Texas § BO.251.403 - DISTRIBUTION OF ASSETS
Full text of Texas The Texas Constitution § BO.251.403 — DISTRIBUTION OF ASSETS, with citation guidance and answers to common questions.
§ BO.251.403. DISTRIBUTION OF ASSETS
DISTRIBUTION OF ASSETS. Subject to Sections 11.052 and 11.053 (a), the trustees designated under Section 251.401 shall distribute the cooperative association's assets in the following order: (1) by returning the par value of the investors' capital to investors; (2) by returning the amounts paid on subscriptions to subscribers for invested capital; (3) by returning the amount of patronage dividends credited to patrons' accounts to the patrons; (4) by returning to members their membership capital; and (5) by distributing any surplus in the manner provided by the certificate of formation: (A) among the patrons who have been members or subscribers of the cooperative association during the six years preceding the date of termination, on the basis of patronage during that period; (B) as a gift to any cooperative association or other nonprofit enterprise designated in the certificate of formation; or (C) by a combination of both methods of distribution. Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006. Amended by: Acts 2007, 80th Leg., R.S., Ch. 688 (H.B. 1737 ), Sec. 133, eff. September 1, 2007.
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § BO.251.403
What does The Texas Constitution § BO.251.403 cover?
Section BO.251.403 ("DISTRIBUTION OF ASSETS") 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.251.403?
A common citation format is "The Texas Constitution § BO.251.403" (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.251.403 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.