Texas Agriculture Code 54.002 – Powers
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(a) A corporation formed under this chapter may make loans to shareholders of its common stock for:
(1) the production, or production and marketing, of staple agricultural products;
(2) the acquisition, raising, breeding, fattening, or marketing of livestock; or
(3) the purchase of capital stock of the corporation.
(b) To obtain money for loans, the corporation may purchase, sell, endorse, or discount notes of the shareholders of its common stock if the notes are secured by:
(1) warehouse receipts or shipping documents for the shareholder’s agricultural products;
(2) chattel mortgages on the livestock or crops of the shareholder; or
(3) other acceptable security.
Terms Used In Texas Agriculture Code 54.002
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Livestock: means cattle, horses, mules, asses, sheep, goats, llamas, alpacas, exotic livestock, including elk and elk hybrids, and hogs, unless otherwise defined. See Texas Agriculture Code 1.003
(c) By endorsing a note under Subsection (b) of this section, a corporation becomes liable as a principal maker of the note.