Texas Utilities Code 162.126 – Encumbrance, Lease, and Disposition of Property With Members’ Authorization
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(a) Except as provided by § 162.125, a telephone cooperative may not dispose of, lease, or encumber all or a major portion of its property unless the disposition, lease, or encumbrance is authorized by the affirmative vote of at least two-thirds of all the members of the cooperative.
(b) The board may, on the authorization of two-thirds of all the members of the cooperative at a members’ meeting, dispose of or lease all or a major portion of its property to:
(1) another telephone cooperative;
(2) a foreign corporation doing business in this state under this chapter; or
(3) the holder of a note, bond, or other evidence of indebtedness issued to the United States or to a lending institution licensed by the United States or a state.
Terms Used In Texas Utilities Code 162.126
- 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.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Property: means real and personal property. See Texas Government Code 311.005
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
(c) The notice of a meeting at which a disposition or lease under Subsection (b) is to be considered must state the proposed action.