§150708 — Title 36 Patriotic and National Observances | U.S. Code

Summary

The corporation cannot issue stock or pay dividends. It may not give money to or support political parties or candidates, nor push for laws in Congress or in any state legislature. Its income and assets cannot go to directors, officers, or members except when the corporation is dissolved or finally liquidated; the executive committee may set the executive director’s job terms under section 150705(e). The corporation may not lend money to its directors, officers, or employees. People who approve or help make such a loan are together responsible for repaying it to the corporation until it is paid back.

Title 36, §150708

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, 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)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)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.

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.

§150708 Restrictions

Summary

Title 36, §150708

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata