us-tx/regs
34 Tex. Admin. Code § 13.5 — Reportability of Worthless and Non-freely Transferable Securities
(a)
Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.
(1) Non-freely transferable security--A security that cannot be delivered to the comptroller by a custodian of securities providing post-trade clearing and settlement services to financial markets, a security that cannot be delivered to the comptroller because there is no agent to effect transfer, or a security that the comptroller may not purchase or hold as an investment under any applicable law. The term includes a worthless security.
(2) Worthless security--A security with a market value of zero or whose cost of liquidation and delivery to the comptroller would exceed the value of the security on the date a report is due under Property Code, Chapter 74. A worthless security includes a warrant, right or other option whose expiration dates have passed.
(b)
A holder shall not report or deliver a worthless or non-freely transferable security to the comptroller as unclaimed property.
(c)
The comptroller may provide annual guidance to holders of securities regarding the reportability of non-freely transferable or worthless securities under this section. For the purposes of this section, a holder may rely on the guidance of the comptroller in determining whether a security is reportable under Property Code, Chapter 74.
Source Note: The provisions of this §13.5 adopted to be effective January 27, 2022, 47 TexReg 155.
Source: official text