reglab/statecodes huggingface dataset:
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 7 - STATE SECURITIES BOARD › Chapter 139 - EXEMPTIONS BY RULE OR ORDER › Section 139.12 - Oil and Gas Auction Exemption

Current through Reg. 49, No. 28; July 12, 2024
For purposes of this rule only, the term "mineral interest"
				  means an interest in or under an oil, gas, or mining lease, fee, or title,
				  including real property from which the minerals have not been severed, or
				  contracts relating thereto. The offer and sale of a mineral interest, at an
				  auction, by the seller itself, or a registered dealer or agent acting on behalf
				  of the seller, is exempt from the securities registration requirements of the
				  Texas Securities Act, Section 7, if all of the following conditions are
				  met.
(1) Auctioneer. The auctioneer or
				associate auctioneer through which the mineral interest is offered or sold must
				be licensed as a dealer under the Texas Securities Act and licensed by the
				Texas Department of Licensing and Regulation in accordance with Texas
				Occupations Code, §
									RSA
				1802.001 et. seq.
(2) Seller.
(A) Intent. The seller did not acquire the
				mineral interest with a view to resale, unless the seller was forced to acquire
				the mineral interest in a package in order to obtain other properties in the
				package.
(B) No fractionalization
				of mineral interests.
(i) The seller has the
				full right and authority to sell the mineral interest, and is selling 100% of
				its mineral interest, except that retention by the seller of a royalty or
				overriding royalty or the horizontal severance of the property is permissible
				as indicated in clause (ii) of this subparagraph.
(ii) The seller must not be creating
				undivided interests out of its mineral interest for the purpose of resale.
				Where all the seller owns is a partial interest (such as a royalty, overriding
				royalty, or undivided fractional working interest), this requirement is met if
				the seller sells all of that interest. However, the seller shall not be
				considered to be fractionalizing its interest in sales where the seller retains
				only a royalty or overriding royalty, or where the seller horizontally severs
				the property by retaining all of its existing rights in certain formations or
				depths under the whole property.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 7 - STATE SECURITIES BOARD › Chapter 139 - EXEMPTIONS BY RULE OR ORDER › Section 139.13 - Resales under SEC Rule 144 and Rule 145(d)

Current through Reg. 49, No. 28; July 12, 2024
(a) Exemption from securities registration.
				Offers to resell and resales of any security by the owner thereof, or any
				person acting on behalf of the owner, shall be exempt from the securities
				registration requirements of the Texas Securities Act, §7, pursuant to
				§5.T, if the offers to resell and resales of securities are made in
				compliance with either:
(1) Rule 144
				promulgated by the Securities and Exchange Commission (SEC) under the
				Securities Act of 1933, as amended (1933 Act), as made effective in SEC Release
				Number 33-5223, as amended in Release Numbers 33-5307, 33-5452, 33-5452A,
				33-5560, 33-5613, 33-5717, 33-5979, 33-5995, 33-6032, 33-6180, 34-16589,
				33-6286, 33-6389, 33-6488, 33-6768, 33-6862, 33-7285, and 33-7390; or
(2) Rule 145(d) promulgated by the SEC under
				the 1933 Act as made effective in SEC Release Number 33-5316, as amended in
				Release Numbers 33-5932, 33-6508, 33-6578, 33-6579, 33-6611, 33-6862, and
				33-7390.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 7 - STATE SECURITIES BOARD › Chapter 139 - EXEMPTIONS BY RULE OR ORDER › Section 139.14 - Non-Issuer Sales

Current through Reg. 49, No. 28; July 12, 2024
The State Securities Board, pursuant to the Securities Act,
				  §5.T, exempts from the securities registration requirements of the
				  Securities Act, §7, the offer and sale of any securities, provided the
				  following conditions are met.
(1) Who
				may sell. Offers or sales may be made by an owner of the securities, or any
				person acting on the owner's behalf, so long as the owner is not the issuer of
				the securities.
(2) Dealer and
				agent registration. Any person (other than the owner) who acts as an agent of
				the owner in connection with a sale to any prospective purchaser in a
				transaction exempt from securities registration by virtue of this section shall
				be registered as either a dealer or agent under the Act, as
				applicable.
(3) Use of proceeds.
				The proceeds of the sale shall be for the benefit of the owner and not directly
				or indirectly for the benefit of the issuer of the securities.
(4) Number of sales.
(A) Except as the allowable number of sales
				may be increased as provided in subparagraph (B) of this paragraph, the owner,
				together with any persons acting in concert with the owner, may make no more
				than 15 sales in any 12-month period under and in reliance on this section,
				exclusive of sales made:
(i) to the
				issuer;
(ii) in compliance with the
				Act, §§5.O, 6.F, or 5.H; or
(iii) in compliance with the following:
(I)
												§
												RSA
				109.4 of this title (relating to Securities
				Registration Exemption for Sales to Financial Institutions and Certain
				Institutional Investors);
(II)
												§
												RSA
				139.7 of this title (relating to Sales of
				Securities to Nonresidents); or
(III)
												§
												RSA
				139.13 of this title (relating to Resales
				under SEC Rule 144 and Rule 145(d)).
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 7 - STATE SECURITIES BOARD › Chapter 139 - EXEMPTIONS BY RULE OR ORDER › Section 139.15 - Credit Enhancements

