Texas § BO.22.055 - POWER TO ASSIST EMPLOYEE OR OFFICER
Full text of Texas The Texas Constitution § BO.22.055 — POWER TO ASSIST EMPLOYEE OR OFFICER, with citation guidance and answers to common questions.
§ BO.22.055. POWER TO ASSIST EMPLOYEE OR OFFICER
POWER TO ASSIST EMPLOYEE OR OFFICER. (a) A corporation may lend money to or otherwise assist an employee or officer of the corporation, but not a director, if the loan or assistance may reasonably be expected to directly or indirectly benefit the corporation. (b) A loan made to an officer must be: (1) made for the purpose of financing the officer's principal residence; or (2) set in an original principal amount that does not exceed: (A) 100 percent of the officer's annual salary, if the loan is made before the first anniversary of the officer's employment; or (B) 50 percent of the officer's annual salary, if the loan is made in any subsequent year. Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § BO.22.055
What does The Texas Constitution § BO.22.055 cover?
Section BO.22.055 ("POWER TO ASSIST EMPLOYEE OR OFFICER") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § BO.22.055?
A common citation format is "The Texas Constitution § BO.22.055" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § BO.22.055 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.