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TX HB3929

Bill

Status

Introduced

3/6/2025

Primary Sponsor

Stan Lambert

Click for details

Origin

House of Representatives

89th Legislature Regular Session

AI Summary

  • Amends Texas Business & Commerce Code to allow the governing law specified in a security's terms to determine consequences when a security is found invalid under the issuer's local jurisdiction

  • Establishes that purchasers of certificated or uncertificated securities automatically acquire all claims and demands of the transferor, including claims for damages, rescission against issuers, and claims against trustees, underwriters, and guarantors

  • Prohibits issuers and other obligated parties from using a purchaser's intent to pursue litigation or enforcement as a defense against obligations or claims related to the security

  • Allows securities in qualified transactions to be amended by less than unanimous consent and permits retroactive changes to governing law unless otherwise agreed in writing

  • Takes effect September 1, 2025

Legislative Description

Relating to choice of law and assignment or acquisition of claims and demands in connection with certificated and uncertificated securities.

Business & Commerce

Last Action

Left pending in committee

4/9/2025

Committee Referrals

Trade, Workforce & Economic Development3/27/2025

Full Bill Text

No bill text available