RSA 292-B:6 · Release or Modification of Restrictions on Management, Investment, or Purpose

292-B:6 Release or Modification of Restrictions on Management, Investment, or Purpose. –

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I.

If the donor consents in a record, an institution may release or modify, in whole or in part, a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund. A release or modification may not allow a fund to be used for a purpose other than a charitable purpose of the institution.

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II.

The court, upon application of an institution, may modify a restriction contained in a gift instrument regarding the management or investment of an institutional fund if the restriction has become impracticable or wasteful, if it impairs the management or investment of the fund, or if, because of circumstances not anticipated by the donor, a modification of a restriction will further the purposes of the fund. The institution shall notify the attorney general of the application, and the attorney general must be given an opportunity to be heard. To the extent practicable, any modification must be made in accordance with the donor's probable intention.

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III.

If a particular charitable purpose or a restriction contained in a gift instrument on the use of an institutional fund becomes unlawful, impracticable, impossible to achieve, or wasteful, the court, upon application of an institution, may modify the purpose of the fund or the restriction on the use of the fund in a manner consistent with the charitable purposes expressed in the gift instrument. The institution shall notify the attorney general of the application, and the attorney general must be given an opportunity to be heard.

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IV.

If an institution determines that a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund is unlawful, impracticable, impossible to achieve, or wasteful, the institution, 60 days after notification to the attorney general, may release or modify the restriction, in whole or part, if:

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(a)

The institutional fund subject to the restriction has a total value of less than $25,000;

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(b)

More than 25 years have elapsed since the fund was established; and

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(c)

The institution uses the property in a manner consistent with the charitable purposes expressed in the gift instrument.

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V.

Upon application to the court by an institution holding a fund with a market value of $1,000,000 or more, which fund would be an institutional fund but for the provisions of RSA 292-B:2, V(b) or (d), the court may order the adoption of the provisions of this chapter with respect to that fund. The institution shall notify the attorney general of the application, and the attorney general shall be given an opportunity to be heard. In reviewing the application, the court shall consider the intent of the donor expressed in a gift instrument, the purposes of this chapter, and the capacity of the institution to comply with the requirements of this chapter. Source. 2008, 75:1, eff. July 1, 2008. 2019, 198:2, eff. Sept. 8, 2019.

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