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CHAPTER 252. UNINCORPORATED NONPROFIT ASSOCIATIONS

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BUSINESS ORGANIZATIONS CODETITLE 6. ASSOCIATIONSCHAPTER 252. UNINCORPORATED NONPROFIT ASSOCIATIONSSec. 252.001.DEFINITIONS.In this chapter:(1)"Member" means a person who, under the rules or practices ofa nonprofit association, may participate in the selection ofpersons authorized to manage the affairs of the nonprofitassociation or in the development of policy of the nonprofitassociation.(2)"Nonprofit association" means an unincorporatedorganization, other than one created by a trust, consisting ofthree or more members joined by mutual consent for a common,nonprofit purpose. A form of joint tenancy, tenancy in common, ortenancy by the entirety does not by itself establish a nonprofitassociation, regardless of whether the co-owners share use of theproperty for a nonprofit purpose.Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.Sec. 252.002.SUPPLEMENTARY GENERAL PRINCIPLES OF LAW ANDEQUITY.Principles of law and equity supplement this chapterunless displaced by a particular provision of this chapter.Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.Sec. 252.003.TERRITORIAL APPLICATION.Real and personalproperty in this state may be acquired, held, encumbered, andtransferred by a nonprofit association, regardless of whether thenonprofit association or a member has any other relationship tothis state.Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.Sec. 252.004.REAL AND PERSONAL PROPERTY; NONPROFIT ASSOCIATIONAS BENEFICIARY.(a)A nonprofit association in its name mayacquire, hold, encumber, or transfer an estate or interest inreal or personal property.(b)A nonprofit association may be a beneficiary of a trust,contract, or will.Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.Sec. 252.005.STATEMENT OF AUTHORITY AS TO REAL PROPERTY.(a)A nonprofit association may execute and record a statement ofauthority to transfer an estate or interest in real property inthe name of the nonprofit association.(b)An estate or interest in real property in the name of anonprofit association may be transferred by a person soauthorized in a statement of authority recorded in the countyclerk's office in the county in which a transfer of the propertywould be recorded.(c)A statement of authority must contain:(1)the name of the nonprofit association;(2)the address in this state, including the street address, ifany, of the nonprofit association, or, if the nonprofitassociation does not have an address in this state, its addressout of state; and(3)the name or title of a person authorized to transfer anestate or interest in real property held in the name of thenonprofit association.(d)A statement of authority must be executed in the same manneras a deed by a person who is not the person authorized totransfer the estate or interest.(e)The county clerk may collect a fee for recording a statementof authority in the amount authorized for recording a transfer ofreal property.(f)An amendment, including a cancellation, of a statement ofauthority must meet the requirements for execution and recordingof an original statement. Unless canceled earlier, a recordedstatement of authority or its most recent amendment is canceledby operation of law on the fifth anniversary of the date of themost recent recording.(g)If the record title to real property is in the name of anonprofit association and the statement of authority is recordedin the county clerk's office of the county in which a transfer ofreal property would be recorded, the authority of the personnamed in a statement of authority is conclusive in favor of aperson who gives value without notice that the person lacksauthority.Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.Sec. 252.006.LIABILITY IN TORT AND CONTRACT.(a)A nonprofitassociation is a legal entity separate from its members for thepurposes of determining and enforcing rights, duties, andliabilities in contract and tort.(b)A person is not liable for a breach of a nonprofitassociation's contract or for a tortious act or omission forwhich a nonprofit association is liable merely because the personis a member, is authorized to participate in the management ofthe affairs of the nonprofit association, or is a personconsidered as a member by the nonprofit association.(c)A tortious act or omission of a member or other person forwhich a nonprofit association is liable is not imputed to aperson merely because the person is a member of the nonprofitassociation, is authorized to participate in the management ofthe affairs of the nonprofit association, or is a personconsidered as a member by the nonprofit association.(d)A member of, or a person considered as a member by, anonprofit association may assert a claim against the nonprofitassociation. A nonprofit association may assert a claim against amember or a person considered as a member by the nonprofitassociation.Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.Sec. 252.007.CAPACITY TO ASSERT AND DEFEND; STANDING.(a)Anonprofit association, in its name, may institute, defend,intervene, or participate in a judicial, administrative, or othergovernmental proceeding or in an arbitration, mediation, or anyother form of alternative dispute resolution.(b)A nonprofit association may assert a claim in its name onbehalf of members of the nonprofit association if:(1)one or more of the nonprofit association's members havestanding to assert a claim in their own right;(2)the interests the nonprofit association seeks to protect aregermane to its purposes; and(3)neither the claim asserted nor the relief requested requiresthe participation of a member.Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.Sec. 252.008.EFFECT OF JUDGMENT OR ORDER.A judgment or orderagainst a nonprofit association is not by itself a judgment ororder against a member or a person considered as a member by thenonprofit association.Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.Sec. 252.009.DISPOSITION OF PERSONAL PROPERTY OF INACTIVENONPROFIT ASSOCIATION.(a)If a nonprofit association has beeninactive for three years or longer, or a shorter period asspecified in a document of the nonprofit association, a person inpossession or control of personal property of the nonprofitassociation may transfer the custody of the property:(1)if a document of a nonprofit association specifies a personto whom transfer is to be made under these circumstances, to thatperson; or(2)if no person is specified, to a nonprofit association ornonprofit corporation pursuing broadly similar purposes, or to agovernment or governmental subdivision, agency, orinstrumentality.