§ 17-23-104 — Contributions by beneficial owners

Wyoming § 17-23-104

• Jurisdiction: Wyoming
• Title 17: Corporations, Partnerships and Associations
• Ch. 23: WYOMING STATUTORY TRUST ACT
• Art. 1: GENERAL PROVISIONS

Text

(a) A contribution of a beneficial owner to the statutory
trust may be in cash, property or services rendered, or a
promissory note or other obligation to contribute cash or
property or to perform services. A person may become a
beneficial owner of a statutory trust and may receive a
beneficial interest in a statutory trust without making a
contribution or being obligated to make a contribution to the
statutory trust.
(b) Except as provided in the governing instrument, a
beneficial owner is obligated to the statutory trust to perform
any promise to contribute cash, property or to perform services,
even if the beneficial owner is unable to perform because of
death, disability or any other reason. If a beneficial owner
does not make the required contribution of property or services,
the beneficial owner is obligated at the option of the statutory
trust to contribute cash equal to that portion of the agreed
value, as stated in the records of the statutory trust, of the
contribution that has not been made. The cash contribution
shall be in addition to any other rights, including the right to
specific performance, that the statutory trust may have against
the beneficial owner under the governing instrument or
applicable law.
(c) A governing instrument may provide that the interest
of any beneficial owner who fails to make any contribution that
he is obligated to make shall be subject to specific penalties
or consequences for the failure. The penalty or consequence may
take the form of:
(i) Reducing or eliminating the defaulting beneficial
owner's proportionate interest in the statutory trust;
(ii) Subordinating his beneficial interest to that of
nondefaulting beneficial owners;
(iii) A forced sale of his beneficial interest;
(iv) Forfeiture of his beneficial interest;
(v) The lending by other beneficial owners of the
amount necessary to meet his commitment;
(vi) Fixing of the value of his beneficial interest
by appraisal or by formula and redemption or sale of his
beneficial interest at that value; or
(vii) Any other penalty or consequence.