§23106 — Title 36 Patriotic and National Observances | U.S. Code

Summary

The corporation may not issue stock or pay dividends. It and its trustees, officers, employees, nomination-board members, or members must not give money, help, or other support to a political party or a candidate. The corporation’s money and property cannot go to those people while it exists or when it closes, except the board can approve reasonable pay for officers or employees. The corporation may not lend money to those people; trustees or officers who approve such a loan are personally responsible until it is repaid. A fund mentioned in section 23102(1) may not be given to an organization if much of that organization’s work is propaganda or trying to influence laws, or if any of its net earnings go to a private person or shareholder.

Title 36, §23106

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 trustee, officer, employee, member of the board of nominations, or member of the corporation 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 trustee, officer, member of the board of nominations, or member of the corporation, as such, 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 or employee in an amount approved by the board of trustees.

(d)The corporation may not make a loan or advance to a trustee, officer, employee, member of the board of nominations, or member of the corporation. Trustees who vote for or assent to making such a loan or advance, 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.

(e)None of the principal or interest of a fund referred to in section 23102(1) of this title may be contributed to an organization if—

(1)a substantial part of its activities is carrying on propaganda or attempting to influence legislation; or

(2)any part of its net earnings benefits a private shareholder or individual.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 23106(a)36:4313.July 14, 1964, Pub. L. 88–372, §§ 3(1) (1st sentence words after 8th comma), 10, 11, 13, 78 Stat. 314, 317. 23106(b)36:4311. 23106(c)36:4310(a). 23106(d)36:4310(b). 23106(e)36:4303(1) (1st sentence words after 8th comma). 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.

§23106 Restrictions

Summary

Title 36, §23106

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata