(a)(1) No corporation formed under the laws of this state, whether with or without capital stock, which is a “private foundation” as defined in Section 509 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, shall, during the period while it is such a private foundation:
(A)Engage in any act of “self-dealing”, as defined in Section 4941(d) of said code;
(B)retain any “excess business holdings”, as defined in Section 4943(c) of said code;
(C)make any investment which would jeopardize the carrying out of any of its exempt purposes, within the meaning of Section 4944 of said code, so as to give rise to any liability for tax imposed on such corporation by Section 4944 of said code; or (D) make any “t
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(a)(1) No corporation formed under the laws of this state, whether with or without capital stock, which is a “private foundation” as defined in Section 509 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, shall, during the period while it is such a private foundation: (A) Engage in any act of “self-dealing”, as defined in Section 4941(d) of said code; (B) retain any “excess business holdings”, as defined in Section 4943(c) of said code; (C) make any investment which would jeopardize the carrying out of any of its exempt purposes, within the meaning of Section 4944 of said code, so as to give rise to any liability for tax imposed on such corporation by Section 4944 of said code; or (D) make any “taxable expenditures”, as defined in Section 4945(d) of said code. (2) Each corporation formed under the laws of this state, whether with or without capital stock, which is a private foundation, as defined in subdivision (1) of this subsection, shall, during the period while it is such a private foundation, distribute amounts for the purposes specified in its articles of organization, in such manner and at such times as are at least sufficient to avoid liability for the tax imposed by Section 4942 of said code. (3) All references to sections of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, in this section, are to such sections as amended and in effect on May 21, 1971, and shall include future amendments to such sections and corresponding provisions of future federal internal revenue laws. (b) The provisions of subsection (a) of this section shall not apply to any corporation to the extent that a court of competent jurisdiction shall determine that (1) such application would be contrary to the terms of the articles of organization or other instrument governing such corporation or governing the administration of charitable funds held by it; and (2) such instrument may not properly be changed to conform to said subsection. (c) The provisions of subsection (a) of this section shall not require or prohibit any act with respect to which Section 508(e) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, does not apply by virtue of Section 101(l)(6) of the Tax Reform Act of 1969 (Public Law 91-172).