36 U.S.C. § 22307 — Restrictions

submitted 28 years ago by Pub. L. 105-225 to r/title-36-PATRIOTIC-AND-NATIONAL-OBSERVANCES-CEREMONIES-AND-ORGANIZATIONS · 177 words · no verdicts yet

in plain englishAI-generated · not legal advice

The corporation cannot issue stock, pay dividends, or support political candidates or parties. Its income and assets cannot benefit directors, officers, or members personally, though paid staff can still earn approved compensation. It also cannot loan money to its own directors, officers, or employees.

(a) Stock and Dividends. The corporation cannot issue stock. It also cannot declare or pay a dividend to anyone. (b) Political Activities. The corporation, and its directors or officers acting in that role, cannot give money to, support, or help a political party or a candidate for public office. (c) Distribution of Income or Assets. The corporation's income or assets cannot go to a director, officer, or member personally. This is true while the corporation exists and also if it dissolves or winds down for good. There is one exception: the corporation can still pay an officer a salary, as long as the board of directors approves the amount. (d) Loans. The corporation cannot give a loan or advance money to a director, officer, or employee. If directors vote for or agree to such a loan, or if officers help make it happen, they are personally on the hook for paying it back. That responsibility is joint — each of them can be held responsible for the whole amount — and it lasts until the loan is fully repaid.

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 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 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. 1303.)

history & why it existsrecord from the source credit

1998Enacted · Pub. L. 105-225 · 112 Stat. 1303

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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