Current through Reg. 49, No. 28; July 12, 2024
(a)
				Any "qualified credit enhancement" need not be registered as a separate
				security when no additional consideration is required to receive the
				enhancement and the enhancement is offered and sold in conjunction with, and is
				not tradeable separately from, securities that are:
(1) registered pursuant to the Securities
				Act, §7;
(2) exempt under the
				Securities Act, §6; or
(3)
				included within a transaction exempt under the Securities Act,
				§5.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 7 - STATE SECURITIES BOARD › Chapter 139 - EXEMPTIONS BY RULE OR ORDER › Section 139.16 - Sales to Individual Accredited Investors

Current through Reg. 49, No. 28; July 12, 2024
(a) In general. The State Securities Board,
				pursuant to the Securities Act, §5.T, exempts from the securities
				registration requirements of the Securities Act, §7, the offer and sale by
				the issuer or a registered dealer without advertising of any security to an
				individual accredited investor, or to any purchaser who the issuer has
				reasonable grounds to believe and after making reasonable inquiry shall believe
				to be an individual accredited investor, provided that such security is not
				part of the same distribution or offering as securities of the same issuer
				which have been registered or are proposed to be registered by pending
				application under the Securities Act, §7. "Advertising," as used in this
				subsection, does not include the use of limited use advertisements under
				subsection (e) of this section or the use of the type of printed material as
				permitted by §
									RSA
				109.13(b) of this title
				(relating to Limited Offering Exemptions) in connection with an offering under
				the Act, §5.I.
(b) Who may
				purchase; who constitutes the issuer for purposes of selling securities.
(1) Individual accredited investors. The term
				"individual accredited investor" is defined in §
										RSA 107.2 of this
				title (relating to Definitions). For purposes of this section, the term
				"individual accredited investor" also includes any self-directed employee
				benefit plan with investment decisions made solely by persons that are
				"individual accredited investors" as defined in §
										RSA 107.2 of this
				title and the individual retirement account of any such individual accredited
				investor.
(2) Issuer. For the
				purposes of subsection (a), the term "issuer" includes any director, officer,
				or employee of the issuer provided all the following conditions are satisfied:
(A) the director, officer, or employee was
				not hired for the purpose of offering or selling such securities;
(B) the director's, officer's, or employee's
				activity involving the offer and sale of such securities is strictly incidental
				to his or her bona fide primary non-securities related work duties;
				and
(C) the director's, officer's,
				or employee's compensation is based solely on the performance of other such
				duties, i.e., the director, officer, or employee does not receive any
				compensation for offering for sale, selling, or otherwise aiding in the sale of
				securities.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 7 - STATE SECURITIES BOARD › Chapter 139 - EXEMPTIONS BY RULE OR ORDER › Section 139.17 - Offers Disseminated Through the Internet

Current through Reg. 49, No. 28; July 12, 2024
(a) An offer of securities not made from
				Texas is exempt from the securities and dealer registration requirements of The
				Securities Act when that offer is disseminated through the Internet and:
(1) the offer indicates, directly or
				indirectly, that the securities are not being offered for sale to any person in
				Texas;
(2) an offer is not
				otherwise specifically directed to any person in Texas by, or on behalf of, the
				issuer; and
(3) no sales of the
				issuer's securities are made to any person in Texas as a result of the
				offer.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 7 - STATE SECURITIES BOARD › Chapter 139 - EXEMPTIONS BY RULE OR ORDER › Section 139.18 - Dealer and Investment Adviser Use of the Internet To Disseminate Information on Products and Services

Current through Reg. 49, No. 28; July 12, 2024
(a)
				Dealers, investment advisers, dealer agents, and investment adviser
				representatives who use the Internet, the World Wide Web, and similar
				proprietary or common carrier electronic systems (collectively, the "Internet")
				to distribute information on available products and services through certain
				communications made on the Internet directed generally to anyone having access
				to the Internet, and transmitted through postings on Bulletin Boards, displays
				on "Home Pages" or similar methods ("Internet Communications") shall not be
				deemed to be a "dealer" in this state for purposes of the Act, §4.D, based
				solely on that fact if the following conditions are observed:
(1) The Internet Communication contains a
				legend in which it is clearly stated that:
(A) the dealer, investment adviser, dealer
				agent, or investment adviser representative in question may only transact
				business in this state if first registered, excluded, or exempted from Texas
				dealer, investment adviser, dealer agent, or investment adviser representative
				registration requirements, as may be; and
(B) follow-up, individualized responses to
				persons in Texas by such dealer, investment adviser, dealer agent, or
				investment adviser representative that involve either the effecting or
				attempting to effect transactions in securities, or the rendering of
				personalized investment advice for compensation, as may be, will not be made
				absent compliance with Texas dealer, investment adviser, dealer agent, or
				investment adviser representative registration requirements, or an applicable
				exemption or exclusion;
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 7 - STATE SECURITIES BOARD › Chapter 139 - EXEMPTIONS BY RULE OR ORDER › Section 139.20 - Third Party Brokerage Arrangements on Financial Entity Premises

