Common use of Disbursement Requirements Clause in Contracts

Disbursement Requirements. A settlement corporation shall be subject to the disbursement rules, including the disbursement excess rules, applicable to “public foundations” under the federal Tax Act, with such modifications as are required, provided that such rules shall not apply to a settlement corporation or its disbursements until the first day of the taxation year of the corporation commencing after the end of a period of 15 years commencing on the day of payment of the first capital transfer payment described in chapter 8. For this purpose, any loans made by the settlement corporation pursuant to schedule I to this chapter shall be treated as disbursements, the relevant provisions of the federal Tax Act shall apply as if the permitted activities described in schedule I to this chapter were charitable activities and the persons to whom payments or loans are made by the settlement corporation in the course of carrying on these permitted activities shall be treated as qualified donees.

Disbursement Requirements. A settlement corporation shall be subject to the disbursement rules, including the disbursement excess rules, applicable to “"public foundations” " under the federal Tax Act, with such modifications as are required, provided that such rules shall not apply to a settlement corporation or its disbursements until the first day of the taxation year of the corporation commencing after the end of a period of 15 years commencing on the day of payment of the first capital transfer payment described in chapter 8. For this purpose, any loans made by the settlement corporation pursuant to schedule I to this chapter shall be treated as disbursements, the relevant provisions of the federal Tax Act shall apply as if the permitted activities described in schedule I to this chapter were charitable activities and the persons to whom payments or loans are made by the settlement corporation in the course of carrying on these permitted activities shall be treated as qualified donees.