36 U.S.C. § 20106 — Restrictions

submitted 28 years ago by Pub. L. 105-225 to r/title-36-PATRIOTIC-AND-NATIONAL-OBSERVANCES-CEREMONIES-AND-ORGANIZATIONS · 243 words · no verdicts yet

in plain englishAI-generated · not legal advice

The corporation can't issue stock, pay dividends, or engage in politics. Its income can't benefit insiders, except for board-approved staff pay. It can't loan money to governors or officers, who become personally liable if they try.

(a) Stock and Dividends. The corporation can't issue stock or declare or pay a dividend. (b) Political Activities. The corporation, or a governor, officer, employee, or member acting as such, can't contribute to, support, or assist a political party or a candidate for public office. (c) Distribution of Income or Assets. The corporation's income or assets can't benefit, or be distributed to, a governor, officer, or member as such, while the corporation exists or when it dissolves or fully winds up. This doesn't stop the corporation from paying compensation to an officer or employee in an amount the board of governors approves. (d) Loans. The corporation can't make a loan or advance to a governor, officer, employee, or member. Governors who vote for or agree to such a loan or advance, and officers who help make it, are jointly and individually liable to the corporation for the amount until it's repaid. (e) Contributions to Certain Organizations. None of the principal or interest of a fund referred to in section 20102(1) of this title can go to an organization if: (1) a substantial part of what it does is carrying on propaganda or trying to influence legislation; or (2) any part of its net earnings benefits a private shareholder or individual.

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 governor, officer, employee, or member 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 governor, officer, or member as such 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 or employee in an amount approved by the board of governors.

(d)Loans.—

The corporation may not make a loan or advance to a governor, officer, employee, or member. Governors who vote for or assent to making a loan or advance to a governor, officer, employee, or member, 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.

(e)Contributions to Certain Organizations.—

None of the principal or interest of a fund referred to in section 20102(1) of this title may be contributed to an organization if—

(1)

a substantial part of its activities is carrying on propaganda or attempting to influence legislation; or

(2)

any part of its net earnings benefits a private shareholder or individual.

Source credit: (Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1285.)

history & why it existsrecord from the source credit

1998Enacted · Pub. L. 105-225 · 112 Stat. 1285

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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