(a) A contribution of a beneficial owner to the statutory trust may be in cash, property or services rendered, or a promissory note or other obligation to contribute cash or property or to perform services; provided however, that a person may become a beneficial owner of a statutory trust and may receive a beneficial interest in a statutory trust without making a contribution or being obligated to make a contribution to the statutory trust.
(b) Except as provided in the governing instrument, a beneficial owner is obligated to the statutory trust to perform any promise to contribute cash, property or to perform services, even if the beneficial owner is unable to perform because of death, disability or any other reason. If a beneficial owner does not make the required contribution of property or services the beneficial owner is obligated at the option of the statutory trust to contribute cash equal to that portion of the agreed value (as stated in the records of the statutory trust) of the contribution that has not been made. The foregoing option shall be in addition to, and not in lieu of, any other rights, including the right to specific performance, that the statutory trust may have against such beneficial owner under the governing instrument or applicable law.
(c) A governing instrument may provide that the interest of any beneficial owner who fails to make any contribution that the beneficial owner is obligated to make shall be subject to specific penalties for, or specified consequences of, such failure. Such penalty or consequence may take the form of reducing or eliminating the defaulting beneficial owner's proportionate interest in the statutory trust, subordinating the beneficial interest to that of nondefaulting beneficial owners, a forced sale of the beneficial interest, forfeiture of the beneficial interest, the lending by other beneficial owners of the amount necessary to meet the beneficiary's commitment, a fixing of the value of the defaulting beneficial owner's beneficial interest by appraisal or by formula and redemption or sale of the beneficial interest at such value, or any other penalty or consequence.
Structure Delaware Code
Title 12 - Decedents' Estates and Fiduciary Relations
Chapter 38. TREATMENT OF DELAWARE STATUTORY TRUSTS
Subchapter I. Domestic Statutory Trusts
§ 3802. Contributions by beneficial owners.
§ 3803. Liability of beneficial owners and trustees.
§ 3805. Rights of beneficial owners and trustees in trust property.
§ 3806. Management of statutory trust.
§ 3807. Trustee in State; registered agent [Effective until Aug. 1, 2023].
§ 3807. Trustee in State; registered agent [Effective Aug. 1, 2023].
§ 3808. Existence of statutory trust.
§ 3809. Applicability of trust law.
§ 3810. Certificate of trust; amendment; restatement; cancellation.
§ 3812. Filing of certificate.
§ 3813. Fees [Effective until Aug. 1, 2023].
§ 3813. Fees [Effective Aug. 1, 2023].
§ 3814. Use of names regulated.
§ 3815. Merger and consolidation.
§ 3819. Access to and confidentiality of information; records.
§ 3820. Conversion of other business entities to a statutory trust.
§ 3821. Conversion of a statutory trust.
§ 3822. Domestication of non-United States entities.
§ 3823. Transfer or continuance of domestic statutory trusts.
§ 3824. Judicial cancellation of certificate of trust; proceedings.
§ 3825. Division of a statutory trust.
§ 3826. Document form, signature and delivery.
§ 3828. Construction and application of chapter and governing instrument.