Texas § GV.4005.008 - FINANCIAL DISTRESS
Full text of Texas The Texas Constitution § GV.4005.008 — FINANCIAL DISTRESS, with citation guidance and answers to common questions.
§ GV.4005.008. FINANCIAL DISTRESS
FINANCIAL DISTRESS. (a) The exemption provided by Section 4005.001 applies to the issuance in good faith of securities by a company: (1) to the company's security holders or creditors in the process of a bona fide reorganization of the company made in good faith; or (2) to the security holders or creditors of a predecessor company if the issuing company is organized solely for the purpose of taking over the assets and continuing the business of the predecessor company. (b) The exemption provided by Section 4005.001 applies to an issuance of securities described by Subsection (a) only if: (1) the securities are issued in exchange for securities of the security holders, claims of the creditors, or both; and (2) the security holders or creditors do not pay, give, or promise any consideration, and are not obligated to pay or give any consideration, for the securities issued other than the securities of or claims against the company or the company's predecessor held or owned by the security holders or creditors at the time of the issuance. Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171 ), Sec. 1.01, eff. January 1, 2022.
Frequently Asked Questions About Texas § GV.4005.008
What does The Texas Constitution § GV.4005.008 cover?
Section GV.4005.008 ("FINANCIAL DISTRESS") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § GV.4005.008?
A common citation format is "The Texas Constitution § GV.4005.008" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § GV.4005.008 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.