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Tex. Bus. Orgs. Code § 2.111

LIMITATION ON POWERS OF COOPERATIVE ASSOCIATION

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

Except for the payment of necessary legal fees or promotion expenses, a cooperative association may not directly or indirectly use its funds, issue shares, or incur indebtedness for the payment of compensation for the organization of the cooperative association in excess of five percent of the amount paid for the shares or membership certificates involved in the promotion transaction.

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