1. (a) A court may reform a foundation's certificate of formation or its bylaws for purposes of conforming the certificate of formation or the bylaws to the founder's intent if:

   1. (1) Whether in the expression or inducement, the foundation's certificate of formation or its bylaws were affected by a mistake of fact, a mistake of law, or both a mistake of fact and a mistake of law; and
   2. (2) The founder's intent is proven by clear and convincing evidence;
   3. (3) The mistake is proven by clear and convincing evidence; and
   4. (4) The reformation does not violate any of the foundation's material purposes.

2. (b) A court may reform a foundation's certificate of formation or its bylaws for purposes of achieving the founder's tax objectives if:

   1. (1) The reformation is consistent with the founder's intent; and
   2. (2) The reformation does not violate any of the foundation's material purposes.
3. (c) A reformation under this section may be retroactive or prospective.

4. (d) Any of the following persons may commence a judicial proceeding seeking reformation of a foundation's certificate of formation or its bylaws under this section:

   1. (1) A founder;
   2. (2) A foundation official;
   3. (3) Unless the governing documents provide otherwise, a beneficiary; and
   4. (4) To the extent that the foundation is a charitable trust, the director of charitable trusts.

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