TITLE 7.BANKING AND SECURITIES

Part 7. STATE SECURITIES BOARD

Chapter 113. REGISTRATION OF SECURITIES

7 TAC §§113.14, 113.15, 113.17, 113.20 - 113.23

The State Securities Board adopts amendments to §§113.14, 113.15, 113.17 and 113.20-113.23, concerning registration of securities, without changes to the proposed text as published in the December 31, 1999, issue of the Texas Register (24 TexReg 11842).

The amendments incorporate recent changes to the North American Securities Administrators Association uniform guidelines addressing corporate securities definitions; impoundment of proceeds; underwriting expenses, underwriter's warrants, selling expenses, and selling security holders; and unsound financial condition.

The amendments maintain consistency with uniform guidelines for the registration of securities applied by other states securities regulators and, by doing so, facilitate participation in the Coordinated Equity Review program.

No comments were received regarding adoption of the amendments.

The amendments are adopted under Texas Civil Statutes, 581- 28-1. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Texas Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 12, 2000.

TRD-200002610

Denise Voigt Crawford

Securities Commissioner

State Securities Board

Effective date: May 2, 2000

Proposal publication date: December 31, 1999

For further information, please call: (512) 305-8300


Chapter 114. FEDERAL COVERED SECURITIES

7 TAC §114.4

The State Securities Board adopts an amendment to §114.4 regarding filings and fees, without changes to the proposed text as published in the December 31, 1999, issue of the Texas Register (24 TexReg 11845).

The amendment eliminates a notice filing provision for industrial development bonds that are also federal covered securities. The notice filing is unnecessary following the repeal of provisions in Chapter 135 that required registration or notice filing for securities sold by Industrial Development Corporations.

The adoption of this amendment eliminates an unnecessary provision since issuers of industrial development bonds will be able to utilize a self-executing exemption.

No comments were received regarding adoption of the amendment.

The amendment is adopted under Texas Civil Statutes, 581-28- 1 and 581-5.T. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Texas Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes. Section 5.T provides that the Board may prescribe new exemptions by rule.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 12, 2000.

TRD-200002611

Denise Voigt Crawford

Securities Commissioner

State Securities Board

Effective date: May 2, 2000

Proposal publication date: December 31, 1999

For further information, please call: (512) 305-8300