{"data":{"id":"us-ky/krs-386a.1-060","jurisdiction":"us-ky","citation":"KRS 386A.1-060","heading":"Rule of construction.","body":"(1) It shall be the policy of the Commonwealth through this chapter to give maximum\neffect to the principles of freedom of contract and the enforceability of governing\ninstruments.\n(2) Except to the extent set forth in a governing instrument, a statutory trust is bound by\nthe governing instrument.\n(3) Except to the extent set forth in the governing instrument, each trustee of a statutory\ntrust is bound by the governing instrument.\n(4) Action validly taken pursuant to one (1) provision of this chapter shall not be\ndeemed invalid solely because it is identical or similar in substance to an action that\ncould have been taken pursuant to some other provision of this chapter but fails to\nsatisfy one (1) or more requirements prescribed by such other provision.\n(5) No b eneficial owner or other person shall have a vested property right resulting\nfrom any provision of the governing instrument which may not be modified by its\namendment or as otherwise permitted by law.\n(6) Each beneficial owner and trustee and any other par ty to a governing instrument\nshall discharge all duties and exercise all rights consistently with the obligation of\ngood faith and fair dealing.\n(7) If a governing instrument contains a provision to the effect that any amendment to\nthe governing instrument  shall be in writing and adopted in accordance with the\nprovisions of the governing instrument, then the provision shall be enforceable in\naccordance with its terms, and any agreement as to the conduct of the business and\naffairs of the statutory trust whi ch is not in writing and adopted in accordance with\nthe provisions of the governing instrument shall not be considered part of the\ngoverning instrument and shall be void and unenforceable.\n(8) A statutory trust governed by this chapter is subject to any am endment or repeal\nthereof.\n(9) This chapter shall not be construed to impair the obligations of any contract existing\nwhen this chapter, or any amendment of it, becomes effective, nor to affect any\naction or proceeding begun or right accrued before the cha pter or amendment takes\neffect.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=40348","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:17Z","sha256":"b9690f1a4747989f74921a4e0b8d6db7a1875a0cabbac1834a1996149c9aa6c2","source_id":"us-ky","stale":false,"prev":"us-ky/krs-386a.1-050","next":"us-ky/krs-386a.10-010"},"notice":"GroundRules: Original legal text. Not legal advice."}