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Title 36 — Patriotic and National ObservancesRelease 119-73

§154107 Restrictions

Title 36 › Subtitle Subtitle II— - Patriotic and National Organizations › Part Part B— - Organizations › Chapter CHAPTER 1541— - NAVAL SEA CADET CORPS › § 154107

Last updated Apr 6, 2026|Official source

Summary

The corporation must not issue stock or declare or pay a dividend. The corporation, and its directors or officers in those roles, must not give money, help, or support to a political party or a candidate. The corporation’s income and assets cannot be used for the personal benefit of a director, officer, or member while the corporation exists or when it is dissolved. The board of directors can approve paying an officer a salary. The corporation must not make a loan or advance to a director, officer, or employee. If directors agree to such a loan or officers help make it, those directors and officers are each responsible, both together and separately, for the loan amount until it is repaid.

Full Legal Text

Title 36, §154107

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) 154107(a)36:1052.Sept. 10, 1962, Pub. L. 87–655, §§ 9, 10, 12, 76 Stat. 532, 533. 154107(b)36:1050. 154107(c)36:1049(a). 154107(d)36:1049(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. 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. § 154107

Title 36 — Patriotic and National Observances

Last Updated

Apr 6, 2026

Release point: 119-73