Download as PDF
286.3-240 Real estate mortgage investment fund -- Participation certificates.
(1)
(2)
(3)
A trust company or bank empowered to act as a fiduciary under the laws of this
state, and subject to examination by either state or federal banking authorities, may:
(a) Set apart, in a separate real estate mortgage investment fund, real estate
mortgages, which conform to the Kentucky requirements as to trust
investments;
(b) Issue against such investment fund participation certificates covering
fractional interests therein; and
(c) Invest trust funds in its hands for investment in such participation certificates.
Such trust company or bank shall at all times maintain definite records, fully and
accurately setting forth all mortgages held in such investment fund, including all
cash collections and any real estate acquired in foreclosure; and all participation
certificates issued against the investment fund. Participation certificates shall not be
issued in the aggregate so as to exceed the aggregate principal amount of the
investment fund.
The participation certificates shall be substantially in the following form:
(Insert place and date)
The undersigned hereby certifies: That (insert description of trust estate or
name of beneficial owner) is the owner of an interest in a real estate mortgage
investment fund, which fund is shown on the records and accounts of the
undersigned, and which interest is equivalent to the fraction which would result
from using (insert amount) dollars ($..........) as the numerator and the aggregate
principal amount of the investment fund as the denominator.
This certificate is issued in accordance with and subject to the terms and
conditions of KRS 286.3-240 to 286.3-270.
(Signature of trust company or bank)
Effective: October 1, 1942
History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky.
Stat. sec. 4706.
Formerly codified as KRS 287.240.
Legislative Research Commission Note (7/12/2006). In accordance with 2006 Ky. Acts
ch. 247, secs. 38 and 39, this statute has been renumbered as a section of the
Kentucky Financial Services Code, KRS Chapter 286, and KRS references within
this statute have been adjusted to conform with the 2006 renumbering of that code.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
