Sec. 23.067. PROHIBITED LOAN. (a) A member may not make a loan to a corporation if, immediately after the loan would be made, the total amount of the obligations of the corporation would exceed 50 times the capital of the corporation.
(b) For purposes of this section, the capital of the corporation includes the amount of the outstanding shares of the corporation, whether common or preferred, and the earned or paid-in surplus of the corporation.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Structure Texas Statutes
Chapter 23 - Special-Purpose Corporations
Subchapter B. Business Development Corporations
Section 23.056. Certificate of Formation
Section 23.057. Management by Board of Directors; Number of Directors
Section 23.058. Election or Appointment of Directors
Section 23.059. Term of Office; Vacancy
Section 23.061. Participation as Owner
Section 23.062. Financial Institution as Member of Corporation
Section 23.063. Withdrawal of Member
Section 23.064. Powers of Shareholders and Members
Section 23.065. Voting by Shareholder or Member
Section 23.066. Loan to Corporation
Section 23.067. Prohibited Loan
Section 23.071. Annual Report; Provision of Required Information