§ 36C-4-413. Cy pres. - North Carolina Statutes

§ 36C‑4‑413.  Cypres.

(a)        Except as otherwiseprovided in subsections (c1) and (d) of this section, if a charitable trustbecomes unlawful, impracticable, impossible to achieve, or wasteful:

(1)        The trust does notfail, in whole or in part;

(2)        The trust propertydoes not revert to the settlor or the settlor's successors in interest; and

(3)        The court may applycy pres to modify or terminate the trust by directing that the trust propertybe applied or distributed, in whole or in part, in a manner consistent with thesettlor's charitable purposes.

(b)        The settlor or atrustee of a charitable trust, the Attorney General, a beneficiary, or anyother interested party may maintain a cy pres proceeding under Article 2 ofthis Chapter.

(c)        Repealed by SessionLaws 2007‑106, s. 17.1, effective October 1, 2007.

(c1)      If a trustee of acharitable trust determines that a restriction contained in the trustinstrument, including a document making a gift to a charitable trust after itis established, relating to the management, investment, or purpose of the trustor gift is unlawful, impracticable, impossible to achieve, or wasteful, thetrustee may release or modify the restriction, in whole or part, if:

(1)        The trust propertyto which the restriction applies has a total value of less than one hundredthousand dollars ($100,000);

(2)        More than 10 yearshave elapsed since the trust property to which the restriction applies wasgiven to the charitable trust; and

(3)        The trustee uses thetrust property in a manner consistent with the charitable purposes expressed inthe applicable trust instrument.

The trustee must providewritten notice of the proposed release or modification of the restriction tothe Attorney General not less than 60 days before releasing or modifying therestriction. The Attorney General may make application to the court to contestthe trustee's determination that the restriction should be released or modifiedwithin 60 days of receipt of the trustee's written notice.

(d)        This section is notapplicable if the settlor has provided, either directly or indirectly, for analternative plan in the event that the charitable trust is or becomes unlawful,impracticable, impossible to achieve, or wasteful. However, if the alternativeplan is also a charitable trust and that trust fails, the intention shown inthe original plan shall prevail in the application of this section.  (2005‑192, s. 2; 2007‑106,s. 17.1; 2009‑8, s. 4.)