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Title 36 — Patriotic and National ObservancesRelease 119-73

§20707 Restrictions

Title 36 › Subtitle Subtitle II— - Patriotic and National Organizations › Part Part B— - Organizations › Chapter CHAPTER 207— - AMERICAN COUNCIL OF LEARNED SOCIETIES › § 20707

Last updated Apr 6, 2026|Official source

Summary

Stops the corporation and its leaders from doing several things. It cannot sell stock or pay dividends, take part in political actions or try to influence laws, lend money to directors, officers, or employees, or say it has Congress’s or the U.S. Government’s approval. The corporation’s money and property cannot go to a director, officer, or member while its charter under this law lasts. The only exceptions are paying reasonable salaries or repaying actual necessary expenses if the board approves the amounts.

Full Legal Text

Title 36, §20707

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 participate in any political activity or in any manner attempt to influence legislation.
(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 charter granted by this chapter. This subsection does not prevent the payment of reasonable compensation to an officer or reimbursement for actual necessary expenses in amounts approved by the board of directors.
(d)The corporation may not make a loan to a director, officer, or employee.
(e)The corporation may not claim congressional approval or the authority of the United States Government for any of its activities.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 20707(a)36:1908(d).June 1, 1982, Pub. L. 97–192, § 8, 96 Stat. 110. 20707(b)36:1908(c). 20707(c)36:1908(a). 20707(d)36:1908(b). 20707(e)36:1908(e). 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.

Reference

Citations & Metadata

Citation

36 U.S.C. § 20707

Title 36 — Patriotic and National Observances

Last Updated

Apr 6, 2026

Release point: 119-73