36 U.S.C. § 40506 — Restrictions
submitted 28 years ago by Pub. L. 105-225 to r/title-36-PATRIOTIC-AND-NATIONAL-OBSERVANCES-CEREMONIES-AND-ORGANIZATIONS · 205 words · no verdicts yet
The corporation can't issue stock, pay dividends, or do political lobbying. Its income can't personally benefit directors, officers, or members, with narrow exceptions. It also can't lend money to its own directors, officers, or employees.
(a) Stock and Dividends: The corporation cannot issue stock or declare or pay a dividend.
(b) Political Activities: Neither the corporation nor any director or officer, acting in that role, may contribute to, support, or take part in political activity, or try to influence legislation in any way.
(c) Distribution of Income or Assets: The corporation's income or assets can't be used to benefit, or be given to, a director, officer, or member personally -- whether the corporation is still running or being dissolved or liquidated. This doesn't stop the corporation from paying: (1) officers' expenses that the board of directors has approved; or (2) appropriate aid to Medal of Honor recipients, their widows, or their children, to carry out the corporation's purposes.
(d) Loans: The corporation can't lend money to a director, officer, or employee. Directors and officers who vote for or agree to such a loan, and officers who help make it, are all personally, jointly, and severally liable to the corporation for the loan amount until it's repaid.
The corporation may not issue stock or declare or pay a dividend.
The corporation or a director or officer as such may not contribute to, support, or participate in any political activity or in any manner attempt to influence legislation.
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—
expenses of officers of the corporation in amounts approved by the board of directors; or
appropriate aid to individuals to whom the Medal of Honor has been awarded, their widows, or their children, to carry out the purposes of the corporation.
The corporation may not make a loan to a director, officer, or employee. Directors and officers who vote for or assent to making a loan to a director, officer, or employee, and officers who participate in making the loan, are jointly and severally liable to the corporation for the amount of the loan until it is repaid.
Source credit: (Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1334.)
- 1998Enacted · Pub. L. 105-225 · 112 Stat. 1334
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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