Texas Agriculture Code

§ 52.066 — STOCK ISSUED ON PURCHASE OF PROPERTY

AG § 52.066Title 4. AGRICULTURAL ORGANIZATIONS · Ch. 52. COOPERATIVE MARKETING ASSOCIATIONS · Art. E. MEMBERSHIP CERTIFICATES AND STOCK

Statute text

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(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.

Legislative history

Acts 1981, 67th Leg., p. 1109, ch. 388, Sec. 1, eff. Sept. 1, 1981.