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Title 36 — Patriotic and National ObservancesRelease 119-73not60

§170106 Restrictions

Title 36 › Subtitle Subtitle II— Patriotic and National Organizations › Part B— Organizations › Chapter 1701— PARALYZED VETERANS OF AMERICA › § 170106

Last updated Apr 5, 2026|Official source

Summary

The corporation must be nonprofit: it cannot run a business to make money or issue stock. It must stay nonpolitical and cannot give money or otherwise support someone running for public office. Its money or property cannot be given to or distributed to a director, officer, member, or employee while it exists or when it closes, except for reasonable pay or expense reimbursement approved by the board. The corporation may not lend to those people, and any director who votes for, or officer who helps make, such a loan is personally responsible to repay it until it is paid back.

Full Legal Text

Title 36, §170106

Patriotic and National Observances — Source: USLM XML via OLRC

(a)The corporation may not engage in business for profit.
(b)The corporation may not issue stock.
(c)The corporation shall be nonpolitical and may not provide financial aid to, or otherwise promote the candidacy of, an individual seeking public office.
(d)The income or assets of the corporation may not inure to the benefit of, or be distributed to, a director, officer, member, or employee during the life of the corporation or on its dissolution or final liquidation. This subsection does not prevent the payment of reasonable compensation to an officer or employee or reimbursement for actual necessary expenses in amounts approved by the board of directors.
(e)The corporation may not make a loan to a director, officer, member, or employee. Directors who vote for or assent to making such a loan, 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.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 170106(a), (b)36:1155.Aug. 11, 1971, Pub. L. 92–93, §§ 5, 6, 14, 85 Stat. 318, 319. 170106(c)36:1156. 170106(d)36:1164(a). 170106(e)36:1164(b). In subsection (a), the words “pecuniary” and “or gain” are omitted as unnecessary. In subsection (b), the word “capital” is omitted as unnecessary. In subsection (c), the words “as an organization” are omitted as unnecessary. In subsection (d), the words “inure to the benefit of” are substituted for “inure to” for consistency in the revised title.

Reference

Citations & Metadata

Citation

36 U.S.C. § 170106

Title 36 — Patriotic and National Observances

Last Updated

Apr 5, 2026

Release point: 119-73not60