§ 110305. Restrictions

236 words·~1 min read·/usc/title-36/section-110305

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(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 or officer. This subsection does not prevent the payment of compensation to an officer or employee in an amount approved by the executive committee of the corporation.

(d)Loans.— The corporation may not make a loan to a director, officer, or employee. Directors 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.

(Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1370.)

In subsection (a), the words “any shares of” are omitted as unnecessary.

In subsection (b), the word “otherwise” is omitted as unnecessary.

In subsection (c), the words “inure to the benefit of” are substituted for “inure to” for consistency in the revised title. The words “This subsection does not prevent” are substituted for “Nothing in this section, however, shall be construed to prevent” for consistency in the revised title and to eliminate unnecessary words.

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Pub. L. 105–225
112 Stat. 1370

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§ 110305

Restrictions

Pub. L.Pub. L. 105–225

Stat.112 Stat. 1370

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