§40706 — Title 36 Patriotic and National Observances | U.S. Code

§40706 Distribution of assets on dissolution

Title 36 › Subtitle Subtitle II— - Patriotic and National Organizations › Part Part B— - Organizations › Chapter CHAPTER 407— - CORPORATION FOR THE PROMOTION OF RIFLE PRACTICE AND FIREARMS SAFETY › Subchapter SUBCHAPTER I— - CORPORATION › § 40706

Last updated Apr 6, 2026|Official source

Summary

When the corporation dissolves, the Secretary of the Army gets ownership of certain items: firearms at the Defense Distribution Depot in Anniston, Alabama on that date, all M–16 rifles the corporation controls, and trophies from the National Board for the Promotion of Rifle Practice through that date. Other assets may be given only to a tax‑exempt organization under 26 U.S.C. 501(a) that is a 501(c)(3) and does work like that in section 40722; they cannot go to individuals. Any remaining property must be sold and the money deposited in the U.S. Treasury.

Title 36, §40706

Patriotic and National Observances — Source: USLM XML via OLRC

(a)On dissolution of the corporation, title to the following items, and the right to possess the items, vest in the Secretary of the Army:

(1)Firearms stored at Defense Distribution Depot, Anniston, Anniston, Alabama on the date of dissolution.

(2)M–16 rifles under control of the corporation.

(3)Trophies received from the National Board for the Promotion of Rifle Practice through the date of dissolution.

(b)(1)On dissolution of the corporation, an asset not described in subsection (a) of this section may be distributed to an organization that—

(A)is exempt from taxation under section 501(a) of the Internal Revenue Code of 1986 (26 U.S.C. 501(a)) as an organization described in section 501(c)(3) of that Code (26 U.S.C. 501(c)(3)); and

(B)performs functions similar to the functions described in section 40722 of this title.

(2)An asset distributed under this subsection may not be distributed to an individual.

(c)On dissolution of the corporation, any asset not distributed under subsection (a) or (b) of this section shall be sold and the proceeds shall be deposited in the Treasury.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 40706(a)36:5509(a)(1).Feb. 10, 1996, Pub. L. 104–106, title XVI, § 1619, 110 Stat. 520; Sept. 23, 1996, Pub. L. 104–201, title X, § 1073(c)(3), 110 Stat. 2657. 40706(b)(1)36:5509(a)(2). 40706(b)(2)36:5509(b). 40706(c)36:5509(a)(3). In subsection (a), before clause (1), the words “title to the following items, and the right to possess the items, vest in the Secretary of the Army” are substituted for “title to [specified items] . . . shall vest in the Secretary of the Army, and the Secretary shall have the immediate right to the possession of such items” to eliminate unnecessary words. In clause (2), the words “M–16 rifles under control of the corporation” are substituted for “M–16 rifles that are transferred to the Corporation under section 1615(a)(2), that are referred to in section 1616(a)(3), or that are otherwise under the control of the Corporation” to eliminate unnecessary words. In subsection (b), paragraph (2) is applied only to subsection (b) because the prohibition is not relevant to 36:5509(a)(1) or (3).

Editorial Notes

Amendments

2014—Subsec. (a). Pub. L. 113–237 substituted colon for dash at end of introductory provisions, “Firearms” for “firearms” in par. (1) and “Trophies” for “trophies” in par. (3).