§70507 — Title 36 Patriotic and National Observances | U.S. Code

Summary

May not issue stock or pay dividends. The corporation must not use its activities, money, or property for political campaigns or to try to influence laws. The corporation, and its directors or officers acting for it, may not give money, support, or take part in political activity or try to influence legislation. The corporation’s income or assets must not go to a director, officer, or member during the life of the charter granted by this chapter, except for board-approved reasonable pay and expense reimbursements. Grants to a Federal Bar Association chapter and reasonable pay to employees are allowed. The corporation may not make loans to directors, officers, members, or employees. Members and private individuals are not responsible for the corporation’s debts. The corporation may not claim congressional approval or U.S. Government authority for its actions, but it may acknowledge its charter.

Title 36, §70507

Patriotic and National Observances — Source: USLM XML via OLRC

(a)The corporation may not issue stock or declare or pay a dividend.

(b)(1)The activities, funds, income, and property of the corporation may not be used to carry on political activity or attempt to influence legislation.

(2)The corporation or a director or officer in the corporate capacity of the director of 11 So in original. Probably should be “or”. officer may not contribute to, support, or participate in any political activity or in any manner attempt to influence legislation.

(c)(1)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, in amounts approved by the board of directors, of—

(A)reasonable compensation; or

(B)reimbursement for expenses incurred in undertaking the corporation’s business, to officers, directors, or members.

(2)This subsection shall not be construed to—

(A)prevent the award of a grant to a Federal Bar Association chapter of which an officer, director, or member may be a member; or

(B)prevent the payment of reasonable compensation to the corporation’s employees for services undertaken on behalf of the corporation.

(d)The corporation may not make a loan to a director, officer, member, or employee.

(e)Members and private individuals are not liable for the obligations of the corporation.

(f)The corporation—

(1)may not claim congressional approval or the authority of the United States Government for any of its activities; and

(2)may acknowledge this charter.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 70507(a)36:582.Aug. 24, 1954, ch. 911, §§ 9, 10, 12, 68 Stat. 799. 70507(b)36:580. 70507(c)36:579(a) (words before last comma). 70507(d)36:579(b). 70507(e)36:579(a) (words after last comma). In subsection (a), the words “any shares of” are omitted as unnecessary. In subsection (b)(1), the words “directly or indirectly” are omitted as unnecessary. In subsection (c), the word “income” is substituted for “net earnings” for consistency in the revised title. In subsection (d), the words “or advance” are added in 2 places for consistency in the subsection.

Editorial Notes

Amendments

2025—Pub. L. 119–57 amended section generally. Prior to amendment, section set out restrictions on the corporation relating to stock and dividends, political activities, distribution of income, and loans and provided for immunity from liability.

§70507 Restrictions