KRS 386A.4-020: Enforceability of obligations and expenses of series.

(1) Subject to subsection (2) of this section:

(a) A debt, liability, obligation, and expense incurred, contracted for, or otherwise

existing with respect to a series, whether in its name or as to the property of or

associated therewith, shall be enforceable a gainst the assets of or associated

with that series only, and shall not be enforceable against the assets of the

statutory trust generally or any assets of or associated with other series

thereof; and

(b) None of the debts, liabilities, obligations, and ex penses incurred, contracted

for, or otherwise existing with respect to the statutory trust generally or any

other series thereof shall be enforceable against the assets of or associated

with a series.

(2) Subsection (1) of this section applies only if:

(a) The records maintained by the statutory trust account for the assets of or

associated with that series separately from the other assets of the statutory

trust or of or associated with any other series;

(b) The governing instrument contains a statement to the effect of the limitations

provided in subsection (1) of this section; and

(c) The statutory trust's certificate of trust contains a statement that the statutory

trust may have one (1) or more series subject to the limitations provided in

subsection (1) of this section.

(3) The statement of limitation on liabilities of a series required by subsection (2)(c) of

this section is sufficient regardless of whether:

(a) The statutory trust has established any series under this subchapter when the

statement of limitations is contained in the certificate of formation; and

(b) The statement of limitations makes reference to any specific series of the

statutory trust.

(4) If the records are maintained in a manner such that the assets of or associated with a

series c an be reasonably identified by specific listing, category, type, quantity, or

computational or allocational formula or procedure, including a percentage or share

of any assets, or by any other method in which the identity of the assets can be

objectively d etermined, the records are considered to satisfy the requirements of

subsection (2)(a) of this section.

(5) The association, disassociation, or reassociation of property of a statutory trust or a

series thereof to or with the trust or a series thereof is d eemed to be a transfer

between separate persons under the laws of Kentucky governing fraudulent

transfers.

(6) A distribution by a series shall be made to the beneficial owners associated with the

series.