§ 216-b. Private foundations, as defined in the United States internal\nrevenue code of 1954: provisions included in the charter.\n 1. The following provisions are hereby included in the charter,\nheretofore or hereafter granted under this chapter, to incorporate an\ninstitution or association (chartered organization) which is a private\nfoundation as defined in section 509 of the United States internal\nrevenue code of 1954 ("Code").\n a. The chartered organization shall distribute such amounts for each\ntaxable year at such time and in such manner as not to subject the\nchartered organization to tax on undistributed income under section 4942\nof the code.\n b. The chartered organization shall not engage in any act of\nself-dealing which is subject to tax under section 4941 of the co
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§ 216-b. Private foundations, as defined in the United States internal\nrevenue code of 1954: provisions included in the charter.\n 1. The following provisions are hereby included in the charter,\nheretofore or hereafter granted under this chapter, to incorporate an\ninstitution or association (chartered organization) which is a private\nfoundation as defined in section 509 of the United States internal\nrevenue code of 1954 ("Code").\n a. The chartered organization shall distribute such amounts for each\ntaxable year at such time and in such manner as not to subject the\nchartered organization to tax on undistributed income under section 4942\nof the code.\n b. The chartered organization shall not engage in any act of\nself-dealing which is subject to tax under section 4941 of the code.\n c. The chartered organization shall not retain any excess business\nholdings which are subject to tax under section 4943 of the code.\n d. The chartered organization shall not make any investments in such\nmanner as to subject the corporation to tax under section 4944 of the\ncode.\n e. The chartered organization shall not make any taxable expenditures\nwhich are subject to tax under section 4945 of the code. Except as\nprovided in subdivision two, this subdivision applies notwithstanding\nany other provision of the charter or any direction in an instrument by\nwhich assets were transferred to the chartered organization.\n 2. Subdivision 1 shall not apply to the extent that it conflicts with\nany mandatory direction in an instrument by which assets were\ntransferred to the chartered organization prior to the effective date of\nthis section unless such conflicting direction is removed as\nimpracticable under article eight of the estates, powers and trusts law\nor in any other manner provided by law. The absence of a specific\nprovision in such an instrument for the current use of the principal of\nthe fund, or the presence in such an instrument of a provision, as to\nthe principal of the fund, limited to the principal's being held,\ninvested and reinvested, is not such a conflicting mandatory direction.\n 3. All references in this section to sections of the code shall be to\nsections as amended from time to time, or to corresponding provisions of\nsubsequent internal revenue laws.\n 4. Nothing in this section shall impair the rights and powers of the\ncourts or the attorney-general of this state.\n