Tex. Business Organizations Code § 22.055

This is the official text of Tex. Business Organizations Code § 22.055, part of Texas’s Business Organizations Code — governs the formation and operation of corporations, LLCs, and partnerships.

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§ 22.055. POWER TO ASSIST EMPLOYEE OR OFFICER.

Official statutory text

(a) A corporation may lend money to or otherwise assist an employee or officer of the corporation, but not a director, if the loan or assistance may reasonably be expected to directly or indirectly benefit the corporation.

(b) A loan made to an officer must be:

(1) made for the purpose of financing the officer's principal residence; or

(2) set in an original principal amount that does not exceed:

(A) 100 percent of the officer's annual salary, if the loan is made before the first anniversary of the officer's employment; or

(B) 50 percent of the officer's annual salary, if the loan is made in any subsequent year.

Status: in_force · Read it on the official government site

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