35. Charitable Trusts

(1) A Charitable Trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health or art, the protection of the environment, or any other purposes which are beneficial to the general public.

(2) If the terms of a Charitable Trust do not indicate a particular charitable purpose or Beneficiary or a means by which a particular charitable purpose or Beneficiary may be selected, the Court may select one or more charitable purposes or Beneficiaries in accordance with the Settlor’s intention to the extent it can be ascertained.

(3) Subject to subsection 35(4) if a particular charitable purpose becomes unlawful, impracticable, impossible to achieve, contrary to public policy in the AIFC, or obsolete in that, by reason of changed circumstances, it fails to achieve the purpose of the Trust:

• (a) the Trust does not fail, in whole or in part;
• (b) the Trust Property does not revert to the Settlor or the Settlor’s successors in interest; and
• (c) the Court may apply cy-près to vary or terminate the Trust by directing that the Trust Property be applied or distributed, in whole or in part, to one or more charitable purposes or Beneficiaries in accordance with the Settlor’s intention to the extent it can be ascertained and otherwise as the Court may direct.

(4) A provision in the terms of a Charitable Trust that would result in distribution of the Trust Property to a non-charitable Beneficiary prevails over the power of the Court under subsection 35(3) to apply cy-près to vary or terminate the Trust only if, when the provision takes effect, the Trust Property is to revert to the Settlor and the Settlor is still living.

(5) A Charitable Trust may be enforced by the Settlor of the Trust, if the Settlor is still living, maintaining a proceeding to Enforce such Trust or by the Court on the application of any of the Settlor’s heirs or the AFSA or a person designated by it.