(a) Any "qualified credit enhancement" need not be registered as a separate security when no additional consideration is required to receive the enhancement and the enhancement is offered and sold in conjunction with, and is not tradeable separately from, securities that are:      
        (1) registered pursuant to the Securities Act, §7;        
          (2) exempt under the Securities Act, §6; or          
            (3) included within a transaction exempt under the Securities Act, §5.            
              (b) For purposes of this section, the term "qualified credit enhancement" means:              
                (1) a letter of credit issued by a domestic branch or agency of a foreign bank if the nature and extent of the regulation and supervision of the particular branch or agency is substantially equivalent to that applicable to federal or state chartered domestic banks doing business in the same domestic jurisdiction; or                
                  (2) amunicipal bond insurance policy or guarantee issued by an insurance company licensed or supervised by the Texas Department of Insurance.                 
     Source Note:        The provisions of this §139.15 adopted to be effective September 14, 1994, 19 TexReg 6842.