real property aforesaid, or having estates or interests vested or contingent, in reversion or remainder in said real property, or in the proceeds of the sale thereof, and against all persons whether in being or not who may by appointment or otherwise have or acquire an interest in said property or in the proceeds of the sale thereof, but before the order directing the sale, mortgage or lease can be made, all adult persons not under disability having an interest, vested or contingent, in reversion or remainder, in said real property or in the proceeds of such sale, or having a power to appoint or dispose of said remainder, reversion or proceeds, or an appointee under such a power, and who are entitled to notice under section sixty-seven of this chapter, must make and file with the clerk of the court in which the proceedings have been instituted, a written instrument, duly executed and acknowledged, consenting that such an order of sale, mortgage or lease may be made, and in no event shall such order be made without the like written consent of the life tenant if not suffering from disability.

of

amended

§ 5. Section one hundred and seven of such chapter, as § 107, as amended by chapter five hundred and seventy-eight of the laws nineteen hundred and eighteen, is hereby amended to read follows:

by L. 1918, as amended.

§ 107. Notice to beneficiary and other persons interested where real property affected by a trust is conveyed, mortgaged or leased, and procedure thereupon. The supreme court shall not grant an order under either of the last two preceding sections unless it appears to the satisfaction of such court that a written notice stating the time and place of the application therefor has been served upon the beneficiary of such trust, and every other person in being having an estate or interest vested or contingent in reversion or remainder in said real property, or in the proceeds of sale thereof, or having a power to appoint or dispose of said remainder, reversion or proceeds, or being the appointee under such a power, which prior to the granting of such order shall have been exercised by a person other than the life tenant, at least eight days before the making thereof, if such beneficiary or other person is an adult within the state, or if a minor, lunatic, person of unsound mind, habitual drunkard or absentee, until proof of the service on such beneficiary or other person of such notice as the court or a justice thereof shall prescribe. But if any part of the reversion or remainder in said real property or in the proceeds of

ch. 578,

sale thereof is limited in any contingency to the persons who shall compose a certain class upon the termination of the trust, the court may, in its discretion, entertain the application and grant such order upon proof of service of notice of the application upon those persons who would be entitled to such reversion, remainder or proceeds if the event upon which the termination of the trust depends had happened immediately before the application was made. Except as provided in this section no person shall be entitled to notice under this section solely by reason of the fact that he has been or may be designated as appointee of said property or proceeds, or of any interest therein, under a power of appointment or disposition. The sale, mortgage, or lease prayed for in the application may be authorized whether any of the persons who may eventually become entitled to the remainders in said real property or to the proceeds of the sale thereof are in being or not and whether at the time of sale, mortgage or lease the reversion is in the life tenant or in some other person. The court shall appoint a guardian ad litem for any minor and for any lunatic, person of unsound mind or habitual drunkard who shall not be represented by a committee duly appointed. If there is no person in being having a vested or contingent interest in remainder or reversion in said real property or in the proceeds of sale after the termination of the trust estate, other than a reversioner who is a life tenant or whose reversion is a mere naked legal interest which can never take effect in possession otherwise than subject to a power of sale or a power of appointment the court shall on the return day of the motion appoint some disinterested person to represent and protect the interests of the persons to become entitled to the remainder or remainders or to become entitled to an interest in the proceeds of sale. The application must be by petition duly verified which shall set forth the condition of the trust estate and the particular facts which make it necessary or proper that the application should be granted. After taking proof of the facts, either before the court or a referee, and hearing the parties and fully examining into the matter, the court must make a final order upon the application. In case the application is granted, the final order must authorize the real property affected by the trust or some portion thereof, to be mortgaged, sold or leased, upon such terms and conditions as the court may prescribe. In case a mortgage or sale of any portion of such real property is authorized, the final order must direct the disposition of the proceeds of such mortgage

or sale and must require the trustee, unless it be a trust company authorized by law to act as trustee, to give bond in such amount and with such sureties as the court directs, conditioned for the faithful discharge of his trust and for the due accounting for all moneys received by him pursuant to said order. If the trustee. elects not to give such bond, the final order must require the proceeds of such mortgage or sale to be paid into court to be disposed of or invested as the court shall specifically direct. Before a mortgage, sale or lease can be made pursuant to the final order, the trustee must enter into an agreement therefor, subject to the approval of the court and must report the agreement to the court under oath. Upon the confirmation thereof, by order of the court he must execute as directed by the court a mortgage, deed or lease. A mortgage, conveyance or lease made pursuant to a final order granted as provided in this and the last two preceding sections shall bind the remainders and reversion as well as the trust interest in said real property, and shall be valid and effectual against all minors, lunatics, persons of unsound mind, habitual drunkards and persons not in being interested in the trust or having estates or interests vested or contingent in reversion or remainder in said real property, or in the proceeds of any sale thereof, and against all other persons so interested or having such estates. or interests who shall consent to such order, or who have been made parties to such proceeding, or who are not entitled to notice thereof as herein provided.