Current through Reg. 49, No. 28; July 12, 2024
(a) The State
				Securities Board, pursuant to the Texas Securities Act, §12.B, exempts a
				financial entity from the dealer registration requirements of the Texas
				Securities Act, when such financial entity is engaging in securities-related
				activity consisting solely of acting as a correspondent in a third party
				brokerage arrangement coordinated with a registered dealer on the premises of
				the financial entity. A financial entity may receive compensation for such an
				arrangement based on a percentage of commissions generated by the arrangement
				or on the basis of leased space of the premises; officers and employees of the
				financial entity may receive compensation as set forth in subsection (b) of
				this section. For purposes of this section, the following words and terms shall
				have the following meanings:
(1) "financial
				entity" shall include any state or national bank, any federal savings and loan
				association or savings and loan association organized and subject to the laws
				and regulation of this State as defined in §
										RSA
				109.17 of this title (relating to Banks Under
				The Securities Act, §5.L), or any credit union, insurance company, bank
				holding company, or financial holding company organized and subject to
				functional regulation under the laws of the United States or under the laws of
				any State or territory of the United States;
(2) "acting as a correspondent in a third
				party brokerage arrangement" means that the activity of the financial entity is
				limited to providing an area on the financial entity premises for the dealer's
				brokerage activities, advertising the brokerage service, referring customers to
				a representative of the dealer, and performing clerical or ministerial
				functions in connection with brokerage transactions including scheduling
				appointments with agents of the dealer and transferring customer funds or
				securities;
(3) "premises" shall
				include the physical location of the financial entity, including all of its
				branches, as well as the financial entity's web site. Thus, a financial entity
				may engage in linking arrangements with third party brokerages within this
				exemption.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 7 - STATE SECURITIES BOARD › Chapter 139 - EXEMPTIONS BY RULE OR ORDER › Section 139.21 - Dealer, Agent, and Securities Exemptions for Canadian Accounts

Current through Reg. 49, No. 28; July 12, 2024
(a) The State
				Securities Board, pursuant to the Texas Securities Act, §§5.T and
				12.C, exempts Canadian dealers and agents from the registration requirements of
				the Texas Securities Act, when such dealers and agents comply with subsections
				(b) and (c) of this section and are conducting a transaction in a Canadian
				self-directed tax advantaged retirement plan of which the holder or contributor
				is a person from Canada who is present in this state or when conducting a
				transaction in the Canadian securities account of a Canadian citizen who is
				temporarily present in this state and with whom the dealer or agent has a
				preexisting client relationship.
(b) A Canadian dealer must be a member of a
				self-regulatory organization, a stock exchange in Canada, or the bureau "des
				services financiers" of Quebec, and maintain provincial or territorial
				registration and membership in a Canadian self-regulatory organization or stock
				exchange in good standing. An agent must be registered and in good standing in
				the jurisdiction from which he or she is effecting transactions into this state
				and maintain registration in such jurisdiction in good standing.
(c) Any Canadian dealer or agent relying on
				this exemption shall, upon written request, furnish to the Securities
				Commissioner any information relative to a transaction covered by this section
				that the Commissioner deems relevant.
(d) The State Securities Board, pursuant to
				the Texas Securities Act, §5.T, exempts from the securities registration
				requirements of the Texas Securities Act, §7, the offer and sale of any
				securities effected by a Canadian dealer pursuant to this section.
(e) The Texas Securities Act prohibits fraud
				or fraudulent practices in connection with the sale or offer for sale of
				securities covered by this exemption.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 7 - STATE SECURITIES BOARD › Chapter 139 - EXEMPTIONS BY RULE OR ORDER › Section 139.22 - Exemption for Investment Adviser to a High Net Worth Family Entity

Current through Reg. 49, No. 28; July 12, 2024
(a) The State
				Securities Board, pursuant to the Texas Securities Act, §5.T and
				§12.C, exempts an investment adviser and its investment adviser
				representatives from the registration requirements of the Act, §12, when
				such adviser:
(1) renders services as an
				investment adviser to a high net worth family entity or related family
				entities, and
(2) does not hold
				itself out to the public as one who renders services as an investment
				adviser.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 7 - STATE SECURITIES BOARD › Chapter 139 - EXEMPTIONS BY RULE OR ORDER › Section 139.23 - Registration Exemption for Investment Advisers to Private Funds

Current through Reg. 49, No. 28; July 12, 2024
(a) Definitions.
				The following words and terms, when used in this section, shall have the
				following meanings, unless the context clearly indicates otherwise:
(1) Private Fund Adviser--An investment
				adviser who provides advice:
(A) solely to
				one or more Private Funds; or
(B)
				solely to one or more Private Funds and other clients, who are not Private
				Funds, to whom advice may be provided pursuant to another exemption from
				investment adviser registration provided under the Texas Securities Act or
				Board rules.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 7 - STATE SECURITIES BOARD › Chapter 139 - EXEMPTIONS BY RULE OR ORDER › Section 139.24 - Charitable Organizations Assisting Economically Disadvantaged Clients with Texas Qualified Tuition Program Plans

