§ 59-21-05 — Release or modification of restrictions on management, investment, or purpose

North Dakota § 59-21-05

• Jurisdiction: North Dakota
• Title 59: Trusts, Uses, and Powers
• Ch. 59-21: Uniform Prudent Management of Institutional Funds Act

Text

purpose.
1. 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.
2. The 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 attorney general of the application. The court shall provide the attorney
general with the opportunity to be heard. To the extent practicable, any modification
must be made in accordance with the donor's probable intention.
3. If a particular charitable 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 charitable
purposes expressed in the gift instrument. The institution shall notify the attorney
general of the application, and the court shall provide the attorney general with the
opportunity to be heard.
4. 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, sixty 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
twenty-five 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 charitable
purposes expressed in the gift instrument.