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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.