1. (a) This chapter sets forth requirements of the State Securities Board for registration of debt securities issued by industrial development corporations in Texas and similar corporations and governmental authorities elsewhere. Issuance of such debt securities to promote the development of commercial, industrial, and manufacturing enterprises serves a valuable purpose in local economic development, but registration of these securities with the State Securities Board is also deemed necessary to ensure protection of the investing public who buy such securities and thereby make available continued financing for legitimate commercial development.
2. (b) All sales of securities issued pursuant to the Development Corporation Act of 1979 and similar statutes of other states, whether exempt from the registration provisions of the Securities Act or not, are subject to the antifraud provisions contained in §§23, 29, and 32 of the Act. Sales of industrial development bonds in violation of the registration or antifraud requirements set forth in the Act and this chapter will subject the violator to civil liability under section 33 of the Act for registration or antifraud violations, as well as the criminal penalties provided in §29.
3. (c) Sales of industrial development bonds in violation of the securities registration requirements imposed by §24(d) of the Development Corporation Act of 1979 and this chapter do not invalidate or impair the validity of issuance of the bonds or any obligation to make payments under any indenture or agreement made in connection with the issuance of any such bonds by the violator or any other entity responsible for ultimate repayment of the bond indebtedness.

Source Note:The provisions of this §135.1 adopted to be effective October 22, 1979, 4 TexReg 3722.