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36 U.S.C. § 150409Restrictions

submitted 3 years ago by Pub. L. 118-31 to r/title-36-PATRIOTIC-AND-NATIONAL-OBSERVANCES-CEREMONIES-AND-ORGANIZATIONS · 162 words · no verdicts yet

in plain englishAI-generated · not legal advice

The corporation cannot issue stock or pay dividends to anyone. It cannot let its income or assets benefit its own members, officers, or directors, though it can pay them reasonable salaries or expenses. It also cannot loan money to insiders or claim the government endorses its activities.

(a) Stock and Dividends. The corporation may not issue any shares of stock. It also may not declare or pay any dividends. (b) Distribution of Income or Assets. (1) In general, the corporation's income or assets cannot benefit any person who is a member, officer, or director of the corporation, and cannot be given to such a person while the charter is in effect. (2) Effect. This does not stop the corporation from paying its officers a reasonable salary, or from reimbursing actual and necessary expenses, as long as the board of directors approves the amounts. (c) Loans. The corporation may not make a loan to any officer, director, member, or employee of the corporation. (d) No Federal Endorsement. Having this federal charter does not mean the corporation can claim that Congress approved its activities or that the Federal Government backs its activities.
the actual law source: uscode.house.gov ↗public domain
(a)Stock and Dividends.—

The corporation may not—

(1)

issue any shares of stock; or

(2)

declare or pay any dividends.

(b)Distribution of Income or Assets.—
(1)In general.—

The income or assets of the corporation may not—

(A)

inure to any person who is a member, officer, or director of the corporation; or

(B)

be distributed to any such person during the life of the charter granted by this chapter.

(2)Effect.—

Nothing in this subsection prevents the payment of reasonable compensation to the officers of the corporation, or reimbursement for actual and necessary expenses, in amounts approved by the board of directors.

(c)Loans.—

The corporation may not make any loan to any officer, director, member, or employee of the corporation.

(d)No Federal Endorsement.—

The corporation may not claim congressional approval or Federal Government authority by virtue of the charter granted by this chapter for any of the activities of the corporation.

Source credit: (Added Pub. L. 118–31, div. E, title LI, § 5103(a), Dec. 22, 2023, 137 Stat. 937.)

history & why it existsrecord from the source credit
  • 2023Enacted · Pub. L. 118-31 · 137 Stat. 937

A history note hasn’t been published yet. The record shows enactment by Pub. L. 118-31 on 2023-12-22.

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