§220108 — Title 36 Patriotic and National Observances | U.S. Code

Summary

The corporation must not run a for‑profit business unless the activity is directly tied to its main purposes or is done to raise money for those purposes. It cannot issue stock or pay dividends. It must stay nonpolitical: it cannot give money or help to someone running for office, and it cannot spend a major part of its time pushing propaganda or trying to influence laws. The corporation’s money or property cannot be used for the personal gain of a governor, officer, member, or employee, and it cannot be given out while it exists or when it closes. It may pay reasonable wages and repay actual necessary expenses if the board approves. The corporation also may not lend money to any governor, officer, member, or employee.

Title 36, §220108

Patriotic and National Observances — Source: USLM XML via OLRC

(a)The corporation may not engage in business activity for profit unless the activity is substantially related to—

(1)the purposes stated in section 220102 of this title; or

(2)raising funds to accomplish those purposes.

(b)The corporation may not issue stock or declare or pay a dividend.

(c)The corporation shall be nonpolitical and may not provide financial aid or assistance to, or otherwise promote the candidacy of, an individual seeking elective public office. A substantial part of the activities of the corporation may not involve carrying on propaganda or otherwise attempting to influence legislation.

(d)The income or assets of the corporation may not inure to the benefit of a governor, officer, member, or employee or be distributed to any person 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, employee, or other person or reimbursement for actual necessary expenses in amounts approved by the board of governors.

(e)The corporation may not make a loan to a governor, officer, member, or employee.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 220108(a)36:1304(b) (last sentence).Dec. 29, 1979, Pub. L. 96–165, § 4(a), (b), (d), (e), 93 Stat. 1269, 1270. 220108(b)36:1304(b) (1st sentence). 220108(c)36:1304(a). 220108(d)36:1304(d). 220108(e)36:1304(e). In subsection (a), before clause (1), the word “pecuniary” is omitted as unnecessary. In subsection (b), the words “any shares of capital” are omitted as unnecessary. In subsection (c), the words “as an organization” are omitted as unnecessary. In subsection (d) the words “inure to the benefit of” are substituted for “inure to” for consistency in the revised title.

§220108 Restrictions

Summary

Title 36, §220108

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata