Sec. 251.403. DISTRIBUTION OF ASSETS. Subject to Sections 11.052 and 11.053(a), the trustees designated under Section 251.401 shall distribute the cooperative association's assets in the following order:
(1) by returning the par value of the investors' capital to investors;
(2) by returning the amounts paid on subscriptions to subscribers for invested capital;
(3) by returning the amount of patronage dividends credited to patrons' accounts to the patrons;
(4) by returning to members their membership capital; and
(5) by distributing any surplus in the manner provided by the certificate of formation:
(A) among the patrons who have been members or subscribers of the cooperative association during the six years preceding the date of termination, on the basis of patronage during that period;
(B) as a gift to any cooperative association or other nonprofit enterprise designated in the certificate of formation; or
(C) by a combination of both methods of distribution.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 688 (H.B. 1737), Sec. 133, eff. September 1, 2007.
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