Texas Business Organizations Code - Section 251.001. Definitions
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§ 251.001. DEFINITIONS. In this chapter:
(1) "Cooperative basis" means that net savings, after
payment of any investment dividends or after provision for separate
funds has been made as required or authorized by law, the
certificate of formation, or bylaws, are:
(A) allocated or distributed to a member patron
or to each patron in proportion to patronage; or
(B) retained by the entity for:
(i) actual or potential expansion of the
entity's services;
(ii) the reduction of charges to patrons;
or
(iii) any other purpose consistent with the
entity's nonprofit character.
(2) "Invested capital" means funds invested in a
cooperative association by an investor with the expectation of
receiving an investment dividend.
(3) "Investment dividend" means the return on invested
capital or on membership capital derived from the net savings of the
cooperative association.
(4) "Membership capital" means the funds of a
cooperative association derived from members of the cooperative
association generally as a requirement of membership or in lieu of
patronage dividends. The term does not include deposits or loans
from members.
(5) "Net savings" means the total income of a
cooperative association less the costs of operation.
(6) "Patronage dividend" means a share of the net
savings distributed among members of the cooperative association on
the basis of patronage, as provided by the certificate of
formation.
(7) "Savings returns" means the amount returned by a
cooperative association to patrons of a cooperative association in
proportion to patronage or otherwise.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 200.410 200.451 200.452 200.453 200.501 200.502 200.503 251.001 251.002 251.003 251.051 251.052 251.053 251.054 251.101
Last modified: August 11, 2007
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