Texas · Through 89th 2nd Called Legislative Session, 2025

Tex. Local Government Code § 501.053: CORPORATION NONPROFIT; NET EARNINGS.

Where this section sits in the code

LOCAL GOVERNMENT CODE
TITLE 12. PLANNING AND DEVELOPMENT
SUBTITLE C1. ADDITIONAL PLANNING AND DEVELOPMENT PROVISIONS APPLYING TO MORE THAN ONE TYPE OF LOCAL GOVERNMENT
CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
SUBCHAPTER B. CREATION AND OPERATION OF CORPORATION

(a) A corporation is nonprofit, and the corporation's net earnings remaining after payment of its expenses may not benefit an individual, firm, or corporation, except as provided by Subsection (b).

(b) If the board of directors determines that sufficient provision has been made for the full payment of the corporation's expenses, bonds, and other obligations, any net earnings of the corporation subsequently accruing shall be paid to the corporation's authorizing unit.

Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009.

Collected 2026-08-27T01:47:27Z. Source file · JSON

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