Texas Agriculture Code - Section 54.009. Loans And Discounts
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§ 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, § 1, eff. Sept. 1, 1981.
Section: 54.002 54.003 54.004 54.005 54.006 54.007 54.008 54.009 54.010 54.011 54.012 54.013 55.001 55.002 55.003
Last modified: August 10, 2007
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