First Phase holding periods Sample Clauses

First Phase holding periods. (1) In general. If, on May 26, 1969, a private foundation has excess business hold- ings in any business enterprise (deter- mined with regard to the 20 or 35 per- cent permitted holdings of section 4943(c)(2)), then all interest which such foundation holds, actually or construc- tively, in such enterprise on May 26, 1969, shall (while held by such founda- tion) be deemed held by a disqualified person during the following periods: (i) The 20-year period beginning on May 26, 1969, if the private foundation holds, actually or constructively, more than 95 percent of the voting stock (or more than a 95 percent profits or bene- ficial interest in the case of an unin- corporated enterprise) in such enter- prise on such date; (ii) Except as provided in paragraph (c)(1)(i) of this section, the 15-year pe- riod beginning on May 26, 1969, if the private foundation and all disqualified persons hold, actually or construc- tively on such date more than 75 per- cent of the voting stock (or more than a 75 percent profits or beneficial inter- est in the case of any unincorporated enterprise) or 75 percent of the value of all outstanding shares of all classes of stock in such enterprise (or more than a 75 percent profits and capital interest in the case of a partnership or joint venture); or (iii) The 10-year period beginning on May 26, 1969, in any case not described in paragraph (c)(1) (i) or (ii) of this sec- tion. The 20-year, 15-year, or 10-year period described in this subdivision (which- ever applies) shall, for purposes of sec- tion 4943 and this section, be known as the ‘‘first phase.’’