Delaware House Bill 364 (Prior Session Legislation)

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Completed Legislative Action
Spectrum: Slight Partisan Bill (Democrat 11-4)
Status: Passed on July 23 2014 - 100% progression
Action: 2014-07-23 - Signed by Governor
Text: Latest bill text (Draft #1) [HTML]

This bill makes the following changes to Delaware Statutory Trust Act (the “Act”) to keep it current and to maintain its national preeminence. The following is a section-by-section review of the proposed amendments of the Act. Section 1. This section amends 3803(d) of the Act to clarify that a defense of usury shall not apply to obligations of a beneficial owner or trustee of a statutory trust owed to a beneficial owner or trustee of a statutory trust when the obligations arise under the governing instrument or a separate agreement in writing. Section 2. This section amends 3806(b) of the Act to clarify that a governing instrument of a statutory trust may designate a threshold number of trustees whose vote is required to approve any action on behalf of a trust. Otherwise, when the governing instrument is silent the default threshold will be a majority of the trustees. This section is consistent with 3323 of Chapter 33, Title 12 of the Delaware Code. Section 3. This section amends 3806(f) of the Act to confirm and clarify that unless otherwise provided in a governing instrument, a person who is not then a beneficial owner may consent to any matter as a beneficial owner provided that such consent will only be effective at a time when such person is a beneficial owner of the statutory trust. Section 4. This section amends 3806(g) of the Act to confirm and clarify that unless otherwise provided in a governing instrument, a person who is not then a trustee may consent to any matter as a trustee provided that such consent will only be effective at a time when such person is a trustee of the statutory trust. Section 5. This section amends 3807(c) of the Act to provide that an investment company maintaining a registered office and registered agent in the State under 3807(b) need only provide an address in the State, rather than a business address in the State, to comply with the requirements of 3810(a)(1)b. Section 6. This section amends 3814(c) of the Act to restrict the use of the word “bank” in the name of a statutory trust. Section 7. This section amends 3815(a) of the Act to expressly allow the rights or securities of, or interests in, a statutory trust or other business entity which is a constituent party to a merger or consolidation to remain outstanding upon such merger or consolidation. Section 8. This section amends 3820(i) of the Act to expressly allow the rights or securities of, or interests in, the other business entity which is converted into a statutory trust to remain outstanding upon such conversion. Section 9. This section amends 3821(d) of the Act to expressly allow the rights or securities of, or interests in, a statutory trust which is to be converted to an other business entity to remain outstanding upon such conversion. Section 10. This section amends 3822(j) of the Act to expressly allow the rights or securities of, or interests in, a non-United States entity which is to be domesticated as a domestic statutory trust to remain outstanding upon such domestication. Section 11. This section amends 3823(f) of the Act to expressly allow the rights or securities of, or interests in, a statutory trust which is to be transferred to or domesticated in another jurisdiction to remain outstanding upon such transfer or domestication. Section 12. This section provides that the proposed amendments of the Act shall become effective August 1, 2014.

An Act To Amend Chapter 38, Title 12 Of The Delaware Code Relating To The Creation, Regulation, Operation And Dissolution Of Domestic Statutory Trusts.

Rep. Bryon Short [D]	Rep. Melanie Smith [D]	Rep. Rebecca Walker [D]	Sen. Bryan Townsend [D]
Rep. Paul Baumbach [D]	Rep. Ronald Gray [R]	Rep. Helene Keeley [D]	Sen. Charles Paradee [D]
Rep. Charles Potter [D]	Rep. Michael Ramone [R]	Sen. Bruce Ennis [D]	Sen. Bethany Hall-Long [D]
Sen. Gregory Lavelle [R]	Sen. Harris McDowell [D]	Sen. Brian Pettyjohn [R]

2014-06-30 - Senate - Senate Third Reading (Y: 21 N: 0 NV: 0 Abs: 0) [PASS]
2014-06-18 - House - House Third Reading (Y: 41 N: 0 NV: 0 Abs: 0) [PASS]

Date	Chamber	Action
2014-07-23	House	Signed by Governor
2014-06-30	Senate	Passed by Senate. Votes: Passed 21 YES 0 NO 0 NOT VOTING 0 ABSENT 0 VACANT
2014-06-26	Senate	Reported Out of Committee (JUDICIARY) in Senate with 4 On Its Merits
2014-06-19	Senate	Assigned to Judiciary Committee in Senate
2014-06-18	Senate	Assigned to Committee in Senate
2014-06-18	House	Passed by House of Representatives. Votes: Passed 41 YES 0 NO 0 NOT VOTING 0 ABSENT 0 VACANT
2014-06-11	House	Reported Out of Committee (ECONOMIC DEVELOPMENT/BANKING/INSURANCE/COMMERCE) in House with 11 On Its Merits
2014-05-29	House	Introduced and Assigned to Economic Development/Banking/Insurance/Commerce Committee in House

Type	Source
Summary	http://legis.delaware.gov/LIS/lis147.nsf/2bede841c6272c888025698400433a04/ca52786bece73be385257cd9006f7e3f?OpenDocument
Text	http://legis.delaware.gov/LIS/lis147.nsf/vwLegislation/HB+364/$file/legis.html?open
Roll Call	http://legis.delaware.gov/LIS/lis147.nsf/7712cf7cc0e9227a852568470077336f/125d2ba3af0ecb4f85257cfb007587b1?OpenDocument
Roll Call	http://legis.delaware.gov/LIS/lis147.nsf/7712cf7cc0e9227a852568470077336f/9b5f548ded34e29a85257d0800159d59?OpenDocument