Effective 14 Jun 1971, see footnote

352.245. Private foundations, prohibited activities. — 1. No corporation organized under this chapter which is a "private foundation" as defined in section 509(a) of the United States Internal Revenue Code shall

(1) Engage in any act of "self-dealing", as defined in section 4941(d) of the United States Internal Revenue Code, which would give rise to any liability for the tax imposed by section 4941(a) of the United States Internal Revenue Code;

(2) Retain any "excess business holdings", as defined in section 4943(c) of the United States Internal Revenue Code, which would give rise to any liability for the tax imposed by section 4943(a) of the United States Internal Revenue Code;

(3) Make any investment which would jeopardize the carrying out of any of its exempt purposes, within the meaning of section 4944 of the United States Internal Revenue Code, so as to give rise to any liability for the tax imposed by section 4944(a) of the United States Internal Revenue Code; and

(4) Make any "taxable expenditures", as defined in section 4945(d) of the United States Internal Revenue Code, which would give rise to any liability for the tax imposed by section 4945(a) of the United States Internal Revenue Code.

2. Each corporation which is a "private foundation" as defined in section 509 of the United States Internal Revenue Code shall distribute, for the purposes specified in its articles of organization, for each taxable year, amounts at least sufficient to avoid liability for the tax imposed by section 4942(a) of the United States Internal Revenue Code.

3. The provisions of subsections 1 and 2 of this section shall not apply to any corporation to the extent that a court of competent jurisdiction shall determine that 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 that the same may not properly be changed to conform to such sections. The corporation shall not be liable to anyone for any payments made under subsection 2 prior to such determination.

4. Nothing in this section shall impair the rights and powers of the courts or the attorney general of this state with respect to any corporation.

5. All references to sections of the United States Internal Revenue Code shall be to such law as of June 14, 1971.

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(L. 1971 S.B. 48)

Effective 6-14-71