Current through Reg. 49, No. 28; July 12, 2024
(a)
				Definitions. The following words and terms, when used in this section, shall
				have the following meanings unless the context clearly indicates otherwise.
(1) Charitable organization--A 501(c)(3)
				nonprofit organization located in Texas that provides services to economically
				disadvantaged individuals and families.
(2) Client--An individual receiving services
				from a financial coach or counselor of a charitable organization relating to a
				Texas qualified tuition program plan.
(3) Economically disadvantaged--Eligible for
				services based on criteria established by a charitable organization using the
				poverty guidelines updated periodically in the
Federal
				Register
by the U.S. Department of Health and Human Services under the
				authority of
				RSA
				9902(2).
(4) Financial coach or counselor--An
				individual acting on behalf of a charitable organization in counseling or
				providing services to economically disadvantaged clients of the charitable
				organization.
(5) Texas qualified
				tuition program plan--A fund or plan established under the Texas Education
				Code, Chapter 54, Subchapter G, H, or I, as amended.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 7 - STATE SECURITIES BOARD › Chapter 139 - EXEMPTIONS BY RULE OR ORDER › Section 139.26 - Intrastate Crowdfunding Exemption for SEC Rule 147A Offerings

Current through Reg. 49, No. 28; July 12, 2024
(a) General. The
				State Securities Board, pursuant to the Texas Securities Act (Act), Section
				5.T, exempts from the securities registration requirements of the Act, any
				offer or sale of securities of an issuer made in compliance with Securities and
				Exchange Commission (SEC) Rule 147A, 17 CFR § 230.147A, through a
				registered general dealer or a registered Texas crowdfunding portal, provided
				that all the requirements of this section are satisfied.
(b) Issuer. The issuer is not, either before
				or because of the offering:
(1) A company,
				that engaged or proposes to engage in the business of investing, reinvesting,
				owning, holding, or trading in securities;
(2) Subject to the reporting requirements of
				the Securities and Exchange Act of 1934, Section 13 or Section 15(d),
				RSA
				78m and §
										RSA
				78o(d); or
(3) A company that has not yet defined its
				business operations, has no business plan, has no stated investment goal for
				the funds being raised, or that plans to engage in a merger or acquisition with
				an unspecified business entity.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 7 - STATE SECURITIES BOARD › Chapter 139 - EXEMPTIONS BY RULE OR ORDER › Section 139.27 - Mergers and Acquisitions Dealer Exemption

Current through Reg. 49, No. 28; July 12, 2024
(a) Dealer and agent exemption. The State
				Securities Board, pursuant to the Texas Securities Act, §12.C, exempts a
				Mergers and Acquisitions (M&A) Dealer from registration as a dealer
				provided the conditions set forth in this section are met. The agents for the
				M&A Dealer are also exempt from registration provided the conditions set
				forth in this section are met.
(b)
				Definitions. The following words and terms, when used in this section, shall
				have the following meanings, unless the context clearly indicates otherwise.
(1) M&A Dealer--A person engaged in the
				business of effecting securities transactions solely in connection with a
				Qualifying M&A Transaction, as identified in subsection (c) of this
				section.
(2) Actively Operate--The
				power to elect executive officers and approve the annual budget or serving as
				an executive or other executive manager.
(3) Privately-Held Company--A company that
				does not have any class of securities registered or required to be registered
				with a securities regulator and is not required to file periodic information,
				documents, or reports under §15(d) of the Exchange Act. The company must
				be an operating company that is a going concern and not a shell company. For
				purposes of this definition, a "going concern" need not be profitable so long
				as it has actually been conducting business, including soliciting or effecting
				business transactions or engaging in research and development activities.
(4) Shell Company--A company that
				has no or nominal operations, and has:
(A) no
				or nominal assets;
(B) assets
				consisting solely of any amount of cash or cash equivalents; or
(C) assets consisting of any amount of cash
				and cash equivalents and nominal other assets.
(5) Business Combination Related Shell
				Company--a Shell Company (as defined in SEC Rule 405) that is:
(A) formed by an entity that is not a shell
				company solely for the purpose of changing the corporate domicile of that
				entity solely within the United States; or
(B) formed by an entity that is not a Shell
				Company solely for the purpose of completing a business combination transaction
				(as defined in SEC Rule 165(f)) among one or more entities other than the Shell
				Company, none of which is a Shell Company.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 8 - JOINT FINANCIAL REGULATORY AGENCIES › Chapter 151 - HOME EQUITY LENDING PROCEDURES › Section 151.1 - Interpretation Procedures

