Texas Government Code 4008.059 – Requirements of Rescission Offer to Sellers
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(a) A rescission offer is sufficient for purposes of § 4008.062(c) only if the offer meets the requirements of this section.
(b) The offer must include financial and other information material to the offeree’s decision whether to accept the offer. The offer may not contain 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.
Terms Used In Texas Government Code 4008.059
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- in writing: includes any representation of words, letters, or figures, whether by writing, printing, or other means. See Texas Government Code 312.011
- National Bank: A bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name. Source: OCC
- Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
- Year: means 12 consecutive months. See Texas Government Code 311.005
(c) The offeror shall deposit the securities in escrow in a state or national bank doing business in this state, or in another bank approved by the commissioner.
(d) The terms of the offer must be the same, excluding costs and attorney’s fees, as the seller would recover on rescission under § 4008.056(b).
(e) The offer must state:
(1) the terms of the offer, as determined under Subsection (d), which must be given:
(A) to the extent practicable, in terms of a specified number and kind of securities and a specified rate of interest for a period starting at a specified date; and
(B) to the extent necessary, in terms of specified elements that are known to the offeree but not to the offeror, subject to the provision of reasonable evidence by the offeree;
(2) the name and address of the bank at which the terms of the offer will be carried out;
(3) that the offeree will receive the securities within a specified number of days that is not more than 30 days after the date the bank receives, in form reasonably acceptable to the offeror and in compliance with the instructions in the offer:
(A) the amount required by the terms of the offer; and
(B) evidence, if necessary, of elements described by Subdivision (1)(B);
(4) in a conspicuous manner that the offeree may not sue on the offeree’s sale under this subchapter unless:
(A) the offeree accepts the offer but does not receive the securities, in which case the offeree may sue within the time allowed by § 4008.062(c)(1) or (2), as applicable; or
(B) the offeree rejects the offer in writing within 30 days of the date the offeree receives the offer and expressly reserves in the rejection the right to sue, in which case the offeree may sue not later than one year after the date of the rejection;
(5) in reasonable detail, the nature of the violation of this title that occurred or may have occurred; and
(6) any other information the offeror wants to include.