Sec. 200.202. LIMITATIONS ON DISTRIBUTIONS. (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.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
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