13.1-1226 - Beneficial interests. - Virginia Statutes

§ 13.1-1226. Beneficial interests.

A. Except to the extent otherwise provided in the articles of trust or in thegoverning instrument of a business trust, a beneficial owner shall have anundivided beneficial interest in the property of the business trust and shallshare in the profits and losses of the business trust in the proportion(expressed as a percentage) of the entire undivided beneficial interest inthe business trust owned by the beneficial owner. The governing instrument ofa business trust may provide that the business trust or the trustees, actingfor and on behalf of the business trust, shall be deemed to hold beneficialownership of any income earned on securities owned by the business trustissued by any business entities formed, organized or existing under the lawsof any jurisdiction, including the laws of any foreign country.

B. 1. Except to the extent otherwise provided in the articles of trust or inthe governing instrument of a business trust, a beneficial owner has nointerest in specific business trust property.

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

C. A beneficial owner's beneficial interest in the business trust is personalproperty notwithstanding the nature of the property of the business trust.

D. Except to the extent otherwise provided in the articles of trust or in thegoverning instrument of a business trust, a beneficial owner's beneficialinterest in the business trust is freely transferable.

E. Except to the extent otherwise provided in the articles of trust or in thegoverning instrument of a business trust, at the time a beneficial ownerbecomes entitled to receive a distribution, the beneficial owner has thestatus of, and is entitled to all remedies available to, a creditor of thebusiness trust with respect to the distribution. A governing instrument mayprovide for the establishment of record dates with respect to allocations anddistributions by a business trust.

F. A beneficial owner of a business trust does not have a vested propertyright resulting from any provision of the articles of trust.

(2002, c. 621.)