{"data":{"id":"us-tx/tex.-business-organizations-code-200.202","jurisdiction":"us-tx","citation":"Tex. Business Organizations Code § 200.202","heading":"LIMITATIONS ON DISTRIBUTIONS.","body":"(a) A real estate investment trust may not make a distribution:\n(1) if the real estate investment trust would be insolvent after the distribution; or\n(2) that is more than the surplus of the real estate investment trust.\n(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:\n(1) eliminate fractional shares;\n(2) collect or settle indebtedness owed by or to the real estate investment trust;\n(3) pay dissenting shareholders entitled to receive payment for their shares under this chapter; or\n(4) effect the purchase or redemption of redeemable shares in accordance with this code.\nActs 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.","path":["BUSINESS ORGANIZATIONS CODE","TITLE 5. REAL ESTATE INVESTMENT TRUSTS","CHAPTER 200. REAL ESTATE INVESTMENT TRUSTS","SUBCHAPTER E. DISTRIBUTIONS AND SHARE DIVIDENDS"],"source_url":"https://statutes.capitol.texas.gov/Docs/BO/htm/BO.200.htm#200.202","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:46:58Z","sha256":"d743aa5ff344e57f512fb2e39f5d5fc4c6a77c37499e0ab3ec92e871ffedd41a","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-business-organizations-code-200.201","next":"us-tx/tex.-business-organizations-code-200.203"},"notice":"GroundRules: Original legal text. Not legal advice."}