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386A.6-030 Contribution by beneficial owner.
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A contribution of a beneficial owner to a statutory trust may be in cash, property, or
services rendered or a promissory note or other obligation to contribute cash or
property or to perform services. A person may become a beneficial owner of a
statutory trust and may receive a beneficial interest in a statutory trust without
making or being obligated to make a contribution to the trust.
An obligation of a beneficial owner to make a contribution, whether of cash,
property, or services, to the statutory trust shall not be enforceable unless set forth in
a writing signed by the beneficial owner.
Unless otherwise provided in a governing instrument, a beneficial owner shall be
obligated to the statutory trust to perform any enforceable promise to contribute
cash or property or to perform services, even if the beneficial owner is unable to
perform because of death, disability, or other reason. If a beneficial owner does not
make a required contribution of property or services, then the beneficial owner shall
be obligated, at the option of the statutory trust, to contribute cash equal to that
portion of value of the stated contribution that has not been made. This obligation is
in addition to any other right, including the right to specific performance, that the
trust has against the beneficial owner under the governing instrument or applicable
law.
Unless otherwise provided in a governing instrument, an obligation of a beneficial
owner to make a contribution may be compromised by the beneficial owners.
Notwithstanding any compromise, a creditor of a statutory trust who extended credit
or otherwise acted in reliance on an obligation after the beneficial owner executed a
writing which reflects that obligation and before any such compromise is reached
may enforce the original obligation.
Effective: June 25, 2013
History: Amended 2013 Ky. Acts ch. 106, sec. 10, effective June 25, 2013. -- Created
2012 Ky. Acts ch. 81, sec. 47, effective July 12, 2012.
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