Texas Finance Code - Section 33.206. Interest In Limited Banking Association; Transferability Of Interest
Legal Research Home >
Texas Lawyer > Finance Code > Texas Finance Code - Section 33.206. Interest In Limited Banking Association; Transferability Of Interest
§ 33.206. INTEREST IN LIMITED BANKING ASSOCIATION;
TRANSFERABILITY OF INTEREST. (a) The interest of a participant or
participant-transferee in a limited banking association is the
personal property of the participant or the participant-transferee
and may be transferred as provided by the bylaws or the
participation agreement.
(b) A transferee of a participant's interest has the status
of a participant-transferee and does not by the transfer become a
participant or obtain a right to participate in the management of
the limited banking association.
(c) A participant-transferee is entitled to receive only
the share of profits, return of contribution, or other distributive
benefit in respect to the interest transferred to which the
participant who transferred the interest would have been entitled.
(d) A participant-transferee may become a participant only
as provided by the bylaws or the participation agreement.
(e) A limited banking association may add additional
participants in the same manner as participant-transferees after
payment in full of the capital contributions to the limited banking
association payable for the issuance of additional participation
interests.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
Section: 33.108 33.109 33.201 33.202 33.203 33.204 33.205 33.206 33.207 33.208 33.209 33.210 33.211 34.001 34.002
Last modified: August 10, 2007
|
