36 U.S.C. § 70507: Restrictions

Summary

The corporation cannot issue stock or pay dividends. It must not use its activities, money, income, or property for political activity or to try to influence laws. The corporation, and its directors or officers acting for the corporation, may not give money, support, or take part in political campaigns or try to sway legislation. The corporation also may not make loans to its directors, officers, members, or employees. Members and other private people are not responsible for the corporation’s debts or legal obligations. The corporation may not claim it has approval or authority from Congress or the U.S. government, but it may say it has this charter. The corporation’s income and assets cannot be given to or benefit any director, officer, or member while the charter lasts. The board may approve reasonable pay and reimbursements for expenses to officers, directors, or members. This does not stop the corporation from awarding a grant to a Federal Bar Association chapter that some officers, directors, or members may belong to, and it does not stop paying reasonable wages to the corporation’s employees.

Title 36, §70507

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.—

(1)In general.—

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

(2)No contribution, support, or participation.—

The corporation or a director or officer in the corporate capacity of the director of officer 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.—

(1)In general.—

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)

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

(2)Rule of construction.—

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)Loans.—

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

(e)Immunity From Liability.—

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

(f)Claim of Governmental Approval or Authority.—

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