Texas Finance Code 273.201 – Plan of Operation; Amendment
(a) After the directors have been selected and taken office, the board shall submit to the commissioner a plan of operation the board finds necessary and suitable to assure the fair, reasonable, and equitable administration of the corporation. The plan must:
(1) contain explicit standards for admission to and retention of membership in the corporation;
(2) establish procedures for handling the assets of the corporation;
(3) establish the amount and method of reimbursing directors;
(4) establish a regular place and time for board meetings;
(5) establish procedures for keeping records of financial transactions of the board, the corporation, and the corporation’s agents;
(6) establish additional procedures for issuing securities of the corporation under Subchapter D;
(7) subject to the limits prescribed by § 273.305(c), establish a maximum amount that may be spent on behalf of a member association for the purposes of this chapter; and
(8) contain any other provision necessary or proper to execute the powers and duties of the corporation.
(b) A member association shall comply with the plan.
Terms Used In Texas Finance Code 273.201
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- 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.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) The corporation may amend the plan and submit the amendment to the commissioner.
(d) The plan or an amendment to the plan takes effect on the commissioner’s written approval of the plan or amendment.