{"data":{"id":"us-ky/krs-286.3-250","jurisdiction":"us-ky","citation":"KRS 286.3-250","heading":"Operation of real estate mortgage investment fund.","body":"(1) To provide for losses that might occur in an investment fund established by a trust\ncompany or bank under KRS 286.3 -240, such trust company or bank may reserve\nfrom the interest collected on the mortgages held in the fund, not over one -half of\none percent (0.5%) per annum on the principal of such mortgages. The reserved\namount shall be set aside in a separate reserved account, and used primarily for the\npurpose of covering any losses that might be sustained in connection with any of the\nmortgages, or in for eclosing any of the mortgages, or from actual outlays in\nconnection with any mortgaged property or property acquired under any foreclosure\nproceedings. Such reserve account, or the balance thereof after the payment of any\nsuch losses, shall belong entirely to the beneficial owners of the investment fund.\n(2) All income earned by the investment fund, except that amount reserved in the\nmanner and for the purposes set out in subsection (1), shall be periodically, and at\nleast semiannually, distributed ratably to the holders of participation certificates\nissued against the investment fund. Principal cash that accumulates in the\ninvestment fund by reason of payments on mortgages may be used in the\nredemption and cancellation of participation certificates, or may be used in making\nfurther mortgage loans. The trust company or bank may advance cash to the\ninvestment fund to be used in making additional desirable mortgage loans in\nanticipation of trust funds becoming available for investment in participation\ncertificates, but in no event shall the trust company or bank be entitled to any profit\non any such transactions other than the interest earned on its advancements.\n(3) If any participation certificates issued under the provisions of KRS 286.3 -240\nshould become dis tributable by reason of the termination or removal of a trust, the\ntrust company or bank may at its option either distribute such certificates in kind, or\nredeem and cancel such certificates for the account of the investment fund, or\npurchase such certificates for the account of other trust estates in its hands.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14566","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:10Z","sha256":"224993bd5536edb40b05d758703526378cc02bc0f6b8cd854d91cfeb46d5cc7d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.3-240","next":"us-ky/krs-286.3-260"},"notice":"GroundRules: Original legal text. Not legal advice."}