Texas Health and Safety Code 711.042 – Authority of Nonprofit Cemetery Organization
Terms Used In Texas Health and Safety Code 711.042
- 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.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Property: means real and personal property. See Texas Government Code 311.005
A nonprofit cemetery organization organized by plot owners may:
(1) divide cemetery property into lots and subdivisions for cemetery purposes;
(2) charge assessments on the property for the purposes of general improvement and maintenance; and
(3) take any action, to the same extent and for the same purposes as a for-profit cemetery corporation, that is necessary to carry out the organization’s business purposes, which include the business purposes necessarily incident to the burial and disposal of human remains, including any action necessary to:
(A) convey property or other assets of the organization;
(B) borrow money;
(C) pledge or mortgage the property or other assets of the organization to secure the organization’s indebtedness or other obligations;
(D) lend money and take security for the loan in furtherance of its business purposes; and
(E) conduct any business activity or business directly or by or through one or more subsidiaries.