Current through Reg. 49, No. 28; July 12, 2024
(a) Issuing
				interpretations. The Finance Commission and Credit Union Commission may on
				their own motion issue interpretations of Section 50(a)(5) - (7), (e) - (p),
				and (t), Article XVI of the Texas Constitution. The commissions will propose
				and adopt interpretations in accordance with the rulemaking requirements of
				Texas Government Code, Chapter 2001, Subchapter B.
(b) Agency recommendations. The Office of
				Consumer Credit Commissioner, Department of Banking, or Department of Savings
				and Mortgage Lending may recommend proposed interpretations to the Finance
				Commission. The Credit Union Department may recommend proposed interpretations
				to the Credit Union Commission. The four agencies may seek informal input from
				stakeholders and the other agencies before recommending a proposed
				interpretation to the commissions.
(c) Informal request for interpretation. A
				person may submit an informal request for an interpretation of Section 50(a)(5)
				- (7), (e) - (p), or (t), Article XVI of the Texas Constitution. An informal
				request may be submitted to the Office of Consumer Credit Commissioner,
				Department of Banking, Department of Savings and Mortgage Lending, or Credit
				Union Department. A request should:
(1) cite
				the specific provision of the Texas Constitution to be interpreted;
(2) explain the factual and legal context for
				the request; and
(3) explain the
				requestor's opinion of how the request should be resolved.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 8 - JOINT FINANCIAL REGULATORY AGENCIES › Chapter 151 - HOME EQUITY LENDING PROCEDURES › Section 151.8 - Savings Clause and Severability

Current through Reg. 49, No. 28; July 12, 2024
The Finance Commission and Credit Union Commission intend
				  that each provision of any interpretation adopted under Chapters 151, 152, and
				  153 of this title is consistent with Chapter 2001, Government Code. The
				  provisions of any interpretation adopted under Chapters 151, 152, and 153 of
				  this title are severable. If any provision of any interpretation adopted under
				  Chapters 151, 152, and 153 of this title is determined to be inconsistent with
				  Chapter 2001, Government Code or otherwise invalid, all valid provisions are
				  severable from the invalid part.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 8 - JOINT FINANCIAL REGULATORY AGENCIES › Chapter 152 - REPAIR, RENOVATION, AND NEW CONSTRUCTION ON HOMESTEAD PROPERTY › Section 152.1 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
Any reference to Section 50 in this interpretation refers to
				  Article XVI, Texas Constitution, Section 50. Words and terms have these
				  meanings when used in this chapter, unless the context indicates
				  otherwise:
(1) Contract--A contract
				for work and material, that complies with the Texas Constitution and the Texas
				Property Code, used to:
(A) construct new
				improvements;
(B) repair or
				renovate existing improvements; or
(C) both subparagraphs (A) and (B) of this
				paragraph.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 8 - JOINT FINANCIAL REGULATORY AGENCIES › Chapter 152 - REPAIR, RENOVATION, AND NEW CONSTRUCTION ON HOMESTEAD PROPERTY › Section 152.3 - Requirements for Construction of New Improvements: Section 50(a)(5)

Current through Reg. 49, No. 28; July 12, 2024
(a) Except as
				provided in §
									RSA
				152.5(c) of this chapter,
				Section 50(a)(5)(A) - (D) does not apply to the construction of new
				improvements on a homestead.
(b) A
				valid lien, under Section 50(a)(5), may be created on a homestead if the debt
				for the work and material used for new improvements is contracted for in
				writing. Once the lien is created, the homestead is not protected by Section 50
				from forced sale for the payment of the debt.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 8 - JOINT FINANCIAL REGULATORY AGENCIES › Chapter 152 - REPAIR, RENOVATION, AND NEW CONSTRUCTION ON HOMESTEAD PROPERTY › Section 152.5 - Requirements for Work and Material Used to Repair or Renovate: Section 50(a)(5)(A) - (D)

Current through Reg. 49, No. 28; July 12, 2024
(a) Section
				50(a)(5)(A) - (D) applies only to contracts and applications for work and
				material used to repair or renovate existing improvements.
(b) If debt is incurred for work and material
				used to repair or renovate existing improvements and the requirements of
				Section 50(a)(5)(A) - (D) have been met, a lien is established on the homestead
				of a family, or of a single adult person, and it is not protected by Section 50
				from forced sale for the payment of the debt.
(c) If the application and contract are for
				both work and material used to repair or renovate existing improvements and for
				work and material used in constructing new improvements, the entire transaction
				is considered a contract to repair and renovate existing improvements and
				compliance with the constitutional requirements of Section 50(a)(5)(A) - (D) is
				required to establish a lien on the homestead.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 8 - JOINT FINANCIAL REGULATORY AGENCIES › Chapter 152 - REPAIR, RENOVATION, AND NEW CONSTRUCTION ON HOMESTEAD PROPERTY › Section 152.7 - Consent of Spouses in the Case of Family Homestead: Section 50(a)(5)(A)

Current through Reg. 49, No. 28; July 12, 2024
(a) In the case of
				a family homestead, both spouses must consent in writing to the contract for
				repair or renovation of existing improvements, regardless of whether the spouse
				has a community property interest or other ownership interest in the
				homestead.
(b) In addition to the
				consent of both spouses of a family homestead, the lender or contractor, at its
				option, may also require all other owners and their spouses to consent to the
				contract.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 8 - JOINT FINANCIAL REGULATORY AGENCIES › Chapter 152 - REPAIR, RENOVATION, AND NEW CONSTRUCTION ON HOMESTEAD PROPERTY › Section 152.9 - Five Day Waiting Period for a Contract Before Executing Work and Materials for Repairs or Renovation: Section 50(a)(5)(C)

