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Title 36 — Patriotic and National ObservancesRelease 119-73not60

§40506 Restrictions

Title 36 › Subtitle Subtitle II— Patriotic and National Organizations › Part B— Organizations › Chapter 405— CONGRESSIONAL MEDAL OF HONOR SOCIETY OF THE UNITED STATES OF AMERICA › § 40506

Last updated Apr 5, 2026|Official source

Summary

Cannot issue stock or pay dividends. No political activity or attempts to influence laws by corporation, its directors, or officers. Income or assets may not benefit directors, officers, or members while it exists or on dissolution, except to pay officers’ expenses approved by board or to aid Medal of Honor recipients, widows, or children. No loans to directors, officers, or employees; approvers or makers are personally liable for the amount until repaid.

Full Legal Text

Title 36, §40506

Patriotic and National Observances — Source: USLM XML via OLRC

(a)The corporation may not issue stock or declare or pay a dividend.
(b)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)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)expenses of officers of the corporation in amounts approved by the board of directors; or
(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)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.

Legislative History

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.

Reference

Citations & Metadata

Citation

36 U.S.C. § 40506

Title 36 — Patriotic and National Observances

Last Updated

Apr 5, 2026

Release point: 119-73not60