[§554-10]  Charitable trusts;
administration.  (a)  In the administration of any trust which is a
"private foundation" as defined in section 509 of the Code or to
which section 4947 of the Code applies, the following shall be prohibited:



(i) Engaging in any act of "self-dealing"
(as defined in section 4941(d) of the Code);



(ii) Retaining any "excess business
holdings" (as defined in section 4943(c) of the Code);



  (iii) Making any investments in such manner as to
subject it to tax under section 4944 of the Code; and



(iv) Making any "taxable expenditures" (as
defined in section 4945(d) of the Code);



provided that this subsection (a) shall not apply to
such amounts of any trust to which section 4947(a)(2) of the Code applies as
are described in the second sentence of said section and items (ii) and (iii)
of this subsection (a) shall not apply to any trust to which said section
4947(a)(2) applies which is described in section 4947(b)(3) of the Code.



(b)  In the administration of any trust which
is a "private foundation" as defined in section 509 of the Code or a
"charitable trust" as defined in section 4947(a)(1) of the Code,
there shall be distributed, and the trustee or trustees shall be empowered and
authorized to distribute, for the purposes specified in the trust instrument,
such amounts at such time and in such manner as shall be required so as not to
subject it to tax under section 4942 of the Code.



(c)  Nothing in this section shall impair the
rights and powers of the courts or the attorney general of this State with
respect to any trust.



(d)  References in this section to sections of
the Code are to sections of the Internal Revenue Code of 1954, as heretofore
amended, and shall include future amendments to such sections and corresponding
provisions of future Internal Revenue laws. [L 1971, c 136, §1]