VERNON'S TEXAS CIVIL STATUTES
CHAPTER 5. COMMODITY EXCHANGES
Art. 8651. Definitions
That for the purpose of this Act, the term "Contract of Sale" shall
be held to include sales, purchases, agreements of sale, agreements
to sell, and agreements to purchase; that the word "person"
wherever used in this Act shall be construed to import the plural or
singular as the case demands, and shall include individuals,
associations, partnerships, and corporations.
Acts 1925, 39th Leg., p. 38, ch. 15, Sec. 1.
Art. 8652. Future contracts valid
All contracts of sale for future delivery of cotton, grain, stocks,
or other commodities, (1) made in accordance with the rules of any
board of trade, exchange, or similar institution, and (2) actually
executed on the floor of such board of trade, exchange, or similar
institution, and performed or discharged according to the rules
thereof, and (3) when such contracts of sale are placed with or
through a regular member in good standing of a cotton exchange,
grain exchange, board of trade, or similar institution, organized
under the laws of the State of Texas or any other State, shall be and
they hereby are declared to be valid and enforceable in the courts
of this State, according to their terms; provided, that contracts
of sale for future delivery of cotton in order to be valid and
enforceable as provided herein, must not only conform to the
requirements of clauses 1 and 2 of this section, but must also be
made subject to the provisions of the United States Cotton Futures
Act, approved August 11, 1916, and any amendments thereto;
provided, further, that if this clause should for any reason be held
inoperative, then contracts for the future delivery of cotton shall
be valid and enforceable if they conform to the requirements of
clauses 1 and 2 of this section; provided further, that all
contracts as defined in Section 1 hereof where it is not
contemplated by the parties thereto that there shall be an actual
delivery of the commodities sold or bought shall be unlawful.
Acts 1925, 39th Leg., p. 38, ch. 15, Sec. 2.
Art. 8653. Future contracts invalid
Any contract of sale for future delivery of cotton, grain, stocks,
or other commodities where it is not the bona fide intention of
parties that the things mentioned therein are to be delivered but
which is to be settled according to or upon the basis of the public
market quotations or prices made on any board of trade, exchange, or
other similar institution, without any actual bona fide execution
and the carrying out of such contract upon the floor of such
exchange, board of trade or similar institution, in accordance with
the rules thereof, shall be null and void and unenforceable in any
court of this State, and no action shall be maintainable thereon at
the suit of any party.
Acts 1925, 39th Leg., p. 38, ch. 15, Sec. 3.
Art. 8654. Bucket shop defined and prohibited
A bucket shop is hereby defined to be and mean any place of business
wherein are made contracts of the sort or character denounced by the
preceding Section 3 of this Act, and the maintenance or operation of
a bucket shop at any point in this State is prohibited.
Acts 1925, 39th Leg., p. 38, ch. 15, Sec. 4.
Art. 8655. Shall furnish copy of contract
Every person shall furnish upon demand to any principal for whom
such person has executed any contract for the future delivery of any
cotton, grain, stocks, or other commodities, a written instrument
setting forth the name and location of the exchange, board of trade,
or similar institution, upon which such contract has been executed,
the date of the execution, of the contract, and the name and address
of the person with whom such contract was executed, and if such
person shall refuse or neglect to furnish such statement upon
reasonable demand, such refusal or neglect shall be prima facie
evidence that such contract was an illegal contract within the
provisions of
Art. 658, and that the person who executed it was
engaged in the maintenance and operation of a bucket shop, within
the provisions of Article 661 hereof.
Acts 1925, 39th Leg., p. 38, ch. 15, Sec. 5.
Art. 8656. Penalty
Any person, either as agent or principal, who enters into or assists
in making any contracts of sale of the sort or character denounced
in the preceding
Art. 658 for the future delivery of cotton, grain,
stocks, or other commodities, or who maintain a bucket shop, as that
term is defined in
Art. 659, shall be guilty of a felony, and upon
conviction, shall be imprisoned in the penitentiary not exceeding
two years.
Acts 1925, 39th Leg., p. 38, ch. 15, Sec. 6.
Art. 8657. Permitting exchanges
There may be organized in any city, town, or municipality in the
State of Texas, voluntary associations to be known as cotton
exchanges, grain exchanges, boards of trade, or similar
institutions, to receive and post quotations on cotton, grain,
stocks, or other commodities, for the benefit of its members and
other persons engaged in the production of cotton, grain, or other
commodities. Such associations shall be composed of members and
shall adopt a uniform set of rules and regulations not incompatible
with the laws of Texas and of the United States. They shall open
their books to inspection of all proper courts and officers when
required so to do.
Acts 1925, 39th Leg., p. 38, ch. 15, Sec. 7.
Art. 8658. Repealer
Articles 536 and 537 of Chapter 2, Title 11, and Articles 538 to 547
inclusive of Chapter 3, Title 11, of the Revised Penal Code of the
State of Texas, of 1911, and all laws and parts of laws regulating
or prohibiting dealings in future contracts, or in conflict or
inconsistent herewith, be and the same are hereby repealed.
Acts 1925, 39th Leg., p. 38, ch. 15, Sec. 8.
Art. 8659. Severability
If any clause, sentence, paragraph, or part of this Act shall for
any reason be adjudged by any court of competent jurisdiction to be
invalid, such judgment shall not effect, impair, or invalidate the
remainder thereof, but shall be confined in its operation to the
clause, sentence, or paragraph or part thereof directly involved in
the controversy in which such judgment shall have been rendered;
and any contract valid under and satisfying the remaining clauses,
sentences, paragraphs, or parts of this Act shall be valid and
enforceable in the courts of this State.
Acts 1925, 39th Leg., p. 38, ch. 15, Sec. 9.
