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Tex. Bus. Orgs. Code § 12.257

DISMISSAL OF ACTION

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff

(a) A suit authorized by Section 12.253 or 12.258 may not be filed or, if filed, shall be dismissed if the entity, through its owners or members, reduces its indebtedness so that it is not insolvent.

(b) The respondent shall pay the costs of a dismissed suit under 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.