§ 564-F:16-1607 — Nonjudicial Dispute Resolution

(a) For purposes of this section, the following definitions shall apply:
(1) "Interested person" means any person who would be an interested person in a judicial proceeding to resolve a dispute.
(2) "Dispute" means any matter in which a court has subject-matter jurisdiction under 564-F:16-1603, excluding:
(A) The determination of the validity of the foundation's formation;
(B) The determination of the validity of a contribution by a founder to the foundation; and
(C) The determination of any of the foundation's material purposes, including a determination of whether any modification, dissolution, or other action is consistent with the foundation's material purposes.
(b) If the governing documents require the interested persons to resolve a dispute exclusively by reasonable nonjudicial procedures, then those interested persons shall resolve that dispute in accordance with the governing documents.
(c) An interested person may commence a judicial proceeding to determine whether the nonjudicial procedures are reasonable.
(d) To the extent that a provision of the governing documents purport to prohibit an interested person from commencing a judicial proceeding under subsection (c) or penalize an interested person for commencing a judicial proceeding under subsection (c), that provision is void.
(e) Unless the director of charitable trust expressly consents to the nonjudicial procedures, those procedures shall not apply to any matter in which the director of charitable trust would be an interested person.
(f) Unless the department of health and human services expressly consents to the nonjudicial procedures, those procedures shall not apply to any matter in which that department would be an interested person.

Legislative History

2017, 257:47, eff. Oct. 1, 2017.