36 U.S.C. § 40706: Distribution of assets on…

Summary

When the corporation is dissolved, certain property becomes the property of the Secretary of the Army: firearms stored at the Defense Distribution Depot in Anniston, Alabama on the date of dissolution, M–16 rifles the corporation controls, and trophies received from the National Board for the Promotion of Rifle Practice through that date. Any other asset may be given only to a 501(c)(3) organization that does work like section 40722 describes, and not to an individual. Any remaining assets must be sold and the money deposited in the Treasury.

Title 36, §40706

Patriotic and National Observances, Source: USLM XML via OLRC

(a)Secretary of the Army.—

On dissolution of the corporation, title to the following items, and the right to possess the items, vest in the Secretary of the Army:

(1)Firearms stored at Defense Distribution Depot, Anniston, Anniston, Alabama on the date of dissolution.

(2)M–16 rifles under control of the corporation.

(3)Trophies received from the National Board for the Promotion of Rifle Practice through the date of dissolution.

(b)Tax-Exempt Organizations.—

(1)On dissolution of the corporation, an asset not described in subsection (a) of this section may be distributed to an organization that—

(A)is exempt from taxation under section 501(a) of the Internal Revenue Code of 1986 (26 U.S.C. 501(a)) as an organization described in section 501(c)(3) of that Code (26 U.S.C. 501(c)(3)); and

(B)performs functions similar to the functions described in section 40722 of this title.

(2)An asset distributed under this subsection may not be distributed to an individual.

(c)Treasury.—

On dissolution of the corporation, any asset not distributed under subsection (a) or (b) of this section shall be sold and the proceeds shall be deposited in the Treasury.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 40706(a)36:5509(a)(1).Feb. 10, 1996, Pub. L. 104–106, title XVI, § 1619, 110 Stat. 520; Sept. 23, 1996, Pub. L. 104–201, title X, § 1073(c)(3), 110 Stat. 2657. 40706(b)(1)36:5509(a)(2). 40706(b)(2)36:5509(b). 40706(c)36:5509(a)(3). In subsection (a), before clause (1), the words “title to the following items, and the right to possess the items, vest in the Secretary of the Army” are substituted for “title to [specified items] . . . shall vest in the Secretary of the Army, and the Secretary shall have the immediate right to the possession of such items” to eliminate unnecessary words. In clause (2), the words “M–16 rifles under control of the corporation” are substituted for “M–16 rifles that are transferred to the Corporation under section 1615(a)(2), that are referred to in section 1616(a)(3), or that are otherwise under the control of the Corporation” to eliminate unnecessary words. In subsection (b), paragraph (2) is applied only to subsection (b) because the prohibition is not relevant to 36:5509(a)(1) or (3).

Editorial Notes

Amendments

2014—Subsec. (a). Pub. L. 113–237 substituted colon for dash at end of introductory provisions, “Firearms” for “firearms” in par. (1) and “Trophies” for “trophies” in par. (3).

§40706 Distribution of Assets on Dissolution