Title 36 — Patriotic and National ObservancesRelease 119-73
§30707 Restrictions
Title 36 › Subtitle Subtitle II— - Patriotic and National Organizations › Part Part B— - Organizations › Chapter CHAPTER 307— - BOARD FOR FUNDAMENTAL EDUCATION › § 30707
Summary
The corporation must not seek profit, issue stock, pay dividends, or support a political party or candidate. Income or assets cannot benefit directors, officers, or members except on dissolution or liquidation. It cannot lend money to directors, officers, or employees; directors who approve and officers who help must each repay it to the corporation.
Full Legal Text
Title 36, §30707
Patriotic and National Observances — Source: USLM XML via OLRC
(a)The corporation may not engage in business for profit.
(b)The corporation may not issue stock or declare or pay a dividend.
(c)The corporation or a director, officer, or member as such may not contribute to, support, or assist a political party or candidate for elective public office.
(d)The income or assets of the corporation may not inure to the benefit of, or be distributed to, a director, officer, or member except on dissolution or final liquidation of the corporation.
(e)The corporation may not make a loan to a director, officer, or employee. Directors 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.
Legislative History
Notes & Related Subsidiaries
Historical and Revision Notes
Revised SectionSource (U.S. Code)Source (Statutes at Large) 30707(a)36:512 (words after comma).July 19, 1954, ch. 536, §§ 9, 10, 12, 68 Stat. 491. 30707(b)36:512 (words before comma). 30707(c)36:510. 30707(d)36:509(a). 30707(e)36:509(b). In subsection (a), the word “pecuniary” is omitted as unnecessary. In subsection (b), the words “any shares of” 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. The words “as provided in section 515 of this title” are omitted as unnecessary.
Reference
Citations & Metadata
Citation
36 U.S.C. § 30707
Title 36 — Patriotic and National Observances
Last Updated
Apr 6, 2026
Release point: 119-73