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Tex. Business Organizations Code § 200.202

LIMITATIONS ON DISTRIBUTIONS

Texas · Texas Business Organizations Code · Status: effective

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Tex. Business Organizations Code § 200.202, LIMITATIONS ON DISTRIBUTIONS, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/584253
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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; (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.