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TrustDocumentExample

TrustDocumentExample
(addedMarch7,2002)

Warning!Donotusethisexampleinitspresentformperformthenecessaryresearch
tomodifytheexampletomeetyourneedsandlegalrequirements.Definitivevariables
arecoloredredthisexampleisdesignedspecificallyforthecommonlawoftheunited
StatesofAmerica,however,itcontentsmaybealteredtobecomeapplicableunderthe
organiclawsofothernations.
CONTRACTANDDECLARATIONOFTRUST
FORVALUABLECONSIDERATION,receiptofwhichisacknowledged.[creator],
hereinafterreferredtoasthe"CREATOR,"and[firsttrustee],hereinafterreferredtoasthe
"FIRSTTRUSTEE,"enterintothisCONTRACTANDDECLARATIONOFTRUSTonthe
day,monthandyearhereinaftersetforth.
ARTICLEI.THECONTRACT.
1.01.Thisdocumentestablishesacommonlawcontractualrelationshipwherebythe
Trustee(s)agree(s)toaccepttitletocertainpropertyexchangedinTrustforCertificatesof
BeneficialInterest.
1.02.TheTrustee(s),recognizingafiduciaryobligation,agreetomanagetheTrustproperty
fortheBeneficialCertificateHolders.ShouldmorethanoneTrusteebeappointedtomanage
theaffairsoftheTrust,theTrust'spropertyshallbeheldinjointtenancy.
1.03.TheTrustthroughitsTrustee(s)shallallocate100unitsofbeneficialinterestinthe
formofCertificatesofBeneficialInterest.
1.04.TheCreatorbythisinstrumentofferscertainpropertytotheTrustee(s).
AllprivatepropertyissetforthinExhibit"A"attachedtothisagreementand
incorporatedhereinbyreference.
AllrealpropertyissetforthinExhibit"B"attachedtothisagreementand
incorporatedhereinbyreference.
1.05.TheFirstTrustee,byexecutingthisinstrument,acceptsthetermsandconditionsofthis
TrustIndenture.
1.06.TheFirstTrusteeacceptsonbehalfoftheTrustthepropertyconveyedbytheCreator
inexchangeforUnitsofBeneficialInterest.Thetransfermadethesubjectofthisparagraph
shallnotbecharacterizedaseitheragiftorasale.
ARTICLEII.TRUSTNAME.
2.01.ThenameoftheTrustshallbe:
[trustname]
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ARTICLEIII.TRUSTDOMICILE.
3.01.TheTrustshallbedomiciledasfollows:
[trustdomicileaddress]
3.02.TheTrustshallbeinterpretedandconstruedunderthecommonlawoftheunitedStates
ofAmerica.
3.03.ThedomicileoftheTrustmaybechangedtoanyothersitesdeemedwise,prudentand
necessarybytheTrustee(s).
ARTICLEIV.TRUSTCLASSIFICATION.
4.01.TheTrustshallnotoperateasapartnership,association,jointventure,corporationor
statutoryTrust.Itshallbeconstrued,andinfactandincommonlawis,anirrevocable
complexTrust.
4.02.TheCreatorretainsnocontrolovertheadministrationoftheTrustand/ortheabilityto
revoke,modify,terminateorchangeinanymannertheTrustdocument.TheCreatorhasno
subrosaorotherarrangementwiththeTrustee(s)oftheTrustthatwouldcausethe
Trustee(s)toactatthedirectionoftheCreator.TheTrustee(s)shallonlyactasan
independentfiduciaryinthebestinterestoftheBeneficialUnitHolders.
4.03ThisTrustshallbeconstruedbywayoflegalprincipleswhichguaranteetherightof
CommonLawContract.
ARTICLEV.TRUSTDURATION.
5.01.TheTrustshallcomeintolegalexistenceuponitsexecutionbythecreatorandFirst
Trusteeandshallendurefor[trustlife]years.TheTrustee(s)shallhavethepower,by
unanimousdecision,toterminatetheTrustatanearlierdateortorenewtheTrustforan
additional[trustlife]years.UnlesstheTrust'stermisappropriatelyrenewed,itscorpusshall
bedistributedtotheholdersoftheunitsofBeneficialInterest.
