§ 18-12.1-6 - Release or modification of restrictions on management, investment, or purpose. - Rhode Island Statutes

SECTION 18-12.1-6

   § 18-12.1-6  Release or modification ofrestrictions on management, investment, or purpose. – (a) If the donor consents in a record, an institution may release or modify, inwhole or in part, a restriction contained in a gift instrument on themanagement, investment, or purpose of an institutional fund. A release ormodification may not allow a fund to be used for a purpose other than acharitable purpose of the institution.

   (b) The court, upon application of an institution, may modifya restriction contained in a gift instrument regarding the management orinvestment of an institutional fund if the restriction has become impracticableor wasteful, if it impairs the management or investment of the fund, or if,because of circumstances not anticipated by the donor, a modification ofrestriction will further the purposes of the fund. The institution shall notifythe attorney general of the application, and the attorney general must be givenan opportunity to be heard. To the extent practicable, any modification must bemade in accordance with the donor's probable intention.

   (c) If a particular charitable purpose or a restrictioncontained in a gift instrument on the use of an institutional fund becomesunlawful, impracticable, impossible to achieve, or wasteful, the court, uponapplication of an institution, may modify the purpose of the fund or therestriction on the use of the fund in a manner consistent with the charitablepurposes expressed in the gift instrument. The institution shall notify theattorney general of the application, and the attorney general must be given anopportunity to be heard.

   (d) If an institution determines that a restriction containedin a gift instrument on the management, investment, or purpose of aninstitutional fund is unlawful, impracticable, impossible to achieve, orwasteful, the institution, sixty (60) days after notification to the attorneygeneral, may release or modify the restriction, in whole or part, if:

   (1) The institutional fund subject to the restriction has atotal value of less than twenty-five thousand dollars ($25,000);

   (2) More than twenty (20) years have elapsed since the fundwas established; and

   (3) The institution uses the property in a manner consistentwith the charitable purposes expressed in the gift instrument.