36 U.S.C. § 20908: Restrictions

Summary

The corporation must not issue stock, pay dividends, or make loans to directors, officers, or employees. While its charter lasts, its income or assets cannot benefit directors, officers, or members, except for reasonable pay or repayments for necessary expenses approved by the board. The corporation and its officers may not take part in political activities, try to influence laws, or claim U.S. government approval.

Title 36, §20908

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.

(e)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) 20908(a)36:2108(d).Aug. 10, 1982, Pub. L. 97–234, § 8(a)–(e), 96 Stat. 262. 20908(b)36:2108(c). 20908(c)36:2108(a). 20908(d)36:2108(b). 20908(e)36:2108(e). In subsection (a), the words “any shares of” are omitted as unnecessary. In subsection (b), the words “as such” are substituted for “acting as such officer or director” for consistency in the revised title and to eliminate unnecessary words. In subsection (c), the words “inure to the benefit of” are substituted for “inure to” for consistency in the revised title.

Editorial Notes

Amendments

2006—Subsec. (c). Pub. L. 109–284 substituted “board of directors” for “board or directors”.

§20908 Restrictions