Full Text of HB5053 95th General Assembly
HB5053 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB5053
Introduced , by Rep. James D. Brosnahan SYNOPSIS AS INTRODUCED: |
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New Act |
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760 ILCS 50/Act rep. |
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805 ILCS 110/41 |
from Ch. 32, par. 170 |
805 ILCS 110/43 |
from Ch. 32, par. 172 |
805 ILCS 110/46e |
from Ch. 32, par. 180 |
805 ILCS 110/46f |
from Ch. 32, par. 181 |
805 ILCS 110/46g |
from Ch. 32, par. 182 |
805 ILCS 110/46j |
from Ch. 32, par. 185 |
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Creates the Uniform Prudent Management of Institutional Funds Act, proposed by the National Conference of Commissioners on Uniform State Laws. Provides for: standards of conduct in managing and investing an institutional fund held by a charitable institution for charitable purposes; appropriations by an institution for expenditure or accumulation of endowment funds; the delegation of management and investment functions; the release or modification of restrictions on the management, investment, or purpose of an institutional fund; compliance; application; construction; and other matters. Repeals the Uniform Management of Institutional Funds Act. Amends the Religious Corporation Act by making conforming changes.
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A BILL FOR
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HB5053 |
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| AN ACT concerning institutional funds.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 1. Short title. This Act may be cited as the | 5 |
| Uniform Prudent Management of Institutional Funds Act. | 6 |
| Section 2. Definitions. In this Act: | 7 |
| (1) "Charitable purpose" means the relief of poverty, the | 8 |
| advancement of education or religion, the promotion of health, | 9 |
| the promotion of a governmental purpose, or any other purpose | 10 |
| the achievement of which is beneficial to the community. | 11 |
| (2) "Endowment fund" means an institutional fund or part | 12 |
| thereof that, under the terms of a gift instrument, is not | 13 |
| wholly expendable by the institution on a current basis. The | 14 |
| term does not include assets that an institution designates as | 15 |
| an endowment fund for its own use. | 16 |
| (3) "Gift instrument" means a record or records, including | 17 |
| an institutional solicitation, under which property is granted | 18 |
| to, transferred to, or held by an institution as an | 19 |
| institutional fund. | 20 |
| (4) "Institution" means: | 21 |
| (A) a person, other than an individual, organized and | 22 |
| operated exclusively for charitable purposes; | 23 |
| (B) a government or governmental subdivision, agency, |
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| or instrumentality, to the extent that it holds funds | 2 |
| exclusively for a charitable purpose; or | 3 |
| (C) a trust that had both charitable and noncharitable | 4 |
| interests, after all noncharitable interests have | 5 |
| terminated. | 6 |
| (5) "Institutional fund" means a fund held by an | 7 |
| institution exclusively for charitable purposes. The term does | 8 |
| not include: | 9 |
| (A) program-related assets; | 10 |
| (B) a fund held for an institution by a trustee that is | 11 |
| not an institution; or | 12 |
| (C) a fund in which a beneficiary that is not an | 13 |
| institution has an interest, other than an interest that | 14 |
| could arise upon violation or failure of the purposes of | 15 |
| the fund. | 16 |
| (6) "Person" means an individual, corporation, business | 17 |
| trust, estate, trust, partnership, limited liability company, | 18 |
| association, joint venture, public corporation, government or | 19 |
| governmental subdivision, agency, or instrumentality, or any | 20 |
| other legal or commercial entity. | 21 |
| (7) "Program-related asset" means an asset held by an | 22 |
| institution primarily to accomplish a charitable purpose of the | 23 |
| institution and not primarily for investment. | 24 |
| (8) "Record" means information that is inscribed on a | 25 |
| tangible medium or that is stored in an electronic or other | 26 |
| medium and is retrievable in perceivable form. |
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| Section 3. Standard of conduct in managing and investing | 2 |
| institutional fund. | 3 |
