JOBS Act Article

Yesterday, CityBizList Dallas published an article I wrote about the JOBS Act which is available here.

As you can tell from the article, I think the JOBS Act is very good news for growing businesses seeking capital from either the private or public markets.  I suspect private offerings will be especially aided by the relaxation of restrictions on general solicitation with regard to Rule 506 offerings.  Of course, we'll have to see what the final SEC implementing regulation look like, but I think growing businesses will be pleased with the results.

Young Investors Wall Street Camp

Like many who grew up in the 1980's, my favorite television character was Alex P. Keaton, the economics-obsessed kid from the classic show "Family Ties."  I couldn't help but think of Alex when I heard that the Future Investor Clubs of America is offering the Young Investors Wall Street Camp at Rice University.  No doubt Alex would have relished an opportunity to "enjoy financial intelligence training, video and board games, field trips to local financial districts, and guest speakers from some of America's largest corporations."  The camp's website (http://www.futureinvestorsclub.com/camps-houston.cfm) says the kids will get a camp T-shirt. I couldn't find any mention of one of Alex's trademark argyle sweaters, however.

Trusts and Estates website

One of the neatest parts of practicing law at a firm like Cantey Hanger LLP is that I get to work with some pretty amazing attorneys.  One such attorney is Noel Ice, a recognized leader in the field of trusts and estates law.  Noel maintains a website named www.trustsandestates.net that has a tremendous amount of very useful information, including over 150 articles, memos, and other resources related to estate planning and probate materials generated by Noel over the last couple of decades. I encourage readers of this blog to check it out.

JOBS Act becomes law

On April 5, President Obama signed into law the Jumpstart Our Business Startups Act (the "JOBS Act").  The JOBS Act represents the most significant change to the law governing securities offerings since the Securities Act of 1933.  I'm sure I will be blogging about the JOBS Act quite a bit in the coming months as the SEC rolls out its new rules implementing the JOBS Act, but I thought I'd mention an aspect of the law I found most interesting today.

Many private offerings will soon no longer be private!  Let me explain.  Most private offerings of securities rely upon Rule 506 for its exemption from the registration requirements of the Securities Act.  Usually, Rule 506 offerings are made exclusively to accredited investors (investors with high incomes, high net worths, or both).  Rule 506 currently prohibits general solicitation (such as advertisements on television, radio, newspaper, etc.) to publicize the offering.  The JOBS Act requires the SEC to adopt rules permitting general solicitation connection with 506 offerings on so long as all of the purchasers of securities in the offering are accredited investors.  Hence, companies seeking capital will soon be able to publicly offer securities in a "private" offering!  These are interesting times to be a securities lawyer.

Little Known Facts: English First for Recording Instruments

With six flags having flown over Texas and numerous foreign languages spoken in this state, one might wonder if property can be conveyed and recorded in a language other than English.  While parties may be able to agree to convey property in a language other than English, a deed or any other instrument relating to real or personal property cannot be recorded in Texas unless it is written in English.

Section 11.002 of the Texas Property Code provides that "an instrument relating to real or personal property may not be recorded unless it is in English or complies with this section." That statute identifies only two exceptions to the English-only rule for recording instruments in Texas, each of which require that an English translation accompany the foreign language filing:

1. An instrument written in another language executed prior to August 22, 1897; or
2. An English instrument with a foreign-language acknowledgement if acknowledged outside the United States and containing a certificate, stamp, or seal of a notary public or other official before whom the acknowledgment was taken.