KRS 304.29-221: Funds.

(1) All assets shall be held, invested and disbursed for the use and benefit of the society

and no member or beneficiary shall have or acquire individual rights therein or

become entitled to any apportionment on the surrender of any part thereof, except as

provided in the benefit contract.

(2) A society may create, maintain, invest, disburse and apply any special fund or funds

necessary to carry out any purpose permitted by the laws of the society.

(3) A society may, pursuant to resolution of its supreme govern ing body, establish and

operate one (1) or more separate accounts and issue contracts on a variable basis,

subject to the provisions of law regulating life insurers establishing accounts and

issuing contracts. To the extent the society deems it necessary i n order to comply

with any applicable federal or state laws, or any rules issued thereunder, the society

may adopt special procedures for the conduct of the business and affairs of a

separate account; may, for persons having beneficial interests therein, p rovide

special voting and other rights, including without limitation special rights and

procedures relating to investment policy, investment advisory services, selection of

certified public accountants, and selection of a committee to manage the business

and affairs of the account; and may issue contracts on a variable basis to which

subsections (2) and (4) of KRS 304.29-191 shall not apply.