58-3616. Release or modification of restrictions on management, investment or purpose.
58-3616
58-3616. Release or modification of restrictions onmanagement, investment or purpose.(a) If the donor consents in a record, an institution mayreleaseor modify, in whole or in part, a restriction contained in a gift instrument onthe management, investment or purpose of an institutional fund. A release ormodification may not allow a fund to be used for a purpose other than acharitable purpose of the institution.
(b) The court, upon application of an institution, may modify a restrictioncontained in a gift instrument regarding the management or investment of aninstitutional fund if the restriction has become impracticable or wasteful, ifit impairs the management or investment of the fund, or if, because ofcircumstances not anticipated by the donor, a modification of a restrictionwill further the purposes of the fund. The institution shall notify theattorney general of the application, and the attorney general must be given anopportunity to be heard. To the extent practicable, any modification must bemade in accordance with the donor's probable intention.
(c) If a particular charitable purpose or a restriction contained in a giftinstrument on the use of an institutional fund becomes unlawful, impracticable,impossible to achieve or wasteful, the court, upon application of aninstitution, may modify the purpose of the fund or the restriction on the useof the fund in a manner consistent with the charitable purposes expressed inthe gift instrument. The institution shall notify the attorney general of theapplication, and the attorney general must be given an opportunity to be heard.
(d) If an institution determines that a restriction contained in a giftinstrument on the management, investment or purpose of an institutional fund isunlawful, impracticable, impossible to achieve or wasteful, the institution, 60days after notification to the attorney general, may release or modify therestriction, in whole or part, if:
(1) The institutional fund subject to the restriction has a total value ofless than $50,000;
(2) more than 10 years have elapsed since the fund was established; and
(3) the institution uses the property in a manner consistent with thecharitable purposes expressed in the gift instrument.
(e) The dollar amount specified in subsection (d)(1) shall be adjusted toreflect changes in the consumer price index for all urban consumers, aspublished by the bureau of labor statistics of the department of labor (the"index"), using 2007 as the base year, as follows:
(1) The dollar amount shall be adjusted as of January 1st of each year, ifthe cumulative percentage of change in the index, from the base year or from alater year that was the basis of an adjustment of this amount pursuant to thissubsection, rounded to the nearest whole percentage point, is in excess of 10%;
(2) the amount of any adjustment shall be rounded to the nearest $5,000;
(3) the dollar amount in subsection (d)(1) shall not be reduced below$50,000; and
(4) no adjustment to this amount shall occur before January 1, 2009.
History: L. 2008, ch. 20, § 6; July 1.