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Title 36 — Patriotic and National ObservancesRelease 119-73not60

§151906 Restrictions

Title 36 › Subtitle Subtitle II— Patriotic and National Organizations › Part B— Organizations › Chapter 1519— NATIONAL FUND FOR MEDICAL EDUCATION › § 151906

Last updated Apr 5, 2026|Official source

Summary

Stops the corporation from issuing stock or paying dividends and bans giving money or help to political parties or candidates. Corporate income or assets cannot benefit directors, officers, or members while the corporation exists or when it ends, except an officer can be paid if the board of directors approves. The corporation cannot lend or advance money to directors, officers, or employees; anyone who approves or helps make such a loan is personally responsible to repay it to the corporation until it is paid back.

Full Legal Text

Title 36, §151906

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 or officer as such may not contribute to, support, or assist a political party or candidate for public office.
(c)The income or assets of the corporation may not inure to the benefit of, or be distributed to, a director, officer, or member during the life of the corporation or on its dissolution or final liquidation. This subsection does not prevent the payment of compensation to an officer in an amount approved by the board of directors.
(d)The corporation may not make a loan or advance to a director, officer, or employee. Directors who vote for or assent to making a loan or advance to a director, officer, or employee, and officers who participate in making the loan or advance, are jointly and severally liable to the corporation for the amount of the loan or advance until it is repaid.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 151906(a)36:612.Aug. 28, 1954, ch. 1036, §§ 9, 10, 12, 68 Stat. 894. 151906(b)36:610. 151906(c)36:609(a). 151906(d)36:609(b). In subsection (a), the words “any shares of” 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 “This subsection does not” are substituted for “Nothing in this subsection, however, shall be construed to” for consistency in the revised title and to eliminate unnecessary words. In subsection (d), the words “or advance” are added in 2 places for consistency in the subsection.

Reference

Citations & Metadata

Citation

36 U.S.C. § 151906

Title 36 — Patriotic and National Observances

Last Updated

Apr 5, 2026

Release point: 119-73not60