Title 36, Patriotic and National ObservancesRelease 119-110
§154107 Restrictions
Title 36 › Subtitle II — Patriotic and National Organizations › Part B — Organizations › CHAPTER 1541 — NAVAL SEA CADET CORPS › § 154107
Summary
Can't issue stock, pay dividends, or support political campaigns. Assets and income can't benefit insiders—directors, officers, members—while operating or when it closes, except officer pay the board approves. No loans to insiders; approving directors and involved officers must repay them.
Full Legal Text
Title 36, §154107
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 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 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)Loans.—
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) 154107(a)36:1052.Sept. 10, 1962, Pub. L. 87–655, §§ 9, 10, 12, 76 Stat. 532, 533. 154107(b)36:1050. 154107(c)36:1049(a). 154107(d)36:1049(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. 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. § 154107
Title 36, Patriotic and National Observances
Last Updated
Sep 22, 2026
Release point: 119-110