Notice Inviting Comment
Proposed New Rule - SJC Rule 1:23
Proposed New Rule
Regarding Modifications of Certain Gift Instruments
Under Section 5 of the Uniform Prudent Management
of Institutional Funds Act (G.L. c. 180A)
The Supreme Judicial Court invites comments on a proposed new rule of court regarding modifications of certain gift instruments under Section 5 of the Uniform Prudent Management of Institutional Funds Act (G.L.c. 180A, as amended last year). Before last year's amendments, only the court could modify restrictions that had become impractical or wasteful. Section 5 now provides that the court, by rule or order, may allow the Attorney General to approve such modifications.
The proposed rule, recommended by a working group appointed by the court, allows institutions to modify restrictions on the management, investment or duration of an institutional fund or to modify the purpose of the fund or a restriction on its use in certain circumstances without application to the court but with the consent of the Attorney General. The requirement of a court proceeding may be dispensed with only if the value of the institutional fund is $75,000 or less and the fund has been in existence for twenty years or longer. The Attorney General is authorized to adopt requirements, forms and procedures for use in the approval process.
Comments on the proposed rule should be directed to Christine P. Burak, Secretary, Rules Committee, Supreme Judicial Court , John Adams Courthouse, One Pemberton Square ,
Proposed SJC Rule 1:23