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Title 36 — Patriotic and National ObservancesRelease 119-73not60

§70107 Restrictions

Title 36 › Subtitle Subtitle II— Patriotic and National Organizations › Part B— Organizations › Chapter 701— FLEET RESERVE ASSOCIATION › § 70107

Last updated Apr 5, 2026|Official source

Summary

The corporation cannot issue stock or pay dividends. Its money or property cannot be used for the personal benefit of any director, officer, or member while the charter granted under this chapter is in effect. The corporation can, though, pay fair wages to officers or employees and reimburse actual necessary expenses if the board of directors approves the amounts. The corporation also cannot lend money to any director, officer, employee, or member, and it may not say that Congress or the U.S. Government approves or controls its activities.

Full Legal Text

Title 36, §70107

Patriotic and National Observances — Source: USLM XML via OLRC

(a)The corporation may not issue stock or declare or pay a dividend.
(b)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 employee or reimbursement for actual necessary expenses in amounts approved by the board of directors.
(c)The corporation may not make a loan to a director, officer, employee, or member.
(d)The corporation may not claim congressional approval or the authority of the United States Government for any of its activities.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 70107(a)36:5608(c).Sept. 23, 1996, Pub. L. 104–201, title XVIII, § 1808(a)–(d), 110 Stat. 2761. 70107(b)36:5608(a). 70107(c)36:5608(b). 70107(d)36:5608(d). In subsection (a), the words “any shares of” are omitted as unnecessary. In subsection (b), the words “This subsection does not” are substituted for “Nothing in this subsection may be construed to” for consistency in the revised title. In subsection (d), the words “by virtue of this chapter” are omitted as unnecessary.

Reference

Citations & Metadata

Citation

36 U.S.C. § 70107

Title 36 — Patriotic and National Observances

Last Updated

Apr 5, 2026

Release point: 119-73not60