reglab/statecodes huggingface dataset:
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 52 - Cooperative Marketing Associations › Subchapter E. Membership Certificates and Stock › Section 52.065. Preferred Stock

Sec. 52.065.  PREFERRED STOCK.  (a)  A marketing association organized with capital stock may issue preferred stock with or without the right to vote.
(b)  The association may redeem preferred stock on conditions provided by the association's articles of incorporation and printed on the face of the stock certificates.
Acts 1981, 67th Leg., p. 1109, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 52 - Cooperative Marketing Associations › Subchapter E. Membership Certificates and Stock › Section 52.066. Stock Issued on Purchase of Property

Sec. 52.066.  STOCK ISSUED ON PURCHASE OF PROPERTY.  (a)  If a marketing association organized with capital stock purchases stock, property, or an interest in property, it may discharge its obligations, in whole or part, by exchanging for its acquisition shares of preferred stock the par value of which equals the value of the purchased property as determined by the board of directors.
(b)  In the transaction described by Subsection (a) of this section, the transfer of the purchased property to the association is considered payment in cash for the issued shares of preferred stock.
Acts 1981, 67th Leg., p. 1109, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 52 - Cooperative Marketing Associations › Subchapter F. Members › Section 52.081. Membership

Sec. 52.081.  MEMBERSHIP.  (a)  Membership of a marketing association is limited to persons who produce agricultural products handled by or through the association, including the lessees and tenants of land used to produce those products and any lessors and landlords who receive as rent part of the crop raised on the leased land.  A marketing association may be a member of another marketing association.
(b)  A marketing association shall admit members under terms and conditions prescribed in its bylaws.
(c)  If a member of a marketing association organized without capital stock is not a natural person, the member may be represented by any individual, an associate officer, or one of its members, authorized in writing to act for it.
Acts 1981, 67th Leg., p. 1110, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 52 - Cooperative Marketing Associations › Subchapter F. Members › Section 52.082. New Members

Sec. 52.082.  NEW MEMBERS.  (a)  A marketing association organized without capital stock may admit new members.
(b)  If the property rights of the association's members are unequal, a new member is entitled to share the property of the association with the old members in accordance with the general rules stated in the articles of incorporation.
Acts 1981, 67th Leg., p. 1110, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 52 - Cooperative Marketing Associations › Subchapter F. Members › Section 52.083. Meetings

Sec. 52.083.  MEETINGS.  (a)  As prescribed by its bylaws, a marketing association annually shall hold one or more regular meetings of its members.
(b)  The board of directors may call a special meeting of the association at any time.
(c)  If, at any time, 10 percent or more of the members file with the board of directors a petition demanding a special meeting of the association and stating the specific business to be considered at the meeting, the board shall call the meeting.
Acts 1981, 67th Leg., p. 1110, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 52 - Cooperative Marketing Associations › Subchapter F. Members › Section 52.084. Notice of Meetings

Sec. 52.084.  NOTICE OF MEETINGS.  Not later than the 10th day before the day of a meeting of a marketing association, the association shall:
(1)  mail to each member notice of the meeting and a statement of the purpose of the meeting;  or
(2)  if the bylaws so provide, publish notice of the meeting in a newspaper of general circulation in the area in which the association's principal place of business is located.
Acts 1981, 67th Leg., p. 1110, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 52 - Cooperative Marketing Associations › Subchapter F. Members › Section 52.085. Voting

Sec. 52.085.  VOTING.  (a)  Except as provided by Subsection (b) of this section, a member of a marketing association is entitled to one vote.
(b)  A marketing association may provide in its articles of incorporation or bylaws for a member association or group to have more than one vote if the association providing for the vote:
(1)  is organized primarily for the production, cultivation, and care of citrus groves or for processing and marketing citrus products and:
(A)  has its principal office in a county that has at least 500 acres of land planted in citrus groves;  and
(B)  includes as members one or more associations or groups organized on a cooperative basis;  or
(2)  is organized primarily for the harvesting, preserving, drying, processing, canning, storing, handling, shipping, marketing, selling, or use of grain or grain-related products.
(c)  A marketing association that provides for a member association or group to have more than one vote under Subsection (b) shall comply with Section 52.012(a)(2).
(d)  In accordance with a bylaw adopted under Section 52.052 of this code, a marketing association may provide for its members to vote by proxy or by mail.
Acts 1981, 67th Leg., p. 1110, ch. 388, Sec. 1, eff. Sept. 1, 1981.  Amended by Acts 1995, 74th Leg., ch. 419, Sec. 1.11, eff. Sept. 1, 1995;  Acts 1999, 76th Leg., ch. 339, Sec. 1, eff. May 29, 1999.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 52 - Cooperative Marketing Associations › Subchapter F. Members › Section 52.086. Termination or Suspension of Membership