| (a) Subject to the intent of a donor expressed in a gift | 4 |
| instrument, an institution, in managing and investing an | 5 |
| institutional fund, shall consider the charitable purposes of | 6 |
| the institution and the purposes of the institutional fund. | 7 |
| (b) In addition to complying with the duty of loyalty | 8 |
| imposed by law other than this Act, each person responsible for | 9 |
| managing and investing an institutional fund shall manage and | 10 |
| invest the fund in good faith and with the care an ordinarily | 11 |
| prudent person in a like position would exercise under similar | 12 |
| circumstances. | 13 |
| (c) In managing and investing an institutional fund, an | 14 |
| institution: | 15 |
| (1) may incur only costs that are appropriate and | 16 |
| reasonable in relation to the assets, the purposes of the | 17 |
| institution, and the skills available to the institution; | 18 |
| and | 19 |
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(2) shall make a reasonable effort to verify facts | 20 |
| relevant to the management and investment of the fund. | 21 |
| (d) An institution may pool two or more institutional funds | 22 |
| for purposes of management and investment. | 23 |
| (e) Except as otherwise provided by a gift instrument, the | 24 |
| following rules apply: | 25 |
| (1) In managing and investing an institutional fund, |
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| the following factors, if relevant, must be considered: | 2 |
| (A) general economic conditions; | 3 |
| (B) the possible effect of inflation or deflation; | 4 |
| (C) the expected tax consequences, if any, of | 5 |
| investment decisions or strategies; | 6 |
| (D) the role that each investment or course of | 7 |
| action plays within the overall investment portfolio | 8 |
| of the fund; | 9 |
| (E) the expected total return from income and the | 10 |
| appreciation of investments; | 11 |
| (F) other resources of the institution; | 12 |
| (G) the needs of the institution and the fund to | 13 |
| make distributions and to preserve capital; and | 14 |
| (H) an asset's special relationship or special | 15 |
| value, if any, to the charitable purposes of the | 16 |
| institution. | 17 |
| (2) Management and investment decisions about an | 18 |
| individual asset must be made not in isolation but rather | 19 |
| in the context of the institutional fund's portfolio of | 20 |
| investments as a whole and as a part of an overall | 21 |
| investment strategy having risk and return objectives | 22 |
| reasonably suited to the fund and to the institution. | 23 |
| (3) Except as otherwise provided by law other than this | 24 |
| Act, an institution may invest in any kind of property or | 25 |
| type of investment consistent with this Section. | 26 |
| (4) An institution shall diversify the investments of |
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| an institutional fund unless the institution reasonably | 2 |
| determines that, because of special circumstances, the | 3 |
| purposes of the fund are better served without | 4 |
| diversification. | 5 |
| (5) Within a reasonable time after receiving property, | 6 |
| an institution shall make and carry out decisions | 7 |
| concerning the retention or disposition of the property or | 8 |
| to rebalance a portfolio, in order to bring the | 9 |
| institutional fund into compliance with the purposes, | 10 |
| terms, and distribution requirements of the institution as | 11 |
| necessary to meet other circumstances of the institution | 12 |
| and the requirements of this Act. | 13 |
| (6) A person that has special skills or expertise, or | 14 |
| is selected in reliance upon the person's representation | 15 |
| that the person has special skills or expertise, has a duty | 16 |
| to use those skills or that expertise in managing and | 17 |
| investing institutional funds. | 18 |
| Section 4. Appropriation for expenditure or accumulation | 19 |
| of endowment fund; rules of construction. | 20 |
| (a) Subject to the intent of a donor expressed in the gift | 21 |
| instrument and to subsection (d), an institution may | 22 |
| appropriate for expenditure or accumulate so much of an | 23 |
| endowment fund as the institution determines is prudent for the | 24 |
| uses, benefits, purposes, and duration for which the endowment | 25 |
| fund is established. Unless stated otherwise in the gift |
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| instrument, the assets in an endowment fund are | 2 |
