Section 5-402 - Prohibited acts.
§ 5-402. Prohibited acts.
A private foundation may not:
(1) Engage in any act of "self-dealing", as defined in § 4941(d) of the Internal Revenue Code, which would cause any tax liability under § 4941(a) of the Internal Revenue Code;
(2) Retain any "excess business holdings", as defined in § 4943(c) of the Internal Revenue Code, which would cause any tax liability under § 4943(a) of the Internal Revenue Code;
(3) Make any investment which would jeopardize the carrying out of any of its exempt purposes under § 4944 of the Internal Revenue Code and cause any tax liability under § 4944(a) of the Internal Revenue Code; or
(4) Make any "taxable expenditures", as defined in § 4945(d) of the Internal Revenue Code, which would cause any tax liability under § 4945(a) of the Internal Revenue Code.
[An. Code 1957, art. 23, § 445; 1975, ch. 311, § 2; 1976, ch. 90; 1988, ch. 110, § 1.]