Section 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.Tex. Bus. Org. Code § 200.202
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. 1/1/2006.