Tex. Bus. Orgs. Code § 22.055 · Subchapter B. PURPOSES AND POWERS
POWER TO ASSIST EMPLOYEE OR OFFICER.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A corporation may lend money to or otherwise assist an employee or officer of the corporation, but not a director, if the loan or assistance may reasonably be expected to directly or indirectly benefit the corporation.
(b) A loan made to an officer must be:
(1) made for the purpose of financing the officer's principal residence; or
(2) set in an original principal amount that does not exceed:
(A) 100 percent of the officer's annual salary, if the loan is made before the first anniversary of the officer's employment; or
(B) 50 percent of the officer's annual salary, if the loan is made in any subsequent year.
Notes and commentary — not statutory text
History
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BO/htm/BO.22.htm
- Text hash
- sha256 8fc8ee8c74869b1986479c5b97ac2e2688a163327bba7da16788df58cae85bfb
- 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.