Kentucky Statutes 386A.8-040 – Winding up
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(1) After dissolution, a statutory trust continues its existence as a statutory trust, but may not carry on any activities except as is appropriate to wind up and liquidate its activities and affairs, including:
(a) Collecting the assets of the trust;
(b) Disposing of the properties of the trust that will not be distributed in kind to beneficial owners of the trust;
(c) Discharging or making provision for discharging the liabilities of the trust, including entering into agreements with creditors for the satisfaction thereof;
(d) Distributing the remaining property of the trust in accordance with KRS
386A.8-080; and
(e) Doing every other act necessary to wind up and liquidate the trust’s activities and affairs.
(2) In winding up a statutory trust’s activities, a trust may:
(a) Preserve the trust’s activities and property as a going concern for a reasonable time;
(b) Prosecute, defend, or settle actions or proceedings whether civil, criminal, or administrative, including by mediation or arbitration; and
(c) Transfer the property of the trust.
(3) The dissolution of a statutory trust does not:
(a) Prevent the commencement of a proceeding by or against the trust in its name; (b) Abate or suspend a proceeding by or against the trust pending on the effective
date of dissolution;
(c) Transfer title to the trust’s property;
(d) Terminate the authority of the registered agent of the statutory trust; (e) Abate or suspend KRS § 386A.3-040; or
(f) Abate or suspend KRS § 386A.4-020.
Effective: July 12, 2012
History: Created 2012 Ky. Acts ch. 81, sec. 67, effective July 12, 2012.
(a) Collecting the assets of the trust;
Terms Used In Kentucky Statutes 386A.8-040
- 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.
- Prosecute: To charge someone with a crime. A prosecutor tries a criminal case on behalf of the government.
(b) Disposing of the properties of the trust that will not be distributed in kind to beneficial owners of the trust;
(c) Discharging or making provision for discharging the liabilities of the trust, including entering into agreements with creditors for the satisfaction thereof;
(d) Distributing the remaining property of the trust in accordance with KRS
386A.8-080; and
(e) Doing every other act necessary to wind up and liquidate the trust’s activities and affairs.
(2) In winding up a statutory trust’s activities, a trust may:
(a) Preserve the trust’s activities and property as a going concern for a reasonable time;
(b) Prosecute, defend, or settle actions or proceedings whether civil, criminal, or administrative, including by mediation or arbitration; and
(c) Transfer the property of the trust.
(3) The dissolution of a statutory trust does not:
(a) Prevent the commencement of a proceeding by or against the trust in its name; (b) Abate or suspend a proceeding by or against the trust pending on the effective
date of dissolution;
(c) Transfer title to the trust’s property;
(d) Terminate the authority of the registered agent of the statutory trust; (e) Abate or suspend KRS § 386A.3-040; or
(f) Abate or suspend KRS § 386A.4-020.
Effective: July 12, 2012
History: Created 2012 Ky. Acts ch. 81, sec. 67, effective July 12, 2012.