Section 406. Private foundation, as defined in the United States internal revenue code of 1954: provisions included in the certificate of incorporation

(a) The following provisions are hereby included in the certificate of
  incorporation of every domestic  corporation,  heretofore  or  hereafter
  formed,  to which this chapter applies in whole or in part, and which is
  a "private foundation" as defined in section 509 of  the  United  States
  internal revenue code of 1954 ("code"):
    (1)  The  corporation  shall  distribute such amounts for each taxable
  year at such time and in such manner as not to subject  the  corporation
  to tax on undistributed income under section 4942 of the code.
    (2)  The corporation shall not engage in any act or self-dealing which
  is subject to tax under section 4941 of the code.
    (3) The corporation shall not  retain  any  excess  business  holdings
  which are subject to tax under section 4943 of the code.
    (4)  The  corporation shall not make any investments in such manner as
  to subject the corporation to tax under section 4944 of the code.
    (5) The corporation shall not make any taxable expenditures which  are
  subject to tax under section 4945 of the code.
  Except   as   provided   in   paragraph   (b),  this  paragraph  applies
  notwithstanding any other provision of the certificate of  incorporation
  or   any   direction  in  an  instrument  referred  to  in  section  513
  (Administration of assets received for specific purposes).
    (b) Paragraph (a) shall not apply to the extent that it conflicts with
  any mandatory direction in an instrument by which assets referred to  in
  section  513  were transferred to the corporation 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  the  section  513  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 a fund, limited to the principal's
  being held, invested and reinvested, is not such a conflicting mandatory
  direction.
    (b-1) A  domestic,  not-for-profit  corporation  that  is  a  "private
  foundation"  as  defined in section 509 of the code and that is required
  by section 6104(d) of the code to make available for  public  inspection
  its  annual  return  shall  publish  notice  of the availability of such
  return for inspection. Such notice shall be published,  not  later  than
  the day prescribed for filing such annual return (determined with regard
  to  any  extension of time for filing), in a newspaper designated by the
  clerk of the county  in  which  the  principal  office  of  the  private
  foundation  is  located, having general circulation in that county. When
  such county is located within a city with a population of one million or
  more, such designation shall be as though such notice were a  notice  of
  judicial  proceedings.  The notice shall state that the annual return of
  the  private  foundation  is  available  at  its  principal  office  for
  inspection  during regular business hours by any citizen who requests it
  within one hundred eighty days after the date of such  publication,  and
  shall  state  the  address  and  the  telephone  number  of  the private
  foundation's principal office and the name of its principal  manager.  A
  copy  or  notice  published  in  a newspaper other than the newspaper or
  newspapers designated by the county clerk shall not be deemed to be  one
  of the publications required by this paragraph.
    (c) All references in this section to sections of the code shall be to
  such  sections  as  amended  from  time  to  time,  or  to corresponding
  provisions of subsequent internal revenue laws.

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