| donor-restricted assets until appropriated for expenditure by | 3 |
| the institution. In making a determination to appropriate or | 4 |
| accumulate, the institution shall act in good faith, with the | 5 |
| care that an ordinarily prudent person in a like position would | 6 |
| exercise under similar circumstances, and shall consider, if | 7 |
| relevant, the following factors: | 8 |
| (1) the duration and preservation of the endowment | 9 |
| fund; | 10 |
| (2) the purposes of the institution and the endowment | 11 |
| fund; | 12 |
| (3) general economic conditions; | 13 |
| (4) the possible effect of inflation or deflation; | 14 |
| (5) the expected total return from income and the | 15 |
| appreciation of investments; | 16 |
| (6) other resources of the institution; and | 17 |
| (7) the investment policy of the institution. | 18 |
| (b) To limit the authority to appropriate for expenditure | 19 |
| or accumulate under subsection (a), a gift instrument must | 20 |
| specifically state the limitation. | 21 |
| (c) Terms in a gift instrument designating a gift as an | 22 |
| endowment, or a direction or authorization in the gift | 23 |
| instrument to use only "income", "interest", "dividends", or | 24 |
| "rents, issues, or profits", or "to preserve the principal | 25 |
| intact", or words of similar import: | 26 |
| (1) create an endowment fund of permanent duration |
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| unless other language in the gift instrument limits the | 2 |
| duration or purpose of the fund; and | 3 |
| (2) do not otherwise limit the authority to appropriate | 4 |
| for expenditure or accumulate under subsection (a). | 5 |
| (d) The appropriation for expenditure in any year of an | 6 |
| amount greater than seven percent of the fair market value of | 7 |
| an endowment fund, calculated on the basis of market values | 8 |
| determined at least quarterly and averaged over a period of not | 9 |
| less than three years immediately preceding the year in which | 10 |
| the appropriation for expenditure is made, creates a rebuttable | 11 |
| presumption of imprudence. For an endowment fund in existence | 12 |
| for fewer than three years, the fair market value of the | 13 |
| endowment fund must be calculated for the period the endowment | 14 |
| fund has been in existence. This subsection does not: | 15 |
| (1) apply to an appropriation for expenditure | 16 |
| permitted under law other than this Act or by the gift | 17 |
| instrument; or | 18 |
| (2) create a presumption of prudence for an | 19 |
| appropriation for expenditure of an amount less than or | 20 |
| equal to seven percent of the fair market value of the | 21 |
| endowment fund. | 22 |
| Section 5. Delegation of management and investment | 23 |
| functions. | 24 |
| (a) Subject to any specific limitation set forth in a gift | 25 |
| instrument or in law other than this Act, an institution may |
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| delegate to an external agent the management and investment of | 2 |
| an institutional fund to the extent that an institution could | 3 |
| prudently delegate under the circumstances. An institution | 4 |
| shall act in good faith, with the care that an ordinarily | 5 |
| prudent person in a like position would exercise under similar | 6 |
| circumstances, in: | 7 |
| (1) selecting an agent; | 8 |
| (2) establishing the scope and terms of the delegation, | 9 |
| consistent with the purposes of the institution and the | 10 |
| institutional fund; and | 11 |
| (3) periodically reviewing the agent's actions in | 12 |
| order to monitor the agent's performance and compliance | 13 |
| with the scope and terms of the delegation. | 14 |
| (b) In performing a delegated function, an agent owes a | 15 |
| duty to the institution to exercise reasonable care to comply | 16 |
| with the scope and terms of the delegation. | 17 |
| (c) An institution that complies with subsection (a) is not | 18 |
| liable for the decisions or actions of an agent to which the | 19 |
| function was delegated. | 20 |
| (d) By accepting delegation of a management or investment | 21 |
| function from an institution that is subject to the laws of | 22 |
| this State, an agent submits to the jurisdiction of the courts | 23 |
| of this State in all proceedings arising from or related to the | 24 |
| delegation or the performance of the delegated function. | 25 |
| (e) An institution may delegate management and investment | 26 |
