§30307 — Title 36 Patriotic and National Observances | U.S. Code

Summary

The corporation cannot sell stock, pay dividends, or give money to political parties or candidates. While the corporation exists and when it is finally closed, its money or property cannot be given to directors, officers, or members. Two exceptions are allowed: payment of real officer expenses the board approves, and help for blinded veterans or their widows or children to carry out the corporation’s purposes. The corporation may not lend money to its directors, officers, or employees. Any director or officer who approves or helps make such a loan must repay it and is fully responsible until it is paid back. Members and private people are not personally responsible for the corporation’s debts.

Title 36, §30307

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 elective 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 as such during the life of the corporation or on its dissolution or final liquidation. This section does not prevent the payment of—

(1)bona fide expenses of officers of the corporation in amounts approved by the board of directors; or

(2)appropriate aid to blinded veterans or their widows or children in carrying out the purposes of the corporation.

(d)The corporation may not make a loan to a director, officer, or employee. Directors and officers 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.

(e)Members and private individuals are not liable for the obligations of the corporation.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 30307(a)36:862.Aug. 27, 1958, Pub. L. 85–769, §§ 3(4) (words between 1st comma and semicolon), 9, 10, 12, 72 Stat. 924, 926. 30307(b)36:860. 30307(c)36:853(4) (words between 1st comma and semicolon). 36:859(a) (1st sentence words before last comma, last sentence). 30307(d)36:859(b). 30307(e)36:859(a) (1st sentence words after last 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. The text of 36:853(4) (words between 1st comma and semicolon) is omitted as unnecessary.

§30307 Restrictions

Summary

Title 36, §30307

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata