NY Not for Profit Corp L § 555 (2021)
2021 New York Laws NPC - Not-For-Profit Corporation Article 5-A - Prudent Management of Institutional Funds Act 555 - Release or Modification of Restrictions on Management, Investment, or Purpose.

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