(b)Notwithstanding the above, if a nonprofit association isclassified under the Internal Revenue Code as a 501(c)(3)organization or is or holds itself out to be established oroperating for a charitable, religious, or educational purpose, asdefined by Section 501(c)(3), Internal Revenue Code, then anydistribution must be made to another nonprofit association ornonprofit corporation with similar charitable, religious, oreducational purposes.Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.Sec. 252.010.BOOKS AND RECORDS.(a)A nonprofit associationshall keep correct and complete books and records of account forat least three years after the end of each fiscal year and shallmake the books and records available on request to members of theassociation for inspection and copying.(b)The attorney general may inspect, examine, and make copiesof the books, records, and other documents the attorney generalconsiders necessary and may investigate the association todetermine if a violation of any law of this state has occurred.Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.Sec. 252.011.APPOINTMENT OF AGENT TO RECEIVE SERVICE OFPROCESS.(a)A nonprofit association may file in the office ofthe secretary of state a statement appointing an agent authorizedto receive service of process.(b)A statement appointing an agent must contain:(1)the name of the nonprofit association;(2)the federal tax identification number of the nonprofitassociation, if applicable;(3)the address in this state, including the street address, ifany, of the nonprofit association or, if the nonprofitassociation does not have an address in this state, its addressout of state; and(4)the name of the person in this state authorized to receiveservice of process and the person's address, including the streetaddress, in this state.(c)A statement appointing an agent must be signed by a personauthorized to manage the affairs of the nonprofit association.The statement must also be signed by the person appointed agent,who by signing accepts the appointment. The appointed agent mayresign by filing a resignation in the office of the secretary ofstate and giving notice to the nonprofit association.(d)The secretary of state may collect a fee for filing astatement appointing an agent to receive service of process, anamendment, a cancellation, or a resignation in the amount chargedfor filing similar documents.(e)An amendment to a statement appointing an agent to receiveservice of process must meet the requirements for execution of anoriginal statement.(f)A statement appointing an agent may be canceled by filingwith the secretary of state a written notice of cancellationexecuted by a person authorized to manage the affairs of thenonprofit association. A notice of cancellation must contain:(1)the name of the nonprofit association;(2)the federal tax identification number of the nonprofitassociation, if applicable;(3)the date of filing of the nonprofit association's statementappointing the agent; and(4)a current street address, if any, of the nonprofitassociation in this state or, if the nonprofit association doesnot have an address in this state, its address out of state.(g)The secretary of state may adopt forms and procedural rulesfor filing documents under this section.Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.Sec. 252.012.CLAIM NOT ABATED BY CHANGE.A claim for reliefagainst a nonprofit association does not abate merely because ofa change in the members or persons authorized to manage theaffairs of the nonprofit association.Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.Sec. 252.013.SUMMONS AND COMPLAINT; SERVICE.(a)In an actionor proceeding against a nonprofit association, a summons andcomplaint must be served on an agent authorized by appointment toreceive service of process, an officer, a managing or generalagent, or a person authorized to participate in the management ofits affairs, in accordance with the Civil Practice and RemediesCode.(b)Not later than the 10th day after the date of a request bythe attorney general to an officer or board member of a nonprofitassociation or to the nonprofit association, the nonprofitassociation shall provide to the attorney general the names,current addresses, and telephone numbers of:(1)each agent authorized to receive service of process onbehalf of the nonprofit association; and(2)each officer, managing or general agent, and other personauthorized to participate in the management of the affairs of thenonprofit association.Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.Sec. 252.014.UNIFORMITY OF APPLICATION AND CONSTRUCTION.Thischapter shall be applied and construed to make uniform the lawwith respect to the subject of this chapter among states enactingit.Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.Sec. 252.015.TRANSITION CONCERNING REAL AND PERSONAL PROPERTY.If, before September 1, 1995, an estate or interest in real orpersonal property was by the terms of the transfer purportedlytransferred to a nonprofit association, but under the law theestate or interest was vested in a fiduciary such as officers ofthe nonprofit association to hold the estate or interest formembers of the nonprofit association, on or after September 1,1995, the fiduciary may transfer the estate or interest to thenonprofit association in its name, or the nonprofit association,by appropriate proceedings, may require that the estate orinterest be transferred to it in its name.Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.Sec. 252.016.EFFECT ON OTHER LAW.This chapter replacesexisting law with respect to matters covered by this chapter butdoes not affect other law covering unincorporated nonprofitassociations.Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.Sec. 252.017.CHAPTER CONTROLLING.(a)Except as provided bySubsection (b), the only provisions of this code that apply to orgovern a nonprofit association are the provisions of thischapter.(b)Chapters 1 and 4 and, if a nonprofit association designatesan agent for service of process, Subchapter E, Chapter 5, applyto a nonprofit association.Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
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  • BUSINESS ORGANIZATIONS CODE

