456.4-413. Cy pres.

Cy pres.

456.4-413. 1. Except as otherwise provided in subsection 2 of thissection, if a particular charitable purpose becomes unlawful,impracticable, impossible to achieve, or wasteful:

(1) the trust does not fail, in whole or in part;

(2) the trust property does not revert to the settlor or thesettlor's successors in interest; and

(3) the court may apply cy pres to modify or terminate the trust bydirecting that the trust property be applied or distributed, in whole or inpart, in a manner consistent with the settlor's charitable purposes.

2. A provision in the terms of a charitable trust that would resultin distribution of the trust property to a noncharitable beneficiaryprevails over the power of the court under subsection 1 of this section toapply cy pres to modify or terminate the trust only if, when the provisiontakes effect:

(1) the trust property is to revert to the settlor and the settlor isstill living; or

(2) fewer than twenty-one years have elapsed since the date of thetrust's creation.

(L. 2004 H.B. 1511)

Effective 1-01-05