(a) This subchapter does not prevent a cooperative association from:
(1) creating recourse or nonrecourse debt in the form of bonds, debentures, notes, or any other form of obligation;
(2) encumbering, mortgaging, pledging, or granting a security interest in any property of the cooperative association;
(3) refunding existing debt or obligations by any means available under this subchapter; or
(4) otherwise exercising all express or implied powers granted by § 301.033(b), 301.037, 301.038, 301.039, or 301.044, or granted by state corporation laws.
(b) This section only clarifies the powers of cooperative associations and does not expand their powers.

Terms Used In Texas Health and Safety Code 301.047

  • 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.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Property: means real and personal property. See Texas Government Code 311.005
  • Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
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