ENROLLED
COMMITTEE SUBSTITUTE
FOR
H. B. 2429
(By Mr. Speaker, Mr. Chambers, and Delegates Kiss,
Farris,
Seacrist, Amores and Hunt)
[Passed March 10, 1995; in effect ninety days from passage.]
AN ACT to amend and reenact section two, article six-a, chapter
forty-four of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to the
administration of estates and trusts; uniform management of
institutional funds act; revising the definitions of
"institution," "institutional fund" and "gift instrument";
and adding a definition of "community foundation" or
"community trust."
Be it enacted by the Legislature of West Virginia:
That section two, article six-a, chapter forty-four of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 6A. UNIFORM MANAGEMENT OF INSTITUTIONAL FUNDS ACT.
§44-6A-2. Definitions.
The following words or phrases as used in this article shall
have the meanings ascribed to them in this section, unless the
context of this article clearly indicates otherwise:
(a) "Endowment fund" means an institutional fund, or any part thereof, not wholly expendable by the institution on a
current basis under the terms of the applicable gift instrument;
(b) "Gift instrument" means a will, deed, trust agreement,
grant, conveyance, agreement, memorandum, writing or other
governing document (including the terms of any institutional
solicitations from which an institutional fund resulted) that was
executed or in effect before or after the effective date of this
article under which property is transferred to, or held by or on
behalf of, an institution as an institutional fund;
(c) "Governing board" means the body responsible for the
management of an institution or of an institutional fund;
(d) "Historic dollar value" means the aggregate fair value
in dollars of: (i) An endowment fund at the time it became an
endowment fund; (ii) each subsequent donation to the fund at the
time it is made; and (iii) each accumulation made pursuant to a
direction in the applicable gift instrument at the time the
accumulation is added to the fund. The determination of historic
dollar value made in good faith by the institution is conclusive;
(e) "Institution" means an incorporated or unincorporated
organization organized and operated exclusively for educational,
religious, charitable or other eleemosynary purpose, a
governmental organization to the extent that it holds funds
exclusively for any of these purposes, or a community foundation
or community trust;
(f) "Institutional fund" means a fund held by an institution
for its exclusive use, benefit or purposes, but does not include (i) A fund held for an institution by a trustee that is not an
institution, unless the fund is held exclusively for the benefit
of either a community foundation or community trust by a bank, a
trust company or another fiduciary that is a trustee of the
community foundation or community trust; or (ii) a fund in which
a beneficiary that is not an institution has an interest, other
than possible rights that could arise upon violation or failure
of the purposes of the fund;
(g) "Community foundation" or community trust" means an
institution that has been established to attract contributions of
a capital or endowment nature for the benefit of a particular
community or area whose contributions are often received and
maintained in the form of separate trusts or funds which are
subject to varying degrees of control by the governing body of
the community foundation or community trust and which the
governing body in good faith believes meets the requirements of
the regulations issued by the internal revenue service, United
States department of treasury, presently codified as 26 CFR
1.170A-9(e)(10) and (11), to qualify as a "publicly supported"
organization and to be treated as a "single entity" rather than
as an aggregation of separate funds.
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