(a) For the purposes of this section, a "no-contest provision" means a provision of the governing documents that, if given effect, would reduce or eliminate a beneficiary's interest because the beneficiary directly or indirectly initiates or otherwise pursues: (1) Any judicial proceeding against the foundation or any of the foundation officials, including any judicial proceeding: (A) Contesting the validity of the foundation's formation; (B) Contesting the validity of a contribution by a founder to the foundation; (C) Contesting the validity of the foundation's governing documents; (D) Seeking to set aside any provision of the governing documents; (E) Seeking to void any action by the foundation officials; or (F) Seeking to dissolve the foundation; or (2) Any act that frustrates or defeats the founder's intent as expressed in the terms of the governing documents. (b) Subject to subsections (c) and (d), a no-contest provision shall be enforceable in accordance with its express terms regardless of whether: (1) The beneficiary acted in good faith or with probable cause; or (2) The enforcement of the no-contest provision would result in a partial or complete forfeiture of the beneficiary's interest. (c) A no-contest provision shall be unenforceable to the extent that: (1) The court dissolves the foundation under RSA 564-F:20-2013(a); or (2) A judicial proceeding only involved a claim against a foundation official for a breach of duty, and the foundation official committed a breach of duty. (d) A no-contest provision shall be unenforceable to the extent that a beneficiary initiates, maintains, or cooperates in: (1) Any judicial proceeding initiated by a foundation official; (2) Any nonjudicial settlement agreement or other agreement among the beneficiaries and any other interested persons in settlement of a dispute or resolution of any other matter relating to the foundation; (3) Any judicial proceeding for the interpretation or construction of a provision of the governing instrument, including the interpretation or construction of the no-contest provision with respect to any proposed or pending petition or motion; or (4) To the extent that the foundation is a charitable trust, any judicial proceeding brought by the director of charitable trusts for the interpretation or construction of the foundation's governing documents.
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