US Laws, Codes, Statutes & Cases

 
  § 406. Private  foundation,  as  defined  in  the United States internal
           revenue code of 1954: provisions included in the certificate of
           incorporation.
    (a) The following provisions are hereby included in the certificate of
  incorporation of every domestic  corporation,  heretofore  or  hereafter
  formed,  to which this chapter applies in whole or in part, and which is
  a "private foundation" as defined in section 509 of  the  United  States
  internal revenue code of 1954 ("code"):
    (1)  The  corporation  shall  distribute such amounts for each taxable
  year at such time and in such manner as not to subject  the  corporation
  to tax on undistributed income under section 4942 of the code.
    (2)  The corporation shall not engage in any act or self-dealing which
  is subject to tax under section 4941 of the code.
    (3) The corporation shall not  retain  any  excess  business  holdings
  which are subject to tax under section 4943 of the code.
    (4)  The  corporation shall not make any investments in such manner as
  to subject the corporation to tax under section 4944 of the code.
    (5) The corporation shall not make any taxable expenditures which  are
  subject to tax under section 4945 of the code.
  Except   as   provided   in   paragraph   (b),  this  paragraph  applies
  notwithstanding any other provision of the certificate of  incorporation
  or   any   direction  in  an  instrument  referred  to  in  section  513
  (Administration of assets received for specific purposes).
    (b) Paragraph (a) shall not apply to the extent that it conflicts with
  any mandatory direction in an instrument by which assets referred to  in
  section  513  were transferred to the corporation prior to the effective
  date of this section unless such conflicting  direction  is  removed  as
  impracticable  under article eight of the estates, powers and trusts law
  or in any other manner provided  by  law.  The  absence  of  a  specific
  provision  in  the  section  513  instrument  for the current use of the
  principal of the fund, or the  presence  in  such  an  instrument  of  a
  provision,  as  to  the  principal of a fund, limited to the principal's
  being held, invested and reinvested, is not such a conflicting mandatory
  direction.
    * (b-1) A domestic, not-for-profit  corporation  that  is  a  "private
  foundation"  as  defined in section 509 of the code and that is required
  by section 6104(d) of the code to make available for  public  inspection
  its  annual  return  shall  publish  notice  of the availability of such
  return for inspection. Such notice shall be published,  not  later  than
  the day prescribed for filing such annual return (determined with regard
  to  any  extension of time for filing), in a newspaper designated by the
  clerk of the county  in  which  the  principal  office  of  the  private
  foundation  is  located,  having general circulation in that county. The
  notice shall state that the annual return of the private  foundation  is
  available at its principal office for inspection during regular business
  hours  by  any  citizen  who  requests it within one hundred eighty days
  after the date of such publication, and shall state the address and  the
  telephone  number  of  the private foundation's principal office and the
  name of its principal manager.
    * NB Effective until June 1, 2006
    * (b-1) A domestic, not-for-profit  corporation  that  is  a  "private
  foundation"  as  defined in section 509 of the code and that is required
  by section 6104(d) of the code to make available for  public  inspection
  its  annual  return  shall  publish  notice  of the availability of such
  return for inspection. Such notice shall be published,  not  later  than
  the day prescribed for filing such annual return (determined with regard
  to  any  extension of time for filing), in a newspaper designated by the
  clerk of the county  in  which  the  principal  office  of  the  private
  foundation  is  located,  having  general circulation in that county, as
  though such notice were a notice of  judicial  proceedings.  The  notice
  shall  state  that  the  annual  return  of  the  private  foundation is
  available at its principal office for inspection during regular business
  hours  by  any  citizen  who  requests it within one hundred eighty days
  after the date of such publication, and shall state the address and  the
  telephone  number  of  the private foundation's principal office and the
  name of its principal manager. A copy or notice published in a newspaper
  other than the newspaper or newspapers designated by  the  county  clerk
  shall  not  be  deemed  to  be  one of the publications required by this
  paragraph.
    * NB Effective June 1, 2006
    (c) All references in this section to sections of the code shall be to
  such sections  as  amended  from  time  to  time,  or  to  corresponding
  provisions of subsequent internal revenue laws.
    (d)  Nothing in this section shall impair the rights and powers of the
  courts or the attorney-general of this state.