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36 U.S.C. § 22707Restrictions

submitted 28 years ago by Pub. L. 105-225 to r/title-36-PATRIOTIC-AND-NATIONAL-OBSERVANCES-CEREMONIES-AND-ORGANIZATIONS · 186 words · no verdicts yet

in plain englishAI-generated · not legal advice

The corporation must operate as a nonprofit for charitable, educational, patriotic, and civic purposes. It cannot issue stock, pay dividends, support political candidates, or spread propaganda. Its income cannot benefit members personally, except when the corporation dissolves, and it cannot loan money to its own directors or officers.

(a) Profit. The corporation must run as a not-for-profit organization, existing only for charitable, educational, patriotic, and civic improvement purposes. (b) Stock and Dividends. The corporation cannot issue stock or declare or pay a dividend. (c) Political Activities. The corporation, and any officer or executive committee member acting in that role, cannot give money to, support, or help a political party or a candidate for elected office. The corporation also cannot carry on propaganda. (d) Distribution of Income or Assets. The corporation's income or assets cannot benefit or be given to a director, officer, or member personally — except when the corporation dissolves or winds down for good. (e) Loans. The corporation cannot loan or advance money to a director or officer. If directors vote for or agree to such a loan, or officers help make it happen, they are all personally responsible — jointly and individually — for paying it back, until it is fully repaid.
the actual law source: uscode.house.gov ↗public domain
(a)Profit.—

The corporation shall operate as a not-for-profit corporation, exclusively for charitable, educational, patriotic, and civic improvement purposes.

(b)Stock and Dividends.—

The corporation may not issue stock or declare or pay a dividend.

(c)Political Activities.—

The corporation or an officer of the corporation or member of its executive committee as such may not contribute to, support, or assist a political party or candidate for elective public office. The corporation may not carry on propaganda.

(d)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 of the corporation, except on dissolution or final liquidation of the corporation.

(e)Loans.—

The corporation may not make a loan or advance to a director or officer. Directors who vote for or assent to making a loan or advance to a director or officer, 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. 1308.)

history & why it existsrecord from the source credit
  • 1998Enacted · Pub. L. 105-225 · 112 Stat. 1308

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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