§ 30-4-8-1 — Application

(a) Subject to the limitations set forth in
subsection (b), this chapter applies to:
(1) qualified dispositions to legacy trusts; and
(2) dispositions by transferors who are trustees;
that are made after June 30, 2019.
(b) This chapter does not apply to:
(1) any assets that are listed on an application or financial
statement completed by the transferor and which is submitted to
a lender in connection with a request to obtain or maintain credit
from the lender; or
(2) any assets of a legacy trust that are listed on an application or
financial statement completed on behalf of the legacy trust and
which is submitted to a lender in connection with a request to
obtain or maintain credit from the lender on behalf of the legacy
trust.
In the event that assets described in subsection (b)(1) are later
transferred to a legacy trust and a default occurs under the loan or
extension of credit, either before or after the transfer or disposition
under the legacy trust, the lender shall be entitled to proceed against
any assets listed on the applications or financial statements which were
submitted in connection with the loan, or any modifications,
amendments, or renewals of the loan. Nothing in this chapter shall
prohibit such action. A change in the character, form, or ownership of
the assets described in subsection (b)(1) shall in no way make
subsection (b)(1) inapplicable. This subsection shall apply only to the
lender that extended credit based on the application or financial
statement submitted to the lender and the indebtedness or any portion
of the indebtedness owed to the lender remains unpaid.

Legislative History

As added by P.L.221-2019, SEC.9. Amended by P.L.56-2020, SEC.12.