16-308. Same; administration of funds; payment into trust fund; investment; payment of administrative costs and taxes; prior existing trusts to comply.
16-308
16-308. Same; administration of funds; payment into trust fund;
investment; payment of administrative costs and taxes; prior existing
trusts to comply.
Any contract not providing for administration of payments thereunder in
accordance with K.S.A. 16-302 and 16-303,
and amendments thereto,
shall provide for payment of all money received by the seller to a
corporate trustee designated in a trust indenture or indentures referred
to in such contract. All money so paid to and held by such corporate
trustee, as well as all interest and earnings thereon, shall be held by
such corporate trustee for the benefit of the purchaser in a separate
account in the name of the purchaser,
except that such
trust indenture may provide that the funds in such account and in all
other separate accounts covered by the same trust indenture may be
invested collectively in a fund maintained by such corporate trustee in
its capacity as such, if such fund is administered as required by the
provisions of K.S.A. 58-1201 et seq. and amendments thereto; that all
participations
in the collective investment fund shall be on the basis of a
proportionate interest in all of the assets in the fund; that not less
frequently than once during each period of six months the corporate
trustee shall determine the value of the assets in the fund; and the
trust indenture may authorize the corporate trustee to charge the
reasonable expenses of administering the trust against the income from
the fund, including taxes imposed upon the fund or its income, the
expenses of audits performed by independent public accountants and the
reasonable expenses incurred in servicing mortgages held by the fund,
but no compensation shall be paid for services performed for the
corporate trustee by the seller or by anyone affiliated or connected
with the seller
which exceeds an annual fee of 1% of the current fair market value of the
trust to be computed and distributed on either an annual, quarterly or monthly
basis. Any seller who has
presently established any trust for the purpose of complying with K.S.A.
16-301 to 16-307, inclusive, and amendments thereto, which does not
comply with the applicable provisions of this act, is hereby given a
period of one year after the effective date of this act within which
to amend the trust indenture applicable thereto, to alter its portfolio
of investments and to consummate any other changes necessary to comply
with this act.
History: L. 1973, ch. 86, § 4;
L. 1993, ch. 131, § 1; July 1.