2006 New York Code - Modification Or Extinguishment Of Certain Restrictions On The Use Of Land Held For Charitable Purposes

 
    §  1955. Modification or extinguishment of certain restrictions on the
  use of land held for charitable purposes. 1. Where land is held, whether
  or not in trust, for  benevolent,  charitable,  educational,  public  or
  religious  purposes  and  the  use  of  such  land is restricted to such
  purpose or to a particular application of or means of carrying out  such
  purpose  by  a special limitation or condition subsequent created in the
  conveyance or devise under which the land is so held, or by an agreement
  to convey, reconvey or surrender the land or the estate so held  upon  a
  contingency relating to its use, an action may be brought in the supreme
  court  to  obtain  relief  from  such  restriction  as  provided in this
  section.
    2. No action  for  the  relief  provided  in  this  section  shall  be
  commenced  until  the  expiration  of two years from the creation of the
  special limitation  or  condition  subsequent,  or  the  making  of  the
  agreement. The attorney-general shall be a party to such action.
    3.  In  determining whether relief shall be granted, and the nature of
  such relief, the court shall  consider  and  shall  make  findings  with
  respect to the following:
    (a)  whether  the primary purpose of the special limitation, condition
  subsequent or agreement to convey, reconvey or surrender was to restrict
  the use of the land;
    (b) whether the purpose of the restriction  was  to  ensure  that  the
  substantial  value  of  the land or of the estate subject to the special
  limitation, condition subsequent or  agreement,  rather  than  the  land
  itself,  or  such  estate  itself,  be  devoted  to  and  employed for a
  benevolent, charitable, educational, public or religious purpose.
    If the findings with respect to (a) and (b) are such as  to  make  the
  following  matters  relevant or appropriate for consideration, the court
  shall also consider and make findings with respect to the following:
    (c) whether the existence of the restriction is substantially impeding
  the owner of  the  land,  or  of  the  estate  subject  to  the  special
  limitation, condition subsequent or agreement, in the furtherance of the
  benevolent,  charitable,  educational,  public or religious purposes for
  which the land is held;
    (d) whether the person or persons who would have  a  right  of  entry,
  possessory  estate resulting from the occurrence of a reverter, or right
  to conveyance, reconveyance or surrender of the land or  estate  in  the
  event of breach of the restriction at the time of the action will suffer
  substantial  damage  by  reason of extinguishment or modification of the
  restriction, and, in such event, whether damages or restitution  of  the
  land,  or  its  value,  in  whole  or in part, should be awarded to such
  person or persons.
    4. The judgment of the court may include, in  the  discretion  of  the
  court,  an  adjudication (a) that the restriction is discharged in whole
  or in part, or that its tenor is modified as provided in  the  judgment;
  (b)  that  the  holder  of  the  land  or  estate therein subject to the
  restriction be authorized or directed  to  convey,  lease,  mortgage  or
  otherwise  dispose of the land or estate therein free of the restriction
  and that the purchaser under such disposition shall  take  free  of  the
  restriction;  (c)  directing  the  use  to  which the avails of any such
  disposition shall be put; (d) declaring the interests that the owners of
  the possibility of reverter or right of  entry,  or  persons  having  an
  interest  pursuant to the agreement, shall have in any property paid for
  in whole or in part with the proceeds of the disposition;  (e)  awarding
  damages  for  such injury as a party to the action may sustain by reason
  of extinguishment or modification of the restriction. The  judgment  may
  include  such  other  provisions  as  will  in  the opinion of the court
  further the benevolent, charitable,  educational,  public  or  religious
  purposes  for which the land is held and such other provisions as equity
  may require.
    5.  This  section  shall  apply  to  a special limitation or condition
  subsequent created or agreement made either before or after September 1,
  1958, except that it shall not apply (a) where a right of entry or right
  to a conveyance, reconveyance or surrender of the property  has  accrued
  or  a  reverter  has  occurred  prior  to  that  date,  or (b) where the
  conveyance creating  the  restriction  was  made  by  or  the  agreement
  creating  the  restriction was made with the United States, the state of
  New York or any governmental unit, subdivision or agency of  the  United
  States or the state of New York.