§ 36E-6. Release or modification of restrictions on management, investment, or purpose. - North Carolina Statutes

§ 36E‑6.  Release ormodification of restrictions on management, investment, or purpose.

(a)        If the donorconsents in a record, an institution may release or modify, in whole or inpart, a restriction contained in a gift instrument on the management, investment,or purpose of an institutional fund. A release or modification may not allow afund to be used for a purpose other than a charitable purpose of theinstitution.

(b)        The superior court,upon application of an institution, may modify a restriction contained in agift instrument regarding the management or investment of an institutional fundif the restriction has become impracticable or wasteful, if it impairs themanagement or investment of the fund, or if, because of circumstances notanticipated by the donor, a modification of the restriction will further thepurposes of the fund. The institution shall notify the Attorney General of theapplication, and the Attorney General must be given an opportunity to be heard.To the extent practicable, any modification must be made in accordance with thedonor's probable intention.

(c)        If a particularcharitable purpose or restriction contained in a gift instrument on the use ofan institutional fund becomes unlawful, impracticable, impossible to achieve,or wasteful, the superior court, upon application of an institution, may modifythe purpose of the fund or the restriction on the use of the fund in a mannerconsistent with the charitable purposes expressed in the gift instrument. Theinstitution shall notify the Attorney General of the application, and theAttorney General must be given an opportunity to be heard.

(d)        If an institutiondetermines 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 may release or modify therestriction, in whole or part, if:

(1)        The institutionalfund subject to the restriction has a total value of less than one hundredthousand dollars ($100,000);

(2)        More than 10 yearshave elapsed since the fund was established; and

(3)        The institution usesthe property in a manner consistent with the charitable purposes expressed inthe gift instrument.

The institution 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 superior court tocontest the institution's determination that the restriction should be releasedor modified within 60 days of receipt of the institution's written notice.  (1985, c. 98, s. 1; 2009‑8,s. 2.)