Tex. Business Organizations Code § 21.166
PREFORMATION SUBSCRIPTION
Texas · Texas Business Organizations Code · Status: effective
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- Tex. Business Organizations Code § 21.166, PREFORMATION SUBSCRIPTION, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/583441
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(a) The corporation may determine the payment terms of a preformation subscription unless the payment terms are specified by the subscription. The payment terms may authorize payment in full on acceptance or by installments.
(b) Unless the subscription provides otherwise, a corporation shall make calls placed to all subscribers of similar interests for payment on preformation subscriptions uniform as far as practicable.
(c) After the corporation is formed, if a subscriber fails to pay any installment or call when due, a corporation may:
(1) collect in the same manner as any other debt the amount due on any unpaid preformation subscription; or
(2) forfeit the subscription if the installment or call remains unpaid for 20 days after written notice to the subscriber.
(d) Although the forfeiture of a subscription terminates all the rights and obligations of the subscriber, the corporation may retain any amount previously paid on the subscription.