Business Trust Terms

Question 1

Acceptance of the Trust

Answer 1

is an agreement, either expressly or by
contract, where a person acts on behalf of another. All parties become
legally bound to the Trust/Contract by their acceptance. By accepting
the trust, the trustee consents to occupy that position and carry out the
duties set forth within the trust instrument, subject to the laws of
fiduciary responsibility.

Question 2

Acknowledgment

Answer 2

means the admission, concession, confession, or
avowal of existence of the trust of anything. In law, an official
certification in legal form, admission of a debt or other liability.

Question 3

Adverse

Answer 3

[party] is defined as any person (1) who has a beneficial
interest in the trust; (2) whose beneficial interest is “substantial”; and (3)
whose interest would be adversely affected by the exercise or nonexercise of the power or interest held by the Independent Trustee or
other person in question.

Question 4

Advisor

Answer 4

includes any advisory Trustee, agent, investment advisor, or legal adviser employed pursuant to the terms of this deed.

Question 5

Affirm

Answer 5

is to declare to be true, say firmly, assert, aver, maintain, or avouch

Question 6

Agreement

Answer 6

is a valid contract in which a complete understanding is
reached by two or more persons, groups of persons, etc.; often called
a “meeting or the minds.”

Question 7

Assistant Manager

Answer 7

is a person, natural or juristic, chosen to run a
business or a portion of a business.

Question 8

Beneficiary

Answer 8

of a trust is the person(s), natural or juristic, for whose
benefit the property is held in trust.

Question 9

Beneficial Interest, Units (UBIs)

Answer 9

are merely the rights to enjoy the
monetary profits, or other physical benefits, resulting from a trust,
This product does not constitute the rendering of legal advice or services. This product is intended for informational use only and
is not a substitute for legal advice. State laws vary, so consult an attorney on all legal matters. This product was not prepared by a
person licensed to practice law in this state. Page 59 of 64.
contract, estate, or property rather than the legal ownership of these
things; thus providing a more flexible way for the identification of the
beneficiaries. Units of beneficial interest are transferable with some very
important restrictions and exceptions; therefore, the “beneficial interest”
of the trust can be easily shifted from one person to another without
complexity. Initial UBI holders, with their number of units, are recorded
within the trust in the Registry. Beneficiaries may then transfer all, or
some, of their Units simply by filling out the reverse side of their “evidencing certificate” and surrendering the Certificates to the Trustee
for re-issue. More precise procedures are outlined within this
Agreement.

Question 10

Common Law, Federal

Answer 10

” is Judge-made law as defined by the courts,
which consists of those principles, usages and rules of action applicable to government and security of persons and property which
do not rest for their authority upon any express and positive declaration
of the will of the legislature-made law (Bishop v. D.C. Tex., 334, F.
Supp. 415, 418). As mandated by the U.S. Supreme Court in United
States v. Marchant, 25 U.S. 480, 12 Wheat. 480, 6 L. Ed. 700., “The courts of the United States are bound to recognize and enforce the
common law.”

Question 11

Company

Answer 11

means any corporate body or partnership, of whatsoever kind, incorporated or otherwise brought into existence anywhere in the
world for the purpose of doing business.

Question 12

Consideration

Answer 12

is something given or done as a return for something
given or done by another, without which no contract is binding. It is the main reason or cause for a person to make a contract.

Question 13

Constitution, United States

Answer 13

was the second Law of the People, being
ratified on September 17, 1787 by We the People, not we the
government, nor we the congress, or we the judges. It is the basic law
of America, on which most other laws are based, and to which all other
laws must yield.

Question 14

Contract

Answer 14

is an agreement that affects or creates legal relationship(s)
between two or more persons. To be a contract, an agreement must
involve: at least one promise, consideration (something of value
promised or given), persons legally capable of making binding
agreements, and a reasonable certainty about the meaning of the terms.

Question 15

Contract Clause

Answer 15

is the provision in Article I of the United States Constitution that no state may pass a law abolishing contracts or denying them legal effect.

