Texas Property Code

§ 113.055 — PURCHASE OF TRUSTEE'S SECURITIES

PR § 113.055Title 9. TRUSTS · Part B. TEXAS TRUST CODE: CREATION, OPERATION, AND TERMINATION OF TRUSTS · Ch. 113. ADMINISTRATION · Art. B. DUTIES OF TRUSTEE

Statute text

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(a)Except as provided by Subsection (b) of this section, a corporate trustee may not purchase for the trust the stock, bonds, obligations, or other securities of the trustee or an affiliate, and a noncorporate trustee may not purchase for the trust the stock, bonds, obligations, or other securities of a corporation with which the trustee is connected as director, owner, manager, or any other executive capacity.

(b)A trustee may:

(1)retain stock already owned by the trust unless the retention does not satisfy the requirements prescribed by Chapter 117; and

(2)exercise stock rights or purchase fractional shares under Section 113.053 of this Act.

Legislative history

Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984. Amended by Acts 2003, 78th Leg., ch. 1103, Sec. 5, eff. Jan. 1, 2004.