Sec. 52.086.  TERMINATION OR SUSPENSION OF MEMBERSHIP.  In accordance with its articles of incorporation or a bylaw adopted under Section 52.052 of this code, a marketing association may provide for the termination or suspension of membership in the association and for the purchase of a member's common or preferred stock, if any, and all other property interest in the association.
Acts 1981, 67th Leg., p. 1111, ch. 388, Sec. 1, eff. Sept. 1, 1981.  Amended by Acts 1983, 68th Leg., p. 1551, ch. 296, Sec. 4, eff. June 14, 1983.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 52 - Cooperative Marketing Associations › Subchapter F. Members › Section 52.087. Liability of Members

Sec. 52.087.  LIABILITY OF MEMBERS.  Except for debts contracted with the association, a member of a marketing association is not liable for the debts of the association in an amount that exceeds the amount that is unpaid on the member's membership fee or subscription to capital stock, including any unpaid balance on promissory notes given in payment for the stock.
Acts 1981, 67th Leg., p. 1111, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 52 - Cooperative Marketing Associations › Subchapter G. Administration › Section 52.101. Board of Directors

Sec. 52.101.  BOARD OF DIRECTORS.  (a)  A board of directors shall manage a marketing association.
(b)  The board shall be composed of five or more directors who are elected by the members of the association.
(c)  Except as provided by Subsection (d) of this section, a person must be a member of the association to be eligible to serve as a director.
(d)  As prescribed by the bylaws of the association that is holding the meeting, a marketing association that is a member of the association may designate any of its members to vote on behalf of the member association or to serve as a director of the association holding the meeting.
Acts 1981, 67th Leg., p. 1111, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 52 - Cooperative Marketing Associations › Subchapter G. Administration › Section 52.102. Officers

Sec. 52.102.  OFFICERS.  (a)  The directors shall elect:
(1)  a president or chairman;
(2)  one or more vice-presidents or vice-chairmen;
(3)  a secretary;  and
(4)  a treasurer.
(b)  To be eligible to serve as president, chairman, vice-president, or vice-chairman, a person must be a director.
(c)  The directors may combine the offices of secretary and treasurer as secretary-treasurer.
(d)  A bank or depository may serve as treasurer but is not considered to be an officer.  If a bank or depository serves as treasurer, the secretary shall perform the usual accounting duties of the treasurer except that the secretary may deposit money only as authorized by the board of directors.
Acts 1981, 67th Leg., p. 1111, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 52 - Cooperative Marketing Associations › Subchapter G. Administration › Section 52.103. Removal of Officer or Director

Sec. 52.103.  REMOVAL OF OFFICER OR DIRECTOR.  (a)  Except as provided by Subsection (f) of this section, a member of a marketing association may initiate removal of an officer or director by filing in writing with the association's secretary:
(1)  the charges;  and
(2)  a petition that is signed by 10 percent of the members and that requests the removal of the officer or director in question.
(b)  The members of the association shall vote on the removal at the next regular or special meeting of the association.
(c)  Before the meeting the association, in writing, shall inform the officer or director of the charges.
(d)  At the meeting the association shall give the officer or director and the person bringing the charges an opportunity to be heard in person or by counsel and to present witnesses.
(e)  The association, by a majority vote, may remove the officer or director and fill the vacancy.
(f)  If an association's bylaws provide for election of directors by districts with primary elections in each district, the petition for removal of a director must state the charges and must be signed by 20 percent of the members residing in the district from which the director was elected.  The board of directors shall call a special meeting of the members residing in that district to consider removal of the director.  The members in that district, by a majority vote, may remove the director.
Acts 1981, 67th Leg., p. 1112, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 52 - Cooperative Marketing Associations › Subchapter G. Administration › Section 52.104. Bond

Sec. 52.104.  BOND.  (a)  Each officer, employee, or agent who handles money or property of a marketing association or any money or property that is under the control or in possession of a marketing association shall execute and deliver to the association an indemnity bond that indemnifies the association and its members against any fraudulent, dishonest, or unlawful act by the bonded person and other acts as provided by the association's bylaws.
(b)  If the officers and directors of a marketing association fail to require a person to execute a bond as required by Subsection (a) of this section, each officer and director is personally liable for all losses that would have been recovered under the bond if the person had been bonded.
Acts 1981, 67th Leg., p. 1112, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 52 - Cooperative Marketing Associations › Subchapter G. Administration › Section 52.105. Referendum

Sec. 52.105.  REFERENDUM.  (a)  On demand of one-third of the board of directors, the board shall refer to the entire membership of a marketing association for decision at the next special or regular meeting any matter that has been approved or passed by the board.
(b)  The association may call a special meeting to consider the referred matter.
Acts 1981, 67th Leg., p. 1112, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 52 - Cooperative Marketing Associations › Subchapter H. Foreign Cooperatives › Section 52.121. Foreign Cooperative Considered Marketing Association

