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HomeMy WebLinkAboutC03-057 Alexander J. Allen Education TrustR' ~ ~ c o 3 - ~ ~-fo ..~ ~ ~ . TRUST AGREEMENT ESTABLISHING THE ALEXANDER J. ALLEN EDUCATION TRUST WHEYtEAS; Dr. Alexander J. Allen died on June 7, 1968 a resident of Allegheny County, Pennsylvania, leaving a Will dated February 11, 1960 and Codicil dated March 30, 1965 under which an education fund is to be established for the benefit of high school students of Eagle County, Colorado to assist such students in gaining a college education; and WHEREAS, Dr. Allen contemplated that each yeaz one or two $2,000 scholarships could be awazded to cover approximately one-half the expense of a year at college and that at that rate, the education fund would be fiilly expended in approximately ten years; and WHEREAS, the monies now distributable to the fund would make it impossible to deplete the fund in ten years if only $4,000 of scholarships were awazded annually; and WHEREAS, the terms of the Will and Codicil are inadequate to provide the necessary direction and limitations now required for the maintenance and distribution of an education fund in light of current tax, legal and investment management requirements. THEREFORE, in order to fulfill the~intentions of Dr. Allen as expressed in his Will and Codicil under the circumstances now extant, the Boazd of Commissioners of Eagle County, Colorado (the "Boazd"), does hereby establish this Trust for the sole purpose of supporting the Alexander J. Allen Education Fund (the "Fund"). Wells Fazgo Ban1~ West, N.A. is hereby named as Trustee. The Trustee agrees to hold said assets of the bust, together with any additions thereto, IN TRUST, to invest and reinvest and to distribute the net income and principal in accordance with the terms of this Agreement. ONE: (A) The Trustee shall pay so much of the income and principal in such amounts and in such manner as it shall be directed bythe Selection Committee of the Fund to provide scholarship grants for the undergraduate education of eligible Eagle County, Colorado students in accordance with the governing documents of the ~ Fund and the terms and conditions of this Trust. Distributions for scholarship grants from this trust must meet the requirements of § 117 of the Internal Revenue Code of r • 1986, as amended (the "Code") and the regulations thereunder. The Trustee also. may use income or principal to pay the reasonable expenses of the Fund directly relating to its purposes. (B) No income orprincipal shall be used for anypurpose which is not exclusively an educational purpose. No earnings of the.trust shall inure to the benefit of any private individual.. No substantial part of the activities of the mist shall be carrying on propaganda, or otherwise attempting, to influence legislation, except as provided in §501(h) of the Code, and it shall not participate in, or intervene in any political campaign on behalf of any candidate for public office, including by publishing or distributing statements. (C) It is intended that this trust shall at all times qualify as an organization described in §501(c){3) of the Code. Therefore the Board is authorized, with or without court order, to revise the terms of the mast so that it will qualify and continue to qualify as such. If the Board considers that such action will best serve the purposes of the Fund, it is authorized to caaase the assets of the Trust to be added to the assets of anypublic charity or community charitable trust so long as the assets so added will be dedicated to the same uses and purposes as the Fund. ffthe mast terminates for any reason, the remaining feast assets shall be paid to such one ormore organizations descn~ed in §501(c)(3) ofthe Code as the Board shall select consistent with the original purpose of the Fund. TWO: (A) The Trustee hereunder shall have the following powers, in addition to and not in limitation of those granted by law: to accept and to retain assets in kind or to sell the same and to invest and reinvest the proceeds and any other cash in any kind of property, real or personal, or part interest therein, located in the United States or abroad, including interest-bearing accounts in or certificates of deposit issued by its own banking department and securities underwritten by syndicates of which the Trustee is a member but not purchased from the Trustee, all statutory and other limitations as to the investment of fiords, now or hereafter enacted.or in force, being waived; to pledge, exchange or mortgage real or personal property and to lease the same for terms exceeding five (5) years; to give options for sales, leases and exchanges; to borrow money; to compromise claims; to vote shares of corporate stock, in person or by proxy, in favor of or against management proposals; to carry securities in the name of a nominee, including that of a clearing corporation or depository, or in book entry form or unregistered or in such other form as will pass by delivery; and to make division or distribution 2 D s • ' hereunder either in cash or in kind and to allocate to different shares different kinds of or interests in property and property having different bases for Federal income tax purposes, as the Trustee deems equitable. (B) Notwithstandingtpe foregoing, the Trustee shall not engage in any act of self-dealing, as defined in §4941(d) of the Internal Revenue Code, shall not retain any excess business holdings, as defined in §4943(c), shall.not make any investments in such mariner as to subject the trust to tax under §4944, shall not make any taxable expenditures, as defined in §4945(d), and shall make distributions at such time and in such manner as not to subject the trust to tax under §4942. Nothing in this Trust Agreement shall be construed to restrict the Trustee from investing the trust assets in a manner which could result in the annual realization of a reasonable amount of income or gain from the sale or disposition of trust assets. The Trustee shall not retain or invest in shares of its own stock or that of any corporation having control over it. (C) The Board, in its sole discretion and without cause, is authorized to remove the Trustee. (D) A Trustee may resign at anytime, without stating cause, by delivering written notice of its resignation to the Board. Such resignation shall be effective upon the acceptance of this Trust by a successor corporate trustee. In case of the merger or consolidation of the Trustee, the resultant company shall become successor Trustee hereunder without notice to any party. (E) The Tnistee shall be entitled to receive annual compensation for its services hereunder in accordance with its schedule in effect when the services are performed. (F~ Upon the resignation or removal of a Tr ustee, the Board shall appoint a successor corporate Trustee qualified to act as such in the State of Colorado. THREE: The references herein to specific sections of the Internal Revenue Code shall include corresponding provisions of any subsequent Federal tax laws. 3 ,` • MOVED, READ AND ADOPTED by the Board of County Commissioners of the County of Eagle, State of Colorado, at its regular meeting held the l day of March, 2003. ATTEST: ~-~~~ . ~-~~. ~- . ~ , ;~ ~ By: ~ ~ c,,h ~__ ~_ ~ ~ `~ Clerk the Boazd of ; Count Commissioners ~,~,._~~°'~~ y COUNTY OF EAGLE, STATE OF COLORADO, By and Through Its BOARD OF COUNTY CONIlVIISSIONERS ,, n By: By: L. Gallagher u ~IVI. Menconi COmm1SS10IIer By: ~ ~ Tom C. Stone Commissioner . Commissioner seconded adoption of the foregoing resolution. The roll having been called, the vote was as follows: Commissioner Michael C. Gallagher Commissioner Am M. Menconi Commissioner Tom C. Stone 4 er v 1 ACCEPTANCE OF TRUSTEE . Wells Fazgo Bank West, N.A., byits undersigned officer, being first duly authorized, does hereby accept the foregoing trust. WELLS FARGO BANK, N.A. Vice President ATTEST: 5