New York Education Law Section 220 - Distribution Of Assets.

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    § 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.

Last modified: August 13, 2006