43-1213. Definition of "prohibited
transaction"
For the purposes of section 43-1212, the term "prohibited transaction" means any
transaction in which an organization subject to the provisions of this article:
1. Lends any part of its income or corpus, without the receipt of adequate security
and a reasonable rate of interest, to;
2. Pays any compensation, in excess of a reasonable allowance for salaries or other
compensation for personal services actually rendered, to;
3. Makes any part of its services available on preferential basis to;
4. Makes any substantial purchase of securities or any other property, for more
than adequate consideration in money or money's worth, from;
5. Sells any substantial part of its securities or other property, for less than an
adequate consideration in money or money's worth, to; or
6. Engages in any other transaction which results in a substantial diversion of its
income or corpus to; the creator of such organization (if a trust); a person who has made
a substantial contribution to such organization; a member of the family of an individual
who is the creator of such trust or who has made a substantial contribution to such
organization, or a corporation controlled by such creator or person through the
ownership, directly or indirectly, of fifty per cent or more of the total combined voting
power of all classes of stock entitled to vote or fifty per cent or more of the total
value of shares of all classes of stock of the corporation.
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