Texas Business Organizations Code - Section 21.166. Preformation Subscription
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§ 21.166. PREFORMATION SUBSCRIPTION. (a) The
corporation may determine the payment terms of a preformation
subscription unless the payment terms are specified by the
subscription. The payment terms may authorize payment in full on
acceptance or by installments.
(b) Unless the subscription provides otherwise, a
corporation shall make calls placed to all subscribers of similar
interests for payment on preformation subscriptions uniform as far
as practicable.
(c) After the corporation is formed, if a subscriber fails
to pay any installment or call when due, a corporation may:
(1) collect in the same manner as any other debt the
amount due on any unpaid preformation subscription; or
(2) forfeit the subscription if the installment or
call remains unpaid for 20 days after written notice to the
subscriber.
(d) Although the forfeiture of a subscription terminates
all the rights and obligations of the subscriber, the corporation
may retain any amount previously paid on the subscription.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 21.159 21.160 21.161 21.162 21.163 21.164 21.165 21.166 21.167 21.168 21.169 21.170 21.171 21.172 21.173
Last modified: August 11, 2007
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