36 U.S.C. § 22907: Restrictions

Summary

Cannot issue stock, pay dividends, take part in political activity, or influence laws. No income or assets can benefit directors, officers, or members during the charter, except for board‑approved pay and expense reimbursement. Cannot loan to directors, officers, or employees or claim U.S. government approval.

Title 36, §22907

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) 22907(a)36:3908(d).Nov. 6, 1986, Pub. L. 99–604, § 8(a)–(e), 100 Stat. 3447. 22907(b)36:3908(c). 22907(c)36:3908(a). 22907(d)36:3908(b). 22907(e)36:3908(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 “inure to the benefit of” are substituted for “shall insure [sic] to”, and the words “charter granted by this chapter” are substituted for “this charter”, for clarity and consistency in the revised title.

§22907 Restrictions

Summary

Title 36, §22907

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata