RE: [nc-budget] Re: PROPOSAL FROM NAMES COUNCIL BUDGET COMMITTEE ON THE ADMINISTRATIO N OF DNSO VOLUNTARY FUND

["Cochetti, Roger" <RCochetti@verisign.com>]

Thank you Stuart.

I think the next step in this process would be for ICANN management to draft
an MOU that would set forth the procedures that you would propose to use in
administering the DNSO's funds.  I would hope that the draft MOU would
address such matters as the prompt deposit of funds received; regular
reports to the Names Council or its designees; prompt disbursement of funds
as directed by the Names Council or its designees; the conditions and
procedures that would apply in the event that ICANN management received a
disbursement instruction with which it felt it could not comply; and some
mechanism for the resolution of disputes that might arise under the MOU. 

If it is possible to complete this draft within the next week, then I'd like
to take it before the Names Council's Budget Committee in advance of the
Council's May meeting and ask that the MOU be approved at that meeting.

Roger   




-----Original Message-----
From: M. Stuart Lynn [mailto:lynn@icann.org]
Sent: Thursday, April 12, 2001 11:15 PM
To: Cochetti, Roger; Louis Touton (E-mail)
Cc: 'nc-budget@dnso.org'
Subject: [nc-budget] Re: PROPOSAL FROM NAMES COUNCIL BUDGET COMMITTEE ON
THE ADMINISTRATIO N OF DNSO VOLUNTARY FUND


Dear Roger:

Thank you for your letter conveying the Names Council resolution 
regarding ICANN administration of DNSO funds. Louis and I would like 
to confirm that we accept both the Names Council's understanding of 
ICANN's offer and acknowledge the Council's acceptance of our offer.

We look forward to being of service to the Names Council in this regard.

Stuart

At 12:19 PM -0400 4/9/01, Cochetti, Roger wrote:
>Stuart and Louis-
>
>As you will recall, over the past several months, the DNSO Names Council's
>Budget Committee has been designing a structure for the administration of
>the funds that we expect to be voluntarily donated later this year to the
>DNSO. During our consideration of this subject, ICANN management
represented
>to us that it would be willing to enter into an agreement with the Names
>Council under which ICANN management would be willing to serve as a
>custodian for the DNSO of the funds that are voluntarily donated to the
>DNSO.  Under this custodial relationship, as the Budget Committee discussed
>it with ICANN management, ICANN management would be responsible for
>faithfully executing financial decisions of the Names Council or its
>designee, unless ICANN management feels that the execution by ICANN
>management of any particular instruction would either be illegal or would
>jeopardize ICANN's tax exempt status.  These decisions would mainly involve
>the deposit or release of funds donated to the DNSO.
>
>The Council has asked the Committee to resolve this administrative matter
>quickly in order that the solicitation and generation of funds for the
>voluntary fund can get underway.  Accordingly, the NC Budget Committee
>approved the attached resolution last week in which we accept ICANN's offer
>to administer these voluntarily-collected funds under defined
circumstances.
>Because we are anxious to proceed with this matter, the Committee asks that
>you both confirm that you accept our understanding of your offer; and
>acknowledge our acceptance of your offer within five days of today.
>
>As an aside, I would note that the administration of these voluntary funds
>is distinct from  -- but not entirely un-related to -- the administration
of
>the funds that are collected from the DNSO Constituencies for dues payments
>to the DNSO.  The funds generated by the dues paid annually by the DNSO's
>seven Constituencies have been administered by ICANN management since 1999
>(without any formal agreement) and the Budget Committee will now begin an
>examination of the administration of the funds generated by assessed
>Constituency dues.
>
>Thanks for your cooperation on this,
>
>Roger Cochetti,
>Chair
>Names Council Budget Committee
>
>
>===========================================================================
=
>=========================================
>
>
>
>The NC Budget Committee resolves to accept the offer by ICANN to administer
>DNSO funds on the understanding that:
>* ICANN will charge no administration fee
>* ICANN management will dispense these funds according to instructions
>from the Names Council or its designee, unless ICANN formally notifies the
>Names Council and its Budget Committee that  to do so would either be
>illegal or jeopardize ICANN's tax status.
>
>To ensure that arrangements for the administration of DNSO funds are
>completed in a timely manner, the Budget Committee requests ICANN
>confirmation within 5 days to the arrangements outlined above.
>
>The Budget Committee further resolves that, in the event that ICANN is no
>longer willing to manage DNSO funds, it will  proceed with the
establishment
>of a custodial relationship for its voluntary funds by a non-profit
>corporation that would be organized in, and under the laws of, France;
>recognizing that this French non-profit organization may establish a bank
>account for the DNSO's voluntary fund with a bank either inside or
>outside of France.

-- 

__________________
Stuart Lynn
President and CEO
ICANN
4676 Admiralty Way, Suite 330
Marina del Rey, CA 90292
Tel: 310-823-9358
Fax: 310-823-8649
Email: lynn@icann.org