6. This act shall take effect on the first day of September, In effect nineteen hundred and twenty.

Chap. 640.

AN ACT to amend the tax law, in relation to a franchise tax on

business corporations.1

Became a law May 10, 1920, with the approval of the Governor. Passed, three-fifths being present.

The People of the

State of New York, represented in Senate and Assembly, do enact as follows:

Sept. 1, 1920.

Section 1. Section two hundred and nine of chapter sixty-two L. of the laws of nineteen hundred and nine, entitled "An act in § 209, as

1 The amendments effected by this act are so numerous and extensive that it is impracticable to indicate the changes made.

ch. 62,

L. 1917,

added by relation to taxation, constituting chapter sixty of the consolidated laws," as added by chapter seven hundred and twenty-six of the laws of nineteen hundred and seventeen and amended by chapter six hundred and twenty-eight of the laws of nineteen hundred and nineteen, is hereby amended to read as follows:

ch. 726, and amended

by L. 1919, ch. 628, amended.

§ 210, as added by L. 1917, ch. 726, and

§ 209. Franchise tax on corporations based on net income. For the privilege of exercising its franchise in this state in a corporate or organized capacity every domestic corporation, and for the privilege of doing business in this state, every foreign corporation, except corporations specified in the next section, shall annually pay in advance for the year beginning November first next succeeding the first day of July in each and every year an annual franchise tax, to be computed by the tax commission upon the basis of its entire net income for its fiscal or the calendar year next preceding, as hereinafter provided, which entire net income is presumably the same as the entire net income upon which such corporation is required to pay a tax to the United States, or as otherwise provided by section two hundred and fourteen of the tax law, except that the entire net income of a corporation not organized under the laws of any state within the United States which shall be taken as the basis of computation by the tax commission shall be the entire net income in fact rather than the amount earned in the United States or the amount returned to the United States treasury department.

§ 2. Section two hundred and ten of such chapter, as added by chapter seven hundred and twenty-six of the laws of nineteen hundred and seventeen and as amended by chapter four hundred and by L. 1918, seventeen of the laws of nineteen hundred and eighteen, is hereby amended to read as follows:

amended

ch

417, amended.

§ 210. Corporations exempted from article. Corporations wholly engaged in the purchase and sale of, and holding title to, real estate for themselves, corporations whose sole business consists of holding the stocks of other corporations for the purpose of controlling the management and affairs of such other corporations, except such as are specifically subject to report under the provisions of subdivision nine of section two hundred and eleven of the tax law, and corporations liable to tax under sections one hundred and eighty-four to one hundred and eighty-nine inclusive of this chapter, banks, savings banks, institutions for savings,

2 Previously amended by L. 1918, ch. 276.

title guaranty, insurance or surety corporations shall be exempt from the payment of the taxes prescribed by this article.

3. Section two hundred and eleven of such chapter, as added added by by chapter seven hundred and twenty-six of the laws of nineteen ch. 728, hundred and seventeen and as amended by chapter six hundred and and twenty-eight of the laws of nineteen hundred and nineteen, is hereby amended to read as follows:

§ 211. Reports of corporations to tax commission. Every corporation taxable under this article as well as foreign corporations having officers, agents or representatives within the state shall annually on or before July first, or within thirty days after the making of its report of entire net income to the United States treasury department for any fiscal or calendar year, preceding said first day of July, transmit to the tax commission a report in the form prescribed by the tax commission, specifying: 1. The name and location of the principal place of business of such corporation, the state under the laws of which organized, and the date thereof; the amount of its issued capital stock and the kind of business transacted. Any corporation not organized under the laws of any state within the United States shall state the facts in relation to its entire net income wherever earned and as though organized under the laws of this state, and instead of stating its income as returned to the United States treasury department.

2. The amount of its entire net income for its preceding fiscal or the preceding calendar year as shown in the last return of annual net income made by it to the United States treasury department, except as provided in subdivision one of this section. If the corporation shall claim that the return made to the United States treasury department was inaccurate, the amount claimed by it to be the net income for such period shall be specified. If any deduction has been allowed for losses sustained by the corporation in prior years the amount so allowed and deducted shall be specified.

3. The average monthly value for the fiscal or calendar year of its real property and tangible personal property in each city, village or portion of a town outside of a village within the state, and the average monthly value of all its real property and tangible personal property wherever located.

3 Previously amended by L. 1918, chaps. 276, 417.

amended 3 by L. 1919,

ch. 628,

amended.