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36 U.S.C. § 130306 — Restrictions

submitted 28 years ago by Pub. L. 105-225 to r/title-36-PATRIOTIC-AND-NATIONAL-OBSERVANCES-CEREMONIES-AND-ORGANIZATIONS · 165 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law restricts the Legion of Valor's activities. It cannot issue stock, back political candidates, or funnel income to insiders outside dissolution. It also cannot loan money to insiders without directors and officers being personally liable.

(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 acting as such, may not contribute to, support, or assist a political party or a candidate for public office. (c) Distribution of Income or Assets. The corporation's income or assets cannot benefit, or be distributed to, a director, officer, or member, except when the corporation dissolves or finally liquidates. This does not stop the corporation from paying an officer compensation in an amount the executive committee approves. (d) Loans. The corporation may not loan money to a director, officer, or employee. Directors who vote for or agree to such a loan, and officers who help make it happen, are all jointly and individually liable to the corporation for the loan's full amount until it's repaid.
the actual law source: uscode.house.gov ↗public domain
(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 assist a political party or candidate for public office.

(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 except on dissolution or final liquidation of the corporation. This subsection does not prevent the payment of compensation to an officer in an amount approved by the executive committee of the corporation.

(d)Loans.—

The corporation may not make a loan to a director, officer, or employee. Directors who vote for or assent to making a loan to a director, officer, or employee, and officers who participate in making the loan, are jointly and severally liable to the corporation for the amount of the loan until it is repaid.

Source credit: (Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1375.)

history & why it existsrecord from the source credit
  • 1998Enacted · Pub. L. 105-225 · 112 Stat. 1375

A history note hasn’t been published yet. The record shows enactment by Pub. L. 105-225 on 1998-08-12.

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