Court Opinions

State Laws

US Code

US Constitution

Texas Finance Code - Section 33.205. Withdrawal Or Reduction Of Participant's Contribution To Capital

Legal Research Home > Texas Lawyer > Finance Code > Texas Finance Code - Section 33.205. Withdrawal Or Reduction Of Participant's Contribution To Capital

§ 33.205. WITHDRAWAL OR REDUCTION OF PARTICIPANT'S 
CONTRIBUTION TO CAPITAL.  (a) Except as otherwise provided by this 
chapter, a participant may not receive from a limited banking 
association any part of the participant's contribution to capital 
unless:
		(1)  all liabilities of the bank, except liabilities to 
participants on account of contributions to capital, have been 
paid;
		(2)  after the withdrawal or reduction, sufficient 
property of the bank will remain to pay all liabilities of the bank 
except liabilities to participants on account of contributions to 
capital;
		(3)  all participants consent;  or                                            
		(4)  the articles of association are canceled or 
amended to set out the withdrawal or reduction.
	(b)  A participant may demand the return of the participant's 
contribution to capital on the dissolution of the association and 
the failure of the full liability participants to exercise the 
right to carry on the business of the limited banking association as 
provided by Section 33.208.
	(c)  A participant may demand the return of the participant's 
contribution to capital only in cash unless a different form of 
return of the contribution is allowed by the articles of 
association or by the unanimous consent of all participants of the 
limited banking association.

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.                   

Last modified: August 10, 2007