KRS 286.3-240: Real estate mortgage investment fund -- Participation certificates.

(1) A trust company or bank empowered to act as a fiduciary under the laws of this

state, and subject to examination by either state or federal banking authorities, may:

(a) Set apart, in a separate real estate mortgage investment fund, real estate

mortgages, which conform to the Kentucky requirements as to trust

investments;

(b) Issue against such investment fund participation certificates covering

fractional interests therein; and

(c) Invest trust funds in its hands for investment in such participation certificates.

(2) Such trust company or bank shall at all times maintain definite records, fully and

accurately setting forth all mortgages held in such investment fund, including all

cash collections and any real estate acquired in foreclosure; and all part icipation

certificates issued against the investment fund. Participation certificates shall not be

issued in the aggregate so as to exceed the aggregate principal amount of the

investment fund.

(3) The participation certificates shall be substantially in the following form:

(Insert place and date)

The undersigned hereby certifies: That (insert description of trust estate or

name of beneficial owner) is the owner of an interest in a real estate mortgage

investment fund, which fund is shown on the reco rds and accounts of the

undersigned, and which interest is equivalent to the fraction which would result

from using (insert amount) dollars ($..........) as the numerator and the aggregate

principal amount of the investment fund as the denominator.

This certificate is issued in accordance with and subject to the terms and

conditions of KRS 286.3-240 to 286.3-270.

(Signature of trust company or bank)