ARTICLEVI.TRUSTEECAPACITYANDPOWERS.
6.01.TheTrustee(s)mayengageinanytypeofactivitywhichtheTrustee(s)deeminthe
bestinterestoftheTrustincluding,butnotlimitedto,buying,selling,borrowing,loaning,
pledging,orhypothecatingassets,andowningstockorentirechartersofcorporations,
partnerships,associationsorotherTrusts.
6.02.NobondshallberequiredoftheFirstTrustee.AnyfutureTrusteeshallnotberequired
tobebondedunlesstheFirstTrusteeorallofthemembersofaBoardofTrusteerequirea
bond.
6.03.TheTrustee(s)shallpossessallpowersnecessarytooperateandmanagetheTrustfor
thebenefitoftheBeneficialUnitHolders.
6.04.ThenumberofTrusteesmaybeincreasedifsuchanincreaseactsasabenefittothe
Trust.ThedecisionofaBoardofTrusteesmustalwaysbeunanimous.
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6.05.TheTrustee(s)shall,attheTrust'sfirstregularmeeting,designateoneormore
contingentTrusteeswhoshallreplacethethenexistingTrustee(s)intheeventallofthe
Trustee(s)shalldieorsimultaneouslybecomeincapacitated.
6.06.Shouldallofthe"sitting"Trustee(s)andcontingentTrusteessimultaneouslydieor
becomeincapacitated,aBeneficialUnitHoldermayapplytoaCourtofcompetent
jurisdictionrequestingareplacementorreplacements.
6.07.TheTrustee(s)'liabilityhereundershallbethatofonewhoholdsafiduciary
relationshipwithanother.
6.08.TheTrustee(s)shallhavetheauthoritytoappointoneormoreagentsoftheTrusttoact
assignatorsfortheTrustonallcheckingandsavingsaccounts.
6.09.TheTrustee(s)shallhavetheauthoritytoappointoneormoreagentstomanageTrust
assetsandtoadvisetheTrustee(s)andtoaccomplishanyotherfunctionsendemictothe
Trustpurposeandoperation.
6.10.TheTrustee(s)shallhavetheauthoritytoreasonablecompensateTrusteesandothers
whoperformservicesbeneficialtotheTrust.
6.11.TheTrustee(s)shallmaintainbooks,accountsandrecordsandminutesofallregular
meetingsrelativetoTrustadministrationandbusiness.
ARTICLEVII.RESTRICTIONS.
7.01.Allremunerationsofmoneyorfairvalue,inanyform,takenintotheTrust,shallnotbe
availabletotheCreatorinhiscapacityasCreator.
7.02.TheTrustshallnotbehelddirectlyliableforanyobligationsofwhatsoevernatureof
theCreator,Trustee(s)ortheBeneficialUnitHolders.
7.03.TheBeneficialUnitHoldersmaynot,inanymannerwhatsoever,controltheactivities
oftheTrustee(s)includingdecisionsrelatingtothedisbursementoftheremunerationsof
moneyorfairvalue,inanyform,orcorpusoftheTrust.
7.04.Thedeath,insolvency,bankruptcyorincapacityofanyTrusteesorBeneficialUnit
HoldershallnotaffecttheoperationorcontinuityoftheTrust.
ARTICLEVIII.MEETINGS.
8.01.TheTrustee(s)shallprovideformeetingsatstatedintervalswithoutnotice.Special
meetingsmaybecalledbyoneormoreoftheTrusteesuponthree(3)daysnotice,which
noticemaynotbewaived.Participationatsuchmeetingsmaynotrequirethephysical
presenceoftheparticipants,butmaybeconductedbytelephoneorotheracceptablemedium.
ARTICLEIX.BENEFICIALUNITHOLDERS.
9.01.TheinterestofanyBeneficialUnitHoldershallbefreelytransferableorassignable.
9.02.Death,insolvencyorbankruptcyofanycertificateholder,orthetransferofhis/her
certificatebysale,gift,deviceordescent,shallnotoperateasadissolutionofthisinstrument
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orinanymanneraffecttheinstrumentoritsoperation.Ownershipofcertificatesshallnot
entitletheholdertoanylegaltitleinortotheproperty,norshallthedeathofacertificate
holderentitlehis/herheirsorlegalrepresentativetodemandanyportionordivisionofthe
propertyoftheTrust,butsaidsuccessormaysucceedtothesameequitableordistributable
interest.
