§ 1641 — Executors', fiduciaries' and trustees' conveyances to certain corporations in exchange for certain stocks and bonds authorized and regulated

New York § 1641

• Jurisdiction: New York
• Law RPA: Real Property Actions & Proceedings
• Art. 16: Judicial Authorization of Sale, Lease, Mortgage, Acquisition, Exchange or Voluntary Partition

Text

§ 1641. Executors', fiduciaries' and trustees' conveyances to certain\ncorporations in exchange for certain stocks and bonds authorized and\nregulated. 1. Whenever an executor, trustee, guardian of an infant,\ncommittee of a person incompetent to manage himself or his affairs,\nconservator of a person unable to care for his affairs, or other person\nor persons acting in a fiduciary capacity, or a life tenant, is\nauthorized to sell any real property or any interest therein pursuant to\na power contained in a deed or will, or pursuant to a judgment or order\nof the supreme court in an action or special proceeding pursuant to any\nprovision of law, or pursuant to a statutory power to sell or exchange\nany real property, or any interest therein, or whenever a trustee of an\nexpress trust is seized of a legal title to an undivided share or\ninterest in any real property, and the said property has been or is\nabout to be conveyed to a corporation formed or to be formed for such\npurpose, and two-thirds in number and amount of interest of the adult\nbeneficiaries and also two-thirds in number and amount of interest of\nthe adult persons having a vested interest or estate in possession,\nreversion or remainder in such real property have agreed, or desire to\nagree that their interests and estates shall be exchanged for the stock\nand bonds or either the stock or bonds of such corporation, then the\nsaid executor, trustee, guardian, committee, conservator or other person\nor persons acting in a fiduciary capacity, or the life tenant or\ntenants, may, with the approval of the supreme court, convey such real\nproperty or interest to such corporation in exchange for the stock or\nbonds of such corporation, or a proportionate amount thereof, provided,\nhowever, that such corporation shall be prohibited by its certificate of\nincorporation from investing in any stocks, bonds or other securities\nother than real property which are not under the laws of this state a\nproper subject for the investment of trust funds, and provided further\nthat if the interest of a trust estate in any real property to be so\nexchanged is an undivided part or share therein, such undivided part or\nshare of the trust estate may be so exchanged if it shall appear to the\ncourt to be for the best interest of such estate.\n 2. The supreme court shall not grant an order permitting such an\nexchange and conveyance unless it appears to the satisfaction of such\ncourt that a written notice stating the time and place of the\napplication for such leave has been served upon every beneficiary and\nalso upon every person in being having a vested interest or estate in\npossession, reversion or remainder, in such real property at least eight\ndays before the making thereof, if such beneficiary or other person is\nan adult within the state; or if a minor, incompetent, conservatee, or\nabsentee, until proof of the service on such beneficiary or other person\nof such notice as the court or a justice thereof prescribes.\n 3. The court shall appoint a guardian for any minor and for any person\nunable to manage himself or his affairs who shall not be represented by\na committee or conservator duly appointed.\n 4. The application must be by petition duly verified, must be made by\nthe executor, trustee, guardian of an infant, committee, conservator, or\nsuch other person or persons acting in a fiduciary capacity, or a life\ntenant who has been so authorized to sell or exchange, or by the trustee\nof an express trust seized of a legal title to an undivided share or\ninterest in real property; and shall set forth the reasons for such\nexchange and conveyance and the nature thereof and the peculiar facts\nwhich make it proper that the application shall be granted, but when the\ninterest of a trust estate in any real property is an undivided part or\nshare thereof, it shall be sufficient to show by such petition that the\nexchange will be for the best interests of such estate. After taking\nproof of the facts either before the court or a referee, and hearing the\nparties and fully examining into the matter, the court must direct\njudgment upon the application. In case the application is granted, the\njudgment must authorize the said executor, trustee, guardian of an\ninfant, committee, conservator, or other person or persons acting in a\nfiduciary capacity or life tenant, to make such exchange and conveyance\nupon such terms and conditions as the court may therein prescribe.\n 5. Whenever it shall appear from the papers submitted upon the\napplication that there are conflicting claims in respect to the\nownership of or the right to sell and convey such real property or any\ninterest therein, the court may, within the demand for relief as\nevidenced by the notice of application, and if all adult beneficiaries,\nand also all adult persons having a vested interest or estate in\npossession, reversion or remainder in such real property under such\nconflicting claims consent thereto, direct that the stock and bonds or\neither the stock or bonds to be given by the corporation in exchange for\nsuch real property or interest therein shall be issued to and held by a\ntrust company authorized to hold moneys paid into court upon such terms\nand conditions and with such powers as the court shall prescribe until\nthe further order of the court.\n