{"data":{"id":"us-ky/krs-286.3-260","jurisdiction":"us-ky","citation":"KRS 286.3-260","heading":"Liquidation of investment fund.","body":"If any trust company or bank, having established an investment fund as provided in KRS\n286.3-240, determines that there is an apparent loss in such fund, over and above the\naccount to be reserved to cover such loss, then the trust company or bank shall at once\nproceed to liquidate the investment fund. In such liquidation the trust company or bank\nshall, except as hereinafter provided, distribute pro rata on account of the principal of the\noutstanding participation certificates, all principal realized from t he investment fund, and\nshall likewise distribute on account of interest all income earned by the fund. Where the\nprincipal and interest on a particular mortgage is not collected in full, then the amount\nrealized shall, after the payment of any costs incur red in its collection, be first used in\nmaking whole the principal of the mortgage debt, and any balance remaining shall be\napplied to interest. In such liquidation the trust company or bank, instead of distributing\npro rata on account of participation certificates all cash realized from the investment fund,\nmay use a portion of such cash in retiring and canceling participation certificates, but in\nretiring and canceling participation certificates under these conditions, the trust company\nor bank shall esti mate the apparent loss in principal and interest in the investment fund,\nover and above the reserve account to cover such loss, and shall pay for the certificates to\nbe retired and canceled, the amount invested in such certificates, less the loss as to\nprincipal and interest determined as provided above. Any person entitled to the\ndistribution in kind of such certificates who is not satisfied with the trust company's or\nbank's determination of loss, may demand and receive distribution in kind of such\ncertificates.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14567","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:10Z","sha256":"f949e210e196bc5ca838ef25fed6413eebd96248f6a3a8701d4d723a947c770e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.3-250","next":"us-ky/krs-286.3-270"},"notice":"GroundRules: Original legal text. Not legal advice."}