US Laws, Codes, Statutes & Cases

§ 55-268.7. Release of restrictions on use or investments.

(a) A restriction on the use or investment of an institutional fund imposed by the applicable gift instrument may be released, entirely or in part, by the governing board with the written consent of the donor.

(b) If consent of the donor cannot be obtained by reason of the death, disability or unavailability, or impossibility of identification of the donor, upon application of the governing board, a restriction on the use or investment of an institutional fund imposed by the applicable gift instrument may be released, entirely or in part, by order of the court of record having equity jurisdiction of the county or city in which the institution or any of its offices are located, after reasonable notice to the Attorney General of the Commonwealth and an opportunity for him to be heard, and upon a finding that the restriction on the use or investment of the fund is obsolete, inappropriate or impracticable. A release under this subsection may not change an endowment fund to a fund which is not an endowment fund.

(c) A release under this section may not allow a fund to be used for purposes other than the educational, religious, charitable, or other eleemosynary purposes of the institution affected.

(d) The provisions of this section do not limit the application of the doctrine of cy pres.

(1973, c. 167.)