{"data":{"id":"us-ky/krs-286.3-240","jurisdiction":"us-ky","citation":"KRS 286.3-240","heading":"Real estate mortgage investment fund -- Participation certificates.","body":"(1) A trust company or bank empowered to act as a fiduciary under the laws of this\nstate, and subject to examination by either state or federal banking authorities, may:\n(a) Set apart, in a separate real estate mortgage investment fund, real estate\nmortgages, which conform to the Kentucky requirements as to trust\ninvestments;\n(b) Issue against such investment fund participation certificates covering\nfractional interests therein; and\n(c) Invest trust funds in its hands for investment in such participation certificates.\n(2) Such trust company or bank shall at all times maintain definite records, fully and\naccurately setting forth all mortgages held in such investment fund, including all\ncash collections and any real estate acquired in foreclosure; and all part icipation\ncertificates issued against the investment fund. Participation certificates shall not be\nissued in the aggregate so as to exceed the aggregate principal amount of the\ninvestment fund.\n(3) The participation certificates shall be substantially in the following form:\n(Insert place and date)\nThe undersigned hereby certifies: That (insert description of trust estate or\nname of beneficial owner) is the owner of an interest in a real estate mortgage\ninvestment fund, which fund is shown on the reco rds and accounts of the\nundersigned, and which interest is equivalent to the fraction which would result\nfrom using (insert amount) dollars ($..........) as the numerator and the aggregate\nprincipal amount of the investment fund as the denominator.\nThis certificate is issued in accordance with and subject to the terms and\nconditions of KRS 286.3-240 to 286.3-270.\n(Signature of trust company or bank)","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14565","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:10Z","sha256":"484b850cac5b416bc6f07a0ed2ddcaf02e3047e2b553e2e7bccfe0c79bedcb24","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.3-235","next":"us-ky/krs-286.3-250"},"notice":"GroundRules: Original legal text. Not legal advice."}