Texas Property Code
§ 112.058 — CONVERSION OF COMMUNITY TRUST TO NONPROFIT CORPORATION
PR § 112.058Title 9. TRUSTS · Part B. TEXAS TRUST CODE: CREATION, OPERATION, AND TERMINATION OF TRUSTS · Ch. 112. CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUSTS · Art. C. REVOCATION, MODIFICATION, AND TERMINATION OF TRUSTS
Statute text
View on source(a)In this section:
(1)"Assets" means the assets of the component trust funds of a community trust.
(2)"Community trust" means a community trust as described by 26 C.F.R. Section 1.170A-9 (2008), including subsequent amendments.
(b)A community trust with court approval may transfer the assets of the trust to a nonprofit corporation and terminate the trust as provided by this section.
(c)The community trust may transfer assets of the trust to a nonprofit corporation only if the nonprofit corporation is organized under the Texas Nonprofit Corporation Law, as described by Section 1.008(d), Business Organizations Code, and organized for the same purpose as the community trust. The charter of the nonprofit corporation must describe the purpose of the corporation and the proposed use of the assets transferred using language substantially similar to the language used in the instrument creating the community trust.
(d)To transfer the assets of and terminate a community trust under this section, the governing body of the community trust must:
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Legislative history
Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 6, eff. September 1, 2017. Acts 2023, 88th Leg., R.S., Ch. 291 (S.B. 1768), Sec. 8, eff. May 29, 2023.