Current through Reg. 49, No. 28; July 12, 2024
The contract for work and materials may not be executed
				  before the fifth calendar day after the owner makes written application for any
				  extension of credit for the work and materials except as provided in
				  §152.13. To count the five days, the day after the application for
				  extension of credit is made is day one. If the fifth calendar day falls on a
				  Sunday or federal legal public holiday, then the contract for work and
				  materials may not be executed until the next calendar day that is not a Sunday
				  or federal legal public holiday.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 8 - JOINT FINANCIAL REGULATORY AGENCIES › Chapter 152 - REPAIR, RENOVATION, AND NEW CONSTRUCTION ON HOMESTEAD PROPERTY › Section 152.11 - Three Day Right to Rescind Contract for Work and Materials for Repairs or Renovation: Section 50(a)(5)(C)

Current through Reg. 49, No. 28; July 12, 2024
The owner and owner's spouse may rescind the contract for
				  work and materials within three calendar days after execution by all parties of
				  the contract for work and materials. To count the three days, the day after the
				  contract is executed is day one. The rescission period ends at midnight of the
				  third calendar day following the execution of the contract. If the third
				  calendar day falls on a Sunday or federal legal public holiday, then the right
				  of rescission is extended to midnight of the next calendar day that is not a
				  Sunday or federal legal public holiday.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 8 - JOINT FINANCIAL REGULATORY AGENCIES › Chapter 152 - REPAIR, RENOVATION, AND NEW CONSTRUCTION ON HOMESTEAD PROPERTY › Section 152.13 - Health or Safety Reasons for Waiving the Five Day Waiting Period and the Three Day Right to Rescind: Section 50(a)(5)(B) and (C)

Current through Reg. 49, No. 28; July 12, 2024
(a) If the owner wants to waive the 5-day
				waiting period in §50(a)(5)(B) or the 3-day right of rescission in
				§50(a)(5)(C), the owner must sign a statement that, at a minimum:
(1) describes how the conditions of the
				homestead property require immediate repair;
(2) describes how the conditions of the
				homestead property materially affect the health and safety of the owner or the
				person residing in the homestead; and
(3) states that the owner is waiving the
				5-day waiting period under §50(a)(5)(B), the 3-day period to rescind the
				contract for work and materials under §50(a)(5)(C), or both;
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 8 - JOINT FINANCIAL REGULATORY AGENCIES › Chapter 152 - REPAIR, RENOVATION, AND NEW CONSTRUCTION ON HOMESTEAD PROPERTY › Section 152.15 - Place for Execution of Contract for Work and Material: Section 50(a)(5)(D)

Current through Reg. 49, No. 28; July 12, 2024
(a) The persons
				granting or acknowledging the encumberance of their homestead interest must
				execute the contract for work and material used to repair or renovate existing
				improvements at the permanent physical address of:
(1) the office or branch office of a
				third-party lender making an extension of credit for the work and
				material;
(2) an attorney at law;
				or
(3) a title company.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 8 - JOINT FINANCIAL REGULATORY AGENCIES › Chapter 153 - HOME EQUITY LENDING › Section 153.1 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
Any reference to Section 50 in this interpretation refers to
				  Article XVI, Texas Constitution, unless otherwise noted. These words and terms
				  have the following meanings when used in this chapter, unless the context
				  indicates otherwise:
(1) Balloon--An
				installment that is more than an amount equal to twice the average of all
				installments scheduled before that installment.
(2) Business day .
(A) As used in Section 50(a)(6)(M)(ii) and
				§
										RSA
				153.13 of this title (relating to Preclosing
				Disclosures: Section 50(a)(6)(M)(ii)), "business day" means all calendar days
				except Sundays and the following legal public holidays: New Year's Day,
				Birthday of Martin Luther King, Jr., Washington's Birthday, Memorial Day,
				Juneteenth National Independence Day, Independence Day, Labor Day, Columbus
				Day, Veterans Day, Thanksgiving Day, Christmas Day, and any other legal public
				holiday specified in
				RSA
				6103(a). When a holiday
				falls on a Saturday or Sunday, entities might observe the holiday on the
				preceding Friday or following Monday (e.g., when July 4 falls on a Saturday,
				entities might observe the holiday on Friday, July 3). For purposes of this
				subparagraph, these observed holidays (in the example, July 3) are business
				days.
(B) As used in Section
				50(f)(2)(D) and §
										RSA
				153.45 of this title (relating to Refinance
				of an Equity Loan: Section 50(f)), "business day" means a day on which the
				lender's offices are open to the public for carrying on substantially all of
				its business functions. Activities that indicate that the lender is open for
				substantially all of its business functions include the availability of
				personnel to make loan disbursements, to open new accounts, and to handle loan
				inquiries. Activities that indicate that the lender is not open for
				substantially all of its business functions include a bank's having its
				customer-service windows open only for limited purposes such as deposits and
				withdrawals, bill paying, and related services.
(C) As used in §
										RSA
				153.25 of this title (relating to Right of
				Rescission: Section 50(a)(6)(Q)(viii)), "business day" has the meaning provided
				by Regulation Z,
				RSA
				1026.2(a)(6) that applies
				for purposes of rescission.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 8 - JOINT FINANCIAL REGULATORY AGENCIES › Chapter 153 - HOME EQUITY LENDING › Section 153.2 - Voluntary Lien: Section 50(a)(6)(A)

