HB 1401 Summary

• Creates a new Article 23-21 (Indiana REIT Law) establishing the legal framework for formation, operation, and governance of real estate investment trusts in Indiana, effective July 1, 2017.

• Requires real estate investment trusts to file a declaration of trust with the secretary of state that includes trust name, authorized shares, annual shareholder meetings, trustee election procedures, resident agent information, and any share class preferences.

• Grants REITs broad powers including perpetual existence, ability to own real and personal property, issue securities, borrow money, and conduct business across multiple states and foreign countries.

• Permits REITs to merge, convert to other business entities, amend their declaration of trust, and dissolve, with specific voting requirements and shareholder notification procedures.

• Establishes that filing fees for REIT documents shall be substantially similar to corporation filing fees, and creates a civil penalty not exceeding $1,000 for trustees operating a REIT in Indiana without filing required declaration of trust documents.