36 U.S.C. § 21107: Restrictions

Summary

Do not issue stock, declare or pay dividends, or lend money to directors, officers, or employees. While its charter from this chapter exists, the corporation’s income or assets must not go to any director, officer, or member, except for board‑approved pay or expense reimbursement. Do not claim congressional or U.S. government authority.

Title 36, §21107

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) 21107(a)36:2408(c).June 12, 1984, Pub. L. 98–314, § 8(a)–(d), 98 Stat. 238. 21107(b)36:2408(a). 21107(c)36:2408(b). 21107(d)36:2408(d). In subsection (a), the words “any shares of” are omitted as unnecessary. In subsection (b), the words “inure to the benefit of” are substituted for “inure to” for consistency in the revised title.

§21107 Restrictions

Summary

Title 36, §21107

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata