1. (1) A trustee who votes for or assents to a distribution made in violation of KRS 386A.6-080 shall be personally liable to the statutory trust for the amount of the distribution that exceeds what could have been distributed without violating KRS 386A.6-080 if it is established that the trustee did not perform his or her duties in compliance with KRS 386A.5-050. In any proceeding commenced under this section, a trustee shall have all of the defenses ordinarily available to a trustee.

2. (2) A trustee held liable under subsection (1) of this section for an unlawful distribution shall be entitled to contribution:

   1. (a) From every other trustee who could be held liable under subsection (1) of this section for the unlawful distribution; and
   2. (b) From each beneficial owner for the amount the beneficial owner accepted knowing the distribution was made in violation of KRS 386A.6-080.
3. (3) A proceeding under this section shall be barred unless it is commenced within two
4. (2) years after the date on which the effect of the distribution was measured under KRS 386A.6-080(6) and (7).

Effective: July 12, 2012

History: Created 2012 Ky. Acts ch. 81, sec. 53, effective July 12, 2012.