Title 36 — Patriotic and National ObservancesRelease 119-73
§151906 Restrictions
Title 36 › Subtitle Subtitle II— - Patriotic and National Organizations › Part Part B— - Organizations › Chapter CHAPTER 1519— - NATIONAL FUND FOR MEDICAL EDUCATION › § 151906
Summary
The corporation must not issue shares, pay dividends, or support political parties or candidates. Its money and property cannot benefit directors, officers, or members, though the board may approve paying an officer. It must not lend to directors, officers, or employees; those who approve or take part must repay the loan.
Full Legal Text
Title 36, §151906
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 or officer as such may not contribute to, support, or assist a political party or candidate for public office.
(c)The income or 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 compensation to an officer in an amount approved by the board of directors.
(d)The corporation may not make a loan or advance to a director, officer, or employee. Directors who vote for or assent to making a loan or advance to a director, officer, or employee, and officers who participate in making the loan or advance, are jointly and severally liable to the corporation for the amount of the loan or advance until it is repaid.
Legislative History
Notes & Related Subsidiaries
Historical and Revision Notes
Revised SectionSource (U.S. Code)Source (Statutes at Large) 151906(a)36:612.Aug. 28, 1954, ch. 1036, §§ 9, 10, 12, 68 Stat. 894. 151906(b)36:610. 151906(c)36:609(a). 151906(d)36:609(b). In subsection (a), the words “any shares of” 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” are substituted for “Nothing in this subsection, however, shall be construed to” for consistency in the revised title and to eliminate unnecessary words. In subsection (d), the words “or advance” are added in 2 places for consistency in the subsection.
Reference
Citations & Metadata
Citation
36 U.S.C. § 151906
Title 36 — Patriotic and National Observances
Last Updated
Apr 6, 2026
Release point: 119-73