Texas Local Government Code 505.354 – Termination of Existence of Corporation
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(a) If a majority of the votes cast at an election held under § 505.352 approve the termination, the Type B corporation shall:
(1) continue operations only as necessary to meet the obligations the corporation incurred before the date of the election, including paying the principal of and interest on the corporation’s bonds; and
(2) liquidate the corporation’s assets and apply the proceeds to satisfy the corporation’s obligations, to the extent practicable.
(b) After the Type B corporation has satisfied all of the corporation’s obligations, any remaining assets of the corporation shall be transferred to the authorizing municipality, and the existence of the corporation is terminated.
Terms Used In Texas Local Government Code 505.354
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Comptroller: means the state comptroller of public accounts. See Texas Government Code 312.011
- 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.
- Municipality: means a general-law municipality, home-rule municipality, or special-law municipality. See Texas Local Government Code 1.005
(c) The authorizing municipality shall promptly notify the comptroller and the secretary of state of the date the existence of a Type B corporation is terminated under this subchapter.
(d) A tax imposed under this chapter may not be collected after the last day of the first calendar quarter that begins after the authorizing municipality provides notice under Subsection (c).