Section 12-201 - Nature of statutory trust. - Maryland Statutes

§ 12-201. Nature of statutory trust.
 

(a)  Authorized purposes.- Except as provided in subsection (b) of this section, a statutory trust may carry on any lawful business for any purposes. 

(b)  Exclusions.- A statutory trust may not carry on the business of: 

(1) Granting policies of insurance or assuming insurance risks; or 

(2) Banking. 

(c)  General powers.- Except as provided in its certificate of trust or governing instrument, a statutory trust has the general powers, whether or not the general powers are set forth in its certificate of trust or governing instrument, to: 

(1) Sue, be sued, complain, and defend in all courts; 

(2) Have, use, alter, or abandon a trust seal; 

(3) Transact its business, carry on its operations, and exercise the powers granted by this article in any state, territory, district, and possession of the United States and in any foreign country; 

(4) Make contracts and guarantees, incur liabilities, and borrow money; 

(5) Sell, lease, exchange, transfer, convey, mortgage, pledge, and otherwise dispose of any or all of its assets; 

(6) Issue bonds, notes, and other obligations and secure the obligations by mortgage or deed of trust of any or all of its assets; 

(7) Acquire by purchase or in any other manner, and take, receive, own, hold, use, employ, improve, and otherwise deal with any interest in real or personal property, wherever located; 

(8) Purchase, take, receive, subscribe for, or otherwise acquire, own, hold, vote, use, employ, sell, mortgage, loan, pledge, or otherwise dispose of and otherwise use and deal in and with stock and other interests in and obligations of other business entities, other statutory trusts, and individuals; 

(9) Acquire its own shares of beneficial interest, bonds, notes, and other obligations and securities; 

(10) Invest its surplus funds, lend money from time to time in any manner that may be appropriate to enable the statutory trust to carry on its operations or fulfill the purposes specified in its governing instrument, and take and hold real and personal property as security for the payment of funds so invested or loaned; 

(11) Be a promoter, a partner, a member, an associate, or a manager of any partnership, joint venture, trust, or other enterprise; 

(12) Make gifts or contributions in cash, other property, or stock or other securities of the statutory trust to or for the use of: 

(i) The United States, this State, another state of the United States, a territory, possession, or district of the United States, or any institution, agency, or political subdivision of any of them; and 

(ii) Any governmental or other organization, whether inside or outside the United States, for religious, charitable, scientific, civic, public welfare, literary, or educational purposes; 

(13) Elect its officers and appoint its agents, define their duties, determine their compensation, and adopt and carry into effect employee and officer benefit plans; 

(14) Exercise generally the powers set forth in its governing instrument and those granted by law; and 

(15) Do every other act not inconsistent with law which is appropriate to promote and attain the purposes set forth in its governing instrument. 
 

[1999, ch. 452; 2010, ch. 611, § 1.]