District Of Columbia § 29-1206.03 - Contribution by beneficial owner.
Full text of District Of Columbia D.C. Code § 29-1206.03 — Contribution by beneficial owner., with citation guidance and answers to common questions.
§ 29-1206.03. Contribution by beneficial owner.
29-1206.03A contribution of a beneficial owner to a statutory trust may consist of property transferred, services performed, or another benefit provided to the statutory trust, or an agreement to transfer property, perform services, or provide another benefit. 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 trust.
A person’s obligation to contribute money or other property or other benefit to, or to perform services for, a statutory trust is not excused by the person’s death, disability, or other inability to perform the person’s obligations personally. If a person does not fulfill an obligation to make a contribution, other than a monetary contribution, the person is obligated at the option of the trustee to contribute money equal to the value of the part of the contribution which has not been made.
The governing instrument may provide that a beneficial owner that fails to make a required contribution, or comply with the terms and conditions of the governing instrument, shall be subject to specified penalties for or consequences of the failure, including:
Reduction or elimination of the defaulting beneficial owner’s proportionate interest in the statutory trust or series thereof;
Subordination of the defaulting beneficial owner’s beneficial interest to that of nondefaulting beneficial owners;
Forced sale or forfeiture of the defaulting beneficial owner’s beneficial interest;
Imposition of an obligation to repay a loan to the statutory trust by another beneficial owner of the amount necessary to meet the defaulting beneficial owner’s commitment;
Redemption or sale of the defaulting beneficial owner’s beneficial interest at a value fixed by appraisal or by formula; and
Specific performance of an obligation under the governing instrument.
Annotations
Application of Law 19-210: Section 7 of provided that the act shall apply as of January 1, 2012.
Uniform Law: This section is based on § 603 of the Uniform Statutory Trust Entity Act.
Source: official District Of Columbia text · Last verified 2026-08-27
Frequently Asked Questions About District Of Columbia § 29-1206.03
What does D.C. Code § 29-1206.03 cover?
Section 29-1206.03 ("Contribution by beneficial owner.") is part of the D.C. Code, the codified statutory law of District Of Columbia. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite District Of Columbia § 29-1206.03?
A common citation format is "D.C. Code § 29-1206.03" (District Of Columbia). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of District Of Columbia law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the District Of Columbia official source linked on this page or consult a licensed District Of Columbia attorney.
How does District Of Columbia § 29-1206.03 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in District Of Columbia can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in District Of Columbia.