| functions to its committees, officers, or employees as |
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| authorized by law of this State other than this Act. | 2 |
| Section 6. Release or modification of restrictions on | 3 |
| management, investment, or purpose. | 4 |
| (a) If the donor consents in a record, an institution may | 5 |
| release or modify, in whole or in part, a restriction contained | 6 |
| in a gift instrument on the management, investment, or purpose | 7 |
| of an institutional fund. A release or modification may not | 8 |
| allow a fund to be used for a purpose other than a charitable | 9 |
| purpose of the institution. | 10 |
| (b) The court, upon application of an institution, may | 11 |
| modify a restriction contained in a gift instrument regarding | 12 |
| the management or investment of an institutional fund if the | 13 |
| restriction has become impracticable or wasteful, if it impairs | 14 |
| the management or investment of the fund, or if, because of | 15 |
| circumstances not anticipated by the donor, a modification of a | 16 |
| restriction will further the purposes of the fund. The | 17 |
| institution shall notify the Attorney General of the | 18 |
| application, and the Attorney General must be given an | 19 |
| opportunity to be heard. To the extent practicable, any | 20 |
| modification must be made in accordance with the donor's | 21 |
| probable intention. | 22 |
| (c) If a particular charitable purpose or a restriction | 23 |
| contained in a gift instrument on the use of an institutional | 24 |
| fund becomes unlawful, impracticable, impossible to achieve, | 25 |
| or wasteful, the court, upon application of an institution, may |
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| modify the purpose of the fund or the restriction on the use of | 2 |
| the fund in a manner consistent with the charitable purposes | 3 |
| expressed in the gift instrument. The institution shall notify | 4 |
| the Attorney General of the application, and the Attorney | 5 |
| General must be given an opportunity to be heard. | 6 |
| (d) If an institution determines that a restriction | 7 |
| contained in a gift instrument on the management, investment, | 8 |
| or purpose of an institutional fund is unlawful, impracticable, | 9 |
| impossible to achieve, or wasteful, the institution, 60 days | 10 |
| after notification to the Attorney General, may release or | 11 |
| modify the restriction, in whole or part, if: | 12 |
| (1) the institutional fund subject to the restriction | 13 |
| has a total value of less than $25,000; | 14 |
| (2) more than 20 years have elapsed since the fund was | 15 |
| established; and | 16 |
| (3) the institution uses the property in a manner | 17 |
| consistent with the charitable purposes expressed in the | 18 |
| gift instrument. | 19 |
| Section 7. Reviewing compliance. Compliance with this Act | 20 |
| is determined in light of the facts and circumstances existing | 21 |
| at the time a decision is made or action is taken, and not by | 22 |
| hindsight. | 23 |
| Section 8. Application to existing institutional funds. | 24 |
| This Act applies to institutional funds existing on or |
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| established after the effective date of this Act. As applied to | 2 |
| institutional funds existing on the effective date of this Act, | 3 |
| this Act governs only decisions made or actions taken on or | 4 |
| after that date. | 5 |
| Section 9. Relation to Electronic Signatures in Global and | 6 |
| National Commerce Act. This Act modifies, limits, and | 7 |
| supersedes the Electronic Signatures in Global and National | 8 |
| Commerce Act, 15 U.S.C. Section 7001 et seq., but does not | 9 |
| modify, limit, or supersede Section 101 of that Act, 15 U.S.C. | 10 |
| Section 7001(a), or authorize electronic delivery of any of the | 11 |
| notices described in Section 103 of that Act, 15 U.S.C. Section | 12 |
| 7003(b). | 13 |
| Section 10. Uniformity of application and construction. In | 14 |
| applying and construing this uniform Act, consideration must be | 15 |
| given to the need to promote uniformity of the law with respect | 16 |
| to its subject matter among states that enact it. | 17 |
| Section 11. (Blank).
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| (760 ILCS 50/Act rep.)
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| Section 12. Repeal. The following Act is repealed: | 20 |
| The Uniform Management of Institutional Funds Act.
