Defaulting trusts: Duties of Secretary of State; forfeiture of right to transact business; assets held in trust.
1. The Secretary of State shall notify, by providing written notice to its resident agent, each business trust deemed in default pursuant to the provisions of this chapter. The written notice:
(a) Must include a statement indicating the amount of the filing fee, penalties incurred and costs remaining unpaid.
(b) At the request of the resident agent, may be provided electronically.
2. Immediately after the first day of the first anniversary of the month following the month in which the filing was required, the certificate of trust of the business trust is revoked and its right to transact business is forfeited.
3. The Secretary of State shall compile a complete list containing the names of all business trusts whose right to transact business has been forfeited.
4. The Secretary of State shall forthwith notify, by providing written notice to its resident agent, each business trust specified in subsection 3 of the revocation of its certificate of trust. The written notice:
(a) Must include a statement indicating the amount of the filing fee, penalties incurred and costs remaining unpaid.
(b) At the request of the resident agent, may be provided electronically.
5. If the certificate of trust is revoked and the right to transact business is forfeited, all the property and assets of the defaulting business trust must be held in trust by its trustees as for insolvent business trusts, and the same proceedings may be had with respect thereto as are applicable to insolvent business trusts. Any person interested may institute proceedings at any time after a forfeiture has been declared, but, if the Secretary of State reinstates the certificate of trust, the proceedings must at once be dismissed.
Last modified: February 26, 2006