36 U.S.C. § 152307 — Restrictions
submitted 28 years ago by Pub. L. 105-225 to r/title-36-PATRIOTIC-AND-NATIONAL-OBSERVANCES-CEREMONIES-AND-ORGANIZATIONS · 156 words · no verdicts yet
The corporation cannot operate for profit, issue stock, or pay dividends. It cannot support political parties or candidates, and its income cannot benefit insiders except when it dissolves. It also cannot loan money to its own directors, officers, or employees.
(a) Profit — The corporation cannot run its business to make a profit.
(b) Stock and Dividends — It cannot issue stock. It cannot declare or pay a dividend.
(c) Political Activities — The corporation cannot support a political party or candidate for elected office. Directors, officers, and members also cannot do this in their official role.
(d) Distribution of Income or Assets — The corporation's income and assets cannot go to a director, officer, or member. The only exception is when the corporation dissolves or finally liquidates.
(e) Loans — The corporation cannot lend money to a director, officer, or employee. If directors vote for or agree to such a loan, they are personally responsible for paying it back. Officers who help arrange the loan share that responsibility too. This liability lasts until the loan is fully repaid.
The corporation may not engage in business for profit.
The corporation may not issue stock or declare or pay a dividend.
The corporation or a director, officer, or member as such may not contribute to, support, or assist a political party or candidate for elective public office.
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.
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. 1413.)
- 1998Enacted · Pub. L. 105-225 · 112 Stat. 1413
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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