36 U.S.C. § 154107 — Restrictions

submitted 28 years ago by Pub. L. 105-225 to r/title-36-PATRIOTIC-AND-NATIONAL-OBSERVANCES-CEREMONIES-AND-ORGANIZATIONS · 175 words · no verdicts yet

in plain englishAI-generated · not legal advice

The corporation cannot issue stock, pay dividends, or engage in political activity. Its income can't benefit directors or officers personally. Loans to them are banned too.

(a) Stock and Dividends. The corporation may not issue stock, or declare or pay a dividend. (b) Political Activities. The corporation, and a director or officer acting in that role, may not give money to, support, or help a political party or candidate for public office. (c) Distribution of Income or Assets. The corporation's income or assets may not benefit, or be given to, a director, officer, or member — whether the corporation is still running or is dissolving or finally winding up. There is one exception: the board of directors may approve compensation for an officer. (d) Loans. The corporation may not lend or advance money to a director, officer, or employee. Directors who vote for or agree to such a loan or advance are personally responsible together for repaying it, until it is repaid. Officers who help make the loan or advance happen share that same responsibility.

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

(d)Loans.—

The corporation may not make a loan or advance to a director, officer, or employee. Directors who vote for or assent to making a loan or advance to a director, officer, or employee, and officers who participate in making the loan or advance, are jointly and severally liable to the corporation for the amount of the loan or advance until it is repaid.

Source credit: (Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1433.)

history & why it existsrecord from the source credit

1998Enacted · Pub. L. 105-225 · 112 Stat. 1433

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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