Texas Business Organizations Code - Section 2.103. Power To Incur Indebtedness
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§ 2.103. POWER TO INCUR INDEBTEDNESS. (a) Unless
otherwise provided by its governing documents or this code, a
domestic entity may create indebtedness for any consideration the
entity considers appropriate, including:
(1) cash;
(2) property;
(3) a contract to receive property;
(4) a debt or other obligation of the entity or of
another person;
(5) services performed or a contract for services to
be performed; or
(6) a direct or indirect benefit realized by the
entity.
(b) In the absence of fraud in the transaction, the judgment
of the governing authority of a domestic entity as to the value of
the consideration received by the entity for indebtedness is
conclusive.
(c) The consideration for the indebtedness may be received
either directly or indirectly by the domestic entity, including by
a domestic or foreign organization that is wholly or partially
owned, directly or indirectly, by the domestic entity.
(d) This section does not apply to indebtedness created by a
domestic entity that is incurred by reason of the authorization or
payment of a distribution.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 2.008 2.009 2.010 2.011 2.012 2.101 2.102 2.103 2.104 2.105 2.106 2.107 2.108 2.109 2.110
Last modified: August 11, 2007
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