Sec. 52.121.  FOREIGN COOPERATIVE CONSIDERED MARKETING ASSOCIATION.  For the purposes of this chapter, a corporation or association organized, with or without capital stock, under a cooperative marketing act of another state or of the United States is considered to be a marketing association if the corporation or association:
(1)  satisfies the requirements of Section 52.012 of this chapter;  and
(2)  is composed of persons who, as farmers, planters, ranchers, dairymen, or nut or fruit growers, produce agricultural products and who act collectively to process, prepare, handle, and market, in interstate and foreign commerce, the members' products.
Acts 1981, 67th Leg., p. 1112, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 52 - Cooperative Marketing Associations › Subchapter H. Foreign Cooperatives › Section 52.122. Permits to Do Business

Sec. 52.122.  PERMITS TO DO BUSINESS.  (a)  Any cooperative marketing association incorporated under the laws of another state may apply for and be granted a permit to do business in this state.  The association shall pay as filing fee the amount required of domestic corporations organized for a similar purpose.
(b)  A marketing association is not required to have all or part of a paid-up capital to be entitled to a permit under Subsection (a) of this section.
Acts 1981, 67th Leg., p. 1113, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 52 - Cooperative Marketing Associations › Subchapter I. Remedies › Section 52.131. Breach or Threatened Breach of Marketing Contract

Sec. 52.131.  BREACH OR THREATENED BREACH OF MARKETING CONTRACT.  (a)  If a member breaches or threatens to breach a marketing contract, the marketing association may sue and, if successful, is entitled to:
(1)  an injunction to prevent further breach of the contract;  and
(2)  a decree of specific performance of the contract.
(b)  Pending the adjudication of an action filed under Subsection (a) of this section, the association is entitled to a temporary restraining order and preliminary injunction against the member if the association files:
(1)  a verified complaint showing the breach or threatened breach;  and
(2)  sufficient bond.
Acts 1981, 67th Leg., p. 1113, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 52 - Cooperative Marketing Associations › Subchapter I. Remedies › Section 52.132. Induced Breach of Marketing Contract; False Reports

Sec. 52.132.  INDUCED BREACH OF MARKETING CONTRACT;  FALSE REPORTS.  In a civil suit for damages, a person is liable to a marketing association for an amount equal to three times the amount of actual damages proven for each offense if the person, or where the person is a corporation, if an officer or employee of the corporation:
(1)  knowingly induces or attempts to induce a member of the association to breach the member's marketing contract with the association;  or
(2)  maliciously and knowingly spreads false reports concerning the finances or management of the association.
Acts 1981, 67th Leg., p. 1113, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 52 - Cooperative Marketing Associations › Subchapter J. Fees and Reports › Section 52.151. Tax Exemptions

Sec. 52.151.  TAX EXEMPTIONS.  A marketing association is exempt from all franchise or license taxes, except that a marketing association is exempt from the franchise tax imposed by Chapter 171, Tax Code, only if exempted by that chapter.
Acts 1981, 67th Leg., p. 1113, ch. 388, Sec. 1, eff. Sept. 1, 1981.  Amended by Acts 1981, 67th Leg., p. 2785, ch. 752, Sec. 15(b), eff. Jan. 1, 1982;  Acts 1995, 74th Leg., ch. 419, Sec. 2.20, eff. Sept. 1, 1995.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 506 (S.B. 1016), Sec. 5.09, eff. September 1, 2009.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 54 - Mutual Loan Corporations › Section 54.001. Purpose

Sec. 54.001.  PURPOSE.  A corporation may be formed under this chapter to aid shareholders of its common stock in:
(1)  producing, or producing and marketing, staple agricultural products;  or
(2)  acquiring, raising, breeding, fattening, or marketing livestock.
Acts 1981, 67th Leg., p. 1119, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 54 - Mutual Loan Corporations › Section 54.002. Powers

Sec. 54.002.  POWERS.  (a)  A corporation formed under this chapter may make loans to shareholders of its common stock for:
(1)  the production, or production and marketing, of staple agricultural products;
(2)  the acquisition, raising, breeding, fattening, or marketing of livestock;  or
(3)  the purchase of capital stock of the corporation.
(b)  To obtain money for loans, the corporation may purchase, sell, endorse, or discount notes of the shareholders of its common stock if the notes are secured by:
(1)  warehouse receipts or shipping documents for the shareholder's agricultural products;
(2)  chattel mortgages on the livestock or crops of the shareholder;  or
(3)  other acceptable security.
(c)  By endorsing a note under Subsection (b) of this section, a corporation becomes liable as a principal maker of the note.
Acts 1981, 67th Leg., p. 1119, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 54 - Mutual Loan Corporations › Section 54.003. Incorporators

