Kentucky Statutes 386A.8-080 – Application of assets in winding up
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(1) Upon the winding up of a statutory trust, the assets of the trust shall be distributed as follows:
(a) First, payment or adequate provisions for payment shall be made to creditors, including, to the extent permitted by law, beneficial owners who are creditors in satisfaction of liabilities of the trust;
(b) Second, unless otherwise provided in the governing instrument, to beneficial owners in satisfaction of liabilities for distributions declared but unpaid; and
(c) Third, unless otherwise provided in the governing instrument, to beneficial owners in proportion to their respective rights to share in distributions from the trust prior to dissolution.
(2) Upon the winding up of a series statutory trust, the assets of or associated with a series shall be distributed in accordance with KRS § 386A.4-110.
Effective: July 12, 2012
History: Created 2012 Ky. Acts ch. 81, sec. 71, effective July 12, 2012.
(a) First, payment or adequate provisions for payment shall be made to creditors, including, to the extent permitted by law, beneficial owners who are creditors in satisfaction of liabilities of the trust;
Terms Used In Kentucky Statutes 386A.8-080
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
(b) Second, unless otherwise provided in the governing instrument, to beneficial owners in satisfaction of liabilities for distributions declared but unpaid; and
(c) Third, unless otherwise provided in the governing instrument, to beneficial owners in proportion to their respective rights to share in distributions from the trust prior to dissolution.
(2) Upon the winding up of a series statutory trust, the assets of or associated with a series shall be distributed in accordance with KRS § 386A.4-110.
Effective: July 12, 2012
History: Created 2012 Ky. Acts ch. 81, sec. 71, effective July 12, 2012.