Exception to provision authorizing governing board to appropriate certain assets of endowment fund; applicability.
1. NRS 164.580 does not apply if the applicable donative instrument indicates the donor’s intention that net appreciation may not be expended. A restriction upon the expenditure of net appreciation may not be implied from a designation of a gift as an endowment, or from a direction or authorization in the applicable donative instrument to use only “income,” “interest,” “dividends,” or “rents, issues or profits,” or “to preserve the principal intact,” or a direction that contains other words of similar import.
2. This rule of construction applies to donative instruments executed or in effect before, on or after October 1, 1997.
Last modified: February 25, 2006