§ 216-b. Private foundations, as defined in the United States internal
revenue code of 1954: provisions included in the charter.

1. The following provisions are hereby included in the charter,
heretofore or hereafter granted under this chapter, to incorporate an
institution or association (chartered organization) which is a private
foundation as defined in section 509 of the United States internal
revenue code of 1954 ("Code").

a. The chartered organization shall distribute such amounts for each
taxable year at such time and in such manner as not to subject the
chartered organization to tax on undistributed income under section 4942
of the code.

b. The chartered organization shall not engage in any act of
self-dealing which is subject to tax under section 4941 of the code.

c. The chartered organization shall not retain any excess business
holdings which are subject to tax under section 4943 of the code.

d. The chartered organization shall not make any investments in such
manner as to subject the corporation to tax under section 4944 of the
code.

e. The chartered organization shall not make any taxable expenditures
which are subject to tax under section 4945 of the code. Except as
provided in subdivision two, this subdivision applies notwithstanding
any other provision of the charter or any direction in an instrument by
which assets were transferred to the chartered organization.

2. Subdivision 1 shall not apply to the extent that it conflicts with
any mandatory direction in an instrument by which assets were
transferred to the chartered organization 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 such an 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 the fund, limited to the principal's being held,
invested and reinvested, is not such a conflicting mandatory direction.

3. All references in this section to sections of the code shall be to
sections as amended from time to time, or to corresponding provisions of
subsequent internal revenue laws.

4. Nothing in this section shall impair the rights and powers of the
courts or the attorney-general of this state.