Article 131 Power to spend capital subject to special trusts
This Article applies to any available endowment fund of a special trust which, as the result of a direction under Article 3(4), is to be treated as a separate charity (“the relevant charity”) for the purposes of this Article.
Where the condition in paragraph (3) is met in relation to the relevant charity, the charity trustees may resolve for the purposes of this Article that the fund, or a portion of it, ought to be freed from the restrictions with respect to expenditure of capital that apply to it.
The condition in this paragraph is that the charity trustees are satisfied that the purposes set out in the trusts to which the fund is subject could be carried out more effectively if the capital of the fund, or the relevant portion of the capital, could be expended as well as income accruing to it, rather than just such income.
Where the market value of the fund exceeds £10,000 and the capital of the fund consists entirely of property given—
by a particular individual,
by a particular institution (by way of grant or otherwise), or
by two or more individuals or institutions in pursuit of a common purpose,
paragraphs (5) to (11) of Article 130 apply in relation to the resolution and that gift or gifts as they apply in relation to a resolution under Article 130(3) and the gift or gifts mentioned in Article 130(1)(a).
Where—
the charity trustees have passed a resolution under paragraph (2), and
(in a case where Article 130(5) to (11) apply in accordance with paragraph (4) above) either—
the charity trustees are notified by the Commission that it concurs with the resolution, or
the period of 3 months mentioned in Article 130(10) has elapsed without the Commission notifying them that it does not concur with the resolution,
the fund or portion may, by virtue of this Article, be expended in carrying out the purposes set out in the trusts to which the fund is subject without regard to the restrictions mentioned in paragraph (2).
The fund or portion may be so expended as from such date as is specified for this purpose in the resolution.
The Department may by order amend paragraph (4) by substituting a different sum for the sum specified there.
In this Article—
“available endowment fund” has the same meaning as in Article 129,
“market value” has the same meaning as in Article 130, and
the reference in paragraph (4) to the giving of property by an individual includes his giving it under his will.