13.1-1231 - Capacity to sue and be sued; process; liabilities and obligations; attachment; seizure of certain assets. - Virginia Statutes

§ 13.1-1231. Capacity to sue and be sued; process; liabilities andobligations; attachment; seizure of certain assets.

A. A business trust may sue and be sued in its own name, and service ofprocess on one of the trustees shall be sufficient to constitute service onthe business trust.

B. A business trust may be sued for debts and other obligations orliabilities contracted or incurred by the trustees, or by the duly authorizedagents of such trustees, in the performance of their respective duties underthe governing instrument of the business trust, and for any damages topersons or property resulting from the negligence of such trustees or agentsacting in the performance of such respective duties.

C. The property of a business trust is subject to attachment and execution asif the business trust was a Virginia corporation organized under Chapter 9 (§13.1-601 et seq.) of this title.

D. Notwithstanding the provisions of this section, in the event that thegoverning instrument of a business trust, including a business trust that isa registered investment company under the Investment Company Act of 1940, asamended, creates one or more series as provided in subsection B of §13.1-1219, and if separate and distinct records are maintained for any suchseries and the assets associated with any such series are held and accountedfor separately from the other assets of the business trust, or any otherseries, and if the governing instrument so provides, and notice of thelimitation on liabilities of a series as referenced in this subsection is setforth in the articles of trust of the business trust, then the debts,liabilities, obligations, and expenses incurred, contracted for, or otherwiseexisting with respect to a particular series shall be enforceable against theassets of that series only, and not against the assets of the business trustgenerally or any other series, and, unless otherwise provided in the articlesof trust or in the governing instrument, none of the debts, liabilities,obligations, and expenses incurred, contracted for, or otherwise existingwith respect to the business trust generally or any other series shall beenforceable against the assets of that series.

(2002, c. 621.)