Texas Business and Commerce Code 12.003 – Rights in Virtual Currency
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(a) In this section:
(1) “Adverse claim” means a claim that a claimant has a property interest in a virtual currency and that it is a violation of the rights of the claimant for another person to hold, transfer, or deal with the virtual currency.
(2) “Qualifying purchaser” means a purchaser that obtains control of a virtual currency for value and without notice of any adverse claim.
(b) Subject to Subsections (c) through (h), law other than this chapter determines whether a person acquires rights in a virtual currency and the rights that the person acquires.
Terms Used In Texas Business and Commerce Code 12.003
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Lien: A claim against real or personal property in satisfaction of a debt.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Property: means real and personal property. See Texas Government Code 311.005
(c) A purchaser of a virtual currency acquires all rights in the virtual currency that the transferor had or had power to transfer.
(d) A purchaser of a limited interest in a virtual currency acquires rights only to the extent of the interest purchased.
(e) In addition to acquiring the rights of a purchaser, a qualifying purchaser acquires the purchaser’s rights in a virtual currency free of any adverse claim.
(f) An action based on an adverse claim to a virtual currency, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against a qualifying purchaser that acquires the purchaser’s interest in, and obtains control of, the virtual currency for value and without notice of the adverse claim.
(g) A person has notice of an adverse claim if:
(1) the person knows of the adverse claim; or
(2) the person is aware of facts sufficient to indicate that there is a significant probability that the adverse claim exists and deliberately avoids information that would establish the existence of the adverse claim.
(h) Filing of a financing statement under Chapter 9 is not notice of an adverse claim to a virtual currency.