Texas Agriculture Code

§ 54.002 — POWERS

AG § 54.002Title 4. AGRICULTURAL ORGANIZATIONS · Ch. 54. MUTUAL LOAN CORPORATIONS

Statute text

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(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;

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Legislative history

Acts 1981, 67th Leg., p. 1119, ch. 388, Sec. 1, eff. Sept. 1, 1981.