36 U.S.C. § 220707: Restrictions

Summary

The corporation cannot issue stock or pay dividends. It and its directors or officers may not take part in political activity or try to influence laws. Its income and assets cannot benefit directors, officers, or members while the charter exists, except for board‑approved reasonable pay or expense reimbursement. The corporation may not lend money to any director, officer, or employee, and it may not claim congressional or U.S. Government approval for its activities.

Title 36, §220707

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 otherwise 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) 220707(a)36:1808(d).Nov. 20, 1981, Pub. L. 97–83, § 8, 95 Stat. 1095. 220707(b)36:1808(c). 220707(c)36:1808(a). 220707(d)36:1808(b). 220707(e)36:1808(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. In subsection (c), the words “may not” are substituted for “No part of . . . shall” for consistency in the revised title and to eliminate unnecessary words. The words “inure to the benefit of” are substituted for “inure to” for consistency in the revised title. The words “This subsection does not” are substituted for “Nothing in this subsection shall be construed to” for consistency in the revised title and to eliminate unnecessary words.

§220707 Restrictions

Summary

Title 36, §220707

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata