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Texas Business Organizations Code - BUS ORG § 200.202. Limitations on Distributions

Current as of January 01, 2024 | Updated by Findlaw Staff

(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.

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Cite this article: FindLaw.com - Texas Business Organizations Code - BUS ORG § 200.202. Limitations on Distributions - last updated January 01, 2024 | https://codes.findlaw.com/tx/business-organizations-code/bus-org-sect-200-202/

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