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36 U.S.C. § 20707Restrictions

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 faces five restrictions: no stock or dividends, no political activity, no distributing its income to insiders, no loans to insiders, and no claiming government approval.

(a) Stock and Dividends. The corporation may not issue stock. It may not declare or pay a dividend. (b) Political Activities. The corporation, and its directors and officers acting in that role, may not contribute to, support, or take part in any political activity. They also may not try to influence legislation in any way. (c) Distribution of Income or Assets. The corporation's income or assets cannot benefit, or be given to, a director, officer, or member while the charter is active. There is one exception: the corporation can still pay a director or officer reasonable compensation, or reimburse them for real, necessary expenses, as long as the board of directors approves the amount. (d) Loans. The corporation may not make a loan to a director, officer, or employee. (e) Claim of Governmental Approval or Authority. The corporation may not claim that Congress approved its activities, or that it has the authority of the United States Government, for anything it does.
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 Authority.—

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. 1289.)

history & why it existsrecord from the source credit
  • 1998Enacted · Pub. L. 105-225 · 112 Stat. 1289

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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