§ 564-f-16-1606

564-F:16-1606 Nonjudicial Settlement Agreement. – (a) For purposes of this section, 'interested person' means each of the following persons: (1) A founder; (2) A foundation official; (3) A person who, under the governing documents, has the power to enforce the terms of the governing documents; (4) If the trust is a charitable trust, the director of charitable trusts; and (5) Any other person whose consent would be required in order to achieve a binding settlement if a court would approve the settlement. (b) Subject to subsection (c), all of the interested persons may enter into a binding nonjudicial settlement agreement with respect to any matter involving a foundation. (c) A nonjudicial settlement agreement is valid only to the extent that: (1) It does not violate any of the foundation's material purpose; and (2) It includes only terms and conditions that could be properly approved by a court under this chapter or other applicable law. (d) Matters that may be resolved by a nonjudicial settlement agreement include: (1) The interpretation or construction of the governing documents; (2) The modification of the governing documents; (3) The approval of a director's report or

onjudicial settlement agreement include: (1) The interpretation or construction of the governing documents; (2) The modification of the governing documents; (3) The approval of a director's report or accounting; (4) A direction to a foundation official to refrain from performing a particular act or the grant to a foundation official of any necessary or desirable power; (5) A foundation official's appointment or resignation; (6) The determination of a foundation official's compensation; (7) A foundation official's liability for an action relating to the foundation; and (8) The foundation's dissolution. (e) Any interested person may commence a judicial proceeding requesting that the court: (1) Approve a nonjudicial settlement agreement; (2) Determine whether the representation under 564-F:14-1402 was adequate; and (3) Determine whether the agreement contains terms and conditions the court could have properly approved. Source. 2017, 257:47, eff. Oct. 1, 2017. 2018, 210:16, eff. June 8, 2018.