Tex. Local Gov't Code Section 505.354
Termination of Existence of Corporation

(a)

If a majority of the votes cast at an election held under Section 505.352 (Election to Terminate Existence of Corporation on Petition) approve the termination, the Type B corporation shall:

(1)

continue operations only as necessary to meet the obligations the corporation incurred before the date of the election, including paying the principal of and interest on the corporation’s bonds; and

(2)

liquidate the corporation’s assets and apply the proceeds to satisfy the corporation’s obligations, to the extent practicable.

(b)

After the Type B corporation has satisfied all of the corporation’s obligations, any remaining assets of the corporation shall be transferred to the authorizing municipality, and the existence of the corporation is terminated.

(c)

The authorizing municipality shall promptly notify the comptroller and the secretary of state of the date the existence of a Type B corporation is terminated under this subchapter.

(d)

A tax imposed under this chapter may not be collected after the last day of the first calendar quarter that begins after the authorizing municipality provides notice under Subsection (c).
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009.

Source: Section 505.354 — Termination of Existence of Corporation, https://statutes.­capitol.­texas.­gov/Docs/LG/htm/LG.­505.­htm#505.­354 (accessed Jun. 5, 2024).

505.001
Definition 505.002
Applicability of Chapter 505.003
Authority to Create Corporation 505.004
Contents of Certificate of Formation 505.005
Corporation Not Subject to Certain Provisions 505.051
Board of Directors 505.052
Restriction on Board Membership 505.053
Officers 505.054
Quorum 505.055
Location of Board Meetings 505.056
Restrictions on Registered Agent and Office 505.101
Applicability of Other Law 505.102
Contract with Other Private Corporation 505.103
Limitation on Use of Revenues for Promotional Purposes 505.104
Bond Repayment 505.105
Eminent Domain 505.106
Liability 505.151
Authorized Projects 505.152
Projects Related to Recreational or Community Facilities 505.153
Projects Related to Affordable Housing 505.154
Projects Related to Water Supply Facilities and Water Conservation Programs 505.155
Projects Related to Business Enterprises that Create or Retain Primary Jobs 505.156
Projects Related to Business Enterprises in Certain Municipalities 505.157
Projects Related to Business Enterprises in Landlocked Communities 505.158
Projects Related to Business Development in Certain Small Municipalities 505.159
Hearing Required to Undertake Project 505.160
Election Required for Project 505.161
Public Purpose Designation 505.201
Definitions 505.202
Election: Use of Tax Proceeds for Sports Venue Projects 505.203
Public Hearing Preceding Election 505.204
Limitation on Subsequent Election 505.205
Subsequent Approval of Additional Projects 505.206
Effect of Subchapter on Election Authority 505.251
Tax Authorized 505.252
Sales Tax 505.253
Use Tax 505.254
Specification of Tax Rate on Ballot 505.255
Adoption of Tax at Election to Reduce or Abolish Tax for Type a Corporation 505.256
Applicability of Tax Code 505.257
Reduction of Tax Within Regional Transportation Authority 505.258
Cessation of Collection of Taxes 505.259
Election Requirement for Certain Municipalities 505.301
Delivery of Tax Proceeds 505.302
Payment of Project Costs, Bonds, or Other Obligations 505.303
Payment of Maintenance and Operating Costs 505.304
Payment for Certain Water-related Projects: Election Required 505.305
Payment for Cleanup of Contaminated Property 505.351
Applicability of Subchapter 505.352
Election to Terminate Existence of Corporation on Petition 505.353
Ballot 505.354
Termination of Existence of Corporation 505.355
Election Rejecting Termination 505.1041
Appraisal Required Before Purchase of Property with Bond Proceeds 505.1561
Projects Related to Airport Facilities in Certain Municipalities 505.2565
Limitation on Duration of Tax 505.2566
Election to Reduce or Increase Tax Rate 505.2575
Limited Sales and Use Tax for Specific Project
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Accessed:
Jun. 5, 2024

§ 505.354’s source at texas​.gov