Texas § AG.51.004 - POWERS

§ AG.51.004. POWERS

POWERS. (a) A society may: (1) borrow money and discount notes, not to exceed a total amount equal to five times its working capital; (2) lend money to its members, on terms and with security as provided by its bylaws; (3) act as an agent for its members in selling the members' agricultural products and in purchasing machinery and supplies for its members, including fire, livestock, hail, cyclone, and storm insurance; (4) own and operate machinery and tools necessary to produce, harvest and prepare for market farm and ranch products; (5) exercise any of the powers granted to cooperative marketing associations under Section 52.013 of this code; and (6) deliver money to a scholarship fund for rural students. (b) To be eligible to purchase insurance for its members, a society must be appointed and licensed as an agent of the insurance company from which the insurance is to be purchased. Commissions received by the society from the purchase of insurance for its members are corporate funds. (c) A society may not lend money or act as an agent for any person other than a member of the society. (d) Societies may join to establish and maintain joint agencies to accomplish the purposes for which they were incorporated. Acts 1981, 67th Leg., p. 1097, ch. 388, Sec. 1, eff. Sept. 1, 1981. Amended by Acts 1997, 75th Leg., ch. 904, Sec. 2, eff. Sept. 1, 1997.