NATURE OF TOTAL RETURN DISTRIBUTIONS.
Tex. HEALTH & SAFETY Code § 712.0357.
in effect(a) A distribution from a total return fund is considered a distribution of all income of the fund that reasonably apportions the total return of the fund, and may not be considered a fundamental departure from applicable state law.
(b) Unless the trust instrument provides otherwise, the trustee of a total return fund shall treat a distribution as first being made from the following sources in order of priority:
(1) from net accounting income;
(2) from ordinary accounting income not allocable to net accounting income;
(3) from net realized short-term capital gains;
(4) from net realized long-term capital gains; and
(5) from the principal of the fund.
Added by Acts 2017, 85th Leg., R.S., Ch. 1051 (H.B. 1948 ), Sec. 1, eff. September 1, 2017.
SUBCHAPTER C. REGULATION AND ENFORCEMENT