Section 251.403 - Distribution of Assets Subject to Sections 11.052 and 11.053(a), the trustees designated under Section 251.401 shall distribute the cooperative association's assets in the following order:
(1) by returning the par value of the investors' capital to investors;(2) by returning the amounts paid on subscriptions to subscribers for invested capital;(3) by returning the amount of patronage dividends credited to patrons' accounts to the patrons;(4) by returning to members their membership capital; and(5) by distributing any surplus in the manner provided by the certificate of formation: (A) among the patrons who have been members or subscribers of the cooperative association during the six years preceding the date of termination, on the basis of patronage during that period;(B) as a gift to any cooperative association or other nonprofit enterprise designated in the certificate of formation; or(C) by a combination of both methods of distribution.Tex. Bus. Org. Code § 251.403
Amended by Acts 2007, 80th Leg., R.S., Ch. 688, Sec. 133, eff. 9/1/2007. Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. 1/1/2006.