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386A.4-020 Enforceability of obligations and expenses of series.
(1)
(2)
(3)
(4)
(5)
(6)
Subject to subsection (2) of this section:
(a) A debt, liability, obligation, and expense incurred, contracted for, or
otherwise existing with respect to a series, whether in its name or as to
the property of or associated therewith, shall be enforceable against the
assets of or associated with that series only, and shall not be enforceable
against the assets of the statutory trust generally or any assets of or
associated with other series thereof; and
(b) None of the debts, liabilities, obligations, and expenses incurred,
contracted for, or otherwise existing with respect to the statutory trust
generally or any other series thereof shall be enforceable against the
assets of or associated with a series.
Subsection (1) of this section applies only if:
(a) The records maintained by the statutory trust account for the assets of or
associated with that series separately from the other assets of the
statutory trust or of or associated with any other series;
(b) The governing instrument contains a statement to the effect of the
limitations provided in subsection (1) of this section; and
(c) The statutory trusts certificate of trust contains a statement that the
statutory trust may have one (1) or more series subject to the limitations
provided in subsection (1) of this section.
The statement of limitation on liabilities of a series required by subsection
(2)(c) of this section is sufficient regardless of whether:
(a) The statutory trust has established any series under this subchapter
when the statement of limitations is contained in the certificate of
formation; and
(b) The statement of limitations makes reference to any specific series of the
statutory trust.
If the records are maintained in a manner such that the assets of or associated
with a series can be reasonably identified by specific listing, category, type,
quantity, or computational or allocational formula or procedure, including a
percentage or share of any assets, or by any other method in which the identity
of the assets can be objectively determined, the records are considered to
satisfy the requirements of subsection (2)(a) of this section.
The association, disassociation, or reassociation of property of a statutory trust
or a series thereof to or with the trust or a series thereof is deemed to be a
transfer between separate persons under the laws of Kentucky governing
fraudulent transfers.
A distribution by a series shall be made to the beneficial owner associated with
the series.
Effective:July 12, 2012
History: Created 2012 Ky. Acts ch. 81, sec. 23, effective July 12, 2012.
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