Question 16

Conveyance

Answer 16

is a transfer of ownership, the document showing such
a transfer, or a deed, from an individual to the Trust.

Question 17

Corpus

Answer 17

of the trust is one of the essential requirements for the establishment of the trust. No trust can exist without property (corpus).
The property can be real or personal property of any type.

Question 18

Creator

Answer 18

is an individual or juristic person who initiates the formal process of creating the Trust and directs or carries on the technical
process by which it is achieved.

Question 19

Declaration of Independence

Answer 19

was written to declare the
authority of the citizens of the colonies in 1776, being later totally
adopted as the standard by which to protect the Laws of
Equality/Common Law and the Inalienable Rights of We the People. With this document, the United States Federal Common Law, the Law of Equality, became, in fact, the first statement of Common Law ever written for a nation, thence the world’s first written Common Law.

Question 20

Declaration of Trust

Answer 20

is a written statement formality by a person
owning property that is held for another person. It makes clear the fact that a trust is created and not some other kind of organization or
transaction.

Question 21

Domicile

Answer 21

is the legal residence of the Trust or any individual or
juristic person which determines the laws which apply to matters affecting the Trust, individual or person.

Question 21

Emergency Trustee

Answer 21

means the person named or any such other
person as may be appointed or become the Emergency Trustee in
accordance with this Agreement.

Question 22

Equity

Answer 22

is justice administered by the courts according to fairness
when existing laws do not cover some situation of person’s rights being violated as contrasted with the strictly formulated rules of common-law.

Question 23

Excluded Persons

Answer 23

means all and any of the persons specified herein
or otherwise becoming an Excluded Persons under the provisions of this Agreement.

Question 24

Form

Answer 24

is the legal or technical manner or order to be observed in legal instruments or juridical proceedings, containing the proper technical terms or phrases and in proper and methodical order.

Question 25

Indenture

Answer 25

is the most important guide you will ever have in running
and operating the trust. The trust indenture determines who can do what, how, where, why, and when. The indenture can also state restrictions or forbidden acts. The indenture may also state acts or actions that must be done with no deviations from the indenture’s instructions.

Question 26

Independent Trustee

Answer 26

is a trustee who has an opposing interest from
that of the grantor/creator and could therefore, be expected to oppose
any special or self-serving interest being given to the grantor/creator as opposed to the beneficiaries at large; e.g., any person not related by blood, marriage, or employment to the grantor/creator

Question 27

Infant

Answer 27

means any individual who has not attained the age of twenty-one years, notwithstanding that such individual may in accordance with the law of his or her domicile be of full age.

Question 28

Insolvent

Answer 28

denoted inability to pay one’s debts, bankrupt, having liabilities far greater than one’s assets.

Question 29

Insolvent

Answer 29

denoted inability to pay one’s debts, bankrupt, having liabilities far greater than one’s assets.

Question 30

Juristic Person

Answer 30

is a legal entity created by law rather than by nature
but still having many of the same rights, privileges, freedoms, obligations, and responsibilities of a natural person. A corporation is
a juristic person.

Question 31

Limited Partnership

Answer 31

is a special form of unincorporated business
organization ownership, available under most state laws, that allows the
business to be run (managed) by general partners and financed
(investors) partly or fully by limited partners, who may take no part
what-so-ever in the partnership management and therefore have no
liability for business losses, lawsuits, etc., beyond the amount of
money they invested, or promised to invest, in the partnership.

Question 32

Manager

Answer 32

is a person, natural or juristic, chosen to run a business or a portion of a business.

Question 33

Minutes

Answer 33

are written notes which record the events of Trustee
meetings. No special format is required, however, the more detailed the minutes, the better is the piece of documentary evidence will exist.

Question 34

Minutes

Answer 34

are written notes which record the events of Trustee
meetings. No special format is required, however, the more detailed the minutes, the better is the piece of documentary evidence will exist.