    TITLE 6. ASSOCIATIONS

    CHAPTER 252. UNINCORPORATED NONPROFIT ASSOCIATIONS

    Sec. 252.001. DEFINITIONS. In this chapter:

    (1) "Member" means a person who, under the rules or practices of

    a nonprofit association, may participate in the selection of

    persons authorized to manage the affairs of the nonprofit

    association or in the development of policy of the nonprofit

    association.

    (2) "Nonprofit association" means an unincorporated

    organization, other than one created by a trust, consisting of

    three or more members joined by mutual consent for a common,

    nonprofit purpose. A form of joint tenancy, tenancy in common, or

    tenancy by the entirety does not by itself establish a nonprofit

    association, regardless of whether the co-owners share use of the

    property for a nonprofit purpose.

    Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

    Sec. 252.002. SUPPLEMENTARY GENERAL PRINCIPLES OF LAW AND

    EQUITY. Principles of law and equity supplement this chapter

    unless displaced by a particular provision of this chapter.

    Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

    Sec. 252.003. TERRITORIAL APPLICATION. Real and personal

    property in this state may be acquired, held, encumbered, and

    transferred by a nonprofit association, regardless of whether the

    nonprofit association or a member has any other relationship to

    this state.

    Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

    Sec. 252.004. REAL AND PERSONAL PROPERTY; NONPROFIT ASSOCIATION

    AS BENEFICIARY. (a) A nonprofit association in its name may

    acquire, hold, encumber, or transfer an estate or interest in

    real or personal property.

    (b) A nonprofit association may be a beneficiary of a trust,

    contract, or will.

    Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

    Sec. 252.005. STATEMENT OF AUTHORITY AS TO REAL PROPERTY. (a)

    A nonprofit association may execute and record a statement of

    authority to transfer an estate or interest in real property in

    the name of the nonprofit association.

    (b) An estate or interest in real property in the name of a

    nonprofit association may be transferred by a person so

    authorized in a statement of authority recorded in the county

    clerk's office in the county in which a transfer of the property

    would be recorded.

    (c) A statement of authority must contain:

    (1) the name of the nonprofit association;

    (2) the address in this state, including the street address, if

    any, of the nonprofit association, or, if the nonprofit

    association does not have an address in this state, its address

    out of state; and

    (3) the name or title of a person authorized to transfer an

    estate or interest in real property held in the name of the

    nonprofit association.

