§ 29-1206.04 — Distribution to beneficial owner.

District of Columbia § 29-1206.04

• Jurisdiction: District of Columbia
• Title 29: Business Organizations. [Enacted title]
• Ch. 12: Statutory Trusts.
• Subch. VI: Beneficial Owners.

Text

(a) When a beneficial owner becomes entitled to receive a distribution, with respect to the distribution, the beneficial owner shall have the status of, and shall be entitled to all remedies available to, a creditor of the statutory trust.

(b) A beneficial owner has a right to a distribution before the dissolution and winding up of a statutory trust only if the trustee decides to make an interim distribution. A beneficial owner shall not have a right to demand or to receive a distribution from the trust in any form other than money.

(c) Except as otherwise provided in § 29-1208.03(b) , the trust may distribute an asset in kind if each part of the asset is fungible with each other part and each beneficial owner receives a percentage of the asset equal in value to the beneficial owner’s share of the distribution.

(d) Any distributions made by a statutory trust before its dissolution and winding up must be in proportion to the beneficial interests.

Legislative History

July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720; Mar. 5, 2013, D.C. Law 19-210, § 2(l)(7)(D), 59 DCR 13171