Texas § GV.4008.054 - NONSELLING ISSUER LIABILITY
Full text of Texas The Texas Constitution § GV.4008.054 — NONSELLING ISSUER LIABILITY, with citation guidance and answers to common questions.
§ GV.4008.054. NONSELLING ISSUER LIABILITY
NONSELLING ISSUER LIABILITY. (a) This section applies only to an issuer that registers under Subchapter A, B, or C, Chapter 4003 , or under Section 6, Securities Act of 1933 (15 U.S.C. Section 77f), the issuer's outstanding securities for offer and sale by or for the owner of the securities. (b) Except as provided by Subsection (d), the issuer is liable to a person buying the registered security if the prospectus required in connection with the registration contains, as of its effective date, an untrue statement of a material fact or an omission to state a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading. (c) The buyer of the registered security may sue for: (1) rescission; or (2) damages if the buyer no longer owns the security. (d) The issuer is not liable under Subsection (b) if the issuer sustains the burden of proof that the buyer knew of the untruth or omission. Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171 ), Sec. 1.01, eff. January 1, 2022.
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § GV.4008.054
What does The Texas Constitution § GV.4008.054 cover?
Section GV.4008.054 ("NONSELLING ISSUER LIABILITY") 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.4008.054?
A common citation format is "The Texas Constitution § GV.4008.054" (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.4008.054 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.