I.   Introductory Provisions

Rules are the first of thirty-three (33) Administrative Elements of Trust being the ordinances, regulations or by-laws of the Trust as defined by its constituting Instrument.

Notwithstanding where the Rules of a Trust or Estate or Fund are in conflict with these Canons:

(i) The Rules of the constituting Instrument of a Trust or Estate or Fund is the Lex Causa “first cause for the law” as the primary rules which a Trustee is obligated to honor and follow; and

(ii) Capitalized Words (other than words capitalized by convention at the beginning of a sentence or phrase) defined within the constituting Instrument shall have the same meaning as described within any Interpretation definitions; and

(iii) Words importing the singular include the plural and vice versa; and

(iv) Words which are gender neutral or gender specific include each gender; and

(v) Other parts of speech and grammatical forms of a word or phrase defined in constituting Instrument have a corresponding meaning; and

(vi) Headings are for convenience only and do not affect the interpretation of the constituting Instrument; and

(vii) The use of any style of font, font size, bolding, italics, underline or any other style are for cosmetic purpose only and do not affect the interpretation of the constituting Instrument; and

(viii) An expression importing a person includes a company, partnership, joint venture, association, corporation, agency or other body corporate; and

(ix) Reference to an object or concept or thing includes any part of that object or concept or thing; and

(x) A reference to a clause, party, schedule or attachment to the constituting Instrument is a reference to a clause of the constituting Instrument and a party, or schedule or attachment to the constituting Instrument.

A Breach of Rules or simply “Breach” is any breaking of peace or violation of a term or condition, or Right of either Party, or any obligation, engagement or duty, either by commission or omission, whether knowing or unknowing, in relation to the constituting Instrument of a valid Trust, or Estate or Fund including, but not limited to any:

(i) Breach of Promise being a violation of any promise; or

(ii) Breach of Duty being any violation or omission of a legal or moral duty and more particularly the neglect or failure to fulfill in a just and proper manner the duties of an office, agency or fiduciary capacity; or

(iii) Breach of Trust being any act done by a person holding fiduciary responsibility in relation to a trust or office and more particularly the wrongful omission by a trustee of an act required by the terms of the trust, or wrong misappropriation by a trustee of any fund or property which had been lawfully committed to him in a fiduciary character; or

(iv) Breach of Warranty being the failure or falsehood of an affirmative promise or statement in writing, or the nonperformance of an executor stipulation; or

(v) Breach of Instrument being any failure without legal excuse to perform any promise which forms the whole or part of the constituting Instrument of a valid Trust, or Estate or Fund, whether anticipatory, or constructive or continuing, or unequivocal.

All alleged Breaches may be defined as either Minor or Material (Major), whereby:

(i) A Minor Breach is any alleged Breach that technically violates one or more of the rules of the constituting Instrument of a valid Trust, or Estate or Fund, but does not destroy the inherent Trust or Value and therefore the Duties and Obligations of the Instrument and is possible to be cured by the offending Party within a reasonable period of time; and

(ii) A Material Breach, also known as Major Breach or Fundamental Breach is any alleged Breach as specified within the rules of the constituting Instrument of a valid Trust, or Estate or Fund or any other unnamed condition of such a serious nature that unless it is immediately cured by the offending Party, then such alleged Breach is likely to destroy the inherit Trust and Value of the constituting Instrument.

A failure to cure any alleged Breach within the Time Limit prescribed and the waiving of the right to appeal to Arbitration shall place an offending Party in Default. Default is therefore any failure to fulfil an Obligation prescribed by the constituting Instrument of a valid Trust, or Estate or Fund after every reasonable opportunity in Good Faith has been presented to the offending Party to remedy and cure the alleged Breach.

Where one or more clauses of the constituting Instrument of a Trust or Estate or Fund are in conflict with the present Canons, these Canons shall always take precedence and any clause or clauses in conflict within the Instrument of the Trust or Estate or Fund shall be invalid, void and unenforceable.

In all procedural matters and judicial decisions concerning any Conflict of Laws and the Choice of Laws:

(i) The Law of the Forum (Lex Fori) shall first apply, unless such procedures are in conflict with the true Rule of Law and these Canons in which case the Rules of these Canons and the constituting Instrument of the valid Trust or Estate or Fund shall take precedence; and

(ii) The subject of Jurisdiction for natural persons shall be resolved first by the prevailing law of domicile of Ucadian society as Lex Domicilii Ucadia; or a legal person then first by the prevailing law of the place of incorporation being Lex Incorporationis Ucadia; and

(iii) The Choice of Law (Lex Causa) shall then be the Rules of the constituting Instrument of the valid Trust or Estate or Fund, nothwithstanding any conflict with these Canons in which case, these Canons shall take precedence.