{"data":{"id":"us-ky/krs-386a.6-060","jurisdiction":"us-ky","citation":"KRS 386A.6-060","heading":"Charging order.","body":"(1) If a beneficial interest is not freely transferable by a beneficial owner so that the\ntransferee has all rights of the transferor, this section provides the exclusive\nremedy by which the judgment creditor of a beneficial owner or a transferee of\na  beneficial owner may  satisfy a judgment out of the judgment debtor's\nbeneficial interest.\n(2) On  application to a court of competent jurisdiction by a judgment creditor of a\nbeneficial owner or a beneficial owner's transferee, a court may  charge the\njudgment debtor's beneficial interest with payment of the unsatisfied amount of\nthe judgment. To the extent so charged, the judgment creditor shall have no\nright to participate in the management  or to cause the dissolution of the\nstatutory trust. The  court may  appoint a receiver of the share of the\ndistributions due or to become  due to the judgment debtor in respect of the\nbeneficial interest and make all other orders, directions, accounts, and inquiries\nthe judgment creditor might have made or which the circumstances of the case\nmay  require to give effect to the charging order.\n(3) A  charging order constitutes a lien on and the right to receive distributions\nmade  with respect to the judgment debtor's beneficial interest. A charging order\ndoes not of itself constitute an assignment of the beneficial interest.\n(4) The  court may order a foreclosure upon the beneficial interest subject to the\ncharging order at any time. The purchaser of the beneficial interest at the\nforeclosure sale shall have no right to participate in the management  or to\ncause  the dissolution of the statutory trust. Upon  foreclosure the beneficial\nowner shall be dissociated from and cease to be a beneficial owner of the trust.\nAt  any time before foreclosure, the charged beneficial interest may  be\nredeemed:\n(a) By the judgment debtor;\n(b) With property other than statutory trust property, by one (1) or more of the\nother beneficial owners; and\n(c) With statutory trust property, by the statutory trust with the consent of the\ntrustees.\n(5) This section does not deprive a beneficial owner or a beneficial owner's\ntransferee of the benefit of any exemption laws applicable to the beneficial\ninterest.\n(6) The  statutory trust is not a necessary party to an application for a charging\norder. Service of the charging order on a statutory trust may be made  by the\ncourt granting the charging order or as the court should otherwise direct.\n(7) This section shall not apply to the enforcement of a judgment by a statutory\ntrust against a beneficial owner of that trust.\n(8) This section shall apply to the issuance of a charging order against the\nbeneficial interest of a beneficial owner or assignee of a beneficial owner of a\nforeign statutory trust.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47091","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:18Z","sha256":"bfe7a72b686afbdba7acc144d4d4fe91ebdc265361bfd77e3953bdd3c77b8029","source_id":"us-ky","stale":false,"prev":"us-ky/krs-386a.6-050","next":"us-ky/krs-386a.6-070"},"notice":"GroundRules: Original legal text. Not legal advice."}