Ch. 110                                          LAWS OF MARYLAND

United States, or by a similar plan maintained in a foreign
country;

, (ii) The activities of any organization exempt
from taxation under § 501(c) of the Internal Revenue Code [of
1986], or of a similar organization in any foreign country;

(iii) A program, or plan as defined in § 457 of
the Internal Revenue Code [of 1986], of:

1.  The federal government;

2.  A state or political subdivision of a
state; or

3.  A foreign country or political
subdivision of a foreign country; or

(iv) An agreement providing for periodic
payments in satisfaction of a claim.

(f) Solely for the purpose of application of THE TAX -
GENERAL Article [81 of the Code], the funding agreements
authorized by this section are deemed to be annuity contracts.

482B.

(a) (2) "Athletic club" means a club organized and operated
exclusively for recreational purposes, that is exempt from
taxation under § 501(c)(7) of the Internal Revenue Code [of
1954].

(3) "Charitable organization" means an organization,
institution, association, society, or corporation that is exempt
from taxation under § 501(c)(3) of the Internal Revenue Code [of
1954].

(6) "Public entity" means any political subdivision
or unit of State or local government, including any nonprofit or
nonstock corporation that is exempt from taxation under §
501(c)(3) or [§ 501(c)](4) of the Internal Revenue Code [of 1954]
and receives 50 percent or more of its annual operating budget
from the State or local government.

487.

(a) The Commissioner, upon application and in his
discretion, may issue a special permit to make annuity agreements
with donors to any educational or religious organization not
conducted for profit and engaged solely in bona fide educational
or religious activities, or to any hospital in the State which is
operated in conjunction with an accredited medical school, which
shall have been in active operation in this State for at least

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