{"data":{"id":"us-ky/krs-386.365","jurisdiction":"us-ky","citation":"KRS 386.365","heading":"Distribution of assets upon dissolution -- Process for selection of receiving","body":"trust -- Assets available for distribution defined.\n(1) Upon termination or dissolution of any trust or other entity (other than a\ncorporation) which is or may become an exe mpt organization as described in\nSection 501(c)(3) of the Internal Revenue Code of 1954, as amended, or a charitable\ntrust described in Section 4947(a)(1) of the Internal Revenue Code of 1954, as\namended, any assets lawfully available for distribution shal l be distributed to one\n(1) or more qualifying organizations described in Section 501(c)(3) of said Internal\nRevenue Code (or described in any corresponding provision of any successor\nstatute) which organization or organizations have a charitable purpose w hich, at\nleast generally, includes a purpose similar to the terminating or dissolving\norganization. The organization to receive the assets of the dissolving organization\nhereunder shall be selected in the discretion of a majority of the managing body of\nthe dissolving organization, and if its members cannot so agree, then the recipient\norganization shall be selected pursuant to a verified petition in equity filed in a court\nof proper jurisdiction against the terminating or dissolving organization by one (1)\nor more of its managing body which verified petition shall contain such statements\nas reasonably indicate the applicability of this section. The court upon a finding that\nthis section is applicable shall select the qualifying organization or organizations  to\nreceive the assets to be distributed, giving preference if practicable to organizations\nlocated within the Commonwealth of Kentucky. In the event that the court shall find\nthat this section is applicable but that there is no qualifying organization known to it\nwhich has a charitable purpose, which, at least generally, includes a purpose similar\nto the terminating or dissolving organization, then the court shall direct the\ndistribution of its assets lawfully available for distribution to the Treasurer of  the\nCommonwealth of Kentucky to be added to the general fund.\n(2) For purposes of this section \"assets lawfully available for distribution\" shall include\nthe assets of a terminating or dissolving organization remaining after:\n(a) Payment, or provision for  payment, of all liabilities and obligations of the\norganization; and\n(b) Return, transfer or conveyance of any assets held by the organization (the\nterms of creating instrument of which require such return, transfer or\nconveyance upon termination or disso lution or otherwise) in accordance with\nthe terms of the creating instrument; and\n(c) In the event legal action is filed pursuant hereto, payment or provision for\npayment of all costs, including a reasonable attorney's fee for the parties, fixed\nby the court.\n(3) This section shall not be construed to deprive any person of any vested property\ninterest which he may have on June 21, 1974.","path":["KRS Chapter 386"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35886","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:16Z","sha256":"9aa6c014f2f21f6f4e4125a3defe9c702f1cf0e65285338d9943ed76df9bdc3a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-386.360","next":"us-ky/krs-386.367"},"notice":"GroundRules: Original legal text. Not legal advice."}