Section 12-303 - Beneficial interests. - Maryland Statutes

§ 12-303. Beneficial interests.
 

(a)  In general.- Except as provided in the governing instrument of a statutory trust, a beneficial owner shall have an undivided beneficial interest in the property of the statutory trust and shall share in the profits and losses of the statutory trust in the proportion of the entire undivided beneficial interest in the statutory trust owned by the beneficial owner. 

(b)  Limitation.-  

(1) Except as provided in the governing instrument of a statutory trust, a beneficial owner has no interest in specific property of the statutory trust. 

(2) A creditor of the beneficial owner has no right to obtain possession of, or otherwise exercise legal or equitable remedies with respect to, the property of the statutory trust. 

(c)  Classification.- A beneficial interest in a statutory trust is personal property notwithstanding the nature of the property of the trust. 

(d)  Transferability.- Except as provided in the governing instrument of a statutory trust, a beneficial interest in the statutory trust is freely transferable. 

(e)  Distribution.- Except as provided in the governing instrument of a statutory trust, at the time a beneficial owner becomes entitled to receive a distribution, the beneficial owner has the status of, and is entitled to all remedies available to, a creditor of the statutory trust with respect to the distribution. 

(f)  Record dates for allocations and distributions.- A governing instrument may provide for the establishment of record dates with respect to allocations and distributions by a statutory trust or for any other purpose. 

(g)  Preemptive right.- Except as provided in the governing instrument of a statutory trust or by agreement, a beneficial owner shall have no preemptive right to acquire any beneficial interest or other interest in the statutory trust. 
 

[1999, ch. 452; 2010, ch. 611, § 1.]