Sec. 301.035. MEMBERSHIP; MEMBERSHIP PRIVILEGES; EXPULSION OF MEMBERS. (a) An eligible institution may be elected to membership in a cooperative association by:
(1) the organizers of the association at the time of organization; or
(2) the board of directors of the association according to the association's bylaws.
(b) Only an eligible institution may become a member of an association created under this subchapter.
(c) A membership certificate is transferable only to an eligible institution in the manner provided by the rules prescribed in the bylaws.
(d) Each member has voting rights in the management of an association as prescribed in the bylaws.
(e) A member may be suspended or expelled for misconduct under the rules prescribed in the bylaws.
(f) An association shall pay an expelled member for cancellation of the membership, if the member's contractual obligations pledged to the payment of the association's notes, bonds, or other obligations have been fully paid or other provision has been made. The amount and date of payment are as prescribed in the bylaws.
(g) Amounts paid or property conveyed or transferred to an association by an expelled member and not required to be returned to the member under Subsection (f) may be retained by the association. Facilities or property acquired by the association remains the property of the association and the expelled member does not have a lien or other right to the facilities or property.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
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