Kentucky Statutes 386A.5-070 – Interested transactions
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(1) Each trustee and each person designated pursuant to KRS § 386A.1-030(4)(h) owes a duty of loyalty to the statutory trust and any series thereof, including but not limited to the following:
(a) To account to the trust or a series thereof and hold as trustee for it any property, profit, or benefit derived in the conduct and winding up of the trust’s or series’s business or derived from a use of property, including the appropriation of an opportunity, of the trust or a series thereof;
(b) To refrain from dealing with the trust in the conduct or winding up of the trust’s business as or on behalf of a party having an interest adverse to the trust; and
(c) To refrain from competing with the trust or with any series thereof in the conduct of its business before dissolution.
(2) A person subject to subsection (1) of this section who acts through a related party shall be treated as having acted directly.
(3) That a transaction was fair to the statutory trust or a series thereof shall not constitute a defense to the breach of the obligation in subsection (1) of this section.
Effective: July 12, 2012
History: Created 2012 Ky. Acts ch. 81, sec. 39, effective July 12, 2012.
(a) To account to the trust or a series thereof and hold as trustee for it any property, profit, or benefit derived in the conduct and winding up of the trust’s or series’s business or derived from a use of property, including the appropriation of an opportunity, of the trust or a series thereof;
Terms Used In Kentucky Statutes 386A.5-070
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Trustee: A person or institution holding and administering property in trust.
(b) To refrain from dealing with the trust in the conduct or winding up of the trust’s business as or on behalf of a party having an interest adverse to the trust; and
(c) To refrain from competing with the trust or with any series thereof in the conduct of its business before dissolution.
(2) A person subject to subsection (1) of this section who acts through a related party shall be treated as having acted directly.
(3) That a transaction was fair to the statutory trust or a series thereof shall not constitute a defense to the breach of the obligation in subsection (1) of this section.
Effective: July 12, 2012
History: Created 2012 Ky. Acts ch. 81, sec. 39, effective July 12, 2012.