| (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.
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