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| Section 12.1. The Religious Corporation Act is amended by |
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| changing Sections 41, 43, 46e, 46f, 46g, and 46j as follows:
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| (805 ILCS 110/41) (from Ch. 32, par. 170)
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| Sec. 41. Upon the incorporation of any congregation, church | 4 |
| or society, all real
and personal property held by any person | 5 |
| or trustees for the use of the
members thereof, shall | 6 |
| immediately vest in such corporation and be subject
to its | 7 |
| control, and may be used, mortgaged, sold and conveyed the same | 8 |
| as
if it had been conveyed to such corporation by deed; but no | 9 |
| such conveyance
or mortgage shall be made so as to affect or | 10 |
| destroy the intent or effect
of any grant, legacy or donation | 11 |
| that may be made to such
person or trustee
for the use of such | 12 |
| congregation, church or society. However, this
limitation on | 13 |
| the disposition of real or personal property does not apply
to | 14 |
| the extent that a restriction imposed by a donor on the use of | 15 |
| an
institutional fund may be released by the governing board of | 16 |
| an institution
under the " Uniform Prudent Management of | 17 |
| Institutional Funds Act ", approved September
15, 1973 .
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| (Source: P.A. 83-388.)
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| (805 ILCS 110/43) (from Ch. 32, par. 172)
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| Sec. 43. The trustees shall have the care, custody and | 21 |
| control of the real and
personal property of the corporation, | 22 |
| subject to the direction of the
congregation, church or | 23 |
| society, and may, when directed by the
congregation, church or | 24 |
| society, erect houses or buildings and
improvements, and repair |
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| and alter the same, and may, when so directed,
mortgage, | 2 |
| incumber, sell and convey any real or personal estate of such
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| corporation, and enter into all lawful contracts in the name of | 4 |
| and in
behalf of such corporation: but no mortgage, | 5 |
| incumbrance, sale
or conveyance shall be made of any such | 6 |
| estate, so as to defeat or destroy
the effect of any gift, | 7 |
| grant or legacy which
may be made to such
corporation; but all | 8 |
| such gifts, grants and legacies
shall be
appropriated and used | 9 |
| as directed or intended by the person or persons
making the | 10 |
| same. However, this limitation on the disposition of real or
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| personal property does not apply to the extent that a | 12 |
| restriction imposed
by a donor on the use of an institutional | 13 |
| fund may be released by the
governing board of an institution | 14 |
| under the " Uniform Prudent Management of Institutional Funds | 15 |
| Act ", approved September
15, 1973 .
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| (Source: P.A. 83-388.)
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| (805 ILCS 110/46e) (from Ch. 32, par. 180)
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| Sec. 46e. The trustees of every such congregation, church, | 19 |
| or society, under the
patronage, control, direction, or | 20 |
| supervision of any ecclesiastical body,
or diocesan, or like | 21 |
| ecclesiastical officer, after the same has become
incorporated | 22 |
| under Sections 46a to 46h, inclusive, of this Act, and their
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| successors, shall have perpetual succession with power to adopt | 24 |
| a common
seal, which may be altered and changed at pleasure, | 25 |
| contract, and be
contracted with, sue and be sued, plead and be |
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| impleaded, by the corporate
name of such congregation, in all | 2 |
| courts, whatever; to receive, hold,
dispose of, mortgage, and | 3 |
| convey any kind of property; to make and adopt
by-laws for | 4 |
| their government, not inconsistent with Sections 46a to 46h,
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| inclusive, of this Act, or with the rules and regulations of | 6 |
| the sect or
denomination having the charge or patronage of the | 7 |
| corporation; and shall
alone have power to make all contracts | 8 |
| needful in the management of the
temporal affairs of such | 9 |
| congregation, church, or society: but
no conveyance, or | 10 |
| mortgage shall be made to affect, or destroy the intent
of any | 11 |
| grant, legacy, or donation, that may be made to any person, or
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| trustee, for the use of such congregation, church, or society, | 13 |
| or for the
use of any sect, or denomination. However, this | 14 |
| limitation on the
disposition of real or personal property does | 15 |
| not apply to the extent that
a restriction imposed by a donor | 16 |
| on the use of an institutional fund may be
released by the | 17 |
| governing board of an institution under the " Uniform Prudent | 18 |
| Management of Institutional Funds Act ", approved September
15, | 19 |
| 1973 .
