Tex. Bus. Orgs. Code § 22.254 · Subchapter F. FUNDAMENTAL BUSINESS TRANSACTIONS
PLEDGE, MORTGAGE, DEED OF TRUST, OR TRUST INDENTURE.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) Except as otherwise provided by Subsection (b) or by the corporation's certificate of formation:
(1) the board of directors of a corporation may authorize a pledge, mortgage, deed of trust, or trust indenture; and
(2) an authorization or consent of members is not required for the validity of the transaction or for any sale under the terms of the transaction.
(b) If the management of the affairs of a corporation is vested in the corporation's members under Section 22.202:
(1) the members may authorize a pledge, mortgage, deed of trust, or trust indenture in the manner provided by Section 22.252(c) for a sale of all or substantially all of the assets of a corporation; and
(2) an authorization by the board of directors is not required for the validity of the transaction or for any sale under the terms of the transaction.
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 83ba2e139779f9efb6957ab4eb1f57a3f2813e4c10f618681f2d1fa0f8727e16
- 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
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