-34-
As regards powers of the trustee, the agreements provided
generally:
Subject to the express limitations herein, the business
and affairs of the Trust shall be managed by or under
the direction of the Trustee, who shall have full,
exclusive and absolute power, control and authority
over the Property and over the business of the Trust.
The Trustee may take any actions as in his or her sole
judgment and discretion are necessary or desirable to
conduct the business of the Trust. This Agreement
shall be construed with a presumption in favor of the
grant of power and authority to the Trustee. * * *
The agreements then enumerated specific powers, such as the
ability to invest, transfer, dispose of, lend, and exercise
voting and other ownership rights of trust property. The trustee
was also expressly authorized to establish or change policies to
govern the investment of trust assets.
Concerning capital contributions and accounts, the
agreements stated that a capital account was to be maintained for
each unit holder by crediting thereto the unit holder’s capital
contributions, distributive share of profits, and amount of any
trust liabilities assumed, and by debiting the value of cash or
other property distributed to the unit holder, the unit holder’s
distributive share of losses, and the amount of unit holder
liabilities assumed by the trust. Profits and losses were
generally to be allocated in proportion to the unit holders’
interests in the entity, and allocations for tax purposes with
respect to contributed property were to be made in accordance
with section 704(c). Any return of a capital contribution, in
Page: Previous 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 NextLast modified: May 25, 2011