Page:United States Statutes at Large Volume 85.djvu/526

 496

PUBLIC LAW 92-177-DEC. 6, 1971

"Trust."

[85 STAT.

" (f) For purposes of this section, the term 'trust' includes (1) any trust created by will of a resident of the District of Columbia admitted to probate in the District of Columbia, (2) any trust created by a resident of the District of Columbia and executed in the District of Columbia, (l^) any trust of which the trustee or a co-trustee is a bank or trust company doing- business in the District of Columbia, (4) any trust of which a niajority of the trustees are resident in the District of Columbia, (5) any trust of real property located in the District of Columbia, and ((>) any trust the governino" instrument of which provides that it is ooverned by the laws of the District of Columbia. "Code." "(g") For the purposes of this section, the term 'Code' means the 68A Stat. 3. Internal Revenue (\)de of 15)54." 26 USC 1 etseq. ^^^^^.^ ^^^^ ]S'otwithstaudiuo- any provision to the contrary in the governing instrument or under any law applicable to the District of Columbia (except as provided in subsection (c) of this section), the governing in«trument of any corporation organized vuider the laws of the District of Columbia, or under any Act of Congress applicable to the District of Columbia, which is treated during a particular year as a private foundation described in section 509 of the Internal Revenue 83 Stat. 496. Code of 1954 shall be deemed during such particular year to contain the following provisions: (1) The corporation shall not engage in any act of self-dealing which is taxable under secticm 4941 of the Code. (•2) The corporation shall make distributions at such time and in such manner as not to subject it to tax under section 4942 of the Code. (o) The corporation shall Jiot retain any excess bu^siness holdings which would subject it to tax under section 4943 of the Code. (4) The corporation shall not make any investments which would subject it to tax under section 4944 of the Code. (5) The corporation shall not niake any taxable expenditures which would subject it to tax under section 4945 of the Code. Effective date. \Yith respect to any such corporation organized prior to January 1, 1970, subsection (a) shall apply to taxable years beginning on or after January 1, 1972. ' (b) The governing instrument of any corporation described in subsection (a) may be amended, in the manner provided by law for amendment of such governing instrument, expressly to include the provisions required by section 508(e) of the Code. (c) The provisions of subsection (a) shall not apply to any corporati<m to the extent that its go\erning instruinent is amended in the manner provided by law for amendment of such governing instrument, expressly to exclude the application of subsection (a). "Corporation." ((^^ YQ^ purposes of this section, the term "corporation" includes an association (other than an association treated as a trust described in Ante, p.^494. section 1801 of title 21 of the District of Columbia Code). "Code." ^g^ Yov the purposes of this section, the term "Code" means the [nternal Revenue Code of 1954. Effective date. j^j^^. 3. Exccpt as othcrwise provided in this Act, or in the amendments made by this Act, the provisions of this Act shall first apply with respect to taxable years of trusts and corporations beginning on or after January 1, 1970. SEC. 4. The table of chapters for title 21 of the District of Columbia Code is amended by inserting after the item relating to chapter 17 the following: is. C'haritablo ami split-interest trusts."

Approved December 6, 1971.

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