N.Y. Education Law § 220: Distribution of assets

§ 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.