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TX HB3929
Bill
Status
3/6/2025
Primary Sponsor
Stan Lambert
Click for details
AI Summary
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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
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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
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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
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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
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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