I.   Introductory Provisions

Fundruptcy is the state or condition of a Fund associated with a Trust, or Estate Fund engaged in commerce and trade where after several acts of insolvency or the condition of insolvency, the rights of the Trustee(s) to administer such a Fund are temporarily lost and the Fund is either liquidated or recomposed to enable the creditors to be paid and the honor of the Fundrupted Trustee(s) restored under certain conditions. 

Fundruptcy itself is a right of arbitration agreed and defined upon certain principles within the constituting instrument of the Trust or Estate or Fund in relation to relief for creditors and the future of the Fund or by default some alternate method. Any edict, statute, claimed law or regulation that denies the right for a Trust, or Estate or Fund to negotiate with its creditors is morally repugnant, unlawful and null and void from the beginning.

Any rules of Fundruptcy must make allowance for two essential conditions being Voluntary and Involuntary:

(i) Voluntary Fundrupcty is when the Trustee(s) of the Trust or Estate or Fund call upon the creditors to agree to the appointment of a temporary Receiver and Administrator in accord with the constituting Instrument, to assist in either the winding up or recomposition of the Fund; or

(ii) Involuntary Fundrupcty is when the creditors to the Trust or Estate or Fund utilize their rights to have a temporary Receiver and Administrator appointed in accord with the constituting Instrument, to assist in either the winding up or recomposition of the Fund after other actions of good faith and arbitration have been unsuccessful.

The liability of insolvency of a fund in fundruptcy is always the trustee(s).