Title 36 — Patriotic and National ObservancesRelease 119-73
§152507 Restrictions
Title 36 › Subtitle Subtitle II— - Patriotic and National Organizations › Part Part B— - Organizations › Chapter CHAPTER 1525— - NATIONAL SAFETY COUNCIL › § 152507
Summary
The corporation cannot create stock, pay dividends, or give money or help to political parties or candidates. Its income and assets cannot benefit insiders except on dissolution or final liquidation (board‑approved officer pay is allowed). Loans to insiders are banned; approvers must repay.
Full Legal Text
Title 36, §152507
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 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 except on dissolution or final liquidation of the corporation. 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 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) 152507(a)36:473.Aug. 13, 1953, ch. 429, §§ 10, 11, 13, 67 Stat. 572, 573. 152507(b)36:471. 152507(c)36:470(a). 152507(d)36:470(b). In subsection (a), the words “any shares of” are omitted as unnecessary. In subsection (b), the word “public” is added for consistency in the revised title. In subsection (c), the words “inure to the benefit of” are substituted for “inure to” for consistency in the revised title. The words “as provided in section 476 of this title” are omitted as unnecessary. The words “This subsection does not prevent” are substituted for “Nothing in this subsection, however, shall be construed to prevent” to eliminate unnecessary words. The words “board of directors” are substituted for “executive committee” because the source provisions for this chapter do not mention an executive committee and, under section 152504 of this title, the governing body of the corporation is the board of directors.
Reference
Citations & Metadata
Citation
36 U.S.C. § 152507
Title 36 — Patriotic and National Observances
Last Updated
Apr 6, 2026
Release point: 119-73