Sec. 54.003.  INCORPORATORS.  Ten or more persons, five of whom are citizens of this state, may form a corporation under this chapter.
Acts 1981, 67th Leg., p. 1119, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 54 - Mutual Loan Corporations › Section 54.004. Capital Stock Requirement for Incorporation

Sec. 54.004.  CAPITAL STOCK REQUIREMENT FOR INCORPORATION.  At the time of filing the articles of incorporation, a corporation formed under this chapter must have fully paid-up capital stock of $10,000 or more.
Acts 1981, 67th Leg., p. 1119, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 54 - Mutual Loan Corporations › Section 54.005. Capital Stock

Sec. 54.005.  CAPITAL STOCK.  (a)  The incorporators or the board of directors of a corporation formed under this chapter may divide the corporation's capital stock into preferred and common stock.
(b)  If preferred stock is to be issued, the articles of incorporation must state:
(1)  the amount of preferred stock that the corporation may issue;
(2)  the conditions and procedure for the payment of dividends on preferred stock;
(3)  the rate at which preferred stock dividends are paid;  and
(4)  the conditions and procedure for the retirement of preferred and common stock.
(c)  A corporation may not pay dividends on its common stock until it has fully paid dividends on its preferred stock at the rate provided by its articles of incorporation.
Acts 1981, 67th Leg., p. 1120, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 54 - Mutual Loan Corporations › Section 54.006. Investment by Other Corporations

Sec. 54.006.  INVESTMENT BY OTHER CORPORATIONS.  After obtaining the approval of the banking commissioner, any corporation organized under the laws of this state other than a savings bank may invest any part of its money in the preferred stock of a corporation formed under this chapter.
Acts 1981, 67th Leg., p. 1120, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 54 - Mutual Loan Corporations › Section 54.007. Investment of Capital

Sec. 54.007.  INVESTMENT OF CAPITAL.  At all times, a corporation formed under this chapter shall have $10,000 or more of its capital invested in securities approved by law for investment by savings banks.
Acts 1981, 67th Leg., p. 1120, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 54 - Mutual Loan Corporations › Section 54.008. Ratio of Capital to Loans

Sec. 54.008.  RATIO OF CAPITAL TO LOANS.  (a)  A corporation formed under this chapter shall automatically increase its capital stock at the rate of five percent of the amount of loans made by the corporation to shareholders of its common stock.
(b)  The corporation's articles of incorporation and bylaws must state the requirement of Subsection (a) of this section.
Acts 1981, 67th Leg., p. 1120, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 54 - Mutual Loan Corporations › Section 54.009. Loans and Discounts

Sec. 54.009.  LOANS AND DISCOUNTS.  (a)  Except as provided by this subsection, each applicant for a loan or discount by a corporation formed under this chapter shall become a subscriber of the corporation's common stock in an amount equal to or greater than five percent of the amount of the loan or discount for which the person has applied.  The board of directors may waive this requirement if the applicant owns a sufficient amount of stock at the time of application.
(b)  An applicant shall pay for the stock required to be purchased under Subsection (a) of this section at or before the time that the loan is closed or the discount is granted.
(c)  The requirements of Subsections (a) and (b) of this section must be stated in the articles of incorporation of a corporation formed under this chapter.
(d)  A corporation formed under this chapter may not make loans in excess of an amount equal to 20 times its unimpaired capital stock represented by the part of its capital stock that is increased in accordance with Section 54.008 of this code.
(e)  A corporation formed under this chapter may not charge a shareholder of its common stock interest on a loan at a rate that is greater than the rate of discount set by the Farm Credit Administration for discounts made by the federal intermediate credit banks plus three percent a year.
Acts 1981, 67th Leg., p. 1120, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 54 - Mutual Loan Corporations › Section 54.010. Liability of Shareholder

Sec. 54.010.  LIABILITY OF SHAREHOLDER.  (a)  Except for debts contracted between a corporation formed under this chapter and a shareholder, a shareholder of common or preferred stock is not liable for the debts, contracts, or engagements of the corporation in an amount greater than the par value of the stock owned by the shareholder.
(b)  Both common and preferred stock are nonassessable.
Acts 1981, 67th Leg., p. 1121, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 54 - Mutual Loan Corporations › Section 54.011. Repurchase of Stock

Sec. 54.011.  REPURCHASE OF STOCK.  (a)  A corporation formed under this chapter may purchase, out of its available funds, any of its outstanding stock.
(b)  The corporation shall pay book value for stock purchased under this section, as conclusively determined by the corporation's directors.
(c)  A corporation formed under this chapter shall state the provisions of Subsections (a) and (b) of this section in its articles of incorporation.
Acts 1981, 67th Leg., p. 1121, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 54 - Mutual Loan Corporations › Section 54.012. Reports

Sec. 54.012.  REPORTS.  Before January 11 and July 11 of each year, a corporation formed under this chapter shall file with the secretary of state a report showing:
(1)  its financial condition on January 1 and July 1, respectively;  and
(2)  the amount of outstanding preferred and common stock.
Acts 1981, 67th Leg., p. 1121, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 54 - Mutual Loan Corporations › Section 54.013. Exemption From Franchise Tax

Sec. 54.013.  EXEMPTION FROM FRANCHISE TAX.  Corporations formed under this chapter are not required to pay franchise taxes.
Acts 1981, 67th Leg., p. 1121, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 55 - Cooperative Credit Associations › Section 55.001. Powers

Sec. 55.001.  POWERS.  An association formed under this chapter may:
(1)  borrow money for and lend money to its members;
(2)  discount, rediscount, endorse, purchase, or sell notes, bills, or other evidences of indebtedness of its members that may be discounted or rediscounted under the rules prescribed by the Farm Credit Administration;  and
(3)  exercise the powers authorized by the general corporation laws of this state unless the law granting the power conflicts with this chapter.
Acts 1981, 67th Leg., p. 1121, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 55 - Cooperative Credit Associations › Section 55.002. Incorporators

Sec. 55.002.  INCORPORATORS.  (a)  Ten or more persons who fulfill the requirements of Subsection (b) of this section may organize a private cooperative credit association.
(b)  To be eligible to be an incorporator a person must:
(1)  be a citizen of this state;  and
(2)  be engaged in the production, or production and marketing, of staple agricultural products or in the raising, breeding, feeding, fattening, or marketing of livestock.
Acts 1981, 67th Leg., p. 1122, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 55 - Cooperative Credit Associations › Section 55.003. Articles of Incorporation

Sec. 55.003.  ARTICLES OF INCORPORATION.  In addition to the requirements prescribed by the general corporation laws of the state, the articles of incorporation of an association formed under this chapter must state that the association may not obtain loans for, make loans to, purchase notes from, or discount notes for a person who is not a member of the association.
Acts 1981, 67th Leg., p. 1122, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 55 - Cooperative Credit Associations › Section 55.004. Capital Stock

Sec. 55.004.  CAPITAL STOCK.  (a)  Except as provided by Subsection (b) of this section, an association may be organized under this chapter with or without capital stock.
(b)  If an association formed under this chapter is organized to lend money secured by chattel mortgages on livestock, the association shall be organized with capital stock.
(c)  An association formed under this chapter with capital stock automatically shall increase its stock at the rate of 10 percent of the amount of loans or discounts made by the association to its members.
Acts 1981, 67th Leg., p. 1122, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 55 - Cooperative Credit Associations › Section 55.005. Loans

Sec. 55.005.  LOANS.  (a)  Each applicant for a loan or discount by an association formed under this chapter shall become a subscriber to the association's capital stock in an amount equal to 10 percent of the amount of the loan or discount for which application is made.
(b)  The applicant shall pay for the stock required to be purchased by Subsection (a) of this section at or before the time that the loan is closed or the discount is granted.
Acts 1981, 67th Leg., p. 1122, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 55 - Cooperative Credit Associations › Section 55.006. Ratio of Capital to Loans

Sec. 55.006.  RATIO OF CAPITAL TO LOANS.  (a)  The total amount of the outstanding loans or discounts of an association formed under this chapter may not exceed an amount equal to 10 times the amount of the association's paid-up unimpaired capital stock.
(b)  The articles of incorporation of an association formed under this chapter must state the requirement of Subsection (a) of this section.
Acts 1981, 67th Leg., p. 1122, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 55 - Cooperative Credit Associations › Section 55.007. Repurchase of Stock

Sec. 55.007.  REPURCHASE OF STOCK.  (a)  The board of directors of an association formed under this chapter may authorize the purchase of the association's capital stock at the book value conclusively determined by the board and pay cash for the stock within one year thereafter if:
(1)  the liabilities of the association are less than 50 percent of its assets;  and
(2)  the directors determined that the stock may be purchased without impairment of the association's financial condition.
(b)  The board of directors in its discretion may retire pro rata stock held by a member or group of members whose loans have been paid in whole or part.
Acts 1981, 67th Leg., p. 1122, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 55 - Cooperative Credit Associations › Section 55.008. Reports

