default of an account debtor or other obligor on the collateral;  and
(2)  Subsections (b) and (c) do not apply.
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 122 (S.B. 1593), Sec. 21, eff. September 1, 2005.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter B. Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement › Section 9.209. Duties of Secured Party if Account Debtor Has Been Notified of Assignment

Sec. 9.209.  DUTIES OF SECURED PARTY IF ACCOUNT DEBTOR HAS BEEN NOTIFIED OF ASSIGNMENT.  (a)  Except as otherwise provided in Subsection (c), this section applies if:
(1)  there is no outstanding secured obligation;  and
(2)  the secured party is not committed to make advances, incur obligations, or otherwise give value.
(b)  Within 10 days after receiving an authenticated demand by the debtor, a secured party shall send to an account debtor that has received notification of an assignment to the secured party as assignee under Section 9.406(a) an authenticated record that releases the account debtor from any further obligation to the secured party.
(c)  This section does not apply to an assignment constituting the sale of an account, chattel paper, or payment intangible.
Added by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter C. Perfection and Priority › Section 9.301. Law Governing Perfection and Priority of Security Interests

Sec. 9.301.  LAW GOVERNING PERFECTION AND PRIORITY OF SECURITY INTERESTS.  Except as otherwise provided in Sections 9.303 through 9.306, the following rules determine the law governing perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral:
(1)  Except as otherwise provided in this section, while a debtor is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral.
(2)  While collateral is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a possessory security interest in that collateral.
(3)  Except as otherwise provided in Subdivision (4), while tangible negotiable documents, goods, instruments, money, or tangible chattel paper is located in a jurisdiction, the local law of that jurisdiction governs:
(A)  perfection of a security interest in the goods by filing a fixture filing;
(B)  perfection of a security interest in timber to be cut; and
(C)  the effect of perfection or nonperfection and the priority of a nonpossessory security interest in the collateral.
(4)  The local law of the jurisdiction in which the wellhead or minehead is located governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in as-extracted collateral.
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 122 (S.B. 1593), Sec. 23, eff. September 1, 2005.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter C. Perfection and Priority › Section 9.302. Law Governing Perfection and Priority of Agricultural Liens

Sec. 9.302.  LAW GOVERNING PERFECTION AND PRIORITY OF AGRICULTURAL LIENS.  While farm products are located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of an agricultural lien on the farm products.
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter C. Perfection and Priority › Section 9.303. Law Governing Perfection and Priority of Security Interests in Goods Covered by a Certificate of Title

Sec. 9.303.  LAW GOVERNING PERFECTION AND PRIORITY OF SECURITY INTERESTS IN GOODS COVERED BY A CERTIFICATE OF TITLE.  (a)  This section applies to goods covered by a certificate of title, even if there is no other relationship between the jurisdiction under whose certificate of title the goods are covered and the goods or the debtor.
(b)  Goods become covered by a certificate of title when a valid application for the certificate of title and the applicable fee are delivered to the appropriate authority.  Goods cease to be covered by a certificate of title at the earlier of the time the certificate of title ceases to be effective under the law of the issuing jurisdiction or the time the goods become covered subsequently by a certificate of title issued by another jurisdiction.
(c)  The local law of the jurisdiction under whose certificate of title the goods are covered governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in goods covered by a certificate of title from the time the goods become covered by the certificate of title until the goods cease to be covered by the certificate of title.
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter C. Perfection and Priority › Section 9.304. Law Governing Perfection and Priority of Security Interests in Deposit Accounts

Sec. 9.304.  LAW GOVERNING PERFECTION AND PRIORITY OF SECURITY INTERESTS IN DEPOSIT ACCOUNTS.  (a)  The local law of a bank's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a deposit account maintained with that bank.
(b)  The following rules determine a bank's jurisdiction for purposes of this subchapter:
(1)  If an agreement between the bank and its customer governing the deposit account expressly provides that a particular jurisdiction is the bank's jurisdiction for purposes of this subchapter, this chapter, or this title, that jurisdiction is the bank's jurisdiction.
(2)  If Subdivision (1) does not apply and an agreement between the bank and its customer governing the deposit account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the bank's jurisdiction.
(3)  If neither Subdivision (1) nor Subdivision (2) applies and an agreement between the bank and its customer governing the deposit account expressly provides that the deposit account is maintained at an office in a particular jurisdiction, that jurisdiction is the bank's jurisdiction.
(4)  If none of the preceding subdivisions applies, the bank's jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the customer's account is located.
(5)  If none of the preceding subdivisions applies, the bank's jurisdiction is the jurisdiction in which the chief executive office of the bank is located.
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001;  Acts 2003, 78th Leg., ch. 917, Sec. 3, eff. Sept. 1, 2003.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter C. Perfection and Priority › Section 9.306. Law Governing Perfection and Priority of Security Interests in Letter-of-Credit Rights

