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Texas Business Organizations Code

§ 22.254 — PLEDGE, MORTGAGE, DEED OF TRUST, OR TRUST INDENTURE

BO § 22.254Title 2. CORPORATIONS · Ch. 22. NONPROFIT CORPORATIONS · Art. F. FUNDAMENTAL BUSINESS TRANSACTIONS

Statute text

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(a)Except as otherwise provided by Subsection (b) or by the corporation's certificate of formation:
(1)the board of directors of a corporation may authorize a pledge, mortgage, deed of trust, or trust indenture; and
(2)an authorization or consent of members is not required for the validity of the transaction or for any sale under the terms of the transaction.
(b)If the management of the affairs of a corporation is vested in the corporation's members under Section 22.202:
(1)the members may authorize a pledge, mortgage, deed of trust, or trust indenture in the manner provided by Section 22.252(c) for a sale of all or substantially all of the assets of a corporation; and
(2)an authorization by the board of directors is not required for the validity of the transaction or for any sale under the terms of the transaction.

Legislative history

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

Source: Texas Business Organizations Code § 22.254 from the Texas Constitution and Statutes (Texas Legislature) (public record). DecisionDepot is for informational use only and is not legal advice — verify against the official source before relying on this text.