9.03.Totheextentpermittedbylaw,theinterestsofBeneficialUnitHoldersshallnotbe
subjecttoattachmentortheclaimsofcreditors.
9.04.TheCertificatesofBeneficialInterestofthisTrustaredividedinto100unitsorparts
thereof.Theunitsarenonassessable,nontaxableandnonnegotiable.
9.05.AnyBeneficialUnitHoldermaysurrendertotheTrustee(s)allright,titleandinterest
toanyBeneficialUnitsheldbysaidunitholder.TheTrustee(s)mayissueornotsaidunits
takingintoaccountanysuggestionsmadebythepreviousholderofsaidunits.
9.06.AnyBeneficialUnitHoldermaynameanypersonorpersonstoreceivehis/herunits
upondeath.SuchdesireshallbeconveyedtotheTrustee(s)fortheTrustee(s)approval.
9.07.TheTrustee(s)may,butarenotrequiredto,distributeanyandallremunerationsof
moneyorfairvalue,inanyform,toBeneficialUnitHoldersifthereareanydistributable
remunerationsofmoneyorfairvalue,inanyform,andnottodistributewouldcausethe
Trusttosufferataximpact.
9.08.TheTrustee(s)willmakeadeterminationastotheexistenceornonexistenceof
distributableremunerationsofmoneyorfairvalue,inanyform,periodicallybutatno
greaterintervalthansemiannually.
9.09.AnyBeneficialUnitHoldermaywaiverighttoanydistributionifawrittendeclaration
ofsuchwaiverisdeliveredtotheTrustee(s)priortothedateofdistributionandsuchwaiver
isacceptedbytheTrustee(s).Ifthewaiverisaccepted,thatportionofthedistributionshall
beallocatedtotheremainingBeneficialUnitHoldersonaproratabasis.
Saidwaiverwouldnotbeeffectiveforfuturedistributions,andtheprocesssetforthinthis
paragraphwouldhavetobereemployedforeachsubsequentdistributioniftheBeneficial
UnitHoldersdidnotwanttoreceivesame.
ARTICLEX.MISCELLANEOUS.
10.01.ThisIndentureisirrevocableandmayonlybeamendedtobettercarryoutitspurpose
orinordertocomplywithanyapplicablelawsorregulation.
10.02.IntheeventitbecomesnecessarytoremoveaTrustee,BeneficialUnitHoldersmay
applytoacourtofcompetentjurisdictionasanappropriateforum.
10.03.Ifanyword,phraseorheadingisdeemedtobeunenforceable,thentheremainderof
theagreementshallremaininfullforceandeffect.
10.04.ShouldtheTrustee(s)disagreeconcerningagivencourseofactionortheconstruction
ofanyportionofthisagreement,thenanyTrusteemayinitiateanarbitrationunderthe
commonlaw.
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10.05.ThepurposeofthisTrustis:
[trustpurpose]
10.06.ThegoalofthisTrustis:
[trustgoal]
CERTIFICATIONOFTRUSTINDENTURE
[trustname]
INWITNESSWHEREOF,THECREATORANDFIRSTTRUSTEEhavehereuntosetinto
theirhandsandsealinrecognitionofthefactthattheverbiagecontainedinthisTrust
Instrumentwasdrawninrecognitionoftheconveyanceandacceptanceofthepropertyand
theobligationsandthedutieshereinassigned.
CREATOR:[creatorsignature]
FIRSTTRUSTEE:[firsttrusteesignature]
ACKNOWLEDGEMENT
NOTARYPUBLIC
Stateof[state],Countyof[county]
Onthisdate[date],beforeme,theundersignedNotaryPublicinandforsaidState,
personallyappearedtheabovenamedCreatorandFirstTrustee,whoareknowntomeor
provedtomeonthebasisofsatisfactoryevidence,tobethepersonswhoexecutedthisTrust
Indentureandwhohavereaditstermsandconditionsandwhohaveagreedtobeboundby
them.
Notaryin&forsaidState&County:[notarystate&county]
MyCommissionExpires:[notaryexpiration]
Seal:[notaryseal]
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