Texas Utilities Code - Section 162.205. Effect Of Consolidation Or Merger
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Texas Laws > Utilities Code > Texas Utilities Code - Section 162.205. Effect Of Consolidation Or Merger
Section: 162.152 162.153 162.154 162.201 162.202 162.203 162.204 162.205 162.251 162.252 162.253 162.254 162.301 162.302 162.303
§ 162.205. EFFECT OF CONSOLIDATION OR MERGER. (a) In a
consolidation the existence of each telephone cooperative ceases
and the articles of consolidation are considered to be the articles
of incorporation of the new cooperative. In a merger the separate
existence of each merging telephone cooperative ceases and the
articles of incorporation of the surviving cooperative are
considered to be amended to the extent, if any, that amendment is
provided for in the articles of merger.
(b) All the rights, privileges, immunities, property, and
applications for membership of each of the consolidating or merging
cooperatives are transferred to and vested in the new or surviving
cooperative, except that this chapter does not relieve a
cooperative of the obligation to comply with the applicable
provisions of Title 2.
(c) The new or surviving cooperative is liable for all the
liabilities and obligations of the consolidating or merging
cooperatives. A claim existing or action or proceeding pending by
or against a consolidating or merging cooperative may be prosecuted
as if the consolidation or merger had not taken place, and the new
or surviving cooperative may be substituted in the place of the
consolidating or merging cooperative. The consolidation or merger
does not impair the rights of creditors of or liens on the property
of a consolidating or merging cooperative.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
Last modified: August 11, 2007