Texas § GV.4005.025 - ISSUANCE OR TRANSFER TO NONPROFITS
Full text of Texas The Texas Constitution § GV.4005.025 — ISSUANCE OR TRANSFER TO NONPROFITS, with citation guidance and answers to common questions.
§ GV.4005.025. ISSUANCE OR TRANSFER TO NONPROFITS
ISSUANCE OR TRANSFER TO NONPROFITS. The exemption provided by Section 4005.001 applies to the issuance or transfer of securities by the issuer of its securities to a corporation or association organized exclusively for a religious, educational, benevolent, fraternal, charitable, or reformatory purpose and not for pecuniary profit, only if: (1) the corporation or association does not provide anything of value for the securities other than, for a security that is an option, payment of the exercise price of the option to acquire the securities at a price not to exceed the fair market value of the underlying securities on the date the option was granted; (2) the issuance or transfer is not made for the purpose of raising capital for the issuer; (3) a commission or other form of consideration is not paid or provided to a third party with respect to the issuance or transfer; and (4) the issuance or transfer is not directly or indirectly for the purposes of providing or furthering a scheme to violate or evade this title. Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171 ), Sec. 1.01, eff. January 1, 2022. SUBCHAPTER B. EXEMPT SECURITIES
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § GV.4005.025
What does The Texas Constitution § GV.4005.025 cover?
Section GV.4005.025 ("ISSUANCE OR TRANSFER TO NONPROFITS") 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.4005.025?
A common citation format is "The Texas Constitution § GV.4005.025" (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.4005.025 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.