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36 U.S.C. § 23106Restrictions

submitted 28 years ago by Pub. L. 105-225 to r/title-36-PATRIOTIC-AND-NATIONAL-OBSERVANCES-CEREMONIES-AND-ORGANIZATIONS · 265 words · no verdicts yet

in plain englishAI-generated · not legal advice

This corporation cannot issue stock or pay dividends, and it cannot support political candidates or parties. It cannot give its money to insiders, loan money to insiders, or fund groups that lobby or benefit private individuals.

(a) Stock and Dividends. The corporation cannot issue stock. It cannot declare or pay a dividend. (b) Political Activities. The corporation, and any trustee, officer, employee, board-of-nominations member, or corporation member 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 or be given to a trustee, officer, board-of-nominations member, or member, either while the corporation exists or when it dissolves or winds up. There is one exception: the corporation can still pay reasonable compensation to an officer or employee, in an amount the board of trustees approves. (d) Loans. The corporation cannot make a loan or advance to a trustee, officer, employee, board-of-nominations member, or member. Any trustee who votes for or agrees to such a loan, and any officer who helps make it, is personally liable — jointly with the others — to repay the corporation until the loan is fully paid back. (e) Contributions to Certain Organizations. None of the money or interest from a fund described in section 23102(1) can go to an organization if a large part of that organization's activities involve lobbying or political propaganda, or if any of its net earnings benefit a private shareholder or individual.
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 trustee, officer, employee, member of the board of nominations, or member of the corporation 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 trustee, officer, member of the board of nominations, or member of the corporation, as such, during the life of the corporation or on its dissolution or final liquidation. This subsection does not prevent the payment of reasonable compensation to an officer or employee in an amount approved by the board of trustees.

(d)Loans.—

The corporation may not make a loan or advance to a trustee, officer, employee, member of the board of nominations, or member of the corporation. Trustees who vote for or assent to making such a loan or advance, 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.

(e)Contributions to Certain Organizations.—

None of the principal or interest of a fund referred to in section 23102(1) of this title may be contributed to an organization if—

(1)

a substantial part of its activities is carrying on propaganda or attempting to influence legislation; or

(2)

any part of its net earnings benefits a private shareholder or individual.

Source credit: (Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1313.)

history & why it existsrecord from the source credit
  • 1998Enacted · Pub. L. 105-225 · 112 Stat. 1313

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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