Business Organizations Code § 200.202

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.