Tex. Gov't Code § 4005.008 · Subchapter A. EXEMPT TRANSACTIONS
FINANCIAL DISTRESS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) The exemption provided by Section 4005.001 applies to the issuance in good faith of securities by a company:
(1) to the company's security holders or creditors in the process of a bona fide reorganization of the company made in good faith; or
(2) to the security holders or creditors of a predecessor company if the issuing company is organized solely for the purpose of taking over the assets and continuing the business of the predecessor company.
(b) The exemption provided by Section 4005.001 applies to an issuance of securities described by Subsection (a) only if:
(1) the securities are issued in exchange for securities of the security holders, claims of the creditors, or both; and
(2) the security holders or creditors do not pay, give, or promise any consideration, and are not obligated to pay or give any consideration, for the securities issued other than the securities of or claims against the company or the company's predecessor held or owned by the security holders or creditors at the time of the issuance.
Notes and commentary — not statutory text
History
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/GV/htm/GV.4005.htm
- Text hash
- sha256 feb5d3c7da64ea9a5c2f2292f406314ca28bdf8ed5aa84b67391f1f8dd95138b
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.