Texas Finance Code - Section 33.208. Dissolution
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Texas Lawyer > Finance Code > Texas Finance Code - Section 33.208. Dissolution
§ 33.208. DISSOLUTION. (a) A limited banking association
organized under this chapter is dissolved on:
(1) the expiration of the period fixed for the
duration of the limited banking association;
(2) a vote to dissolve or the execution of a written
consent to dissolve by all full liability participants, if any, and
a sufficient number of other participants that, combined with all
full liability participants, hold at least two-thirds of the
participation shares in each class in the association, or a greater
fraction as provided by the articles of association;
(3) except as provided by the articles of association,
the death, insanity, expulsion, bankruptcy, retirement, or
resignation of a participant unless a majority in interest of all
remaining participants elect in writing not later than the 90th day
after the date of the event to continue the business of the
association; or
(4) the occurrence of an event of dissolution
specified in the articles of association.
(b) A dissolution under this section is considered to be the
initiation of a voluntary liquidation under Subchapter B, Chapter
36.
(c) An event of dissolution described by Subsection (a)(3)
does not cancel or revoke a contract to which the bank is a party,
including a trust indenture or agreement or voluntary dissolution
under Subchapter B, Chapter 36, until the period for the remaining
participants to continue the business of the bank has expired
without the remaining participants having completed the necessary
action to continue the business of the bank.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
Section: 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 34.003 34.101
Last modified: August 10, 2007
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