Current through Reg. 49, No. 28; July 12, 2024
An equity loan must be secured by a voluntary lien on the
				  homestead created under a written agreement with the consent of each owner and
				  each owner's spouse.
(1) The consent
				of each owner and each owner's spouse must be obtained, regardless of whether
				any owner's spouse has a community property interest or other interest in the
				homestead.
(2) An owner or an
				owner's spouse who is not a maker of the note may consent to the lien by
				signing a written consent to the mortgage instrument. The consent may be
				included in the mortgage instrument or a separate document.
(3) The lender, at its option, may require
				each owner and each owner's spouse to consent to the equity loan. This option
				is in addition to the consent required for the lien.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 8 - JOINT FINANCIAL REGULATORY AGENCIES › Chapter 153 - HOME EQUITY LENDING › Section 153.3 - Limitation on Equity Loan Amount: Section 50(a)(6)(B)

Current through Reg. 49, No. 28; July 12, 2024
An equity loan must be of a principal amount that when added
				  to the aggregate total of the outstanding principal balances of all other
				  indebtedness secured by valid encumbrances of record against the homestead does
				  not exceed 80 percent of the fair market value of the homestead on the date the
				  extension of credit is made. For example, on a property with a fair market
				  value of $100,000, the maximum amount of debt against the property permitted by
				  Section 50(a)(6)(B) is $80,000. Assuming existing debt of $30,000, the maximum
				  amount of the equity loan debt is $50,000.
(1) The principal amount of an equity loan is
				the sum of:
(A) the amount of the cash
				advanced; and
(B) the charges at
				the inception of an equity loan to the extent these charges are financed in the
				principal amount of the loan.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 8 - JOINT FINANCIAL REGULATORY AGENCIES › Chapter 153 - HOME EQUITY LENDING › Section 153.4 - Nonrecourse: Section 50(a)(6)(C)

Current through Reg. 49, No. 28; July 12, 2024
An equity loan must be without recourse for personal
				  liability against each owner and the spouse of each owner, unless the owner or
				  spouse obtained the extension of credit by actual fraud.
(1) If an owner or the spouse of an owner
				cosigns an equity loan agreement or consents to a security interest, the equity
				loan must not give the lender personal liability against an owner or an owner's
				spouse.
(2) A lender is prohibited
				from pursuing a deficiency except when the owner or owner's spouse has
				committed actual fraud in obtaining an equity loan.
(3) To determine whether a lender may pursue
				personal liability, the borrower or owner must have committed "actual fraud."
				To obtain personal liability under this section, the deceptive conduct must
				constitute the legal standard of "actual fraud." Texas case law distinguishes
				"actual fraud" from "constructive fraud." "Actual fraud" encompasses dishonesty
				of purpose or intentional breaches of duty that are designed to injure another
				or to gain an undue and unconscientious advantage.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 8 - JOINT FINANCIAL REGULATORY AGENCIES › Chapter 153 - HOME EQUITY LENDING › Section 153.5 - Two Percent Fee Limitation: Section 50(a)(6)(E)

Current through Reg. 49, No. 28; July 12, 2024
An equity loan must not require the owner or the owner's
				  spouse to pay, in addition to any interest or any bona fide discount points
				  used to buy down the interest rate, any fees to any person that are necessary
				  to originate, evaluate, maintain, record, insure, or service the extension of
				  credit that exceed, in the aggregate, two percent of the original principal
				  amount of the extension of credit, excluding fees for an appraisal performed by
				  a third party appraiser, a property survey performed by a state registered or
				  licensed surveyor, a state base premium for a mortgagee policy of title
				  insurance with endorsements established in accordance with state law, or a
				  title examination report if its cost is less than the state base premium for a
				  mortgagee policy of title insurance without endorsements established in
				  accordance with state law.
(1)
				Optional Charges. Charges paid by an owner or an owner's spouse at their sole
				discretion are not fees subject to the two percent limitation. Charges that are
				not imposed or required by the lender, but that are optional, are not fees
				subject to the two percent limitation. The use of the word "require" in Section
				50(a)(6)(E) means that optional charges are not fees subject to the two percent
				limitation.
(2) Optional Insurance.
				Insurance coverage premiums paid by an owner or an owner's spouse that are at
				their sole discretion are not fees subject to the two percent limitation.
				Examples of these charges may include credit life and credit accident and
				health insurance that are voluntarily purchased by the owner or the owner's
				spouse.
(3) Charges that are
				Interest. Charges an owner or an owner's spouse is required to pay that
				constitute interest under §
									RSA
				153.1(12) of this title
				(relating to Definitions) are not fees subject to the two percent limitation.
(A) Per diem interest is interest and is not
				subject to the two percent limitation.
(B) Bona fide discount points are interest
				and are not subject to the two percent limitation. Discount points are bona
				fide if the discount points truly correspond to a reduced interest rate and are
				not necessary to originate, evaluate, maintain, record, insure, or service the
				equity loan. A lender may rely on an established system of verifiable
				procedures to evidence that the discount points it offers are bona fide. This
				system may include documentation of options that the owner is offered in the
				course of negotiation, including a contract rate without discount points and a
				lower contract rate based on discount points.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 8 - JOINT FINANCIAL REGULATORY AGENCIES › Chapter 153 - HOME EQUITY LENDING › Section 153.7 - Prohibition on Prepayment Penalties: Section 50(a)(6)(G)

