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Texas Business Organizations Code - Section 9.251. Activities Not Constituting Transacting Business In This State

Legal Research Home > Texas Lawyer > Business Organizations Code > Texas Business Organizations Code - Section 9.251. Activities Not Constituting Transacting Business In This State

§ 9.251. ACTIVITIES NOT CONSTITUTING TRANSACTING BUSINESS 
IN THIS STATE.  For purposes of this chapter, activities that do 
not constitute transaction of business in this state include:
		(1)  maintaining or defending an action or suit or an 
administrative or arbitration proceeding, or effecting the 
settlement of:
			(A)  such an action, suit, or proceeding;  or                                
			(B)  a claim or dispute to which the entity is a 
party;                    
		(2)  holding a meeting of the entity's managerial 
officials, owners, or members or carrying on another activity 
concerning the entity's internal affairs;
		(3)  maintaining a bank account;                                              
		(4)  maintaining an office or agency for:                                     
			(A)  transferring, exchanging, or registering 
securities the entity issues;  or
			(B)  appointing or maintaining a trustee or 
depositary related to the entity's securities;
		(5)  voting the interest of an entity the foreign 
entity has acquired;      
		(6)  effecting a sale through an independent 
contractor;                    
		(7)  creating, as borrower or lender, or acquiring 
indebtedness or a mortgage or other security interest in real or 
personal property;
		(8)  securing or collecting a debt due the entity or 
enforcing a right in property that secures a debt due the entity;
		(9)  transacting business in interstate commerce;                             
		(10)  conducting an isolated transaction that:                                
			(A)  is completed within a period of 30 days;  and                           
			(B)  is not in the course of a number of repeated, 
similar transactions;   
		(11)  in a case that does not involve an activity that 
would constitute the transaction of business in this state if the 
activity were one of a foreign entity acting in its own right:
			(A)  exercising a power of executor or 
administrator of the estate of a nonresident decedent under 
ancillary letters issued by a court of this state;  or
			(B)  exercising a power of a trustee under the 
will of a nonresident decedent, or under a trust created by one or 
more nonresidents of this state, or by one or more foreign entities;
		(12)  regarding a debt secured by a mortgage or lien on 
real or personal property in this state:
			(A)  acquiring the debt in a transaction outside 
this state or in interstate commerce;
			(B)  collecting or adjusting a principal or 
interest payment on the debt;  
			(C)  enforcing or adjusting a right or property 
securing the debt;         
			(D)  taking an action necessary to preserve and 
protect the interest of the mortgagee in the security;  or
			(E)  engaging in any combination of transactions 
described by this subdivision;
		(13)  investing in or acquiring, in a transaction 
outside of this state, a royalty or other nonoperating mineral 
interest;  or
		(14)  the execution of a division order, contract of 
sale, or other instrument incidental to ownership of a nonoperating 
mineral interest.

Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.                     

Last modified: August 11, 2007