Source: https://chowinslaw.com/resources/texas-business-laws/344-real-estate-investment-trusts-distributions-and-share-dividends
Timestamp: 2019-04-23 04:37:36+00:00

Document:
§ 200.201. AUTHORITY FOR DISTRIBUTIONS.
The trust managers of a real estate investment trust may authorize a distribution and the real estate investment trust may make a distribution, subject to § 200.202 and any restriction in the certificate of formation.
§ 200.202. LIMITATIONS ON DISTRIBUTIONS.
(2) that is more than the surplus of the real estate investment trust.
(4) effect the purchase or redemption of redeemable shares in accordance with this code.
§ 200.203. PRIORITY OF DISTRIBUTIONS.
A real estate investment trust's indebtedness that arises as a result of the declaration of a distribution and a real estate investment trust's indebtedness issued in a distribution are at parity with the real estate investment trust's indebtedness to its general, unsecured creditors, except to the extent the indebtedness is subordinated, or payment of that indebtedness is secured, by agreement.
§ 200.204. RESERVES, DESIGNATIONS, AND ALLOCATIONS FROM SURPLUS.
(2) designate or allocate in any manner a part or all of the real estate investment trust's surplus for a proper purpose.
(b) A real estate investment trust may increase, decrease, or abolish a reserve, designation, or allocation in the manner provided by Subsection (a).
§ 200.205. AUTHORITY FOR SHARE DIVIDENDS.
The trust managers of a real estate investment trust may authorize a share dividend, and the real estate investment trust may pay a share dividend subject to § 200.206 and any restriction in the certificate of formation.
§ 200.206. LIMITATIONS ON SHARE DIVIDENDS.
(a) A real estate investment trust may not pay a share dividend in authorized but unissued shares of any class if the surplus of the real estate investment trust is less than the amount required by § 200.208 to be transferred to stated capital at the time the share dividend is made.
(2) the share dividend is authorized by the affirmative vote or the written consent of the holders of at least a majority of the outstanding shares of the class in which the share dividend is to be made.
§ 200.207. VALUE OF SHARES ISSUED AS SHARE DIVIDENDS.
(a) A share dividend payable in authorized but unissued shares with par value shall be issued at the par value of the shares.
(b) A share dividend payable in authorized but unissued shares without par value shall be issued at the value set by the trust managers when the share dividend is authorized.
§ 200.208. TRANSFER OF SURPLUS FOR SHARE DIVIDENDS.
(a) When a share dividend payable in authorized but unissued shares with par value is made by a real estate investment trust, an amount of surplus designated by the trust managers that is not less than the aggregate par value of the shares issued as a share dividend shall be transferred to stated capital.
(b) When a share dividend payable in authorized but unissued shares without par value is made by a real estate investment trust, an amount of surplus equal to the aggregate value set by the trust managers with respect to the shares under § 200.207(b) shall be transferred to stated capital.
§ 200.209. DETERMINATION OF SOLVENCY, NET ASSETS, STATED CAPITAL, AND SURPLUS.
(6) a combination of a statement, a valuation, or information authorized by this section.
(b) Subsection (a) does not apply to the computation of any tax imposed under the laws of this state.
§ 200.210. DATE OF DETERMINATION OF SURPLUS.
(B) on the date the distribution or the share dividend is made if the trust managers do not designate a date as described in Paragraph (A).
(2) a contract by the real estate investment trust to acquire any of its own shares is considered to have been made on the date when the contract is made or takes effect or on the date the shares are acquired, at the option of the real estate investment trust.
§ 200.211. SPLIT-UP OR DIVISION OF SHARES.
The trust managers of a real estate investment trust may authorize the real estate investment trust to carry out any split-up or division of the issued shares of a class of the real estate investment trust into a larger number of shares within the same class that does not increase the stated capital of the real estate investment trust because the split-up or division of issued shares is not a share dividend or a distribution.

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