SB 153 (BR 1790) - B. Leeper
AN ACT relating to investment services trusts and declaring an emergency.
Create new section of KRS Chapter 386 to define terms relating to establishing an investment services trust; establish requirements for a qualified affidavit to establish an investment services trust; establish protection of the trust corpus from creditors' claims or an action to enforce a judgment entered by a court or other body having adjudicative authority; provide that any authority over the trust corpus retained by the transferor shall be void; provide the terms for avoidance of a qualified disposition and provide that if a qualified trustee acted in good faith he shall have a paramount lien against the property, and provide that if a beneficiary has not acted in bad faith, avoidance of the qualified disposition shall be subject to the right of the beneficiary; provide that a spendthrift provision is deemed to be a restriction on transfer of the transferor's beneficial interest; authorize a transferor to appoint one or more advisors regarding authority over the trust and for the trust investments; provide that a transferor may serve as an investment advisor but may not serve as advisor to a trust; provide that if an investment services trust fails to meet the requirements of this Act and the trustee fails to meet the requirements, a successor trustee shall become the trustee, or a court shall appoint a successor qualified trustee; provide that an investment services trust shall not be deemed revocable for inclusion of specified terms within the trust; provide that the Act may be cited as the "Kentucky Investment Services Act"; and, EFFECTIVE July 1, 2008; EMERGENCY.
Feb 13-introduced in Senate
Feb 15-to Judiciary (S)