Maryland Corporations and Associations Section 12-303

Article - Corporations and Associations

§ 12-303.

      (a)      Except to the extent otherwise provided in the governing instrument of the business trust, a beneficial owner shall have an undivided beneficial interest in the property of the business trust and shall share in the profits and losses of the business trust in the proportion of the entire undivided beneficial interest in the business trust owned by the beneficial owner.

      (b)      (1)      Except to the extent otherwise provided in the governing instrument of a business trust, a beneficial owner has no interest in specific business trust property.

            (2)      A creditor of the beneficial owner has no right to obtain possession of, or otherwise exercise legal or equitable remedies with respect to, the property of the business trust.

      (c)      A beneficial owner's beneficial interest in the business trust is personal property notwithstanding the nature of the property of the trust.

      (d)      A beneficial owner's beneficial interest in the business trust is freely transferable except to the extent otherwise provided in the governing instrument of the business trust.

      (e)      Except to the extent otherwise provided in the governing instrument of a business trust, at the time a beneficial owner becomes entitled to receive a distribution, the beneficial owner has the status of, and is entitled to all remedies available to, a creditor of the business trust with respect to the distribution. A governing instrument may provide for the establishment of record dates with respect to allocations and distributions by a business trust.



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