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(1) This section applies to any available endowment fund of a charity which is not a company or other body corporate if—
(a) the capital of the fund consists entirely of property given—
(i) by a particular individual,
(ii) by a particular institution (by way of grant or otherwise), or
(iii) by two or more individuals or institutions in pursuit of a common purpose, and
(b) the charity's gross income in its last financial year exceeded £1,000 and the market value of the endowment fund exceeds £10,000.
(2) If the condition in subsection (3) is met in relation to the charity, the charity trustees may resolve for the purposes of this section that the fund, or a portion of it, ought to be freed from the restrictions with respect to expenditure of capital that apply to it.
(3) The condition is that the charity trustees are satisfied that the purposes set out in the trusts to which the fund is subject could be carried out more effectively if the capital of the fund, or the relevant portion of the capital, could be expended as well as income accruing to it, rather than just such income.
(4) The charity trustees—
(a) must send a copy of any resolution under subsection (2) to the Commission, together with a statement of their reasons for passing it, and
(b) may not implement the resolution except in accordance with sections 283 and 284.
(5) In this section—
“available endowment fund” has the same meaning as in section 281;
“market value”, in relation to an endowment fund, means—
(a) the market value of the fund as recorded in the accounts for the last financial year of the relevant charity, or
(b) if no such value was so recorded, the current market value of the fund as determined on a valuation carried out for the purpose.
(6) In subsection (1), the reference to the giving of property by an individual includes the individual's giving it by will.
Specified date: 14 March 2012: see s 355.