Texas § BO.2.103 - POWER TO INCUR INDEBTEDNESS
Full text of Texas The Texas Constitution § BO.2.103 — POWER TO INCUR INDEBTEDNESS, with citation guidance and answers to common questions.
§ BO.2.103. POWER TO INCUR INDEBTEDNESS
POWER TO INCUR INDEBTEDNESS. (a) Unless otherwise provided by its governing documents or this code, a domestic entity may create indebtedness for any consideration the entity considers appropriate, including: (1) cash; (2) property; (3) a contract to receive property; (4) a debt or other obligation of the entity or of another person; (5) services performed or a contract for services to be performed; or (6) a direct or indirect benefit realized by the entity. (b) In the absence of fraud in the transaction, the judgment of the governing authority of a domestic entity as to the value of the consideration received by the entity for indebtedness is conclusive. (c) The consideration for the indebtedness may be received either directly or indirectly by the domestic entity, including by a domestic or foreign organization that is wholly or partially owned, directly or indirectly, by the domestic entity. (d) This section does not apply to indebtedness created by a domestic entity that is incurred by reason of the authorization or payment of a distribution. Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Frequently Asked Questions About Texas § BO.2.103
What does The Texas Constitution § BO.2.103 cover?
Section BO.2.103 ("POWER TO INCUR INDEBTEDNESS") 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.2.103?
A common citation format is "The Texas Constitution § BO.2.103" (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.2.103 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.