# Tex. Business & Commerce Code § 8.109: WARRANTIES IN INDIRECT HOLDING

> Texas · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.109

## Section

- **Citation:** Tex. Business & Commerce Code § 8.109
- **Heading:** WARRANTIES IN INDIRECT HOLDING
- **Jurisdiction:** Texas
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** TX Code / Code bc / Chapter 8 / Section 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 Section 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 Section 8.108(a) or (b).

## Nearby sections

- [Tex. Business & Commerce Code § 8.101 § 8.101. SHORT TITLE.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.101.md)
- [Tex. Business & Commerce Code § 8.102 § 8.102. DEFINITIONS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.102.md)
- [Tex. Business & Commerce Code § 8.103 § 8.103. RULES FOR DETERMINING WHETHER CERTAIN OBLIGATIONS AND INTERESTS ARE SECURITIES OR FINANCIAL ASSETS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.103.md)
- [Tex. Business & Commerce Code § 8.104 § 8.104. ACQUISITION OF SECURITY OR FINANCIAL ASSET OR INTEREST THEREIN.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.104.md)
- [Tex. Business & Commerce Code § 8.105 § 8.105. NOTICE OF ADVERSE CLAIM.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.105.md)
- [Tex. Business & Commerce Code § 8.106 § 8.106. CONTROL.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.106.md)
- [Tex. Business & Commerce Code § 8.107 § 8.107. WHETHER INDORSEMENT, INSTRUCTION, OR ENTITLEMENT ORDER IS EFFECTIVE.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.107.md)
- [Tex. Business & Commerce Code § 8.108 § 8.108. WARRANTIES IN DIRECT HOLDING.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.108.md)
- [Tex. Business & Commerce Code § 8.109 § 8.109. WARRANTIES IN INDIRECT HOLDING.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.109.md)
- [Tex. Business & Commerce Code § 8.110 § 8.110. APPLICABILITY; CHOICE OF LAW.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.110.md)
- [Tex. Business & Commerce Code § 8.111 § 8.111. CLEARING CORPORATION RULES.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.111.md)
- [Tex. Business & Commerce Code § 8.112 § 8.112. CREDITOR'S LEGAL PROCESS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.112.md)
- [Tex. Business & Commerce Code § 8.113 § 8.113. STATUTE OF FRAUDS INAPPLICABLE.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.113.md)
- [Tex. Business & Commerce Code § 8.114 § 8.114. EVIDENTIARY RULES CONCERNING CERTIFICATED SECURITIES.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.114.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.109. Check the current official text before relying on it. Not legal advice.