(a) The determination of whether a real estate investment trust is or would be insolvent and the determination of the amount of a real estate investment trust’s stated capital or surplus or any component of the trust’s stated capital or surplus, or the value of the real estate investment trust’s net assets or any component of the trust’s net assets, may be based on:
(1) financial statements of the real estate investment trust that present the financial condition of the real estate investment trust in accordance with generally accepted accounting principles or international financial reporting standards, including financial statements that include subsidiary entities or other entities accounted for on a consolidated basis or on the equity method of accounting;
(2) financial statements prepared using the method of accounting used to file the real estate investment trust’s federal income tax return or using any other accounting practices and principles that are reasonable under the circumstances;
(3) financial information, including condensed or summary financial statements, that is prepared on the same basis as financial statements described by Subdivision (1) or (2);
(4) a projection, a forecast, or other forward-looking information relating to the future economic performance, financial condition, or liquidity of the real estate investment trust that is reasonable under the circumstances;
(5) a fair valuation or information from any other method that is reasonable under the circumstances; or
(6) a combination of a statement, a valuation, or information authorized by this section.
(b) Subsection (a) does not apply to the computation of the franchise tax or any other tax imposed on a real estate investment trust under the laws of this state.

Terms Used In Texas Business Organizations Code 200.209

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Insolvent: means a person who is unable to pay the person's debts as they become due in the usual course of business or affairs. See Texas Business Organizations Code 1.002
  • Real estate investment trust: means an entity governed as a real estate investment trust under Title 5. See Texas Business Organizations Code 1.002
  • Subsidiary: means an organization for which another organization, either directly or indirectly through or with one or more of its other subsidiaries:
    (A) owns at least 50 percent of the outstanding ownership or membership interests of the organization; or
    (B) possesses at least 50 percent of the voting power of the owners or members of the organization. See Texas Business Organizations Code 1.002
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