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Title 36, Patriotic and National ObservancesRelease 119-110

§30707 Restrictions

Title 36 › Subtitle II — Patriotic and National Organizations › Part B — Organizations › CHAPTER 307 — BOARD FOR FUNDAMENTAL EDUCATION › § 30707

Last updated Sep 22, 2026|Official source

Summary

The corporation must not run to make a profit. It may not sell stock, pay dividends, or give money or help to a political party or a candidate. Its income and assets cannot go to benefit a director, officer, or member, except when the corporation is finally closed and its assets are distributed. The corporation may not lend money to a director, officer, or employee. If directors vote for or agree to such a loan, or officers take part in making it, those directors and officers are each responsible for repaying the loan to the corporation until it is paid back.

Full Legal Text

Title 36, §30707

Patriotic and National Observances, Source: USLM XML via OLRC

(a)Profit.—
The corporation may not engage in business for profit.
(b)Stock and Dividends.—
The corporation may not issue stock or declare or pay a dividend.
(c)Political Activities.—
The corporation or a director, officer, or member as such may not contribute to, support, or assist a political party or candidate for elective public office.
(d)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 except on dissolution or final liquidation of the corporation.
(e)Loans.—
The corporation may not make a loan to a director, officer, or employee. Directors who vote for or assent to making a loan to a director, officer, or employee, and officers who participate in making the loan, are jointly and severally liable to the corporation for the amount of the loan until it is repaid.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 30707(a)36:512 (words after comma).July 19, 1954, ch. 536, §§ 9, 10, 12, 68 Stat. 491. 30707(b)36:512 (words before comma). 30707(c)36:510. 30707(d)36:509(a). 30707(e)36:509(b). In subsection (a), the word “pecuniary” is omitted as unnecessary. In subsection (b), the words “any shares of” are omitted as unnecessary. In subsection (d), the words “inure to the benefit of” are substituted for “inure to” for consistency in the revised title. The words “as provided in section 515 of this title” are omitted as unnecessary.

Reference

Citations & Metadata

Citation

36 U.S.C. § 30707

Title 36, Patriotic and National Observances

Last Updated

Sep 22, 2026

Release point: 119-110