    (d) A statement of authority must be executed in the same manner

    as a deed by a person who is not the person authorized to

    transfer the estate or interest.

    (e) The county clerk may collect a fee for recording a statement

    of authority in the amount authorized for recording a transfer of

    real property.

    (f) An amendment, including a cancellation, of a statement of

    authority must meet the requirements for execution and recording

    of an original statement. Unless canceled earlier, a recorded

    statement of authority or its most recent amendment is canceled

    by operation of law on the fifth anniversary of the date of the

    most recent recording.

    (g) If the record title to real property is in the name of a

    nonprofit association and the statement of authority is recorded

    in the county clerk's office of the county in which a transfer of

    real property would be recorded, the authority of the person

    named in a statement of authority is conclusive in favor of a

    person who gives value without notice that the person lacks

    authority.

    Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

    Sec. 252.006. LIABILITY IN TORT AND CONTRACT. (a) A nonprofit

    association is a legal entity separate from its members for the

    purposes of determining and enforcing rights, duties, and

    liabilities in contract and tort.

    (b) A person is not liable for a breach of a nonprofit

    association's contract or for a tortious act or omission for

    which a nonprofit association is liable merely because the person

    is a member, is authorized to participate in the management of

    the affairs of the nonprofit association, or is a person

    considered as a member by the nonprofit association.

    (c) A tortious act or omission of a member or other person for

    which a nonprofit association is liable is not imputed to a

    person merely because the person is a member of the nonprofit

    association, is authorized to participate in the management of

    the affairs of the nonprofit association, or is a person

    considered as a member by the nonprofit association.

    (d) A member of, or a person considered as a member by, a

    nonprofit association may assert a claim against the nonprofit

    association. A nonprofit association may assert a claim against a

    member or a person considered as a member by the nonprofit

    association.

    Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

    Sec. 252.007. CAPACITY TO ASSERT AND DEFEND; STANDING. (a) A

    nonprofit association, in its name, may institute, defend,

    intervene, or participate in a judicial, administrative, or other

    governmental proceeding or in an arbitration, mediation, or any

    other form of alternative dispute resolution.

    (b) A nonprofit association may assert a claim in its name on

    behalf of members of the nonprofit association if:

    (1) one or more of the nonprofit association's members have

    standing to assert a claim in their own right;

    (2) the interests the nonprofit association seeks to protect are

    germane to its purposes; and

    (3) neither the claim asserted nor the relief requested requires

    the participation of a member.

    Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

    Sec. 252.008. EFFECT OF JUDGMENT OR ORDER. A judgment or order

    against a nonprofit association is not by itself a judgment or

    order against a member or a person considered as a member by the

    nonprofit association.

    Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

    Sec. 252.009. DISPOSITION OF PERSONAL PROPERTY OF INACTIVE

    NONPROFIT ASSOCIATION. (a) If a nonprofit association has been

    inactive for three years or longer, or a shorter period as

    specified in a document of the nonprofit association, a person in

    possession or control of personal property of the nonprofit

    association may transfer the custody of the property:

    (1) if a document of a nonprofit association specifies a person

    to whom transfer is to be made under these circumstances, to that

    person; or

    (2) if no person is specified, to a nonprofit association or

    nonprofit corporation pursuing broadly similar purposes, or to a

    government or governmental subdivision, agency, or

    instrumentality.

    (b) Notwithstanding the above, if a nonprofit association is

    classified under the Internal Revenue Code as a 501(c)(3)

    organization or is or holds itself out to be established or

    operating for a charitable, religious, or educational purpose, as

    defined by Section 501(c)(3), Internal Revenue Code, then any

    distribution must be made to another nonprofit association or

    nonprofit corporation with similar charitable, religious, or

    educational purposes.

    Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

    Sec. 252.010. BOOKS AND RECORDS. (a) A nonprofit association

    shall keep correct and complete books and records of account for

    at least three years after the end of each fiscal year and shall

    make the books and records available on request to members of the

    association for inspection and copying.

    (b) The attorney general may inspect, examine, and make copies

    of the books, records, and other documents the attorney general

    considers necessary and may investigate the association to

    determine if a violation of any law of this state has occurred.

    Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

    Sec. 252.011. APPOINTMENT OF AGENT TO RECEIVE SERVICE OF

    PROCESS. (a) A nonprofit association may file in the office of

    the secretary of state a statement appointing an agent authorized

    to receive service of process.

    (b) A statement appointing an agent must contain:

    (1) the name of the nonprofit association;

    (2) the federal tax identification number of the nonprofit

    association, if applicable;

    (3) the address in this state, including the street address, if

    any, of the nonprofit association or, if the nonprofit

    association does not have an address in this state, its address

    out of state; and

    (4) the name of the person in this state authorized to receive

    service of process and the person's address, including the street

    address, in this state.

    (c) A statement appointing an agent must be signed by a person

    authorized to manage the affairs of the nonprofit association.

    The statement must also be signed by the person appointed agent,

    who by signing accepts the appointment. The appointed agent may

    resign by filing a resignation in the office of the secretary of

    state and giving notice to the nonprofit association.

    (d) The secretary of state may collect a fee for filing a

    statement appointing an agent to receive service of process, an

    amendment, a cancellation, or a resignation in the amount charged

    for filing similar documents.

    (e) An amendment to a statement appointing an agent to receive

    service of process must meet the requirements for execution of an

    original statement.

    (f) A statement appointing an agent may be canceled by filing

    with the secretary of state a written notice of cancellation

    executed by a person authorized to manage the affairs of the

    nonprofit association. A notice of cancellation must contain:

    (1) the name of the nonprofit association;

    (2) the federal tax identification number of the nonprofit

    association, if applicable;

    (3) the date of filing of the nonprofit association's statement

    appointing the agent; and

    (4) a current street address, if any, of the nonprofit

    association in this state or, if the nonprofit association does

    not have an address in this state, its address out of state.

    (g) The secretary of state may adopt forms and procedural rules

    for filing documents under this section.

    Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

    Sec. 252.012. CLAIM NOT ABATED BY CHANGE. A claim for relief

    against a nonprofit association does not abate merely because of

    a change in the members or persons authorized to manage the

    affairs of the nonprofit association.

    Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

    Sec. 252.013. SUMMONS AND COMPLAINT; SERVICE. (a) In an action

    or proceeding against a nonprofit association, a summons and

    complaint must be served on an agent authorized by appointment to

    receive service of process, an officer, a managing or general

    agent, or a person authorized to participate in the management of

    its affairs, in accordance with the Civil Practice and Remedies

    Code.

    (b) Not later than the 10th day after the date of a request by

    the attorney general to an officer or board member of a nonprofit

    association or to the nonprofit association, the nonprofit

    association shall provide to the attorney general the names,

    current addresses, and telephone numbers of:

    (1) each agent authorized to receive service of process on

    behalf of the nonprofit association; and

    (2) each officer, managing or general agent, and other person

    authorized to participate in the management of the affairs of the

    nonprofit association.

    Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

    Sec. 252.014. UNIFORMITY OF APPLICATION AND CONSTRUCTION. This

    chapter shall be applied and construed to make uniform the law

    with respect to the subject of this chapter among states enacting

    it.

    Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

    Sec. 252.015. TRANSITION CONCERNING REAL AND PERSONAL PROPERTY.

    If, before September 1, 1995, an estate or interest in real or

    personal property was by the terms of the transfer purportedly

    transferred to a nonprofit association, but under the law the

    estate or interest was vested in a fiduciary such as officers of

    the nonprofit association to hold the estate or interest for

    members of the nonprofit association, on or after September 1,

    1995, the fiduciary may transfer the estate or interest to the

    nonprofit association in its name, or the nonprofit association,

    by appropriate proceedings, may require that the estate or

    interest be transferred to it in its name.

    Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

    Sec. 252.016. EFFECT ON OTHER LAW. This chapter replaces

    existing law with respect to matters covered by this chapter but

    does not affect other law covering unincorporated nonprofit

    associations.

    Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

    Sec. 252.017. CHAPTER CONTROLLING. (a) Except as provided by

    Subsection (b), the only provisions of this code that apply to or

    govern a nonprofit association are the provisions of this

    chapter.

    (b) Chapters 1 and 4 and, if a nonprofit association designates

    an agent for service of process, Subchapter E, Chapter 5, apply

    to a nonprofit association.

    Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

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