36 U.S.C. § 190308: Restrictions

Summary

The corporation cannot issue stock, pay dividends, or distribute income or assets to directors, officers, or members during charter, except for board‑approved reasonable pay and expense reimbursement. It also cannot loan to directors, officers, or employees, or claim congressional or U.S. authority.

Title 36, §190308

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)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.

(c)Loans.—

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

(d)Claim of Governmental Approval or Authority.—

The corporation may not claim congressional approval or the authority of the United States Government for any of its activities.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 190308(a)36:5109(c).Oct. 23, 1992, Pub. L. 102–484, title XVIII, § 1829, 106 Stat. 2585. 190308(b)36:5109(a). 190308(c)36:5109(b). 190308(d)36:5109(d). In subsection (a), the words “any shares of” are omitted as unnecessary. In subsection (b), the words “This subsection does not” are substituted for “Nothing in this subsection shall be construed to” for consistency in the revised title. In subsection (d), the words “by virtue of this chapter” are omitted as unnecessary.

§190308 Restrictions

Summary

Title 36, §190308

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata