| Real estate asset trusts Del.
What is the name of your state (only U.S. law)? Delaware.
Does anyone know if a "Real Estate Asset Trust" under the domicile laws of the State of Delaware has the ability to sell an asset (e.g. a Note and Mortgage) out of the Trust to another party before the maturity date of the trust without the consent of all the shareowners of the Trust? In New York State, this cannot be done. The question arises as a Delaware-incorporated "CMO" [collateralized mortgage obligation trust] Real-estate Asset trust claims to have sold my $300,000 Note out of the trust to one of the shareholders for $10. Obviously, if the trustee of the trust does not have the authority to sell an asset before the winding up of the Trust, without the consent of all the owners of the Trust, (as is the case in NY and apparently most States) then the sale is absolutely void. Givben the amount of self-dealing by "managers" of these trusts, I suspect this issue has come up before. Any ideas? | 
11-05-2009, 10:32 AM
Linear Mode
