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36 U.S.C. § 130507 — Restrictions

submitted 28 years ago by Pub. L. 105-225 to r/title-36-PATRIOTIC-AND-NATIONAL-OBSERVANCES-CEREMONIES-AND-ORGANIZATIONS · 168 words · no verdicts yet

in plain englishAI-generated · not legal advice

The corporation may not issue stock, pay dividends, engage in political activity, distribute income or assets to insiders, or make certain loans. It may pay board-approved reasonable officer compensation. Loan approvers and participants are jointly and severally liable until repayment.

(a) Stock and dividends.—The corporation may not issue stock or declare or pay a dividend. (b) Political activities.—The corporation, or a director, officer, or agent acting in that role, may not contribute to, support, or assist a political party or candidate for office. (c) Income and assets.—During the corporation’s life, dissolution, or final liquidation, its income and assets may not benefit or be distributed to a director, officer, or member. The corporation may pay an officer reasonable compensation approved by the board. (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 participate in making it, are jointly and individually liable to the corporation for the loan’s amount until it is 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, officer, or agent as such may not contribute to, support, or assist any political party or candidate for office.

(c)Distribution of Income or Assets.—

The income and 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 corporation or on its dissolution or final liquidation. This subsection does not prevent the payment of reasonable compensation to an officer in an amount approved by the board of directors.

(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. 1378.)

history & why it existsrecord from the source credit
  • 1998Enacted · Pub. L. 105-225 · 112 Stat. 1378

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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