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Title 36, Patriotic and National ObservancesRelease 119-110

§150708 Restrictions

Title 36 › Subtitle II — Patriotic and National Organizations › Part B — Organizations › CHAPTER 1507 — NATIONAL CONFERENCE ON CITIZENSHIP › § 150708

Last updated Sep 22, 2026|Official source

Summary

Stops the corporation from issuing stock or paying dividends. It also bars the corporation and its board members, officers, or members from giving money to or helping a political party or candidate, or from promoting or sponsoring laws in Congress or a State legislature. The corporation’s income or assets cannot go to a board member, officer, or member, except when the corporation is finally closing and liquidating; the executive committee is still allowed to set the executive director’s job terms under section 150705(e). The corporation may not lend money to a board member, officer, or employee, and any directors or officers who approve such a loan must repay the corporation for that amount until it is paid back.

Full Legal Text

Title 36, §150708

Patriotic and National Observances, Source: USLM XML via OLRC

(a)Stock and Dividends.—
The corporation may not issue stock or declare or pay a dividend.
(b)Political Activities.—
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, or advocate, sponsor, or promote legislation in the Congress of the United States or in the legislature of a State.
(c)Distribution of Income or Assets.—
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. This subsection does not prevent the executive committee from adopting terms of employment of the executive director as provided in section 150705(e) of this title.
(d)Loans.—
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) 150708(a)36:442.Aug. 13, 1953, ch. 427, §§ 9, 10, 12, 67 Stat. 564, 565. 150708(b)36:440. 150708(c)36:439(a). 150708(d)36:439(b). In subsection (a), the words “any shares of” and “its objects and purposes being solely patriotic and educational” 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 words “such person, agency, or organization” are interpreted as referring to a “member, officer, or director” and are omitted as unnecessary. The words “as provided in section 445 of this title” are omitted as unnecessary. The words “This subsection does not prevent” are substituted for “Nothing in this subsection, however, shall be construed to prevent” to eliminate unnecessary words.

Reference

Citations & Metadata

Citation

36 U.S.C. § 150708

Title 36, Patriotic and National Observances

Last Updated

Sep 22, 2026

Release point: 119-110