Texas Finance Code

§ 62.156 — PREFERRED STOCK

FI § 62.156Title 3. FINANCIAL INSTITUTIONS AND BUSINESSES · Part B. SAVINGS AND LOAN ASSOCIATIONS · Ch. 62. ORGANIZATIONAL AND FINANCIAL REQUIREMENTS · Art. D. OPERATIONS AND FINANCES

Statute text

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(a)An association may not issue preferred stock before the preferred stock is fully paid for in cash.

(b)An association may not make a loan against the shares of its outstanding preferred stock.

(c)An association may retire or redeem preferred stock in the manner provided by:

(1)the articles of incorporation; or

(2)a resolution of the board establishing the rights and preferences relating to the stock.

Legislative history

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.