(a) Except as provided by Chapter 251, a cooperative association may exercise the same powers and privileges and is subject to the same duties, restrictions, and liabilities as a nonprofit corporation.
(b) A cooperative association may:
(1) own and hold membership in other associations or corporations;
(2) own and hold share capital of other associations or corporations;
(3) own and exercise ownership rights in bonds or other obligations;
(4) make agreements of mutual aid or federation with other associations, other groups organized on a cooperative basis, or other nonprofit groups; and
(5) deliver money to a scholarship fund for rural students.

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Terms Used In Texas Business Organizations Code 2.110

  • Association: means an entity governed as an association under Title 6 or 7. See Texas Business Organizations Code 1.002
  • cooperative association: means an association governed as a cooperative association under Chapter 251. See Texas Business Organizations Code 1.002
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Share: means a unit into which the ownership interest in a for-profit corporation, professional corporation, real estate investment trust, or professional association is divided, regardless of whether the share is certificated or uncertificated. See Texas Business Organizations Code 1.002