1. (a) This section shall apply to the registration by coordination in Texas of securities registered with the Securities and Exchange Commission (SEC) in accordance with the multijurisdictional disclosure system (MDS) set forth in SEC Release Number 33-6879.
2. (b) For purposes of the Texas Securities Act (the Act), §7.C, a waiting period of seven days prior to effectiveness will apply to each MDS offering as long as the application for registration is filed contemporaneously with the SEC registration application in accordance with §113.2 of this title (relating to Registration by Coordination).

3. (c) Financial statements.

   1. (1) A financial statement prepared in a manner that meets the registration requirements of the SEC for an MDS offering is deemed to meet the financial statement requirements contained in the Texas Securities Act, §7.C, if the registration statement has been designated as Form F-7, F-8, F-9, or F-10 by the SEC and:

      1. (A) the securities which are the subject of a registration statement designated as Form F-7 by the SEC are offered for cash upon the exercise of rights granted to existing security holders;
      2. (B) the securities which are the subject of a registration statement designated as Form F-8 by the SEC are securities to be issued in an exchange offer, merger, or other business combination;
      3. (C) the securities which are the subject of the registration statement designated as Form F-9 by the SEC are either nonconvertible preferred stock or nonconvertible debt which are to be rated in one of the four highest rating categories by one or more nationally recognized statistical rating organizations. For purposes of this subparagraph, preferred stock and debt securities which are not convertible for at least one year from the date of effectiveness of the registration statement will be deemed to meet the requirements of this subparagraph;
      4. (D) the securities which are the subject of a registration statement designated as Form F-10 by the SEC are offered and sold pursuant to a prospectus in which the SEC has not required a reconciliation to United States generally accepted accounting principles with respect to the financial information presented therein.
   2. (2) The financial statements permitted by this section will be used in lieu of, and without reconciliation to, United States generally accepted accounting principles (GAAP).

Source Note:The provisions of this §113.13 adopted to be effective February 19, 1991, 16 TexReg 670; amended to be effective December 6, 1998, 23 TexReg 12293.