402.138. Release or modification of restrictions permitted, when.
Release or modification of restrictions permitted, when.
402.138. 1. If the donor consents in a record, an institution mayrelease or modify, in whole or in part, a restriction contained in a giftinstrument on the management, investment, or purpose of an institutionalfund. A release or modification may not allow a fund to be used for apurpose other than a charitable purpose of the institution.
2. The court, upon application of an institution, may modify arestriction contained in a gift instrument regarding the management orinvestment of an institutional fund if the restriction has becomeimpracticable or wasteful, if it impairs the management or investment ofthe fund, or if, because of circumstances not anticipated by the donor, amodification of a restriction will further the purposes of the fund. Theinstitution shall notify the attorney general of the application, and theattorney general shall be given an opportunity to be heard. To the extentpracticable, any modification shall be made in accordance with the donor'sprobable intention.
3. If a particular charitable purpose or restriction contained in agift instrument on the use of an institutional fund becomes unlawful,impracticable, impossible to achieve, or wasteful, the court, uponapplication of an institution, may modify the purpose of the fund or therestriction on the use of the fund in a manner consistent with thecharitable purposes expressed in the gift instrument. The institutionshall notify the attorney general of the application, and the attorneygeneral shall be given an opportunity to be heard.
4. If an institution determines that a restriction contained in agift instrument on the management, investment, or purpose of aninstitutional fund is unlawful, impracticable, impossible to achieve, orwasteful, the institution, sixty days after notification to the attorneygeneral, may release or modify the restrictions in whole or in part if:
(1) The institutional fund subject to the restriction has a totalvalue of less than fifty thousand dollars;
(2) More than ten years have lapsed since the fund was established;and
(3) The institution uses the property in a manner consistent with thecharitable purposes expressed in the gift instrument.
(L. 2009 H.B. 239)