36 U.S.C. § 152507: Restrictions

Summary

Cannot create shares, pay out profits to owners, or give money or help to political parties or candidates. Income and assets cannot benefit directors, officers, or members except when the corporation is finally closed; officers may be paid if the board approves the amount. The corporation may not lend to directors, officers, or employees, and anyone who approves such a loan must repay it to the corporation.

Title 36, §152507

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 agent as such may not contribute to, support, or assist a political party or candidate for public office.

(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 payment of compensation to an officer in an amount approved by the board of directors.

(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.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 152507(a)36:473.Aug. 13, 1953, ch. 429, §§ 10, 11, 13, 67 Stat. 572, 573. 152507(b)36:471. 152507(c)36:470(a). 152507(d)36:470(b). In subsection (a), the words “any shares of” are omitted as unnecessary. In subsection (b), the word “public” is added 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 476 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. The words “board of directors” are substituted for “executive committee” because the source provisions for this chapter do not mention an executive committee and, under section 152504 of this title, the governing body of the corporation is the board of directors.

§152507 Restrictions

Summary

Title 36, §152507

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata