§ 220 — Distribution of assets

§ 220. Distribution of assets. 1. Whenever the regents have revoked\nthe charter of any educational corporation or dissolved such corporation\npursuant to section two hundred nineteen of this chapter or whenever a\nprovisional charter has expired, if the corporation has assets the board\nof trustees shall, within three months after such revocation,\ndissolution or expiration, petition the supreme court in the judicial\ndistrict where the principal office of the corporation is or was located\nfor an order directing the disposition of any and all property belonging\nto the corporation. Such petition shall be duly verified and shall set\nforth a complete statement of all the assets, together with their\nlocation and an estimate of their value, and also a statement of the\nascertainable debts of the corporation.\n 2. Such petition shall be accompanied by proof that notice of the time\nand place of such intended application to said court has been duly\npublished once in each week for at least four weeks successively, next\npreceding such application, in a newspaper circulated in the county\nwhere such corporation is located.\n 3. A copy of such petition shall be served upon the regents and the\nattorney general not less than ten days prior to such application.\n 4. The court shall direct the sale of sufficient designated assets to\npay any outstanding debts and the cost of dissolution. The regents and\nthe board of trustees may present to the court their recommendation as\nto the disposition of the remaining property of the corporation if there\nbe library books, objects of art or of historical significance, as far\nas possible they shall not be sold but shall be transferred to\nlibraries, museums or educational institutions willing to accept them.\nIf a charter contains a provision indicating a proposed disposition of\nthe assets in case of dissolution, such provision shall be followed by\nthe court in its order as far as practicable. If there be any surplus\nmoneys after payment of debts and the expenses of liquidation, the court\nmay direct that the same be devoted and applied to any such educational,\nreligious, benevolent, charitable or other objects or purposes as the\nsaid trustees may indicate by their petition and the said court may\napprove.\n 5. Upon the revocation of the charter of an educational corporation or\nits dissolution, the trustees of such corporation shall be empowered to\ncontinue in office for the purpose of settlement of the affairs of the\ncorporation.\n