Texas § FI.273.201 - PLAN OF OPERATION

§ FI.273.201. PLAN OF OPERATION

PLAN OF OPERATION; AMENDMENT. (a) After the directors have been selected and taken office, the board shall submit to the commissioner a plan of operation the board finds necessary and suitable to assure the fair, reasonable, and equitable administration of the corporation. The plan must: (1) contain explicit standards for admission to and retention of membership in the corporation; (2) establish procedures for handling the assets of the corporation; (3) establish the amount and method of reimbursing directors; (4) establish a regular place and time for board meetings; (5) establish procedures for keeping records of financial transactions of the board, the corporation, and the corporation's agents; (6) establish additional procedures for issuing securities of the corporation under Subchapter D; (7) subject to the limits prescribed by Section 273.305 (c), establish a maximum amount that may be spent on behalf of a member association for the purposes of this chapter; and (8) contain any other provision necessary or proper to execute the powers and duties of the corporation. (b) A member association shall comply with the plan. (c) The corporation may amend the plan and submit the amendment to the commissioner. (d) The plan or an amendment to the plan takes effect on the commissioner's written approval of the plan or amendment. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.