Current through Reg. 49, No. 28; July 12, 2024
An equity loan may be paid in advance without penalty or
				  other charge.
(1) A lender may not
				charge a penalty to a borrower for paying all or a portion of an equity loan
				early.
(2) A lockout provision is
				not permitted in an equity loan agreement because it is considered a prepayment
				penalty.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 8 - JOINT FINANCIAL REGULATORY AGENCIES › Chapter 153 - HOME EQUITY LENDING › Section 153.8 - Security of the Equity Loan: Section 50(a)(6)(H)

Current through Reg. 49, No. 28; July 12, 2024
An equity loan must not be secured by any additional real or
				  personal property other than the homestead. The definition of "homestead" is
				  located at Section 51 of Article XVI, Texas Constitution, and Chapter 41 of the
				  Texas Property Code.
(1) A lender and
				an owner or an owner's spouse may enter into an agreement whereby a lender may
				acquire an interest in items incidental to the homestead. An equity loan
				secured by the following items is not considered to be secured by additional
				real or personal property:
(A) escrow
				reserves for the payment of taxes and insurance;
(B) an undivided interest in a condominium
				unit, a planned unit development, or the right to the use and enjoyment of
				certain property owned by an association;
(C) insurance proceeds related to the
				homestead;
(D) condemnation
				proceeds;
(E) fixtures;
				or
(F) easements necessary or
				beneficial to the use of the homestead, including access easements for ingress
				and egress.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 8 - JOINT FINANCIAL REGULATORY AGENCIES › Chapter 153 - HOME EQUITY LENDING › Section 153.9 - Acceleration: Section 50(a)(6)(J)

Current through Reg. 49, No. 28; July 12, 2024
An equity loan may not be accelerated because of a decrease
				  in the market value of the homestead or because of the owner's default under
				  other indebtedness not secured by a prior valid encumbrance against the
				  homestead.
(1) An equity loan
				agreement may contain a provision that allows the lender to accelerate the loan
				because of a default under the covenants of the loan agreement. Examples of
				these provisions include a promise to maintain the property or not remove
				improvements to the property that indirectly affects the market value of the
				homestead.
(2) A contractual
				cross-default clause is permitted only if the lien associated with the equity
				loan agreement is subordinate to the lien that is referenced by the cross
				default clause.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 8 - JOINT FINANCIAL REGULATORY AGENCIES › Chapter 153 - HOME EQUITY LENDING › Section 153.10 - Number of Loans: Section 50(a)(6)(K)

Current through Reg. 49, No. 28; July 12, 2024
An equity loan must be the only debt secured by the homestead
				  at the time the extension of credit is made unless the other debt was made for
				  a purpose described by Section 50(a)(1)-(a)(5) or (a)(8).
(1) Number of Equity Loans. An owner may have
				only one equity loan at a time, regardless of the aggregate total outstanding
				debt against the homestead.
(2)
				Loss of Homestead Designation. If under Texas law the property ceases to be the
				homestead of the owner, then the lender, for purposes of Section 50(a)(6)(K),
				may treat what was previously a home equity mortgage as a non-homestead
				mortgage.
Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 8 - JOINT FINANCIAL REGULATORY AGENCIES › Chapter 153 - HOME EQUITY LENDING › Section 153.11 - Repayment Schedule: Section 50(a)(6)(L)(i)

Current through Reg. 49, No. 28; July 12, 2024
Unless an equity loan is a home equity line of credit under
				  Section 50(t), the loan must be scheduled at closing to be repaid in
				  substantially equal successive periodic installments, not more often than every
				  14 days and not less often than monthly, beginning no later than two months
				  from the date the extension of credit is made, each of which equals or exceeds
				  the amount of accrued interest as of the date of the scheduled
				  installment.
(1) Section
				50(a)(6)(L)(i) does not prohibit a lender from agreeing with a borrower to
				modify an equity loan if the modification does not satisfy and replace the
				original equity loan and does not create a new extension of credit. The
				modification may include a deferment of the borrower's original obligation, and
				may include amounts that are past due under the equity loan (e.g., accrued but
				unpaid interest, taxes and insurance).
(2) The two month time period contained in
				Section 50(a)(6)(L)(i) begins on the date of closing. A modification described
				by paragraph (1) of this subsection does not affect the two month time
				period.
(3) For purposes of Section
				50(a)(6)(L)(i), a month is the period from a date in a month to the
				corresponding date in the succeeding month. For example, if a home equity loan
				closes on March 1, the first installment must be due no later than May 1. If
				the succeeding month does not have a corresponding date, the period ends on the
				last day of the succeeding month. For example, if a home equity loan closes on
				July 31, the first installment must be due no later than September
				30.
(4) For a closed-end equity
				loan to have substantially equal successive periodic installments, some amount
				of principal must be reduced with each installment. This requirement prohibits
				balloon payments.
(5) Section
				50(a)(6)(L)(i) does not preclude a lender's recovery of payments as necessary
				for other amounts such as taxes, adverse liens, insurance premiums, collection
				costs, and similar items.