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Tex. Agric. Code § 54.008

RATIO OF CAPITAL TO LOANS

Acts 1981, 67th Leg., p. 1120, ch. 388, Sec. 1, eff

(a) A corporation formed under this chapter shall automatically increase its capital stock at the rate of five percent of the amount of loans made by the corporation to shareholders of its common stock.

(b) The corporation's articles of incorporation and bylaws must state the requirement of Subsection (a) of this section.

Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.