1715.57 Releasing restriction on use or investment of institutional fund.

(A) With the written consent of the donor, the governing board of an institution may release, in whole or in part, a restriction imposed by the applicable gift instrument on the use or investment of an institutional fund.

(B) If written consent of a donor as described in division (A) of this section cannot be obtained by reason of the donor’s death, disability, unavailability, or impossibility of identification, the governing board of an institution may apply in the name of the institution to the appropriate court for release of a restriction imposed by the applicable gift instrument on the use or investment of an institutional fund. The attorney general is a necessary party to and shall be served with process in all proceedings pertaining to an application of that nature, and a judgment rendered in proceedings pertaining to an application of that nature without the service of process upon the attorney general is void.

If the court finds in proceedings pertaining to an application of that nature that the restriction involved is obsolete, inappropriate, impracticable, or impossible, it may order the release of the restriction in whole or in part.

(C) A release of a restriction by a court order under division (B) of this section may not change an endowment fund to a fund that is not an endowment fund. A release of a restriction under division (A) or (B) of this section may not allow a fund to be used for purposes other than the educational, religious, charitable, or other eleemosynary purposes of the institution involved.

(D) This section does not limit the application of the doctrine of cy pres.

Effective Date: 10-01-1996