§ 564-F:16-1606 — Nonjudicial Settlement Agreement

(a) For purposes of this section, "interested person" means each of the following persons:
(1) A founder;
(2) A foundation official;
(3) A person who, under the governing documents, has the power to enforce the terms of the governing documents;
(4) If the trust is a charitable trust, the director of charitable trusts; and
(5) Any other person whose consent would be required in order to achieve a binding settlement if a court would approve the settlement.
(b) Subject to subsection (c), all of the interested persons may enter into a binding nonjudicial settlement agreement with respect to any matter involving a foundation.
(c) A nonjudicial settlement agreement is valid only to the extent that:
(1) It does not violate any of the foundation's material purpose; and
(2) It includes only terms and conditions that could be properly approved by a court under this chapter or other applicable law.
(d) Matters that may be resolved by a nonjudicial settlement agreement include:
(1) The interpretation or construction of the governing documents;
(2) The modification of the governing documents;
(3) The approval of a director's report or accounting;
(4) A direction to a foundation official to refrain from performing a particular act or the grant to a foundation official of any necessary or desirable power;
(5) A foundation official's appointment or resignation;
(6) The determination of a foundation official's compensation;
(7) A foundation official's liability for an action relating to the foundation; and
(8) The foundation's dissolution.
(e) Any interested person may commence a judicial proceeding requesting that the court:
(1) Approve a nonjudicial settlement agreement;
(2) Determine whether the representation under 564-F:14-1402 was adequate; and
(3) Determine whether the agreement contains terms and conditions the court could have properly approved.

Legislative History

2017, 257:47, eff. Oct. 1, 2017. 2018, 210:16, eff. June 8, 2018.