1. (a) With the consent of the donor in a record, an institution may modify or release, in whole or in part, a restriction in a gift instrument on the management, investment, and purpose of an institutional fund. A donor may give prior consent to an institution for release or modification of a restriction or a charitable purpose in a gift instrument that also includes a restriction or stated charitable purpose subject to this section.
2. (b) A release under this section may not allow an institutional fund to be used for purposes other than the charitable purposes of the institution affected.

3. (c) An institution may petition a court to modify, in a manner consistent with the donor's intentions to the extent practicable, a restriction in a gift instrument concerning the management or investment of an institutional fund if:

   1. (1) the restriction is impracticable or wasteful;
   2. (2) the restriction impairs the management or investment of the fund; or

   3. (3) due to unanticipated circumstances, the modification will further the purposes of the institutional fund.

      An institution shall notify the attorney general of a petition under this subsection. A court shall provide the attorney general an opportunity to be heard on the petition.

4. (d) An institution may petition a court to modify, in a manner consistent with the gift instrument, the charitable purpose of a fund or a restriction on the use of a fund if the charitable purpose or use becomes unlawful, impracticable, impossible, or wasteful. An institution shall notify the attorney general of a petition under this subsection. A court shall provide the attorney general an opportunity to be heard on the petition.

5. (e) If an institution determines that a restriction in a gift instrument on the management, investment, or purpose of an institutional fund is unlawful, impracticable, impossible, or wasteful, the following apply:

   1. (1) The institution shall send written notice of the determination to the attorney general.

   2. (2) If, not more than sixty (60) days after receiving written notice of the determination under subdivision (1), the attorney general sends a written objection to a release or modification of the restriction, the institution may not release or modify the restriction unless one (1) of the following occurs:

      1. (A) The attorney general sends written notice to the institution that the attorney general withdraws the objection.

      2. (B) A court, in a court petition filed under this section, approves the release or modification.

         A release or modification of a restriction under clause (A) or (B) is subject to subdivision (4).

   3. (3) If:

      1. (A) the attorney general has not, within sixty-three (63) days after the institution sends written notice under subdivision (1), sent a written objection to a release or modification of the restriction; or

      2. (B) the institution is permitted to release or modify the restriction as provided in subdivision (2)(A) or (2)(B);

         the institution, subject to subdivision (4), may release or modify the restriction.

   4. (4) Not less than sixty (60) days after sending the written notice required by subdivision (1), the institution may release or modify all or part of the restriction if:

      1. (A) the value of the institutional fund subject to the restriction is less than two hundred fifty thousand dollars ($250,000);
      2. (B) the institutional fund was established more than twenty (20) years earlier; and

      3. (C) the institution uses the institutional fund in a manner consistent with the charitable purposes expressed in the gift instrument.

         However, the institution may release or modify all or part of the restriction as provided in this subdivision within the sixty (60) day period described in this section if the attorney general sends to the institution written notice that the attorney general does not object to a release or modification of the restriction.

6. (f) If:

   1. (1) an institution makes a determination described in subsection (e); and

   2. (2) the institutional fund does not meet the criteria for release or modification of a restriction described in subsection (e)(4)(A) through (e)(4)(C);

      the institution may file a court petition under subsection (c) or (d), whichever is applicable, to seek approval of a release or modification. The attorney general may, after receiving notice of the petition, notify the court that the attorney general does not object to the release or modification and waives any interest or hearing on the petition.

As added by P.L.268-1989, SEC.1. Amended by P.L.199-1991, SEC.3; P.L.226-2007, SEC.16; P.L.85-2016, SEC.2.