Sec. 55.008.  REPORTS.  Before January 11, April 11, July 11, and October 11, each association formed under this chapter with capital stock shall file with the secretary of state:
(1)  an accurate report showing the association's financial condition and the amount of outstanding paid-up capital stock on January 1, April 1, July 1, or October 1 preceding the report;  and
(2)  a fee of $2.50.
Acts 1981, 67th Leg., p. 1123, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 55 - Cooperative Credit Associations › Section 55.009. Fees

Sec. 55.009.  FEES.  (a)  When the articles of incorporation of an association formed under this chapter are filed, the incorporators shall pay to the secretary of state a filing fee of $10.
(b)  Each association formed under this chapter without capital stock shall pay an annual license fee of $10.
Acts 1981, 67th Leg., p. 1123, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 55 - Cooperative Credit Associations › Section 55.010. Exemption From Franchise Tax

Sec. 55.010.  EXEMPTION FROM FRANCHISE TAX.  An association formed under this chapter is exempt from all franchise or other license taxes, except that:
(1)  an association is not exempt from the annual license fee under Section 55.009 of this code;  and
(2)  an association is exempt from the franchise tax imposed by Chapter 171, Tax Code, only if exempted by that chapter.
Acts 1981, 67th Leg., p. 1123, ch. 388, Sec. 1, eff. Sept. 1, 1981.  Amended by Acts 1981, 67th Leg., p. 2786, ch. 752, Sec. 15(c), eff. Jan. 1, 1982.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 56 - Agricultural Finance Corporations › Section 56.001. Definitions

Sec. 56.001.  DEFINITIONS.  In this chapter:
(1)  "Agricultural finance corporation" means a corporation formed under this chapter.
(2)  "Ready marketable, staple, nonperishable agricultural products" means agricultural products that:
(A)  are commonly dealt in ready markets so that their values are easily and definitely ascertainable and realized on short notice;  and
(B)  ordinarily do not substantially depreciate in quality during the period of immaturity of the obligations that are secured by or that represent those products.
Acts 1981, 67th Leg., p. 1123, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 56 - Agricultural Finance Corporations › Section 56.002. Purpose

Sec. 56.002.  PURPOSE.  An agricultural finance corporation may be organized to deal in:
(1)  acceptances and other receipts that are used to aid or are issued because of the transportation, warehousing, distribution, or financing of ready marketable, staple, nonperishable agricultural products in domestic and foreign trade;  and
(2)  acceptances of banking corporations not secured by or representing any ready marketable, staple, nonperishable agricultural products.
Acts 1981, 67th Leg., p. 1124, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 56 - Agricultural Finance Corporations › Section 56.003. Assets Represented by Acceptances of Banking Corporations

Sec. 56.003.  ASSETS REPRESENTED BY ACCEPTANCES OF BANKING CORPORATIONS.  At any time, the total assets of an agricultural finance corporation that are represented by acceptances of banking corporations not secured by or representing ready marketable, staple, nonperishable agricultural products may not exceed an amount equal to 10 percent of the unimpaired capital of the corporation.
Acts 1981, 67th Leg., p. 1124, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 56 - Agricultural Finance Corporations › Section 56.004. Capital Stock

Sec. 56.004.  CAPITAL STOCK.  At all times an agricultural finance corporation shall have authorized capital stock in the amount of $500,000 or more.
Acts 1981, 67th Leg., p. 1124, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 56 - Agricultural Finance Corporations › Section 56.005. Investment of Capital

Sec. 56.005.  INVESTMENT OF CAPITAL.  At all times, an agricultural finance corporation shall have one-half or more of its paid-in capital invested in obligations of the United States, this state, or political subdivisions or incorporated cities of this state.
Acts 1981, 67th Leg., p. 1124, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 56 - Agricultural Finance Corporations › Section 56.006. Limit of Indebtedness

Sec. 56.006.  LIMIT OF INDEBTEDNESS.  (a)  For the purposes of this section, the existing obligations of an agricultural finance corporation include the primary, secondary, fixed, and contingent obligations of the corporation but do not include an obligation for which a liable person has furnished to the corporation funds to pay the obligation at maturity.
(b)  Except as provided by Subsection (c) of this section, an agricultural finance corporation may not enter into a contract of acceptance, guaranty, endorsement, or suretyship if the total of its existing obligations plus its obligations resulting from the contract exceeds an amount equal to five times the total of its unimpaired capital and surplus at the time of the contract.
(c)  An agricultural finance corporation may exceed the limit set by Subsection (b) of this section if, before entering into the contract, the corporation obtains written authorization from the banking commissioner to do so.  If authorization is obtained, the corporation may not exceed the limit set by the commissioner, and the limit set by the commissioner may not exceed an amount equal to 10 times the total of the corporation's unimpaired capital and surplus at the time of the contract.
(d)  Except as provided by Subsection (e) of this section, if a corporation enters into a contract in violation of this section, the contract is unenforceable against the corporation.
(e)  This section does not prevent the enforcement of a prohibited obligation by a holder who has acquired the obligation:
(1)  in due course;
(2)  for value;
(3)  before its maturity;  and
(4)  without notice of its defect.
Acts 1981, 67th Leg., p. 1124, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 56 - Agricultural Finance Corporations › Section 56.007. Stock Ownership