The trustees of any corporation, organized under Sections | 20 |
| 46a to
46h, inclusive, of this Act, which is, or may be, under | 21 |
| the control,
patronage, direction or, supervision of any | 22 |
| ecclesiastical body, diocesan,
or like officer, shall hold and | 23 |
| control, invest or reinvest the real and
personal property of | 24 |
| such corporation, and contract with reference thereto,
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| according to the "Uniform Management of Institutional Funds | 26 |
| Act", or the
rules, regulations, constitution,
articles of |
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| association, by-laws, or canons of such ecclesiastical body,
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| diocesan, or like ecclesiastical officer.
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| (Source: P.A. 83-388.)
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| (805 ILCS 110/46f) (from Ch. 32, par. 181)
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| Sec. 46f. The trustees of any corporation formed for | 6 |
| religious purposes under
Sections 46a to 46h, inclusive, of | 7 |
| this Act, may receive land in the name
of such corporation by | 8 |
| gift, legacy or purchase, and make,
erect and build
thereon, | 9 |
| such houses, buildings, or other improvements, as may be | 10 |
| necessary
for the convenience and comfort of such congregation, | 11 |
| church, society, or
corporation, and may lay out and maintain | 12 |
| thereon a burying ground, and may
maintain and build thereon | 13 |
| schools, orphan asylums, or such other
improvements or | 14 |
| buildings as may be necessary for the educational and
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| eleemosynary purposes of such congregation, church, society, | 16 |
| or
corporation: but such property shall not be used except in | 17 |
| the
manner expressed in the gift, grant or bequest. However, | 18 |
| this limitation on
the disposition of real property does not | 19 |
| apply to the extent that a
restriction imposed by a donor on | 20 |
| the use of an institutional fund may be
released by the | 21 |
| governing board of an institution under the " Uniform Prudent | 22 |
| Management of Institutional Funds Act ", approved September
15, | 23 |
| 1973 .
If no use or trust is so expressed, no such property | 24 |
| shall be
used except for the benefit of the corporation, | 25 |
| church, society, sect, or
denomination for which it was |
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| intended, or for any religious, educational
or eleemosynary | 2 |
| purpose approved by such corporation, church, society, or
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| ecclesiastical body, diocesan, or like ecclesiastical officer.
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| (Source: P.A. 84-549.)
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| (805 ILCS 110/46g) (from Ch. 32, par. 182)
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| Sec. 46g. Any ecclesiastical body, or diocesan, or like | 7 |
| ecclesiastical officer,
may elect, or nominate, or appoint, | 8 |
| according to the usages, customs,
rules, regulations, articles | 9 |
| of association, constitution, by-laws or
canons of such | 10 |
| ecclesiastical body, diocesan or like ecclesiastical
officer, | 11 |
| or any sect or denomination, 2 or more members of such sect, or
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| denomination, residing respectively in any ecclesiastical | 13 |
| districts, or
dioceses, over which such ecclesiastical body, or | 14 |
| diocesan, or like
ecclesiastical officer shall have | 15 |
| jurisdiction, as trustees, who may become
incorporated under | 16 |
| Sections 46a to 46k, inclusive, of this Act, and may
take, | 17 |
| hold, regulate, control and dispose of any real, personal or | 18 |
| mixed
property in and outside of this State, devoted to | 19 |
| eleemosynary,
educational, cemetery or religious purposes (not | 20 |
| exclusively belonging to,
or used by, any particular | 21 |
| congregation, church or society which as an
organization, | 22 |
| incorporated or unincorporated, is in the opinion of its
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| trustees, wardens, vestrymen or other officers whose powers and | 24 |
| duties are
similar to trustees financially able to own and | 25 |
| maintain such property) for
the use of all of the members of |
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| the sect, or denomination within said
districts, or dioceses, | 2 |
| or for the use and benefit of such ecclesiastical
