Financial transactions: corporate entities, securities, loans, and deposits.

(1) The Nonprofit Corporation Law requires every corporation, during any period that the corporation is considered to be a "private foundation" as defined by the Internal Revenue Code, to distribute its income for each taxable year so as not to subject it to specified taxes for failure to distribute income under federal law. Existing law also prohibits a corporation from engaging in any act of self-dealing, as defined under federal law, and from engaging in other specified activities including retaining excess business holdings and making certain taxable expenditures.