Sec. 1202.007.  EXEMPTIONS;  CONSTRUCTION OF EXEMPTIONS.  (a)  The following are exempt from the approval and registration requirements of this chapter:
(1)  a public security that is:
(A)  not subject to mandatory renewal or renewal at the option of any person, including the issuer, a holder, or a bearer; and
(B)  payable only out of:
(i)  current revenues or taxes collected in the year the public security is issued; or
(ii)  the proceeds of other public securities;
(2)  a certificate in evidence of benefit assessments;
(3)  a certificate of obligation, including a claim or account that represents an undivided interest in a certificate of obligation, that under Subchapter C, Chapter 271, Local Government Code, an issuer is authorized to deliver to a contractor;
(4)  a time warrant issued under Chapter 252 or 262, Local Government Code;
(5)  a public security authorized by Chapter 1371;
(6)  a lease, lease-purchase, or installment sale obligation, except as provided by other law;
(7)  a public security that by rule the attorney general exempts because it is not practical to require approval before the public security's issuance; and
(8)  a nonnegotiable note issued under Section 45.108, Education Code, in a principal amount that does not exceed $1 million.
(b)  The exemptions provided by Subsection (a) shall be narrowly construed.
(c)  An issuer that issues a public security that is exempt under Subsection (a) may submit the public security to the attorney general as provided by this chapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.002, eff. Sept. 1, 2001.
Amended by: 
Acts 2013, 83rd Leg., R.S., Ch. 1018 (H.B. 2610), Sec. 3, eff. September 1, 2013.