Sec. 56.007.  STOCK OWNERSHIP.  (a)  Except as otherwise provided by this section, an agricultural finance corporation or any banking corporation or trust company, except a savings bank, may hold stock of:
(1)  an agricultural finance corporation;  or
(2)  a corporation that is chartered under the laws of the United States or a state of the United States and that is principally engaged in financing ready marketable, staple, nonperishable agricultural products.
(b)  The total amount of stock held in accordance with Subsection (a) of this section may not exceed an amount equal to:
(1)  10 percent of the capital and surplus of the acquiring corporation;  or
(2)  10 percent of the capital stock of the corporation of which the stock is to be held.
(c)  Except in payment of debt, a banking corporation or trust company may not acquire stock of an agricultural finance corporation unless it first obtains express written authorization for the purchase from the banking commissioner under rules adopted by the banking commissioner.
(d)  If a banking corporation or trust company acquires stock of an agricultural finance corporation in payment of debt, it shall promptly dispose of the stock unless it obtains express permission from the banking commissioner to retain the stock.
Acts 1981, 67th Leg., p. 1125, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 56 - Agricultural Finance Corporations › Section 56.008. Regulation by Banking Commissioner

Sec. 56.008.  REGULATION BY BANKING COMMISSIONER.  (a)  An agricultural finance corporation is subject to the supervision and control of the banking commissioner and shall conform to the rules adopted by the banking commissioner.
(b)  An agricultural finance corporation may not begin business until authorized to do so by the banking commissioner after it satisfactorily shows that it has complied with the law.
(c)  An agricultural finance corporation is subject to the following requirements as if it were a state bank:
(1)  it shall make reports to the banking commissioner;
(2)  it shall permit periodic visitations and examinations conducted under the banking commissioner's direction;  and
(3)  it shall pay fees for those examinations.
(d)  The banking commissioner may take charge of and liquidate an agricultural finance corporation for causes prescribed for similar actions against a state bank.
Acts 1981, 67th Leg., p. 1125, ch. 388, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 58 - Agricultural Finance Authority › Subchapter A. General Provisions › Section 58.001. Short Title

Sec. 58.001.  SHORT TITLE.  This chapter may be cited as the Texas Agricultural Finance Act.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, Sec. 1, eff. Oct. 20, 1987.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 58 - Agricultural Finance Authority › Subchapter A. General Provisions › Section 58.002. Definitions

Sec. 58.002.  DEFINITIONS.  In this chapter:
(1)  "Agricultural business" means:
(A)  a business that is or proposes to be engaged in producing, processing, marketing, or exporting an agricultural product;
(B)  an eligible applicant as defined in Subchapter E;
(C)  the entity designated to carry out boll weevil eradication in accordance with Section 74.1011;
(D)  any agriculture-related business in rural areas of Texas including a business that provides recreational activities, including hiking, fishing, hunting, or any other activity associated with the enjoyment of nature or the outdoors on agricultural land;
(E)  a state agency or an institution of higher education that is engaged in producing an agricultural product;
(F)  a business that holds a permit under Subchapter L, Chapter 43, Parks and Wildlife Code; or
(G)  any other business in a rural area of this state.
(2)  "Agricultural product" means an agricultural, horticultural, viticultural, or vegetable product, bees, honey, fish or other seafood, planting seed, livestock, a livestock product, a forestry product, poultry, or a poultry product, either in its natural or processed state, that has been produced, processed, or otherwise had value added to it in this state.
(3)  "Authority" means the Texas Agricultural Finance Authority.
(4)  "Board" means the board of directors of the authority.
(5)  "Bond" includes any type of obligation issued under this Act, including without limitation, any bond, note, draft, bill, warrant, debenture, interim certificate, revenue of bond anticipation note, grant, or any other evidence of indebtedness.
(6)  "Commissioner" means the commissioner of agriculture.
(7)  "Eligible agricultural business" means an agricultural business having its principal place of business in this state.
(8)  "Lender" means a lending institution including a bank, trust company, banking association, savings and loan association, mortgage company, investment banker, credit union, life insurance company, underwriter, or any affiliate of any of those entities, and also includes any other financial institution or governmental agency that customarily provides financing of agricultural loans or mortgages, or any affiliate of such an institution or agency.
(9)  "Rural area" means an area which is predominately rural in character, being one which the board defines and declares to be a rural area.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, Sec. 1, eff. Oct. 20, 1987.  Amended by Acts 1999, 76th Leg., ch. 1459, Sec. 8, eff. June 19, 1999;  Acts 2001, 77th Leg., ch. 26, Sec. 4, eff. May 2, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 5 (S.B. 948), Sec. 1, eff. September 1, 2009.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 58 - Agricultural Finance Authority › Subchapter A. General Provisions › Section 58.003. Venue

