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36 U.S.C. § 21107 — Restrictions

submitted 28 years ago by Pub. L. 105-225 to r/title-36-PATRIOTIC-AND-NATIONAL-OBSERVANCES-CEREMONIES-AND-ORGANIZATIONS · 128 words · no verdicts yet

in plain englishAI-generated · not legal advice

The corporation can't issue stock or pay dividends. Its income and assets can't benefit directors, officers, or members personally, though reasonable pay and expense reimbursements are allowed. It can't loan money to directors, officers, or employees, or claim that Congress or the government approved its activities.

(a) Stock and Dividends: The corporation can't issue stock. It also can't declare or pay dividends. (b) Distribution of Income or Assets: While the corporation's charter is active, its income and assets can't go to any director, officer, or member personally. But the corporation can still pay an officer reasonable compensation. It can also reimburse actual, necessary expenses, as long as the board approves the amount. (c) Loans: The corporation can't make loans to its directors, officers, or employees. (d) Claim of Governmental Approval or Authority: The corporation can't say that Congress approved its activities. It also can't claim it has the authority of the U.S. government behind 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)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.

(c)Loans.—

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

(d)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. 1293.)

history & why it existsrecord from the source credit
  • 1998Enacted · Pub. L. 105-225 · 112 Stat. 1293

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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