Texas Business Organizations Code - Section 23.066. Loan To Corporation
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§ 23.066. LOAN TO CORPORATION. (a) When called on by a
corporation to make a loan to the corporation, a member of the
corporation shall make the loan on those terms and conditions
periodically approved by the board of directors.
(b) A loan made to the corporation by a member shall be
evidenced by a bond, debenture, note, or other evidence of
indebtedness of the corporation that:
(1) is freely transferable at any time; and
(2) accrues interest at a rate of not less than
one-fourth of one percent more than the rate of interest determined
by the board of directors to be the prime rate prevailing on the
date of issuance on unsecured commercial loans.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 23.059 23.060 23.061 23.062 23.063 23.064 23.065 23.066 23.067 23.068 23.069 23.070 23.071 23.101 23.102
Last modified: August 11, 2007
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