Texas Government Code 825.3013 – Title-Holding Entities; Investments in Real Property
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(a) The retirement system may form a title-holding entity for the purpose of investing the retirement system’s assets in real property. The title-holding entity must be:
(1) wholly owned, organized, and controlled by the system; and
(2) exempt from taxation under Section 501(a), Internal Revenue Code of 1986, as an organization described by Section 501(c) of that code.
(b) Subject to Subsection (a)(2), a title-holding entity formed under this section may hold title to real property jointly with another person.
Terms Used In Texas Government Code 825.3013
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contract: A legal written agreement that becomes binding when signed.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Property: means real and personal property. See Texas Government Code 311.005
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Trustee: A person or institution holding and administering property in trust.
(c) The board of trustees shall adopt policies for the governance, management, and reporting for a title-holding entity formed under this section.
(d) The following persons may not be employed by, receive compensation from, be a party to a contract with or a direct or indirect financial beneficiary of a contract with, or hold a direct or indirect interest in a title-holding entity formed by the retirement system under this section:
(1) a trustee or employee of the system; or
(2) a relative of a trustee or employee of the system within the second degree of consanguinity or affinity, as determined under Chapter 573.
(e) Chapter 551 and Subtitles D and F, Title 10, do not apply to a title-holding entity formed under this section.