§ 7-6-8. Limiting powers of certain corporations.
(a) No corporation that is a "private foundationâ€� as defined in § 509(a) (26 U.S.C. § 509(a)) of the Internal Revenue Code of 1954 shall:
(1) Engage in any act of "self-dealingâ€�, as defined in § 4941(d) (26 U.S.C. § 4941(d)) of the Internal Revenue Code of 1954, which would give rise to any liability for
the tax imposed by § 4941(a) (26 U.S.C. § 4941(a)) of the code;
(2) Retain any "excess business holdingsâ€�, as defined in § 4943(c) (26 U.S.C. § 4943(c)) of the Internal Revenue Code of 1954, which would give rise to any liability for
the
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§ 7-6-8. Limiting powers of certain corporations.
(a) No corporation that is a "private foundationâ€� as defined in § 509(a) (26 U.S.C. § 509(a)) of the Internal Revenue Code of 1954 shall:
(1) Engage in any act of "self-dealingâ€�, as defined in § 4941(d) (26 U.S.C. § 4941(d)) of the Internal Revenue Code of 1954, which would give rise to any liability for
the tax imposed by § 4941(a) (26 U.S.C. § 4941(a)) of the code;
(2) Retain any "excess business holdingsâ€�, as defined in § 4943(c) (26 U.S.C. § 4943(c)) of the Internal Revenue Code of 1954, which would give rise to any liability for
the tax imposed by § 4943(a) (26 U.S.C. § 4943(a)) of the code;
(3) Make any investment which would jeopardize the carrying out of any of the exempt purposes
of the trust, within the meaning of § 4944 (26 U.S.C. § 4944) of the Internal Revenue Code of 1954, so as to give rise to any liability for the
tax imposed by § 4944(a) (26 U.S.C. § 4944(a)) of the code; and
(4) Make any "taxable expendituresâ€�, as defined in § 4945(d) (26 U.S.C. § 4945(d)) of the Internal Revenue Code of 1954, which would give rise to any liability for
the tax imposed by § 4945(a) (26 U.S.C. § 4945(a)) of the code.
(b) Each corporation which is a "private foundationâ€� as defined in § 509(a) (26 U.S.C. § 509(a)) of the Internal Revenue Code of 1954 shall distribute for the purposes specified
in articles of organization for each taxable year, amounts at least sufficient to
avoid liability for the tax imposed by § 4942(a) (26 U.S.C. § 4942(a)) of the code.
(c) The provisions of subsections (a) and (b) of this section do not apply to any corporation
to the extent that a court of competent jurisdiction determines that the application
would be contrary to the terms of the articles of organization or other instrument
governing the corporation or governing the administration of charitable funds held
by it and that the articles of incorporation may not properly be changed to conform
to the sections.
(d) All references to sections of the Internal Revenue Code of 1954 include future amendments
to the sections and corresponding provisions of future internal revenue laws.