# Tenn. Code Ann. § 47-8-109: Warranties in indirect holding

> Tennessee · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T47_C8_S47-8-109

## Section

- **Citation:** Tenn. Code Ann. § 47-8-109
- **Heading:** Warranties in indirect holding
- **Jurisdiction:** Tennessee
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** TN Code / Title 47 / Chapter 8 / Section 47-8-109

## Text

(a) A person who originates an entitlement order to a securities intermediary warrants to the securities intermediary that: (1) the entitlement order is made by an appropriate person, or if the entitlement order is by an agent, the agent has actual authority to act on behalf of the appropriate person; and (2) there is no adverse claim to the security entitlement. (b) A person who delivers a security certificate to a securities intermediary for credit to a securities account or originates an instruction with respect to an uncertificated security directing that the uncertificated security be credited to a securities account makes to the securities intermediary the warranties specified in § 47-8-108(a) or (b) . (c) If a securities intermediary delivers a security certificate to its entitlement holder or causes its entitlement holder to be registered as the owner of an uncertificated security, the securities intermediary makes to the entitlement holder the warranties specified in § 47-8-108(a) or (b) . Acts 1997, ch. 79, § 1.
(a) A person who originates an entitlement order to a securities intermediary warrants to the securities intermediary that: (1) the entitlement order is made by an appropriate person, or if the entitlement order is by an agent, the agent has actual authority to act on behalf of the appropriate person; and (2) there is no adverse claim to the security entitlement.
(1) the entitlement order is made by an appropriate person, or if the entitlement order is by an agent, the agent has actual authority to act on behalf of the appropriate person; and
(2) there is no adverse claim to the security entitlement.
(b) A person who delivers a security certificate to a securities intermediary for credit to a securities account or originates an instruction with respect to an uncertificated security directing that the uncertificated security be credited to a securities account makes to the securities intermediary the warranties specified in § 47-8-108(a) or (b) .
(c) If a securities intermediary delivers a security certificate to its entitlement holder or causes its entitlement holder to be registered as the owner of an uncertificated security, the securities intermediary makes to the entitlement holder the warranties specified in § 47-8-108(a) or (b) .
Acts 1997, ch. 79, § 1.

## Nearby sections

- [Tenn. Code Ann. § 47-8-101 Short title](https://www.frixlaw.com/law-library/statutes/STATE_TN_T47_C8_S47-8-101.md)
- [Tenn. Code Ann. § 47-8-102 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T47_C8_S47-8-102.md)
- [Tenn. Code Ann. § 47-8-103 Rules for determining whether certain obligations and interests are securities or financial assets](https://www.frixlaw.com/law-library/statutes/STATE_TN_T47_C8_S47-8-103.md)
- [Tenn. Code Ann. § 47-8-104 Acquisition of security or financial asset or interest therein](https://www.frixlaw.com/law-library/statutes/STATE_TN_T47_C8_S47-8-104.md)
- [Tenn. Code Ann. § 47-8-105 Notice of adverse claim](https://www.frixlaw.com/law-library/statutes/STATE_TN_T47_C8_S47-8-105.md)
- [Tenn. Code Ann. § 47-8-106 Control](https://www.frixlaw.com/law-library/statutes/STATE_TN_T47_C8_S47-8-106.md)
- [Tenn. Code Ann. § 47-8-107 Whether endorsement, instruction, or entitlement order is effective](https://www.frixlaw.com/law-library/statutes/STATE_TN_T47_C8_S47-8-107.md)
- [Tenn. Code Ann. § 47-8-108 Warranties in direct holding](https://www.frixlaw.com/law-library/statutes/STATE_TN_T47_C8_S47-8-108.md)
- [Tenn. Code Ann. § 47-8-109 Warranties in indirect holding](https://www.frixlaw.com/law-library/statutes/STATE_TN_T47_C8_S47-8-109.md)
- [Tenn. Code Ann. § 47-8-110 Applicability - Choice of law](https://www.frixlaw.com/law-library/statutes/STATE_TN_T47_C8_S47-8-110.md)
- [Tenn. Code Ann. § 47-8-111 Clearing corporation rules](https://www.frixlaw.com/law-library/statutes/STATE_TN_T47_C8_S47-8-111.md)
- [Tenn. Code Ann. § 47-8-112 Creditor's legal process](https://www.frixlaw.com/law-library/statutes/STATE_TN_T47_C8_S47-8-112.md)
- [Tenn. Code Ann. § 47-8-113 Statute of frauds inapplicable](https://www.frixlaw.com/law-library/statutes/STATE_TN_T47_C8_S47-8-113.md)
- [Tenn. Code Ann. § 47-8-114 Evidentiary rules concerning certificated securities](https://www.frixlaw.com/law-library/statutes/STATE_TN_T47_C8_S47-8-114.md)

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T47_C8_S47-8-109. Check the current official text before relying on it. Not legal advice.