Question 35

Non-adverse

Answer 35

[party] is defined as any person who in not an adverse party to the trust.

Question 36

Person, Natural

Answer 36

means any individual or any body of persons
corporate or unincorporated.

Question 37

Protector, The

Answer 37

shall mean the person, persons, or corporation, for
the time being, holding the office of Protector in accordance with
Schedule “I” to act as a Protector, or such other individual or company
which may be appointed, or become the Protector, in accordance with
this Agreement.

Question 38

Quorum

Answer 38

is the number of members of any assembly required that
must be present in order for business to be legal or binding.

Question 39

Related

Answer 39

or subordinate [party] is defined as any person who is also a member to the grantor’s/creator’s family or related to the grantor/creator through certain types of business contracts; e.g., being
related by blood, marriage, or employment to the grantor/creator.

Question 40

Substance

Answer 40

is that which is essential, ensures the “form” is
accountable, and meets all requirements.

Question 41

State Laws

Answer 41

determine how a trust is created, administered, and how people are to act with respect to the trust. These laws are based upon
the Common Law of England, being very similar throughout the united
States. Although Federal law determines the test for taxing trusts, state
law determines what the property rights or interests are in order to
apply those taxation tests.

Question 42

Statutory Law

Answer 42

consists of Federal, State and Local Statutory and
Regulatory authority created by U.S. or State Constitutional Mandate,
or the Charter of a municipality to regulate the government and to
create the guide lines for the governments limitations with regard to the
protected civil rights of private citizens. Statutory entities (i.e.,
corporations, associations, partnerships, statutory trusts, sole
proprietors, etc.) are creatures of the state and owe their existence and
charter power to the State. They are presumed to have been created
for the benefits of the public and therefore do not have rights such as
the individual.

Question 43

Trust

Answer 43

is a contract between two or more parties, natural or juristic.

Question 44

Trustees, Board of

Answer 44

means the official body appointed and organized
by the Creator/Grantor consisting of the Original Trustees or other
trustee or trustees including Emergency Trustees as are appointed or become trustees in accordance with this Agreement. The Board of Trustees is only answerable to the beneficiaries through the proper court, the beneficiaries having no power over the trustees.

Question 45

Trustees, Board of

Answer 45

means the official body appointed and organized
by the Creator/Grantor consisting of the Original Trustees or other
trustee or trustees including Emergency Trustees as are appointed or become trustees in accordance with this Agreement. The Board of Trustees is only answerable to the beneficiaries through the proper court, the beneficiaries having no power over the trustees.

Question 46

Trust Fund

Answer 46

means:
(a) The property specified in the Schedule “A” and “B” hereto; and
(b) All money investments or other property hereafter paid, transferred, or delivered to or otherwise placed under the control
of and (in any such case) accepted by the Trustees as additions to the Trust Fund; and
(c) All assets, accumulations of income, capital accretions or otherwise derived from the property specified under Sub-clauses
(a) and (b) of this definition.

Question 47

Trust Fund

Answer 47

means:
(a) The property specified in the Schedule “A” and “B” hereto; and
(b) All money investments or other property hereafter paid, transferred, or delivered to or otherwise placed under the control
of and (in any such case) accepted by the Trustees as additions to the Trust Fund; and
(c) All assets, accumulations of income, capital accretions or otherwise derived from the property specified under Sub-clauses
(a) and (b) of this definition.

Question 48

Trust Period

Answer 48

means the period commencing with the date of this
Agreement and ending on the first to occur of the following dates,
namely:
(a) The date of the one hundredth anniversary of the date of this
Agreement;
(b) The period commencing on the execution hereof and
continuing until such day as the Trustees with the consent of the
Protector may by deed or written declaration at any time and at
their discretion declare to be the date of the expiration of the
Trust Period. Notwithstanding the foregoing, the Trustees shall
have no authority to shorten the duration of the Trust Period if
such act is the result of any compulsion or Event of Duress.