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Texas Business Organizations Code

§ 200.202 — LIMITATIONS ON DISTRIBUTIONS

BO § 200.202Title 5. REAL ESTATE INVESTMENT TRUSTS · Ch. 200. REAL ESTATE INVESTMENT TRUSTS · Art. E. DISTRIBUTIONS AND SHARE DIVIDENDS

Statute text

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(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;
…

Legislative history

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

Source: Texas Business Organizations Code § 200.202 from the Texas Constitution and Statutes (Texas Legislature) (public record). DecisionDepot is for informational use only and is not legal advice — verify against the official source before relying on this text.