body, | 3 |
| diocesan, or like ecclesiastical officer, or of any parishes,
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| congregations, societies, churches, missions, benevolent, | 5 |
| charitable or
educational institutions existing under or | 6 |
| related to the same, according
to Sections 46a to 46k, | 7 |
| inclusive, of this Act, according to the " Uniform Prudent | 8 |
| Management of Institutional Funds Act ", approved September
15, | 9 |
| 1973 ,
or according to the usages, customs, rules, regulations, | 10 |
| articles
of association, constitution, by-laws or canons of | 11 |
| such ecclesiastical
body, diocesan, or like ecclesiastical | 12 |
| officer. The presiding officer or
authorized representative of | 13 |
| such ecclesiastical body or diocesan, or like
ecclesiastical | 14 |
| officer, shall, by virtue of his office, be a trustee of any
| 15 |
| such corporation and the number, term of office and | 16 |
| qualifications of said
trustees, their removal and succession | 17 |
| and their powers, duties and manner
of appointment, shall be | 18 |
| regulated in the manner provided in Sections 46a
to 46k, | 19 |
| inclusive, of this Act. An affidavit showing the appointment of
| 20 |
| such trustees made and executed by the presiding officer, or | 21 |
| duly
authorized representative of such ecclesiastical body, or | 22 |
| diocesan, or like
ecclesiastical officer, or such other person | 23 |
| as may be designated by said
trustees for such purpose, in | 24 |
| substantially the same manner and form as
provided in Section | 25 |
| 46b of this Act shall be filed in the office of the
recorder in | 26 |
| the county in which the principal office or place of
worship of |
|
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| such corporation is intended to be situated and also a | 2 |
| duplicate
copy in the office of the Secretary of State, | 3 |
| whenever any district or
diocese, under the jurisdiction or | 4 |
| patronage of such ecclesiastical body,
or diocesan, or like | 5 |
| ecclesiastical officer, comprises more than any one
county of | 6 |
| this State or extends outside of the State.
| 7 |
| It shall be the duty of the recorder and the Secretary of | 8 |
| State to
record such affidavits and said affidavits or copies | 9 |
| thereof, duly
certified by the recorder and Secretary of State, | 10 |
| shall be received as
evidence of the due incorporation of the | 11 |
| organization. No affidavit of
appointment after the first need | 12 |
| be filed for record.
| 13 |
| (Source: P.A. 83-358.)
| 14 |
| (805 ILCS 110/46j) (from Ch. 32, par. 185)
| 15 |
| Sec. 46j. Any church, congregation, society or | 16 |
| corporation, heretofore or
hereafter formed for religious | 17 |
| purposes or for the purpose of religious
worship under any of | 18 |
| the provisions of this Act or under any law of this
State | 19 |
| incorporating or for the incorporation of religious | 20 |
| corporations or
societies, may receive land by gift, legacy or | 21 |
| purchase and make, erect,
and build thereon such houses, | 22 |
| buildings, or other improvements as may be
necessary for the | 23 |
| convenience, comfort and welfare of such church,
congregation, | 24 |
| society or corporation, and may lay out and maintain thereon
a | 25 |
| cemetery or cemeteries, or a burying ground or grounds and may |
|
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| maintain
and build thereon schools, orphan asylums, or such | 2 |
| other improvements or
buildings as may be necessary for the | 3 |
| educational, eleemosynary, cemetery
and religious purposes of | 4 |
| such congregation, church, society or
corporation; but no such | 5 |
| property shall be used except in the
manner expressed in the | 6 |
| gift, grant or legacy. However, this
limitation on
the | 7 |
| disposition of real property does not apply to the extent that | 8 |
| a
restriction imposed by a donor on the use of an institutional | 9 |
| fund may be
released by the governing board of an institution | 10 |
| under the " Uniform Prudent Management of Institutional Funds | 11 |
| Act ", approved September
15, 1973 . Or
if no use or trust is so | 12 |
| expressed, no such property shall be
used except for the | 13 |
| benefit of the congregation, corporation, church or
society, | 14 |
| for which it was intended, or for such religious, educational | 15 |
| or
eleemosynary purpose as may be approved by such | 16 |
| congregation, church,
society or corporation or the | 17 |
| ecclesiastical body having jurisdiction or
patronage of or | 18 |
| charge over such congregation, corporation, church or
society.
