79-11-51 - Prohibited acts.
§ 79-11-51. Prohibited acts.
No corporation which is a "private foundation," as defined in Section 509(a) of the United States Internal Revenue Code shall:
(a) 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;
(b) 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;
(c) 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
(d) 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.
Sources: Codes, 1942, § 672-221; Laws, 1972, ch. 440, § 1, eff from and after passage (approved May 4, 1972).