§70908 — Title 36 Patriotic and National Observances | U.S. Code

Summary

FFA may not issue stock, pay dividends, or support parties or candidates. Its income or assets cannot benefit directors, officers, or members except when the FFA is dissolved. It cannot loan money to directors, officers, or employees; anyone who approves such a loan is liable until repaid. The board may provide prizes, awards, grants, or loans to student officers and members under rules it sets.

Title 36, §70908

Patriotic and National Observances — Source: USLM XML via OLRC

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

(b)The FFA or a director, officer, or member acting on behalf of the FFA may not contribute to, support, or assist a political party or candidate for elective public office.

(c)The income or assets of the FFA may not inure to the benefit of, or be distributed to, a director, officer, or member, except on dissolution or final liquidation of the FFA.

(d)The FFA 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.

(e)This section does not preclude prizes, awards, grants, or loans to student officers and members meeting the criteria established by the board of directors for selecting recipients of those benefits.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 70908(a)36:282.Aug. 30, 1950, ch. 823, §§ 9, 10, 12, 64 Stat. 566. 70908(b)36:280. 70908(c)36:279(a). 70908(d)36:279(b). 70908(e)36:279(c). In subsection (a), the words “any shares or” and “its objects and purposes being solely educational” are omitted as unnecessary and for consistency in the revised title. In subsection (c), the words “inure to the benefit of” are substituted for “inure to” for consistency in the revised title. The words “as provided in section 285 of this title” are omitted as unnecessary.

Editorial Notes

Amendments

2019—Subsec. (a). Pub. L. 116–7, § 9(1), substituted “FFA” for “corporation”. Subsec. (b). Pub. L. 116–7, § 9(2), substituted “FFA or a director, officer, or member acting on behalf of the FFA” for “corporation or a director, officer, or member as such”. Subsec. (c). Pub. L. 116–7, § 9(3), substituted “FFA” for “corporation” in two places. Subsec. (d). Pub. L. 116–7, § 9(4), substituted “FFA” for “corporation” in first sentence.

§70908 Restrictions