She has blamed Mr Trump and his three oldest offspring of utilizing it for private and political gain.
The establishment's legal advisor blamed her for endeavoring to politicize the issue. Six legitimate cerebral pains for Donald Trump What's the arrangement with the Trump Foundation? This is only one of a few lawful cases as of now twirling around Mr Trump and his family. Others incorporate a far reaching unique advice examination concerning claimed ties between the Trump battle and Russia headed by previous FBI boss Robert Mueller.
What do examiners say?
Ms Underwood said the body of evidence against Mr Trump and his youngsters Donald Jr, Ivanka and Eric would proceed.
In an announcement, she said there had been "a stunning example of lawlessness including the Trump Foundation - incorporating unlawful co-appointment with the Trump presidential crusade, rehashed and wilful self-managing, and considerably more".
She proceeded with: "This added up to the Trump Foundation working as meager in excess of a checkbook to serve Mr Trump's the same old thing and political interests." Under the terms of the arrangement to close down the establishment, Ms Underwood stated, it must be disintegrated under legal supervision and could just appropriate its benefits "to respectable associations affirmed by my office".
She included: "This is an imperative triumph for the standard of law, clarifying that there is one lot of principles for everybody.
"We'll keep on pushing our suit ahead to guarantee that the Trump Foundation and its chiefs are considered responsible for their unmistakable and rehashed infringement of state and government law."
Also, the Trumps?
In an announcement to the BBC, Trump Foundation legal counselor Alan Futerfas - signatory to the arrangement shutting the establishment - stated: "In spite of the NYAG's [New York Attorney General] deluding articulation... the establishment has been trying to break down and appropriate its residual resources for advantageous beneficent causes since Donald J Trump's triumph in the 2016 presidential race.
"Sadly, the NYAG looked to forestall disintegration for very nearly two years, along these lines denying those most needing almost $1.7m.
"Over the previous decade, the establishment is glad to have circulated around $19m, including $8.25m of the president's close to home cash, to more than 700 distinctive altruistic associations with for all intents and purposes zero costs.
"The NYAG's erroneous articulation of early today is a further endeavor to politicize this issue." Mr Trump and his oldest youngsters still can't seem to remark. Last June, Mr Trump showed on Twitter that he was not willing to settle the case, demanding the establishment had done nothing incorrectly
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