Tex. Agric. Code § 51.004 · Chapter 51. FARMERS' COOPERATIVE SOCIETIES
POWERS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(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.
Notes and commentary — not statutory text
History
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.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/AG/htm/AG.51.htm
- Text hash
- sha256 8b6a468df81fb462149ed44501c211b43d737682cae5c3c402ff9e2015635bc8
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
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Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.