Texas Business and Commerce Code 9.314 – Perfection by Control
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(a) A security interest in investment property, deposit accounts, letter-of-credit rights, virtual currencies, electronic chattel paper, or electronic documents may be perfected by control of the collateral under § 7.106, 9.104, 9.105, 9.106, 9.107, or 9.1071.
(b) A security interest in deposit accounts, electronic chattel paper, virtual currencies, letter-of-credit rights, or electronic documents is perfected by control under § 7.106, 9.104, 9.105, 9.107, or 9.1071 when the secured party obtains control and remains perfected by control only while the secured party retains control.
Terms Used In Texas Business and Commerce Code 9.314
- Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
- Property: means real and personal property. See Texas Government Code 311.005
(c) A security interest in investment property is perfected by control under § 9.106 from the time the secured party obtains control and remains perfected by control until:
(1) the secured party does not have control; and
(2) one of the following occurs:
(A) if the collateral is a certificated security, the debtor has or acquires possession of the security certificate;
(B) if the collateral is an uncertificated security, the issuer has registered or registers the debtor as the registered owner; or
(C) if the collateral is a security entitlement, the debtor is or becomes the entitlement holder.