HomeMy WebLinkAbout1995-11-27 96-36 RESOLVECOUNCIL ACTION
Item No. 96-36
Date November 27, 1995
Item/Subject: Authorizing Transfer of Bangor Fuel Society Trust
Principal to Bangor Fuel Society
Responsible Department: Legal
Commentary:
Between 1875 and 1902, the City of Bangor accepted, in trust, six
bequests in a total amount of $4500.00, for the benefit of the
Bangor Fuel Society. Under the terms of the trust, the City has
made regular payments of trust income to the Bangor Fuel Society on
inannual basis. By Council Order dated December 27, 1943, the
come to be paid was stabilized at the City's annual return on its
investments or 5%, whichever is greater.
Recently, the Bangor Fuel Society has requested a transfer of the
trust principal. (See letter dated October 17, 1995, copy
attached). Because the original bequests make no provision for a
transfer of principal or appointment of a substitute trustee, court
approval is required prior to such a transfer. The attached
Resolve would authorize a transfer of the trust principal to the
Bangor Fuel Society as successor trustee, subject to prior court
approval. The Bangor Fuel Society would be responsible for
obtaining approval from court.
`' t1
Department Haad
1
Mana er's Comments:
City
Maaa.�tyNQ {fit
nager
Associated InfDonwtion: Resolve, 18-A MRSA S 7-201, Letter dated
October 17. 1995
Finance
Legal Approval:
City solicitor
Introduced For CONSENT AGENDA
_ Passage
First Reading
Referral Page 1 of 6
Assigned to Councilor Blanchette November 27, 1995 96-36
CITY OF BANGOR
(TITLE.) �il E501)3¢,..._.......Aatl"WA9...Tsa.Rslex...91..k:ngx_=._rue;_sog acx.....
Trust Fund Principal to Bangor Fuel Society
BF Ne CRF CouroH o/Ne CiN efBanpot:
RESOLVED.
WHEREAS,
the City of Bangor is trustee of a trust in the
amount of $4500 created by
private bequests for the
benefit of the Bangor Fuel Society; and
WHEREAS,
the Bangor Fuel Society annually receives and
distributes the inume from said trust for the
purpose of assisting low income Bangor residents with
their winter heating costs; and
wREREAS,
the Bangor Fuel Society has requested transfer of the
$4500 trust principal to the Society, to be invested
and administered with other funds held by the Society
for its charitable purpose; and
WHEREAS,
the City of Bangor desires to transfer the $4500
trust principal to the Society as successor trustee;
and
wHEREAS, the original bequests estalishing the trust make no
provision for transfer of the trust or for
appointment of a successor trustee, thereby
necessitating prior court approval of any such
transfer;
NOW, THEREFORE, by the City Council of the City of Bangor, be it
RESOLVED, THAT the City Finance Director is hereby authorized to
transfer and pay over to the officers of the Bangor Fuel Society,
in trust, the a= of $4500.00, plus accrued interest, upon
presentation of an order from the appropriate court authorizing
transfer of the trust and appointment of the Bangor Fuel Society a
successor trustee, pursuant to 18-A M.R.S.A. S 7-201 or other
provisions of law. Prior to transfer of the funds concerned, the
City Solicitor shall certify to the Finance Director in writing
that the transfer of funds and appointment of the Bangor Fuel
96-36
-2-
Society as successor trustee have been duly authorized by the
appropriate court. The City Solicitor is authorized, on behalf of
the City, to join the City as a petitioner in any petition filed in
court for this purpose; but the expense of any such petition and
court proceedings thereon shall be paid by the Bangor Fuel Society
from its own funds as a prior condition to the City's transfer of
the foods concerned.
IN CIT4 couNcri 96-36
November 27, 1995 8 E S 0 L V E
Passed
Authorizing Transfer of Bangor Fuel
CITY CLEM Society Trust Pond Principal to Bangor
Fuel Society
BANGOR FUEL SOCIETY
P.O. Box 39
Brooksville, ME 04617-0039
October 17, 1996
city Treasurer, City of Bangor
City Hall
Bangor, ME 04401
<a m
Dear Sir:
I am willing to ask that die annual diatrlbution of income from the City Trust
Funds be paid to the Bangor Fuel Society and mailed to the Society at the above
address. Our fiscal year ends October 31, and it would be helpful to receive the
income distribution on or before that date.
At their Annual Meeting on December 12,1994, the corporate members of
the Bangor Fuel Scciety voted to askthat the City of Bangor terminate the Tmst
held for the Society's benefit and tum over all awumulated principal and income
to the Bangor Fuel Society. AS Secretary of the Society, l certify that vote.
We understand that the original principal amount deposited with the City
Of Bangor as Trustee for the Society was $4.5W. Please advise what other
requirements you may have in order to terminate the Trust Bengemnt.ngor We
eri s
understand similar arrangements have been terminated by
Home and the Bangor Public Library.
Very.tmlyy�urs
' Franldin W. Eaton
Secretary and Treasurer
Bangor Fuel Society
Copy to: RECEIVED
Cit Auditor, Bangor, ME
" N09 021955
DEF�ARTiAENT.