36 U.S.C. § 151507 — Restrictions

submitted 28 years ago by Pub. L. 105-225 to r/title-36-PATRIOTIC-AND-NATIONAL-OBSERVANCES-CEREMONIES-AND-ORGANIZATIONS · 160 words · no verdicts yet

in plain englishAI-generated · not legal advice

The corporation cannot sell stock or pay dividends. It cannot join or support any political activity. It cannot use its money or property to benefit a director, officer, or member, though fair salaries and expenses are allowed. It cannot lend money to its own directors, officers, or employees. It cannot claim Congress approved its activities.

(a) Stock and Dividends. The corporation cannot issue stock. It cannot declare or pay a dividend. (b) Political Activities. The corporation cannot contribute to, support, or take part in any political activity. A director or officer, acting in that role, cannot do this either. None of them can try to influence legislation in any way. (c) Distribution of Income or Assets. The corporation's income or property cannot be used to benefit, or be given to, a director, officer, or member while the charter is in effect. This rule does not stop the corporation from paying an officer reasonable compensation, or from repaying actual, necessary expenses, as long as the board of directors approves the amount. (d) Loans. The corporation cannot loan money to a director, officer, or employee. (e) Claim of Governmental Approval or Authorization. The corporation cannot claim that Congress approved its activities, or that it has the authority of the United States Government behind any of its activities.

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 participate in any political activity or in any manner attempt to influence legislation.

(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 during the life of the charter granted by this chapter. This subsection does not prevent the payment of reasonable compensation to an officer or reimbursement for actual necessary expenses in amounts approved by the board of directors.

(d)Loans.—

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

(e)Claim of Governmental Approval or Authorization.—

The corporation may not claim congressional approval or the authority of the United States Government for any of its activities.

Source credit: (Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1403.)

history & why it existsrecord from the source credit

1998Enacted · Pub. L. 105-225 · 112 Stat. 1403

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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