36 U.S.C. § 40506: Restrictions

Summary

The corporation cannot sell stock or pay dividends. It cannot give money to or take part in political campaigns, or try to influence laws. The corporation’s money or property cannot be given to or used for the personal benefit of any director, officer, or member while the corporation exists or when it is closing down. Officers may be paid for expenses if the board approves. The group may give help to Medal of Honor recipients, their widows, or their children to do the corporation’s work. The corporation may not lend money to a director, officer, or employee. Anyone who votes for or helps make such a loan is each legally responsible for the full amount until it is repaid.

Title 36, §40506

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 as such during the life of the corporation or on its dissolution or final liquidation. This subsection does not prevent the payment of— (1)

(2)appropriate aid to individuals to whom the Medal of Honor has been awarded, their widows, or their children, to carry out the purposes of the corporation.

(d)Loans.—

The corporation may not make a loan to a director, officer, or employee. Directors and officers 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.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 40506(a)36:802.Aug. 14, 1958, Pub. L. 85–642, §§ 9(a) (1st sentence words before last comma, last sentence), (b), 10, 12, 72 Stat. 599, 600. 40506(b)36:800. 40506(c)36:799(a) (1st sentence words before last comma, last sentence). 40506(d)36:799(b). In subsection (a), the words “any shares of” are omitted as unnecessary. In subsection (b), the words “support” and “any” are added for consistency in the revised title. The words “directly or indirectly, local or national” are omitted as unnecessary and for consistency in the revised title. In subsection (c), before clause (1), the words “inure to the benefit of” are substituted for “inure to” for consistency in the revised title. In clause (1), the words “bona fide” are omitted as unnecessary.

§40506 Restrictions

Summary

Title 36, §40506

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata