Texas Business Organizations Code

§ 251.001 — DEFINITIONS

BO § 251.001Title 6. ASSOCIATIONS · Ch. 251. COOPERATIVE ASSOCIATIONS · Art. A. GENERAL PROVISIONS

Statute text

In this chapter:

(1)"Cooperative basis" means that net savings, after payment of any investment dividends or after provision for separate funds has been made as required or authorized by law, the certificate of formation, or bylaws, are:

(A)allocated or distributed to a member patron or to each patron in proportion to patronage; or

(B)retained by the entity for:

(i)actual or potential expansion of the entity's services;

(ii)the reduction of charges to patrons; or

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Legislative history

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