New Mexico § 46-9A-6 - Release or modification of restrictions on management, investment or purpose

§ 46-9A-6. Release or modification of restrictions on management, investment or purpose

A. If the donor consents in a record, an institution may release or modify, in whole

or in part, a restriction contained in a gift instrument on the management, investment

or purpose of an institutional fund. A release or modification may not allow a fund to be used for a purpose other than

a charitable purpose of the institution. B. The court, upon application of an institution, may modify a restriction contained

in a gift instrument regarding the management or investment of an institutional fund

if the restriction has become impracticable or wasteful, if the restriction impairs

the management or investment of the fund, or if, because of circumstances not anticipated

by the donor, a modification of a restriction will further the purposes of the fund. The institution shall notify the attorney general of the application, and the attorney

general shall be given an opportunity to be heard. To the extent practicable, any modification shall be made in accordance with the

donor's probable intention. C. If a particular charitable purpose or a restriction contained in a gift instrument

on the use of an institutional fund becomes unlawful, impracticable, impossible to

achieve or wasteful, the court, upon application of an institution, may modify the

purpose of the fund or the restriction on the use of the fund in a manner consistent

with the charitable purposes expressed in the gift instrument. The institution shall notify the attorney general of the application, and the attorney

general shall be given an opportunity to be heard. D. If an institution determines that a restriction contained in a gift instrument

on the management, investment or purpose of an institutional fund is unlawful, impracticable,

impossible to achieve or wasteful, the institution, sixty days after notification

to the attorney general, may release or modify the restriction, in whole or part,

if: (1) the institutional fund subject to the restriction has a total value of less than

twenty-five thousand dollars ($25,000); (2) more than twenty years have elapsed since the fund was established; and (3) the institution uses the property in a manner consistent with the charitable purposes

expressed in the gift instrument.