Tex. Bus. Orgs. Code § 200.202 · Subchapter E. DISTRIBUTIONS AND SHARE DIVIDENDS
LIMITATIONS ON DISTRIBUTIONS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(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.
Notes and commentary — not statutory text
History
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BO/htm/BO.200.htm
- Text hash
- sha256 abfbd150e269b1ef9ae479cb90b62cc0f4ae48efff740d731e68657c75b5f473
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Cited by 1 provision
Provisions in this library whose text cites Tex. Bus. Orgs. Code § 200.202. Each shows the citation as that text prints it.
Business Organizations Code
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.