Bill: Rejected Real Estate Investment Trust Act

[AsunaYuukiSAO]

A
BILL
To
Create real estate investment trusts to help regulate real estate based investment organizations.
1 - Short Title and Enactment
(1) This Act may be cited as the ‘Real Estate Investment Trust Act'
(2) This Act shall be enacted immediately upon its signage.
(3) This Act has been authored by: Rep. AsunaYukkiSAO
(4) This Act has been co-sponsored by: Rep. RandomIntruder
2 - Reasons
(1) There is currently no definition for how companies that operate real estate for investment are
governed or regulated.
(2) This allows for people to own company plots and not be legally responsible for actions of the
company rather than the individual to whom the plot belongs.
3 - Definitions
(1) A real estate investment trust is an organization that owns, operates, or finances
income-generating real estate through rental regions using capital pooled together from multiple
citizens and/or corporations.
(2) The trust is owned by a manager or managers and can hire, fire, purchase property, sell
property, sue, be sued, complain, and defend.
(3) The manager or managers of the fund are liable for the actions of the trust.
(4) The trust may create its own bylaws for its operation so as long as they are not in
contradiction of the laws of the land.
4 - Ultra Vires
(a) A real estate investment trust's incapacity may not serve as the basis for any claim or
defense in equity or law.
b. A real estate investment trust's act or a property transfer to or from a real estate investment
trust is not invalid because the act or transfer was:
(1) beyond what is stated in the real estate investment trust's certificate of formation as the real
estate investment trust's purpose or purposes; or
(2) disapproving of a restriction on an officer's or trust manager's authority to exercise a
law-related power of the real estate investment trust, as stated in the trust's certificate of
formation.
c) In a going ahead, it may be strongly defended that an act or move goes beyond the real
estate investment trust's stated goals or conflicts with a stated restriction on the authority of an
officer or trust manager:
(1) by a shareholder against the real estate investment trust to require the trust to carry out an
act or transfer property to or from it; or (2) by the real estate investment trust, either directly or
through a receiver, trustee, or another legal representative, or shareholders in a representative

suit, against a real estate investment trust officer or former officer or trust manager for going
beyond their authority.
d) The court may set aside and order the performance of the contract if the unauthorized act or
move is to be performed or made under a contract to which the real estate investment trust is a
party and if each party to the contract is a party to the going ahead. Without accounting for
anticipated profits, the court may compensate the real estate investment trust or another party
to the contract, as appropriate, for any loss or damage caused by its decision to set aside and
order the performance of the contract.

SUPPLEMENTARY POWERS OF REAL ESTATE INVESTMENT TRUST.
(a) A real estate investment trust can begin actions that have been ordered or approved
by:
(1) rules that apply to or are related to real estate investment trusts;

b) A real estate investment trust or an officer or trust manager of a real estate
investment trust may not exercise power in a manner that is inconsistent with a
limitation on the real estate investment trust's purposes or powers contained in:
(1) the certificate of formation of the trust;
(2) this statute; or
(3) a different DC law.

REQUIREMENT THAT FILING INSTRUMENT BE SIGNED BY OFFICER.

An officer of a real estate investment trust may sign a filing tool unless otherwise
specified in this Act.