Tex. Bus. Orgs. Code Section 251.403
Distribution of Assets

Subject to Sections 11.052 (Winding up Procedures) and 11.053 (Property Applied to Discharge Liabilities and Obligations)(a), the trustees designated under Section 251.401 (Voluntary Winding up and Termination) shall distribute the cooperative association’s assets in the following order:

(1)

by returning the par value of the investors’ capital to investors;

(2)

by returning the amounts paid on subscriptions to subscribers for invested capital;

(3)

by returning the amount of patronage dividends credited to patrons’ accounts to the patrons;

(4)

by returning to members their membership capital; and

(5)

by distributing any surplus in the manner provided by the certificate of formation:

(A)

among the patrons who have been members or subscribers of the cooperative association during the six years preceding the date of termination, on the basis of patronage during that period;

(B)

as a gift to any cooperative association or other nonprofit enterprise designated in the certificate of formation; or

(C)

by a combination of both methods of distribution.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 688 (H.B. 1737), Sec. 133, eff. September 1, 2007.

Source: Section 251.403 — Distribution of Assets, https://statutes.­capitol.­texas.­gov/Docs/BO/htm/BO.­251.­htm#251.­403 (accessed Jun. 5, 2024).

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Accessed:
Jun. 5, 2024

§ 251.403’s source at texas​.gov