{"data":{"id":"us-tx/tex.-government-code-4005.025","jurisdiction":"us-tx","citation":"Tex. Government Code § 4005.025","heading":"ISSUANCE OR TRANSFER TO NONPROFITS.","body":"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:\n(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;\n(2) the issuance or transfer is not made for the purpose of raising capital for the issuer;\n(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\n(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.\nAdded by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.","path":["GOVERNMENT CODE","TITLE 12. SECURITIES ACT","CHAPTER 4005. EXEMPTIONS","SUBCHAPTER A. EXEMPT TRANSACTIONS"],"source_url":"https://statutes.capitol.texas.gov/Docs/GV/htm/GV.4005.htm#4005.025","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:47:16Z","sha256":"659daae9e2765ce4627a37e23ebd0de923aa8e245ed689f364e7b96b15591c71","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-government-code-4005.024","next":"us-tx/tex.-government-code-4005.051"},"notice":"GroundRules: Original legal text. Not legal advice."}