Texas Government Code 4003.006 – Examination of and Determination On Permit Application
(a) On the filing of an application for a permit qualifying securities for sale under this subchapter, the commissioner shall examine the application and the papers and documents filed with the application.
(b) After the examination, the commissioner shall:
(1) issue a permit to the applicant authorizing the applicant to issue and dispose of the securities if the commissioner determines that:
(A) the applicant’s proposed plan of business appears to be fair, just, and equitable;
(B) any consideration paid or to be paid by promoters for the securities is fair, just, and equitable if that consideration is less than the proposed offering price to the public; and
(C) the securities the applicant proposes to issue and the methods to be used by the applicant in issuing and disposing of the securities will not work a fraud upon the purchaser of the securities; or
(2) deny the application for a permit and notify the applicant in writing of the commissioner’s decision if the commissioner determines that the applicant’s proposed plan of business appears to be unfair, unjust, or inequitable.
Terms Used In Texas Government Code 4003.006
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Fraud: Intentional deception resulting in injury to another.
- in writing: includes any representation of words, letters, or figures, whether by writing, printing, or other means. See Texas Government Code 312.011