Sec. 12.258. LIQUIDATION OF INSOLVENT ENTITY. (a) A court hearing a proceeding under Section 12.253 against an insolvent entity may, after the entity has been shown to be insolvent, appoint one or more receivers for the entity and its property. The receiver may settle the affairs of the entity, collect outstanding debts, and divide the money and property belonging to the entity among its owners after paying the debts of the entity and all expenses incidental to the judicial proceedings and receivership.
(b) The court may continue the existence of the entity for three years and for additional reasonable time as necessary to accomplish the purposes of this subchapter.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Structure Texas Statutes
Chapter 12 - Administrative Powers
Subchapter D. Enforcement Proceedings
Section 12.253. Action Against Insolvent Entity
Section 12.254. Suits by District or County Attorney
Section 12.255. Permission to Sue
Section 12.256. Examination and Notice
Section 12.257. Dismissal of Action
Section 12.258. Liquidation of Insolvent Entity
Section 12.259. Extraordinary Remedies; Bond