HomeMy WebLinkAboutGilroy Museum - Endowment Trust AgreementTHE GILROY MUSEUM
ENDOWMENT TRUST AGREEMENT
This Trust Agreement is by and between the City of Gilroy, a municipal corporation, as
the Settler and as the Trustee, and the Gilroy Historical Society, a non - profit organization as the
Special Advising Trustee.
ESTABLISHMENT OF THE TRUST
The Gilroy Museum Endowment Trust (the "Trust ") is established upon the execution of
this Trust Agreement, and upon the funding of the Trust.
TERM
The Gilroy Museum Endowment Trust shall continue so long as the Gilroy Museum is in
existence as an asset belonging to the City of Gilroy, but not longer than December 31, 2057.
FUNDING OF THE TRUST
The core funds for the trust will come from the sale of the Kaiser Wilhelm II vase
currently held in the collection of the Gilroy Museum. The proceeds of the sale of the Kaiser
Wilhelm II vase and such other items which may be sold in the future due to de- accession from
the Gilroy Museum collection may, at the City's direction, be deposited into said Trust upon
receipt of such proceeds by the City of Gilroy. In the future, the Gilroy Historical Society, other
organizations or individuals may contribute to the Core Fund of the Trust.
ENDOWMENT
The principle amount of all contributions to the Trust (the Core Fund) shall be held by the
Trustee without being depleted. Any interest or other earnings on the Core Fund may be spent in
accord with this Trust Agreement.
TRUSTEE
The City of Gilroy will serve as the Trustee of the Trust. The Trust funds shall be
annually accounted for separately from other City funds.
Should the City lose the desire or the ability to manage the Trust, the Trust responsibility
will be transferred to the Gilroy Historical Society as successor Trustee, and if the Gilroy
Historical Society no longer exists or does not have the desire or ability to act as Trustee, a
successor Trustee shall be appointed by the City of Gilroy.
EARNINGS ON THE CORE FUND
Any interest earned on the Core Fund shall be annually posted to the Trust account. Such
interest earnings may be spent in the subsequent two years in accord with the criteria of the
Trust. If any earnings are not spent within two years, such earnings shall be added to the Core
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Fund. If a long term master development program has been adopted for the Gilroy Museum by
the City of Gilroy, the annual earnings may be set aside for up to six years to fund such long
term program.
The Trustee will deposit the Core Fund and interest earnings into an interest bearing
federally insured bank account, or the City of Gilroy may deposit the monies in the City's pooled
investment account and annually post the proportional interest earned to the Trust.
USE OF EARNINGS
The income of this Trust shall be spent solely for the benefit of the Gilroy Museum's
special programs, special projects, collections, enhancement, direct care of the Museum's
collections and any long term master development program that has been adopted by the City of
Gilroy. Income of this Trust may not be used for maintenance, repairs, salaries, travel, stipends
or any operational expense of the Gilroy Museum.
Should the Gilroy Museum cease to function and the collection is retired, the Trust
income may be used for local Gilroy history programs and projects provided by any Gilroy
foundation or entity interested in Gilroy history as determined by the Trustee.
PROCEDURE FOR DISBURSEMENTS
The Gilroy Historical Society Board of Directors, or the governing board of a successor
organization that has been approved by the City of Gilroy, by February of each year will make a
recommendation for the use and disbursement of any earnings from this Trust. Such
recommendation shall be made to the Gilroy City Council, who acts on behalf of the Trustee.
The City Council shall make the final determination for the use of earnings as allowed by this
Trust Agreement. If at any time the City Council appoints a Commission or Advisory Board for
the Gilroy Museum, the Gilroy Historical Society shall also forward its recommendation to such
Commission or Board for review.
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esident of the Gilroy H s " rical Society
Board of Directors
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Dated
1LAC1733024.3
073007 - 04706083
A mheiro, Mayor of the City of
Gilroy
Date
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Revised: 8/30/2007