Governing Law -- Authorizations -- Duration -- Powers

KRS tit. XXXIII, ch. 386A, subch. 3

in effect

KRS 386A.3-010 Governing law

386A.3-010. Governing law The laws of this Commonwealth govern the internal affairs of a statutory trust including: (1) The liability of a beneficial owner as beneficial owner and a trustee as trustee for a debt, obligation, or other liability of a statutory trust or a series thereof; (2) The enforceability of a debt, obligation, or other liability of the statutory trust against the property of the trust; (3) The enforceability of a debt, obligation, or other liability of a series of a statutory trust, including recourse against the property of or associated with a series; and (4) The inspection of the books and records of the statutory trust. Effective: July 12, 2012 History: Created 2012 Ky. Acts ch. 81, sec. 16, effective July 12, 2012.

KRS 386A.3-020 Statutory trust as entity

386A.3-020. Statutory trust as entity (1) A statutory trust is a legal entity distinct from its trustees and beneficial owners. (2) A statutory trust may hold or take title to property in its own name, or in the name of a trustee in the trustee's capacity as trustee, whether in an active, passive, or custodial capacity. (3) Property transferred to or otherwise acquired by a statutory trust shall be the property of the trust and not of the beneficial owners or of the trustees. A creditor of a beneficial owner or trustee may not obtain possession of, or otherwise exercise legal or equitable remedies with respect to, the property of a statutory trust or the property of or associated with any series thereof. (4) The property of a statutory trust is not subject to KRS 381.135(1)(a)1. Effective: July 12, 2012 History: Created 2012 Ky. Acts ch. 81, sec. 17, effective July 12, 2012.

KRS 386A.3-030 Permissible purposes

386A.3-030. Permissible purposes (1) Except as otherwise provided in subsection (2) of this section, a statutory trust may have any lawful purpose. (2) A statutory trust may not: (a) Have a predominantly donative purpose; or (b) Be organized for the purpose of rendering a professional service. Effective: July 12, 2012 History: Created 2012 Ky. Acts ch. 81, sec. 18, effective July 12, 2012.

KRS 386A.3-040 Statutory trust's liability

386A.3-040. Statutory trust's liability (1) A debt, obligation, or other liability of a statutory trust is solely a debt, obligation, or other liability of the trust. (2) A debt, obligation, or other liability incurred by or otherwise existing with respect to the property of or associated with a particular series of a statutory trust is solely a debt, obligation, or liability of the particular series for which there is recourse against only the property of or associated with the particular series. (3) A person is not personally liable, directly or indirectly, by way of indemnification, contribution, assessment, or otherwise, for a debt, obligation, or other liability of the statutory trust solely by reason of being or acting as a trustee, beneficial owner, agent of the trust, or agent of the trustee. (4) A person is not personally liable, directly or indirectly, by way of indemnification, contribution, assessment, or otherwise, for a debt, obligation, or other liability of a series or against the property of or associated with a series of a statutory trust by reason of being associated with a series as a beneficial owner, trustee, agent of the series, or agent of the trustee. (5) The property of a statutory trust not associated with a series is subject to attachment and execution to satisfy a debt, obligation, or other liability of the trust. The property of a statutory trust associated with a series is subject to attachment and execution to satisfy a debt, obligation, or other liability incurred by or with respect to the property associated with that series. The property of a series is subject to attachment and execution to satisfy a debt, obligation, or other liability incurred by or with respect to the property associated with that series. (6) Subsections (3) and (4) of this section shall not affect the liability of any person for his or her own negligence, wrongful acts, or misconduct. Effective: July 12, 2012 History: Created 2012 Ky. Acts ch. 81, sec. 19, effective July 12, 2012.

KRS 386A.3-050 Duration

386A.3-050. Duration (1) A statutory trust has perpetual existence. (2) A statutory trust, or any series thereof, may not be terminated or revoked except in accordance with this chapter or the terms of the governing instrument. (3) A statutory trust does not terminate because the same person is the sole trustee and sole beneficial owner. (4) A series of a statutory trust does not terminate because the same person is the sole trustee and the sole beneficial owner associated with the series. (5) That the same person is the sole trustee and sole beneficial owner of a statutory trust or of a series thereof is not a basis for not applying KRS 386A.3-040(3) or (4). (6) The death, incapacity, dissolution, termination, or bankruptcy of a beneficial owner or of a trustee does not result in the termination or dissolution of the statutory trust or any series with which the beneficial owner or trustee has been associated. Effective: June 25, 2013 History: Amended 2013 Ky. Acts ch. 106, sec. 9, effective June 25, 2013. -- Created 2012 Ky. Acts ch. 81, sec. 20, effective July 12, 2012.

KRS 386A.3-060 Power to sue and be sued

386A.3-060. Power to sue and be sued (1) A statutory trust may sue and be sued in its own name. (2) A beneficial owner or a trustee of a statutory trust shall not be a proper party to a proceeding by or against a statutory trust solely by reason of being a beneficial owner or trustee of the statutory trust except if the object of the proceeding is to enforce a beneficial owner's or trustee's right against or liability to the statutory trust or as otherwise provided in a governing instrument. (3) A beneficial owner or a trustee of a statutory trust shall not be a proper party to a proceeding by or against a series or the property associated therewith solely by reason of being a beneficial owner or trustee associated with the series except if the object of the proceeding is to enforce a beneficial owner's or trustee's right against or liability to the series or as otherwise provided in a governing instrument. Effective: July 12, 2012 History: Created 2012 Ky. Acts ch. 81, sec. 21, effective July 12, 2012.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=41158Fetched: 10/20/2026