36 U.S.C. § 152707: Restrictions

Summary

The corporation cannot issue stock or pay dividends. It must not take part in political activities or try to influence laws. While the charter is in effect, the corporation’s income or assets cannot go to a director, officer, or member. The corporation may still pay reasonable wages and reimburse actual necessary expenses to an officer if the board approves. It may not lend money to any director, officer, or employee.

Title 36, §152707

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 or officer as such may not contribute to, support, or participate in any political activity or in any manner attempt to influence legislation.

(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 during the life of the charter granted by this chapter. This subsection does not prevent the payment of reasonable compensation to an officer or reimbursement for actual necessary expenses in amounts approved by the board of directors.

(d)Loans.—

The corporation may not make a loan to a director, officer, or employee.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 152707(a)36:1508(d).Dec. 2, 1980, Pub. L. 96–489, § 8, 94 Stat. 2554. 152707(b)36:1508(c). 152707(c)36:1508(a). 152707(d)36:1508(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.

§152707 Restrictions

Summary

Title 36, §152707

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata