Section 5-402 - Prohibited acts. - Maryland Statutes

§ 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.]