General and Special Laws of The State of Texas Passed By The Third Called Session of the Fifty-Seventh Legislature and the Regular Session of the Fifty-Eighth Legislature Page: 479
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SECURITIES ACT
security when the buyer disposed of it, and less interest at six per cent
(6%) per year on such value from date of disposition, before suit and
at a time when he did not own the security, unless he rejected the offer in
writing within thirty (30) days of its receipt. In connection with any
such offer, the seller shall deposit funds in escrow in a state or national
bank doing business in the State of Texas, or receive an unqualified com-
mitment from such bank to furnish funds, sufficient to provide for the
refund on all securities covered by the offer. The notice accompanying
such offer shall state (1) the name of such bank where the refund may
be obtained upon surrender of the security, or if the buyer has disposed
of such security upon satisfactory proof of such disposition and of the
value received therefor, and (2) that buyer, upon receipt of the refund,
may not sue to recover the consideration paid plus interest or for dam-
ages under Subsection A(1) of this Section 33, and (3) that the buyer,
in the event of failure to accept the offer within thirty (30) days of its
receipt, may not sue to recover the consideration paid plus interest or for
damages under Subsection A(1) of this Section 33. No person may sue
under Subsection A(2) more than three (3) years after the contract of
sale or more than three (3) years after the buyer in the exercise of ordi-
nary care should have discovered that such sale was made in violation of
said Subsection A(2). Nothing in this Subsection C shall affect or restrict
the periods of limitation or other rights applicable to causes of action
based on fraud brought pursuant to Article 4004 of the Revised Civil
Statutes.
"D. No person who has made or engaged in the performance of any
contract in violation of any provision of this Act or any rule or order or
requirement hereunder, or who has acquired any purported right under
any such contract with knowledge of the facts by reason of which its
making or performance was in violation, may base any suit on the contract.
"E. Any condition, stipulation or provision binding any person ac-
quiring any security to waive compliance with any provision of this Act
or any rule or order or requirement hereunder is void.
"F. The rights and remedies provided by this Act are in addition to
any other rights or remedies that may exist at law or in equity."
Sec. 12a. Subsection A of Section 7 of the Securities Act, Acts, 1957,
Fifty-fifth Legislature, Chapter 269,7 is hereby amended so as to read
as follows:
"A. Qualification of Securities.
"(1) No dealer, agent or salesman shall sell or offer for sale any se-
curities issued after September 6, 1955, except those which shall have
been registered by Notification under subdivision B or by Coordination
under subdivision C of this Section 7 and except those which come within
the classes enumerated in subdivisions A to R, both inclusive, of Section
5 of this Act, or subdivisions A to K, both inclusive, of Section 6 of this
Act, until the issuer of such securities or a dealer registered under the
provisions of this Act shall have been granted a permit by the Commis-
sioner; and no such permit shall be granted by the Commissioner until
the issuer of such securities or a dealer registered under the provisions
of this Act shall have filed with the Commissioner a sworn statement
verified under the oath of an executive officer or partner of the issuer, or
of such registered dealer, and attested by the secretary or partner thereof,
setting forth the following information:
"a. The names, residences and post office addresses of the officers and
directors of the company;
7. Vernon's Ann.Civ.St. art. 581-7, sub-
sec. A.
479Ch. 170
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Texas. Legislature. General and Special Laws of The State of Texas Passed By The Third Called Session of the Fifty-Seventh Legislature and the Regular Session of the Fifty-Eighth Legislature, legislative document, 1963; [Austin, Texas]. (https://texashistory.unt.edu/ark:/67531/metapth221759/m1/815/?q=+date%3A1945-1972: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.