Texas Business Organizations Code - Section 200.202. Limitations On Distributions
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§ 200.202. LIMITATIONS ON DISTRIBUTIONS. (a) A real
estate investment trust may not make a distribution:
(1) if the real estate investment trust would be
insolvent after the distribution; or
(2) that is more than the surplus of the real estate
investment trust.
(b) Notwithstanding Subsection (a)(2), if the net assets of
a real estate investment trust are not less than the amount of the
proposed distribution, the real estate investment trust may make a
distribution involving a purchase or redemption of its own shares
if the purchase or redemption is made by the real estate investment
trust to:
(1) eliminate fractional shares;
(2) collect or settle indebtedness owed by or to the
real estate investment trust;
(3) pay dissenting shareholders entitled to receive
payment for their shares under this chapter; or
(4) effect the purchase or redemption of redeemable
shares in accordance with this code.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 200.159 200.160 200.161 200.162 200.163 200.164 200.201 200.202 200.203 200.204 200.205 200.206 200.207 200.208 200.209
Last modified: August 11, 2007
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