New York Laws
Part 1 - General Organization
220 - Distribution of Assets.

§ 220. Distribution of assets. 1. Whenever the regents have revoked
the charter of any educational corporation or dissolved such corporation
pursuant to section two hundred nineteen of this chapter or whenever a
provisional charter has expired, if the corporation has assets the board
of trustees shall, within three months after such revocation,
dissolution or expiration, petition the supreme court in the judicial
district where the principal office of the corporation is or was located
for an order directing the disposition of any and all property belonging
to the corporation. Such petition shall be duly verified and shall set
forth a complete statement of all the assets, together with their
location and an estimate of their value, and also a statement of the
ascertainable debts of the corporation.

2. Such petition shall be accompanied by proof that notice of the time
and place of such intended application to said court has been duly
published once in each week for at least four weeks successively, next
preceding such application, in a newspaper circulated in the county
where such corporation is located.

3. A copy of such petition shall be served upon the regents and the
attorney general not less than ten days prior to such application.

4. The court shall direct the sale of sufficient designated assets to
pay any outstanding debts and the cost of dissolution. The regents and
the board of trustees may present to the court their recommendation as
to the disposition of the remaining property of the corporation if there
be library books, objects of art or of historical significance, as far
as possible they shall not be sold but shall be transferred to
libraries, museums or educational institutions willing to accept them.
If a charter contains a provision indicating a proposed disposition of
the assets in case of dissolution, such provision shall be followed by
the court in its order as far as practicable. If there be any surplus
moneys after payment of debts and the expenses of liquidation, the court
may direct that the same be devoted and applied to any such educational,
religious, benevolent, charitable or other objects or purposes as the
said trustees may indicate by their petition and the said court may
approve.

5. Upon the revocation of the charter of an educational corporation or
its dissolution, the trustees of such corporation shall be empowered to
continue in office for the purpose of settlement of the affairs of the
corporation.

Structure New York Laws