Tex. Gov't Code Section 1202.007
Exemptions; Construction of Exemptions


The following are exempt from the approval and registration requirements of this chapter:


a public security that is:


not subject to mandatory renewal or renewal at the option of any person, including the issuer, a holder, or a bearer; and


payable only out of:
current revenues or taxes collected in the year the public security is issued; or
the proceeds of other public securities;


a certificate in evidence of benefit assessments;


a certificate of obligation, including a claim or account that represents an undivided interest in a certificate of obligation, that under Subchapter C (Short Title), Chapter 271 (Purchasing and Contracting Authority of Municipalities, Counties, and Certain Other Local Governments), Local Government Code, an issuer is authorized to deliver to a contractor;


a time warrant issued under Chapter 252 (Purchasing and Contracting Authority of Municipalities) or 262 (Purchasing and Contracting Authority of Counties), Local Government Code;


a public security authorized by Chapter 1371 (Obligations for Certain Public Improvements);


a lease, lease-purchase, or installment sale obligation, except as provided by other law;


a public security that by rule the attorney general exempts because it is not practical to require approval before the public security’s issuance; and


a nonnegotiable note issued under Section 45.108 (Borrowing Money for Current Maintenance Expenses), Education Code, in a principal amount that does not exceed $1 million.


The exemptions provided by Subsection (a) shall be narrowly construed.


An issuer that issues a public security that is exempt under Subsection (a) may submit the public security to the attorney general as provided by this chapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.002, eff. Sept. 1, 2001.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 1018 (H.B. 2610), Sec. 3, eff. September 1, 2013.

Source: Section 1202.007 — Exemptions; Construction of Exemptions, https://statutes.­capitol.­texas.­gov/Docs/GV/htm/GV.­1202.­htm#1202.­007 (accessed Jun. 5, 2024).

Jun. 5, 2024

§ 1202.007’s source at texas​.gov