1. (a) A real estate investment trust may issue shares for consideration if authorized by the trust managers.

2. (b) Shares may not be issued until the consideration, determined in accordance with this subchapter, has been paid to the real estate investment trust or to another entity of which all of the outstanding ownership interests are directly or indirectly owned by the real estate investment trust. When the consideration is paid:

   1. (1) the shares are considered to be issued;
   2. (2) the shareholder entitled to receive the shares is a shareholder with respect to the shares; and
   3. (3) the shares are considered fully paid and nonassessable.

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.