The Article 71 of the Law on Endowments and Foundations (“Official Gazette of RS”, number 88/10), prescribes that by the date of its implementation, that is March 2nd, 2011., expires the Law that is shown, except in the part which regulates legal status of funds whose founder or cofounder is Republic of Serbia, autonomous province, local self-government respectively.

On the basis of the Amendment XXXIX, point 7. of the Constitution of the Socialist Republic of Serbia, I hereby issue a

DECREE OF THE PROMULGATION OF THE LAW ON ENDOWMENTS, FOUNDATIONS AND FUNDS

The Law of Endowments, Foundations and Funds, passed by the Assembly of the Socialist Republic of Serbia, on the session of the House of Associated Work on December 28th, 1989., on the session of the House of Municipalities on December 28th, 1989., and on the session of Socio-political House on December 28th, 1989., and the Assembly of the Republic’s Community of culture on the session on December 28th 1989.

RS number 326

In Belgrade, December 28th, 1989.

Assembly of the SocialistRepublic of Serbia

President of the Assembly,

Zoran Sokolović, m.p.

LAW ON ENDOWMENTS, FOUNDATIONS AND FUNDS

(Of. Gazette of SRS number 59/89, EXPIRED:Of. Gazette or RS number 88/10 –other law) EXCEPT CERTAIN PROVISIONS

Basic text in force from 05/01/1990,implemented from 05/01/1990

I. BASIC PROVISIONS

Article 1.

This Law establishes conditions for establishment of endowment, foundation and fund, for which goals they can be established, managing of endowment, foundation and fund and conditions and way of cessation of their existence.

Article 2.

Endowment, foundation and fund are established in order to help (*cultural, transl.) creation and realize humanitarian and other socially useful goals.

Article 3.

(1) Endowment, foundation and fundcan be established if the goals for which they are established can be realized by the means that are provided.

(2) Establishment of the endowment, foundation and fund, except for the foundation and fund established by socio-political community, is approved by the Republic’s organ in charge of cultural affairs

Article 4.

(1) Endowment can be established by physical person with their own means.

(2) Foundation can be established by legal persons with social means.

(3) Fund can be established by physical and legal persons only with private or only with social means, or both with private and social means in the same time.

Article 5.

Foundation which is already established can be joined, as co-founders, by other legal persons, as well as physical persons.

Article 6.

The work of theEndowment, foundation and fundis public.

Article 7.

(1) Endowment, foundation and fundare to be registered into Register ofEndowments, foundations and funds (in further text: Register).

(2) Endowment, foundation and fundcan realize their goals once they are registered in Register.

(3) Register also registers the character of their property.

(4) Endowment, foundation and fundare registered in Register after they receive aproval for their establishment.

Article 8.

(1) By registering in Register, Endowment, foundation and fundacquire qualification of the legal person.

(2) Fund maintains its qualification as a legal person even after it is entrusted to another socio-legal person to manage, in case that co-founder agrees.

(3) In case of entrusting the management of the fund to another socio-legal person, the founder of the fund decides whether the fund will maintain its qualification of the legal person, o whether he’ll renounce it.

Article 9.

(1) The Endowment is managed by the founder. The Endowment, by the will of the founder, can also be managed by another physical person or persons. After the death of the founder, if the last will doesn’t determine otherwise, endowment is taken over by socio-political community.

(2) Foundation is managed by collegial organ.

(3) Fund is managed by founder or collegial organ of the organization to which, by the will of the founder, the fund isgiven over for management.

Article 10.

Endowment and foundation have statute, and fund has rules.

Article 11.

(1) The means of theEndowment, foundation and fundcan be socially or privately owned.

(2) In case when private means are entered into Endowment, foundation and fund, the founding act sets up the character of the property of these institutions.

Article 12.

Endowments, foundations and funds can dispose rights and means and have real estates or movable things.

Article 13.

(1) The means of the Endowment, foundation and fundcan bi used only for purposes and in ways determined by the founder, if this law doesn’t determine otherwise.

(2) For the realization of the goals of theEndowment, foundation and fund,incomes from the rights and properties can be used, according to the will of the founder.

(3) The form in which are the means of theEndowment, foundation and fund which are social property can be modified, without the modification of the character of the property, if that would preserve the value of the means and provide easier and longer realizations of the goals of these institutions.

Article 14.

When the goals of the Endowment, foundation and fundwhose means are in social property are realized, or when those institutions loose the sense for which they are established, on the proposal of the socio-legal person which manages the fund, the republic’s organ of administration in charge of cultural affairs can approve change of the goals of the endowment, foundation or fund respectively.

Article 15.

Endowments, foundations and funds can:

- acquire income and collect fruits in accordance with the law (lease, interests, dividends, fruits from the agricultural land, incomes based on copyrights and patents etc.);

- acquire incomes in accordance with provisions of this law and other rules and organize actions that are set up in the Act of establishment, and

- accept gifts and bequests for realization of the goals for which they are established.

Article 16.

For the means given to the endowment, foundation or fund, taxes and contributions regulated by Republic’s regulations are not to be paid.

Article 17.

(1) The means of theEndowment, foundation and funds which are socially owned are allocated and spent on the basis of financial plan.

(2) The Organ that manages endowment and foundation or organization that manages fund respectively, establishes financial plan and balance sheet.

Article 18.

Republic’s administrative organ in charge of cultural affairs can approve, for a foundation which is established, as a sign of gratitude to a person whose work contributed to the scientific, cultural and artistic development, to carry the name of the endowment, that is of the fund, of that person, except when the founder of the foundation is socio-political community.

Article 19.

Supervision over the legality of work ofEndowment, foundation and fundis conducted by the municipality’s administrative organ in charge of cultural affairs.

II. ESTABLISHMENT OF THEENDOWMENT, FOUNDATION AND FUND

Article 20.

(1) Physical persons establish endowment, that is the fund, by declaring their will in the form of the document authenticated in the court, or by their last will.

(2) Legal persons establish foundation or fund respectively, by the general act.

(3) Multiple founders can establish endowment, foundation or fund by a contract, or other joint act respectively.

(4) Foreign citizens can establish endowment or fund respectively, according to the provisions of this Law, just as domestic citizens.

(5) Foreign citizens can be co-founders of the endowment in accordance with this Law.

Article 21.

(1) The Act of the establishment of the endowment, or foundation respectively has: the name or the name of the founder respectively, the goal of the establishment, data of means and their character, the name of the endowment or foundation respectively, way of managing and using the means.

(2) If the founder did not set up organs and ways of managing with its establishment act, the assembly of the municipality on whose territory founder has residence or head office respectively, sets up organ and way of managing of the endowment or foundation respectively.

Article 22.

The Act of the establishment of fund has: the name or the name of the founder respectively, the goal of the establishment, data of means and their caracter, the name of the fund andway of managing the fund and using the means.

Article 23.

If the endowment or fund respectively is established by last will, and the founder did not set up who will take care of means intended for endowment, that is fund respectively, municipality’s administrative organ in charge of cultural affairs will undertake necessary measures for preservation of the means, until the managing organ of the endowment is established or until the fund is given over to certain organization to manage it respectively.

III. RIGHTS AND DUTIES OF THE REPUBLIC’S ORGAN

Article 24.

Republic’s administrative organ in charge of cultural affairs:

- estimates suitability of the establishment and decides on the aproval of the establishment of the endowment, foundation and fund;

- keeps register and prescribes data and way of keeping the register;

- provides expert help to working people and citizens and municipality’s organs in jobs related to the establishment and work of the Endowments, foundations and funds.

Article 25.

The decision by which the establishment of the endowment, foundation and fund is approved is delivered to founders and municipality’s administrative organ in charge of cultural affairs on whose teritory is the head office of the endowment, foundation and fund.

IV. MANAGING OF THE ENDOWMENT, FOUNDATION AND FUND

Article 26.

(1) The statute of the endowment or foundation respectively is passed by the administrative organ, and the rules of the fund, by founder or by managing organ of the organization which manages the fund.

(2) The statute defines: the composition of the managing organ and way of their work; detailed way of the realization of goals; head office of the endowment or foundation respectively; organ or person respectively which represents the endowment or foundation respectively; ways of disposing of incomes and means; supervision; measures for providing the purposeful usage of the means and way of preserving the memory of founder or of person respectively, after whom the endowment or foundation respectively is named.

(3) The rules of the Fund define: detailed way of the realization of goals, organ or person that represents the fund, supervision, measures for providing the purposeful usage of the means and way of preserving the memory of founder or of person respectively, after whom the fund is named.

Article 27.

Organization that manages the fund is responsible for obligations that are derived from the managing of means of the fund to the appropriate municipality’s assembly.

Article 28.

The organ of managing of endowment and foundation, or organization that manages the fund respectively, whose means are socialy owned, once a year delivers the report of its work to the municipality’s administrative organ in charge of cultural affairs.

V. CESSATION OF WORK OFENDOWMENT, FOUNDATION AND FUND

Article 29.

(1) Endowment, foundation and fundcease to work when they realize the goals for which they are established, or when they spend the means.

(2) The decision of establishing whether the goal is realized or whether the means are spent respectively, is taken by the founder or the organ that manages endowment of foundation, or the organ which manages the organization which manages the fund respectively.

Article 30.

When the endowment, or foundation respectively, after realization of the goal ceases to work, or when it doesn’t fulfill its goals in a longer period of time respectively, the remaining means are allocated according to statute, and if the statute does not have provisions about that, the decision on the allocation of the means is taken by the founder, or the municipality’s assembly on whose territory is located the head office of the endowment or foundation respectively.

Article 31.

(1) When the costs of managing of endowment or foundation respectively, are bigger than incomes, the managing organ takes the decision on the adjoining of the endowment or foundation respectively to another endowment or foundation respectively with same or similar goals, with their agreement, and after they provide the opinion of the founder.

(2) If the managing organ from paragraph 1. of this Article does not take the decision on adjoining, or if there is no endowment or foundation respectively with same or similar goals located on the territory of the municipality where head office of the endowment or foundation respectively is, the decision on the cessation of work and allocation of the remaining means will be taken by the assembly of that municipality, after it provides the opinion of the founder.

(3) Republic’s administrative organ in charge of cultural affairs is giving his approval on the decision from paragraphs 1 and 2 of this Article

Article 32.

When organization to whom the fund is given over for managing ceases to work, municipality’s assembly gives over the fund to another organization to manage with its agreement, and if there is no such organization, the fund will be managed by the municipality’s assembly.

VI. TRANSITIONAL AND FINAL PROVISIONS

Article 33.

On the request for the approval of the establishment of the endowment, foundation and fund submitted until the date when this Law comes into force, upon which the decision is not taken yet, the decision will be taken by the Republic’s administrative organ in charge of cultural affairs, in accordance with provisions of this Law.

Article 34.

Until subordinate act on data and way of keeping the Register of the endowment, foundation and fund is passed, the Rule book of data and way of keeping the Register of the endowments, foundations and funds will be implemented (“Official Gazette of SR Serbia” number 19/73).

Article 35.

On the date this Law comes into force, the Law of endowments, foundations and funds expires (“Official Gazette of SR Serbia” numbers 48/72, 1/83 and 23/86).

Article 36.

This law comes into force on the eighth day since the date of its publication in the “Official Gazette of the Socialist Republic of Serbia”.