N.Y. NPC Law § 555 — New York Code / Act NPC / Article 5-A / Section 555
Release or modification of restrictions on management, investment, or purpose
Status: in_force

§ 555. Release or modification of restrictions on management,\n         investment, or purpose.\n  (a) If the donor consents in a record, an institution may release or\nmodify, in whole or in part, a restriction contained in a gift\ninstrument on the management, investment, or purpose of an institutional\nfund. A release or modification may not allow a fund to be used for a\npurpose other than a charitable purpose of the institution.\n  (b) A court, upon application of an institution, may modify a\nrestriction contained in a gift instrument regarding the management or\ninvestment of an institutional fund if the restriction has become\nimpracticable or wasteful, if it impairs the management or investment of\nthe fund, or if, because of circumstances not anticipated by the donor,\na modification of a restriction will further the purposes of the fund.\nThe institution shall notify the donor, if available, and the attorney\ngeneral of the application, and the attorney general and such donor must\nbe given an opportunity to be heard. To the extent practicable, any\nmodification must be made in accordance with the donor's probable\nintention.\n  (c) If a particular purpose or a restriction contained in a gift\ninstrument on the use of an institutional fund becomes unlawful,\nimpracticable, impossible to achieve, or wasteful, the court, upon\napplication of an institution, may modify the purpose of the fund or the\nrestriction on the use of the fund in a manner consistent with the\npurposes expressed in the gift instrument. The institution shall notify\nthe donor, if available, and the attorney general of the application,\nand the attorney general and such donor must be given an opportunity to\nbe heard.\n  (d)(1) If an institution determines that a restriction contained in a\ngift instrument on the management, investment, or purpose of an\ninstitutional fund is unlawful, impracticable, impossible to achieve, or\nwasteful, the institution, ninety days after notification to the\nattorney general, may release or modify the restriction, in whole or\npart, if:\n  (A) the institutional fund subject to the restriction has a total\nvalue of less than one hundred thousand dollars;\n  (B) more than twenty years have elapsed since the fund was\nestablished; and\n  (C) the institution uses the property in a manner consistent with the\npurposes expressed in the gift instrument.\n  (2) Notice to the attorney general shall contain: (A) an explanation\nof (i) the institution's determination that the restriction meets the\nrequirements set forth in subparagraph one of this paragraph and (ii)\nthe proposed release or modification; (B) a copy of a record of the\ninstitution approving the release or modification; and (C) a statement\nof the proposed use of the institutional fund after such release or\nmodification.\n  (3) If the attorney general does not notify the institution within\nninety days, the institution may proceed with the release or\nmodification.\n  (4) Notice shall also be given to the donor, as defined in paragraph\n(a-1) of section 551 (Definitions), if available, provided, however,\nthat such notice shall not be required for funds described in clause (B)\nof subparagraph two of paragraph (e) of section 553 (Appropriation for\nexpenditure or accumulation of endowment fund; rules of construction).\n  (e) For purposes of this section, an institution may apply to the\nfollowing courts to release or modify a restriction contained in a gift\ninstrument:\n  (1) to the supreme court of the judicial district wherein the\ninstitution has its office or principal place of carrying out the\npurposes for which it was formed; or\n  (2) where the applicable gift instrument is a will, to the surrogate's\ncourt in which such will is probated.\n  (f) This chapter shall not limit the application of the doctrines of\ncy pres and deviation.\n