Division 23.5. Endowment Hospitals of California Health And Safety Code >> Division 23.5.
The provisions of this division shall be liberally construed
to effect its objects and promote its purposes.
Any person desiring in his 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 property situated within this State. If he is married and the
property is community, both he and his wife shall join in the grant.
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.
The grantor may designate in the grant:
(a) The nature, object, and purpose of the hospital.
(b) The name by which it shall be known.
(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) The mode and manner by which, and the person by whom any
successor of the named trustee shall be appointed.
(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.
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.
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.
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.
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.
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.