Tex. Agric. Code § 54.002 · Chapter 54. MUTUAL LOAN CORPORATIONS
POWERS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A corporation formed under this chapter may make loans to shareholders of its common stock for:
(1) the production, or production and marketing, of staple agricultural products;
(2) the acquisition, raising, breeding, fattening, or marketing of livestock; or
(3) the purchase of capital stock of the corporation.
(b) To obtain money for loans, the corporation may purchase, sell, endorse, or discount notes of the shareholders of its common stock if the notes are secured by:
(1) warehouse receipts or shipping documents for the shareholder's agricultural products;
(2) chattel mortgages on the livestock or crops of the shareholder; or
(3) other acceptable security.
(c) By endorsing a note under Subsection (b) of this section, a corporation becomes liable as a principal maker of the note.
Notes and commentary — not statutory text
History
Acts 1981, 67th Leg., p. 1119, ch. 388, Sec. 1, eff. Sept. 1, 1981.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/AG/htm/AG.54.htm
- Text hash
- sha256 7697a0a311a02cd111c40088d6b03687cc964cbad332933693708c5d6536e556
- 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
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.