RSA 564-F:16-1606 · Nonjudicial Settlement Agreement

564-F:16-1606 Nonjudicial Settlement Agreement. –

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(a)

For purposes of this section, "interested person" means each of the following persons:

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(1)

A founder;

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(2)

A foundation official;

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(3)

A person who, under the governing documents, has the power to enforce the terms of the governing documents;

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(4)

If the trust is a charitable trust, the director of charitable trusts; and

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(5)

Any other person whose consent would be required in order to achieve a binding settlement if a court would approve the settlement.

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(b)

Subject to subsection (c), all of the interested persons may enter into a binding nonjudicial settlement agreement with respect to any matter involving a foundation.

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(c)

A nonjudicial settlement agreement is valid only to the extent that:

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(1)

It does not violate any of the foundation's material purpose; and

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(2)

It includes only terms and conditions that could be properly approved by a court under this chapter or other applicable law.

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(d)

Matters that may be resolved by a nonjudicial settlement agreement include:

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(1)

The interpretation or construction of the governing documents;

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(2)

The modification of the governing documents;

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(3)

The approval of a director's report or accounting;

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(4)

A direction to a foundation official to refrain from performing a particular act or the grant to a foundation official of any necessary or desirable power;

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(5)

A foundation official's appointment or resignation;

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(6)

The determination of a foundation official's compensation;

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(7)

A foundation official's liability for an action relating to the foundation; and

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(8)

The foundation's dissolution.

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(e)

Any interested person may commence a judicial proceeding requesting that the court:

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(1)

Approve a nonjudicial settlement agreement;

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(2)

Determine whether the representation under 564-F:14-1402 was adequate; and

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(3)

Determine whether the agreement contains terms and conditions the court could have properly approved. Source. 2017, 257:47, eff. Oct. 1, 2017. 2018, 210:16, eff. June 8, 2018.

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