Cal. Revenue and Taxation Code § 17637

For purposes of Sections 17635 to 17639, inclusive, the term “prohibited transaction” means any transaction in which an organization subject to the provisions of Sections 17635 to 17639, inclusive— (a) Lends any part of its income or corpus, without the receipt of adequate security and a reasonable rate of interest, to; (b) Pays any compensation, in excess of a reasonable allowance for salaries or other compensation for personal services actually rendered, to; (c) Makes any part of its services available on a preferential basis to; (d) Makes any substantial purchase of securities or any other property, for more than adequate consideration in money or money’s worth, from; (e) Sells any substantial part of its securities or other property, for less than an adequate consideration in money or money’s worth to; or (f) Engages in any other transaction which results in a substantial diversion of its income or corpus to; the creator of such organization (if a trust); a person who has made a substantial contribution to such organization; a member of the family (as defined in Section 267(c)(4) of the Internal Revenue Code) of an individual who is the creator of such trust or who has made a substantial contribution to such organization; or a corporation controlled by such creator or person through the ownership, directly or indirectly, of 50 percent or more of the total combined voting power of all classes of stock entitled to vote or 50 percent or more of the total value of shares of all classes of stock of the corporation.