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Title 36 — Patriotic and National ObservancesRelease 119-73

§130507 Restrictions

Title 36 › Subtitle Subtitle II— - Patriotic and National Organizations › Part Part B— - Organizations › Chapter CHAPTER 1305— - LITTLE LEAGUE BASEBALL, INCORPORATED › § 130507

Last updated Apr 6, 2026|Official source

Summary

The corporation cannot issue stock, pay dividends, or support political parties or candidates. Its income and assets cannot be used for the benefit of directors, officers, or members while it exists or when it closes, though officers can get reasonable pay if the board approves. The corporation cannot lend money to its directors, officers, or employees; people who approve or make such a loan must pay the corporation back.

Full Legal Text

Title 36, §130507

Patriotic and National Observances — Source: USLM XML via OLRC

(a)The corporation may not issue stock or declare or pay a dividend.
(b)The corporation or a director, officer, or agent as such may not contribute to, support, or assist any political party or candidate for office.
(c)The income and assets of the corporation may not inure to the benefit of, or be distributed to, a director, officer, or member during the life of the corporation or on its dissolution or final liquidation. This subsection does not prevent the payment of reasonable compensation to an officer in an amount approved by the board of directors.
(d)The corporation may not make a loan to a director, officer, or employee. Directors who vote for or assent to making a loan to a director, officer, or employee, and officers who participate in making the loan, are jointly and severally liable to the corporation for the amount of the loan until it is repaid.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 130507(a)36:1082.July 16, 1964, Pub. L. 88–378, §§ 9, 10, 12, 78 Stat. 327. 130507(b)36:1080. 130507(c)36:1079(a). 130507(d)36:1079(b). In subsection (a), the words “any shares of” are omitted as unnecessary. In subsection (b), the words “or otherwise” are omitted as unnecessary. In subsection (c), the words “inure to the benefit of” are substituted for “inure to” for consistency in the revised title. The words “This subsection does not prevent” are substituted for “Nothing in this subsection, however, shall be construed to prevent” for consistency in the revised title and to eliminate unnecessary words.

Reference

Citations & Metadata

Citation

36 U.S.C. § 130507

Title 36 — Patriotic and National Observances

Last Updated

Apr 6, 2026

Release point: 119-73