{"data":{"id":"us-tx/tex.-business-organizations-code-251.403","jurisdiction":"us-tx","citation":"Tex. Business Organizations Code § 251.403","heading":"DISTRIBUTION OF ASSETS.","body":"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:\n(1) by returning the par value of the investors' capital to investors;\n(2) by returning the amounts paid on subscriptions to subscribers for invested capital;\n(3) by returning the amount of patronage dividends credited to patrons' accounts to the patrons;\n(4) by returning to members their membership capital; and\n(5) by distributing any surplus in the manner provided by the certificate of formation:\n(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;\n(B) as a gift to any cooperative association or other nonprofit enterprise designated in the certificate of formation; or\n(C) by a combination of both methods of distribution.\nActs 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.\nAmended by:\nActs 2007, 80th Leg., R.S., Ch. 688 (H.B. 1737), Sec. 133, eff. September 1, 2007.","path":["BUSINESS ORGANIZATIONS CODE","TITLE 6. ASSOCIATIONS","CHAPTER 251. COOPERATIVE ASSOCIATIONS","SUBCHAPTER I. WINDING UP AND TERMINATION"],"source_url":"https://statutes.capitol.texas.gov/Docs/BO/htm/BO.251.htm#251.403","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:46:58Z","sha256":"a4bd4db3c52d696ea1fe9ff0606f8ac4241f226500a3bcb79772930cb1c46608","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-business-organizations-code-251.402","next":"us-tx/tex.-business-organizations-code-251.404"},"notice":"GroundRules: Original legal text. Not legal advice."}