| 19 |
| Any corporation, heretofore or hereafter formed for | 20 |
| religious purposes
under any of the provisions of this Act or | 21 |
| under any other law of this
State incorporating or for the | 22 |
| incorporation of religious corporations or
societies, which | 23 |
| now or hereafter owns, operates, maintains or controls a
| 24 |
| cemetery or cemeteries, or a burial ground or grounds, is | 25 |
| hereby authorized
and empowered to accept by gift, grant, | 26 |
| contribution, payment, or
legacy, or pursuant to contract, any |
|
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| sum of money, funds, securities or
property of any kind, or the | 2 |
| income or avails thereof, and to hold the same
in trust in | 3 |
| perpetuity for the care of such cemetery or cemeteries, burial
| 4 |
| ground or grounds, or for the care of any lot, grave or crypt | 5 |
| therein; or
for the special care of any lot, grave or crypt or | 6 |
| of any family mausoleum
or memorial, marker, or monument in | 7 |
| such cemetery or cemeteries, burial
ground or grounds. No gift, | 8 |
| grant, legacy, payment or other
contribution shall be invalid | 9 |
| by reason of any indefiniteness or
uncertainty as to the | 10 |
| beneficiary designated in the instrument creating the
gift, | 11 |
| grant, legacy, payment or other contribution. If any gift,
| 12 |
| grant, legacy, payment or other contribution consists of
| 13 |
| non-income producing property, such corporation is authorized | 14 |
| and empowered
to sell such property and to invest the funds | 15 |
| obtained in accordance with
the provisions of the " Uniform | 16 |
| Prudent Management of Institutional Funds Act ", approved | 17 |
| September
15, 1973 ,
or the provisions of the next
succeeding | 18 |
| paragraph.
| 19 |
| The trust funds authorized by this Section shall be held | 20 |
| intact and,
unless otherwise restricted by the terms of the | 21 |
| gift, grant, legacy, contribution,
payment, contract or other | 22 |
| payment shall be
invested, from time to time reinvested, and | 23 |
| kept invested by such
corporation in such investments as are | 24 |
| authorized by the " Uniform Prudent
Management of Institutional | 25 |
| Funds Act " , and according to such standards as
are prescribed, | 26 |
| for trustees under that Act and the "Trusts and Trustees
Act", |
|
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| approved September 10, 1973, as amended, and the net income | 2 |
| only from
such investments shall be allocated and used for the | 3 |
| purposes set forth in
the paragraph immediately preceding; but | 4 |
| the trust
funds authorized by this Section may be commingled | 5 |
| and may also be
commingled with any other trust funds received | 6 |
| by such corporation for the
care of the cemetery or cemeteries, | 7 |
| or burial ground or grounds, or for the
care or special care of | 8 |
| any lot, grave, crypt, private mausoleum, memorial,
marker, or | 9 |
| monument whether received by gift, grant, legacy,
| 10 |
| contribution, payment, contract or other conveyance heretofore | 11 |
| or hereafter
made to such corporation.
| 12 |
| The trust funds authorized by this Section, and the income | 13 |
| therefrom,
shall be exempt from taxation and exempt from the | 14 |
| operation of the laws
against perpetuities and accumulations.
| 15 |
| (Source: P.A. 83-1362.)
|
|