Texas Register, Volume 10, Number 44, Pages 1807-1878, June 7, 1985 Page: 1,817
1807-1878 p. ; 28 cm.View a full description of this periodical.
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[and other financing] charges or fees in ex-
cess of the amount [amounts] which would
be charged by unrelated lending institutions
on comparable loans for the same purpose,
in the same locality of the property if the
loan is made in connection with a particular
property. No prepayment charge or penal-
ty shall be required by the sponsor on a loan
to the program secured by either a first or
junior or all-inclusive trust deed, mortgage,
or encumbrance on the property, except to
the extent that such prepayment charge or
penalty is attributable to the underlying en-
cumbrance. The sponsor shall be prohibited
from providing financing for the program,
except:
(A)-(B) (No change.)
(2) (No change.)
(j)-(m) (No change.)
117.7. Rights and Obligations of Partic-
ipants.
(a)-(h) (No change.)
(i) Divident reinvestment plans. A
program may offer participants the oppor-
tunity to elect to have cash distributions
reinvested in the program or subsequent
programs if the following conditions are
met:
(1) the program and subsequent
programs in which the participants reinvest
are registered or exempted under the state's
blue sky laws;
(2) counsel for the program sub-
mits an opinion that the pooling of the
funds for reinvestment is not in itself a se-
curity;
(3) the subsequent program has
substantially identical investment objectives
as the original program;
(4) the participants are free to elect
or revoke reinvestment within a reasonable
time and such right is fully disclosed in the
offering documents;
(5) prior to each reinvestment the
participants receive a current updated
disclosure document which contains at a
minimum the following information:
(A) the minimum investment
amount;
(B) the type or source of pro-
ceeds (e.g., cash distributions from opera-
tions or the sale or dispostion of properties)
which may be reinvested;
(C) the tax consequences of the
reinvestment to the participants;
(6) counsel for the program sub-
mits an opinion that different consideration
paid on reinvestment is not in violation of
the state law (the difference arises when one
participant agrees to payment of commis-
sion to the broker-dealer and another par-
ticipant does not agree to payment of
commission);
(7) the broker-dealer or the issuer
assumes responsibility for blue sky com-
pliance and performance of due diligence
responsibilities to ascertain whether the par-
ticipants continue to meet the state's suit-
ability standard for participation in each
reinvestment;(8) if a broker-dealer is involved,
it shall obtain in writing an agreement from
the client by which the client agrees to the
payment of compensation to the broker-
dealer in connection with individual rein-
vestments.
This agency hereby certifies that the pro-
posal has been reviewed by legal counsel
and found to be within the agency's au-
thority to adopt.
Issued in Austin, Texas, on May 30, 1985.TRD-854770
Richard D. Latham
Commissioner
State Securities BoardEarliest possible date of adoption:
July 8, 1985
For further information, please call
(512) 474-2233.Chapter 133. Forms
*7 TAC 133.29
(Editor's note: The text of the following rule
proposed for repeal will not be published.
The rule may be examined in the offices of
the State Securities Board, 1800 San Jacin-
to Street, Austin, or in the Texas Register
office, Room 503E, Sam Houston Building,
201 East 14th Street, Austin.)
The State Securities Board proposes the
repeal of 133.29, concerning sales under
109.4(11). The proposed repeal is intend-
ed to become effective September 1, 1985,
to coordinate with the effective date of
the proposed repeal of 109.4.
Richard D. Latham, securities commis-
sioner, has determined that for the first
five-year period the repeal will be in ef-
fect there will be no fiscal implications
for state or local government or small
businesses as a result of the repeal.
Mr. Latham also has determined that for
each year of the first five years the repeal
is in effect the public benefit anticipated
as a result of the repeal is the elimina-
tion of an unnecessary form since 109.4
(11), the exemption to which the form re-
lates, is also being proposed for repeal.
There is no anticipated economic cost to
individuals as a result of the repeal.
Comments on the proposal may be sub-
mitted to Denise Voigt Crawford, State
Securities Board, P.O. Box 13167, Austin,
Texas 78711-3167.
The repeal is proposed under Texas Civil
Statutes, Article 581, 28-1, which auth-
orizes the board to repeal prior rules and
regulations.
133.29. Sales under Regulation
109.4(11).This agency hereby certifies that the pro-
posal has been reviewed by legal counsel
and found to be within the agency's au-
thority to adopt.
Issued in Austin, Texas, on May 30, 1985.
TRD-854773 Richard D. Latham
Commissioner
State Securities Board
Proposed date of adoption:
September 1, 1985
For further information, please call
(512) 474-2233.The State Securities Board proposes new
133.29, which adopts by reference the
form titled "Sales under Regulations
109.13(1)," which reflects references to the
proposed new 109.13(1). Existing 133.29
is proposed to be repealed since 109.4
(11), the section to which that form re-
lates, is also proposed to be repealed.
Proposed 133.29 is intended to become
effective September 1, 1985, to coor-
dinate with the effectiveness of proposed
new 109.13(1) and the repeal of 109.4
and existing 133.29.
Richard D. Latham, securities commis-
sioner, has determined that for the first
five:year period the rule as proposed is
in effect there will be no fiscal implica-
tions for state or local government or
small business as a result of enforcing
or administering the rule.
Mr. Latham also has determined that for
each year of the first five years the rule
is in effect the public benefit anticipated
as a result of enforcing the rule is a form
that reflects references to and is avail-
able for use by issuers who rely upon the
proposed new intrastate offering exemp-
tion, 109.13(1). There is no anticipated
economic cost to individuals who are re-
quired to comply with the rule as pro-
posed.
Comments on the proposal may be sub-
mitted to Denise Voigt Crawford, State
Securities Board, P.O. Box 13167, Austin,
Texas 78711-3167.
The new section is proposed under Texas
Civil Statutes, Article 581, 28-1, which
provide that the board may adopt rules
and regulations governing registration
statements and applications, classify
securities, persons, and matters within
its jurisdiction, and prescribe different re-
quirements for different classes.
133.29. Sales under Regulation
109.13(1). The State Securities Board
adopts by reference the notice for Sales
under Regulation 109.13(1). This form is
available from the State Securities Board,
P.O. Box 13167, Austin, Texas 78711-3167.
This agency hereby certifies that the pro-
posal has been reviewed by legal counsel4 Proposed Rules June 7, 1985 10 TexReg 1817
June 7, 1985 10 TexReg 1817
41 Proposed Rules
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Texas. Secretary of State. Texas Register, Volume 10, Number 44, Pages 1807-1878, June 7, 1985, periodical, June 7, 1985; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth243695/m1/13/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.