KRS 386A.1-060: Rule of construction.

(1) It shall be the policy of the Commonwealth through this chapter to give maximum

effect to the principles of freedom of contract and the enforceability of governing

instruments.

(2) Except to the extent set forth in a governing instrument, a statutory trust is bound by

the governing instrument.

(3) Except to the extent set forth in the governing instrument, each trustee of a statutory

trust is bound by the governing instrument.

(4) Action validly taken pursuant to one (1) provision of this chapter shall not be

deemed invalid solely because it is identical or similar in substance to an action that

could have been taken pursuant to some other provision of this chapter but fails to

satisfy one (1) or more requirements prescribed by such other provision.

(5) No b eneficial owner or other person shall have a vested property right resulting

from any provision of the governing instrument which may not be modified by its

amendment or as otherwise permitted by law.

(6) Each beneficial owner and trustee and any other par ty to a governing instrument

shall discharge all duties and exercise all rights consistently with the obligation of

good faith and fair dealing.

(7) If a governing instrument contains a provision to the effect that any amendment to

the governing instrument shall be in writing and adopted in accordance with the

provisions of the governing instrument, then the provision shall be enforceable in

accordance with its terms, and any agreement as to the conduct of the business and

affairs of the statutory trust whi ch is not in writing and adopted in accordance with

the provisions of the governing instrument shall not be considered part of the

governing instrument and shall be void and unenforceable.

(8) A statutory trust governed by this chapter is subject to any am endment or repeal

thereof.

(9) This chapter shall not be construed to impair the obligations of any contract existing

when this chapter, or any amendment of it, becomes effective, nor to affect any

action or proceeding begun or right accrued before the cha pter or amendment takes

effect.