36 U.S.C. § 230307 — Restrictions

submitted 28 years ago by Pub. L. 105-225 to r/title-36-PATRIOTIC-AND-NATIONAL-OBSERVANCES-CEREMONIES-AND-ORGANIZATIONS · 185 words · no verdicts yet

in plain englishAI-generated · not legal advice

The corporation cannot issue stock or pay dividends, and it cannot support political parties or candidates. Its income and assets cannot benefit officers or members, though reasonable pay and approved expenses are allowed. It also cannot lend money to its officers or employees.

(a) Stocks and Dividends. The corporation cannot issue stock. It cannot declare or pay a dividend to anyone. (b) Political Activities. The corporation, and its officers or agents acting in that role, cannot contribute 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 benefit an officer or member, and cannot be given to one, while the corporation exists or when it dissolves or winds up. But this rule does not stop the corporation from paying an officer reasonable compensation, or reimbursing an officer for actual, necessary expenses, as long as the board of administration approves the amount. (d) Loans. The corporation cannot make a loan or a cash advance to an officer or employee. If members of the board of administration vote for or agree to such a loan or advance, they are personally responsible, along with any officers who help make it, for paying back the full amount to the corporation until it is repaid. This responsibility is joint and several, meaning the corporation can collect the whole amount from any one of them.

the actual law source: uscode.house.gov ↗public domain

(a)Stocks and Dividends.—

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

(b)Political Activities.—

The corporation or an officer or agent 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, an officer or member 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 reimbursement for actual necessary expenses in amounts approved by the board of administration of the corporation.

(d)Loans.—

The corporation may not make a loan or advance to an officer or employee. Members of the board of administration who vote for or assent to making a loan or advance to an 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. 1484.)

history & why it existsrecord from the source credit

1998Enacted · Pub. L. 105-225 · 112 Stat. 1484

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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