1. (a) The Securities Commissioner may make an informal disposition of the contested case by default by issuing an order in which the relief requested in the notice of hearing is granted and the matters set forth in the notice are deemed admitted as true upon proof to the Commissioner that the notice was mailed to or personally served on a respondent in accordance with §105.2 of this title (relating to Service of Notice of Hearing) and that such respondent has failed to:

   1. (1) file a written response as provided in §105.7 of this title (relating to Written Response to Notice of Hearing); or
   2. (2) appear in person or through a legal representative on the day and at the time set for the hearing of the case, whether or not a written response has been filed.

2. (b) Upon the motion of a respondent, the Securities Commissioner may, for good cause shown, set aside a default order and reschedule a hearing with SOAH.

   1. (1) A motion by a respondent to set aside a default order shall be filed with the Securities Commissioner not later than the 20th day after the date the default order was mailed to or personally served on the respondent or the respondent's attorney of record.
   2. (2) A reply by the staff of the State Securities Board to the motion by a respondent to set aside a default order must be filed with the Securities Commissioner not later than the 30th day after the date the default order was mailed to or personally served on the respondent or the respondent's attorney of record.
   3. (3) If the Securities Commissioner does not formally grant or deny the motion filed by a respondent to set aside a default order not later than the 45th day after the date the default order was mailed to or personally served on the respondent or the respondent's attorney of record, the motion shall be considered denied.

Source Note:The provisions of this §105.8 adopted to be effective April 8, 1997, 22 TexReg 3213; amended to be effective December 6, 1998, 23 TexReg 12292.