The provisions of this division shall be liberally construed to effect its objects and promote its purposes.
Endowment Hospitals
Section § 32500
This section means that when interpreting the laws in this division, they should be understood in a way that best achieves their goals and purposes.
liberal construction interpretation law objectives
Section § 32501
If you want to create a hospital in California to help the sick and to serve as a nurse training school, you can give your property to a trustee for this purpose. This applies if the property is in California. If you're married or in a domestic partnership and the property is shared (community property), both partners must agree to this transfer.
Any person desiring in his or her lifetime to promote the public welfare by founding, endowing, and having maintained within this state a hospital for the relief of the sick, and for use as a training school for nurses may, by grant in writing, convey to a trustee named in the grant and to the successor of such trustee, any of his or her property situated within this state. If he or she is married or in a registered domestic partnership and the property is community, both spouses shall join in the grant.
hospital founding nurse training school property transfer
Section § 32502
This law states that if you are going to grant something, it must be done, officially recognized, and documented using the same process that is used for transferring ownership of real estate.
The grant may be executed, acknowledged, and recorded in the manner provided by law for the execution, acknowledgment, and recording of a grant of real property.
grant execution acknowledgment process recording procedure
Section § 32503
This section explains what a person (the grantor) can specify when setting up a grant for a hospital. They can decide the hospital's purpose and name, outline the trustee's responsibilities and who the trustee reports to, and describe how a new trustee should be chosen if needed. The grantor can also set rules for managing the property, but these rules can be flexible if conditions change.
The grantor may designate in the grant:
(a)CA Health & Safety Code § 32503(a)
The nature, object, and purpose of the hospital.
(b)CA Health & Safety Code § 32503(b)
The name by which it shall be known.
(c)CA Health & Safety Code § 32503(c)
The powers and duties of the trustee, including the manner in which he shall account, and to whom. Such powers and duties shall not be held to be exclusive of any others necessary to enable the trustee fully to carry out the object of the grant.
(d)CA Health & Safety Code § 32503(d)
The mode and manner by which, and the person by whom any successor of the named trustee shall be appointed.
(e)CA Health & Safety Code § 32503(e)
Such rules and regulations for the management of the property conveyed as the grantor may elect to prescribe. Unless the grantor otherwise prescribes, such rules shall be advisory only, and shall not preclude the trustee from making such changes as new conditions may from time to time require.
hospital grant trustee powers hospital management rules
Section § 32504
This law allows the trustee of a hospital to manage gifts of property on behalf of the hospital, including the authority to grant, receive, and hold these gifts. The trustee can also engage in legal actions, such as suing or defending, in matters related to the hospital's property and its general affairs.
The trustee may in the name of the hospital grant, receive, and hold gifts of property, and sue and defend in relation to the trust property and all matters affecting the hospital.
hospital trustee gifts of property property management
Section § 32505
This section allows the trustee to use corporate powers and organize a board of trustees. The trustee can elect officers, create by-laws, and conduct business as needed through the board or officers, as long as it's documented in writing.
The trustee may exercise corporate powers and privileges, and to that end may organize and act as a board of trustees, elect such officers of the board as he may deem necessary, adopt by-laws, and as such board or through such officers transact such business, perform such acts, and exercise such powers as he in writing may provide may be transacted, performed, and exercised by such board.
trustee powers corporate powers board of trustees
Section § 32506
This law allows the board to create and use an official seal. When this seal is attached to a document, it serves as initial proof that the document was officially created by the board and has the trustee's authority.
The board may adopt and use a seal. When attached to any document or writing the seal shall be prima facie evidence that the document or writing was made by and under due authority from the board and the trustee.
board seal official seal prima facie evidence
Section § 32507
This law allows someone who donates property and money to create a hospital to choose to manage it themselves while they are alive. They can take on all the responsibilities and powers of a trustee during their lifetime. Once they pass away, the management duties and powers will automatically shift to the person designated as the trustee.
The grantor, by a provision in the grant, may during his lifetime elect, in relation to the property conveyed and to the erection, maintenance, and management of the hospital, to perform all the duties and exercise all the powers which, by the terms of the grant, are enjoined upon and vested in the trustee. In such case the powers and duties conferred and imposed by the grant upon the trustee shall be exercised and performed by the grantor during his lifetime. Upon the death of the grantor the powers and duties shall devolve upon and be exercised by the trustee or his successor.
property conveyance hospital management grantor powers
Section § 32508
You have two years from the date a property transfer is officially recorded to challenge it in court. This includes questioning the title's legitimacy or disputing any rental income from the property. After this two-year period, you lose the right to contest it, and the property can't be forcibly sold to satisfy debts.
No suit, action, or proceeding shall be commenced or maintained by any person to set aside, annul, or affect the conveyance or the title to the property conveyed, or the right to the possession, rents, issues, and profits thereof, unless it is commenced within two years after the date of filing the grant for record. Nor in any suit, action, or proceeding commenced by the trustee named in the grant, his successor, privy, or any person holding under him shall any defense be made involving the legality of the grant, or affecting the title to the property thereby conveyed, the right to its possession, or the rents, issues, and profits thereof, unless the suit, action, or proceeding is commenced within two years after the grant is filed for record. After such filing the property shall be exempt from execution and forced sale.
property transfer challenge title dispute possession rights
