36 U.S.C. § 50107: Restrictions

Summary

The corporation must not issue stock or pay dividends. It must not take part in politics or try to influence laws. Its money and property cannot go to any director, officer, or member while the charter lasts, except for reasonable pay or repayment of necessary expenses if the board approves. It cannot make loans to its directors, officers, or employees, or claim approval or authority from Congress or the U.S. Government.

Title 36, §50107

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 Authorization.—

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) 50107(a)36:3708(d).Dec. 9, 1985, Pub. L. 99–172, § 8, 99 Stat. 1021. 50107(b)36:3708(c). 50107(c)36:3708(a). 50107(d)36:3708(b). 50107(e)36:3708(e). This subsection is substituted for the source provisions for consistency in the revised title and to eliminate unnecessary words.

§50107 Restrictions

Summary

Title 36, §50107

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata