Tex. Business Organizations Code § 200.202
This is the official text of Tex. Business Organizations Code § 200.202, part of Texas’s Business Organizations Code — governs the formation and operation of corporations, LLCs, and partnerships.
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§ 200.202. LIMITATIONS ON DISTRIBUTIONS.
Official statutory text
(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.
(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.
Status: in_force · Read it on the official government site
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