Sec. 9.306.  LAW GOVERNING PERFECTION AND PRIORITY OF SECURITY INTERESTS IN LETTER-OF-CREDIT RIGHTS.  (a)  Subject to Subsection (c), the local law of the issuer's jurisdiction or a nominated person's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a letter-of-credit right if the issuer's jurisdiction or nominated person's jurisdiction is a state.
(b)  For purposes of this subchapter, an issuer's jurisdiction or nominated person's jurisdiction is the jurisdiction whose law governs the liability of the issuer or nominated person with respect to the letter-of-credit right as provided in Section 5.116.
(c)  This section does not apply to a security interest that is perfected only under Section 9.308(d).
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter C. Perfection and Priority › Section 9.308. When Security Interest or Agricultural Lien Is Perfected; Continuity of Perfection

Sec. 9.308.  WHEN SECURITY INTEREST OR AGRICULTURAL LIEN IS PERFECTED;  CONTINUITY OF PERFECTION.  (a)  Except as otherwise provided in this section and Section 9.309, a security interest is perfected if it has attached and all of the applicable requirements for perfection in Sections 9.310 through 9.316 have been satisfied.  A security interest is perfected when it attaches if the applicable requirements are satisfied before the security interest attaches.
(b)  An agricultural lien is perfected if it has become effective and all of the applicable requirements for perfection in Section 9.310 have been satisfied.  An agricultural lien is perfected when it becomes effective if the applicable requirements are satisfied before the agricultural lien becomes effective.
(c)  A security interest or agricultural lien is perfected continuously if it is originally perfected by one method under this chapter and is later perfected by another method under this chapter, without an intermediate period when it was unperfected.
(d)  Perfection of a security interest in collateral also perfects a security interest in a supporting obligation for the collateral.
(e)  Perfection of a security interest in a right to payment or performance also perfects a security interest in a security interest, mortgage, or other lien on personal or real property securing the right.
(f)  Perfection of a security interest in a securities account also perfects a security interest in the security entitlements carried in the securities account.
(g)  Perfection of a security interest in a commodity account also perfects a security interest in the commodity contracts carried in the commodity account.
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 9 - Secured Transactions › Subchapter C. Perfection and Priority › Section 9.309. Security Interest Perfected Upon Attachment

Sec. 9.309.  SECURITY INTEREST PERFECTED UPON ATTACHMENT.  The following security interests are perfected when they attach:
(1)  a purchase money security interest in consumer goods, except as otherwise provided in Section 9.311(b) with respect to consumer goods that are subject to a statute or treaty described in Section 9.311(a);
(2)  an assignment of accounts or payment intangibles that does not by itself or in conjunction with other assignments to the same assignee transfer a significant part of the assignor's outstanding accounts or payment intangibles;
(3)  a sale of a payment intangible;
(4)  a sale of a promissory note;
(5)  a security interest created by the assignment of a health-care-insurance receivable to the provider of the health care goods or services;
(6)  a security interest arising under Section 2.401, 2.505, 2.711(c), or 2A.508(e), until the debtor obtains possession of the collateral;
(7)  a security interest of a collecting bank arising under Section 4.210;
(8)  a security interest of an issuer or nominated person arising under Section 5.118;
(9)  a security interest arising in the delivery of a financial asset under Section 9.206(c);
(10)  a security interest in investment property created by a broker or securities intermediary;
(11)  a security interest in a commodity contract or a commodity account created by a commodity intermediary;
(12)  an assignment for the benefit of all the creditors of the transferor and subsequent transfers by the assignee thereunder;
(13)  a security interest created by an assignment of a beneficial interest in a decedent's estate;  and
(14)  a sale by an individual of an account that is a right to payment of winnings in a lottery or other game of chance.
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001;  Acts 2003, 78th Leg., ch. 917, Sec. 4, eff. Sept. 1, 2003.