36 U.S.C. § 140506 — 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 corporation's finances and politics. It cannot issue stock or pay dividends, and it cannot support political parties or candidates. It generally cannot give its money to insiders, and directors and officers who make an improper loan are personally liable for it.

(a) Stock and Dividends. The corporation may not issue stock. It may not declare or pay a dividend. (b) Political Activities. The corporation may not give money to, support, or help a political party or a candidate for public office. A director or officer acting in that role may not do this either. (c) Distribution of Income or Assets. The corporation's income or assets may not benefit or go to a director, officer, or member — except when the corporation dissolves or finally liquidates. But the corporation can still pay an officer compensation, if the executive committee approves the amount. (d) Loans. The corporation may not lend money to a director, officer, or employee. If a director votes for or agrees to such a loan, or an officer helps make it, that director or officer is personally responsible — jointly with everyone else involved — for the full loan 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 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. 1383.)

history & why it existsrecord from the source credit

1998Enacted · Pub. L. 105-225 · 112 Stat. 1383

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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