Sec. 58.003.  VENUE.  A suit filed by or on behalf of the authority under this chapter may be brought in Travis County.
Added by Acts 2001, 77th Leg., ch. 26, Sec. 5, eff. May 2, 2001.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 58 - Agricultural Finance Authority › Subchapter B. Administration › Section 58.011. Creation of Authority; Public Purpose

Sec. 58.011.  CREATION OF AUTHORITY;  PUBLIC PURPOSE.  (a)  The Texas Agricultural Finance Authority is created within the Department of Agriculture as a public authority.
(b)  The authority is created to provide financial assistance for the expansion, development, and diversification of production, processing, marketing, and export of Texas agricultural products.  The exercise by the authority of the powers and duties conferred by this chapter is an essential public purpose of the state in promoting the general welfare of the state and all of its citizens.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, Sec. 1, eff. Oct. 20, 1987.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 58 - Agricultural Finance Authority › Subchapter B. Administration › Section 58.012. Board of Directors

Sec. 58.012.  BOARD OF DIRECTORS.  (a)  The authority is governed by a board of directors composed of the commissioner of agriculture, the director of the Institute for International Agribusiness Studies at Prairie View A&M University, and nine members appointed by the commissioner.  Members of the board must be appointed in the numbers specified and from the following categories:
(1)  one person who is an elected or appointed official of a municipality or county;
(2)  four persons who are knowledgeable about agricultural lending practices;
(3)  one person who is a representative of agricultural businesses;
(4)  one person who is a representative of agriculture related entities, including rural chambers of commerce, foundations, trade associations, institutions of higher education, or other entities involved in agricultural matters; and
(5)  two persons who represent young farmers and the interests of young farmers.
(b)  The appointed members of the board serve staggered terms of two years, with the terms of four members expiring on January 1 of each even-numbered year and the terms of five members expiring on January 1 of each odd-numbered year.
(c)  Any vacancy occurring in an appointed position on the board shall be filled by the commissioner for the unexpired term.
(d)  Repealed by Acts 2003, 78th Leg., ch. 285, Sec. 31(2).
(e)  A board member is not entitled to compensation for serving as a director but is entitled to reimbursement for actual and necessary expenses incurred in performing the official duties of office.
(f)  Appointments to the board shall be made without regard to the race, color, disability, sex, religion, age, or national origin of the appointees.
(g)  Notwithstanding Subsection (f), age may be considered by the commissioner in making appointments under Subsection (a)(5).
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, Sec. 1, eff. Oct. 20, 1987.  Amended by Acts 1991, 72nd Leg., ch. 456, Sec. 1, eff. Sept. 1, 1991;  Acts 1993, 73rd Leg., ch. 538, Sec. 1, eff. Jan. 1, 1994;  Acts 1995, 74th Leg., ch. 419, Sec. 1.12, 5.11, eff. Sept. 1, 1995;  Acts 2003, 78th Leg., ch. 285, Sec. 31(2), eff. Sept. 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 506 (S.B. 1016), Sec. 1.05, eff. September 1, 2009.
2023 Texas Statutes › Agriculture Code › Title 4 - Agricultural Organizations › Chapter 58 - Agricultural Finance Authority › Subchapter B. Administration › Section 58.013. Officers

Sec. 58.013.  OFFICERS.  (a)  The commissioner shall designate a member of the board as the chairman of the board to serve in that capacity at the pleasure of the commissioner.  The board shall elect a vice-chairman biennially from its members and shall elect a secretary, a treasurer, and other officers it considers necessary.
(b)  The chairman of the board shall preside at meetings of the board and perform other duties prescribed by the board.
(c)  The vice-chairman shall perform the duties of the chairman when the chairman is not present or is incapable of performing his duties of chairman.
(d)  The secretary is the custodian of the minutes, books, records, and seal of the board and shall perform other duties prescribed by the board.
(e)  The treasurer shall perform the duties prescribed by the board.  The offices of secretary and treasurer may be held by the same individual.
(f)  The board may appoint one or more individuals who are not board members to perform any duty of the secretary or treasurer.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, Sec. 1, eff. Oct. 20, 1987.  Amended by Acts 1995, 74th Leg., ch. 419, Sec. 1.13, eff. Sept. 1, 1995.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 506 (S.B. 1016), Sec. 1.06, eff. September 1, 2009.