1. (a) A terminated entity may be reinstated under this subchapter if:

   1. (1) the termination was by mistake or inadvertent;
   2. (2) the termination occurred without the approval of the entity's governing persons when their approval is required by the title of this code governing the terminated entity;
   3. (3) the process of winding up before termination had not been completed by the entity; or

   4. (4) the legal existence of the entity is necessary to:

      1. (A) convey or assign property;
      2. (B) settle or release a claim or liability;
      3. (C) take an action; or
      4. (D) sign an instrument or agreement.

2. (b) A terminated entity may not be reinstated under this section if the termination occurred as a result of:

   1. (1) an order of a court or the secretary of state;
   2. (2) an event requiring winding up that is specified in the title of this code governing the terminated entity, if that title prohibits reinstatement; or
   3. (3) forfeiture under the Tax Code.

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