KRS 386A.6-060: Charging order.

(1) If a beneficial interest is not freely transferable by a beneficial owner so that the

transferee has all rights of the transferor, this section provides the exclusive

remedy by which the judgment creditor of a beneficial owner or a transferee of

a beneficial owner may satisfy a judgment out of the judgment debtor's

beneficial interest.

(2) On application to a court of competent jurisdiction by a judgment creditor of a

beneficial owner or a beneficial owner's transferee, a court may charge the

judgment debtor's beneficial interest with payment of the unsatisfied amount of

the judgment. To the extent so charged, the judgment creditor shall have no

right to participate in the management or to cause the dissolution of the

statutory trust. The court may appoint a receiver of the share of the

distributions due or to become due to the judgment debtor in respect of the

beneficial interest and make all other orders, directions, accounts, and inquiries

the judgment creditor might have made or which the circumstances of the case

may require to give effect to the charging order.

(3) A charging order constitutes a lien on and the right to receive distributions

made with respect to the judgment debtor's beneficial interest. A charging order

does not of itself constitute an assignment of the beneficial interest.

(4) The court may order a foreclosure upon the beneficial interest subject to the

charging order at any time. The purchaser of the beneficial interest at the

foreclosure sale shall have no right to participate in the management or to

cause the dissolution of the statutory trust. Upon foreclosure the beneficial

owner shall be dissociated from and cease to be a beneficial owner of the trust.

At any time before foreclosure, the charged beneficial interest may be

redeemed:

(a) By the judgment debtor;

(b) With property other than statutory trust property, by one (1) or more of the

other beneficial owners; and

(c) With statutory trust property, by the statutory trust with the consent of the

trustees.

(5) This section does not deprive a beneficial owner or a beneficial owner's

transferee of the benefit of any exemption laws applicable to the beneficial

interest.

(6) The statutory trust is not a necessary party to an application for a charging

order. Service of the charging order on a statutory trust may be made by the

court granting the charging order or as the court should otherwise direct.

(7) This section shall not apply to the enforcement of a judgment by a statutory

trust against a beneficial owner of that trust.

(8) This section shall apply to the issuance of a charging order against the

beneficial interest of a beneficial owner or assignee of a beneficial owner of a

foreign statutory trust.