§ 150409. Restrictions

172 words·~1 min read·/usc/title-36/section-150409

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Stock and Dividends.— The corporation may not—

(1)issue any shares of stock; or

(2)declare or pay any dividends.

(b)Distribution of Income or Assets.—

(1)In general.— The income or assets of the corporation may not—

(A)inure to any person who is a member, officer, or director of the corporation; or

(B)be distributed to any such person during the life of the charter granted by this chapter.

(2)Effect.— Nothing in this subsection prevents the payment of reasonable compensation to the officers of the corporation, or reimbursement for actual and necessary expenses, in amounts approved by the board of directors.

(c)Loans.— The corporation may not make any loan to any officer, director, member, or employee of the corporation.

(d)No Federal Endorsement.— The corporation may not claim congressional approval or Federal Government authority by virtue of the charter granted by this chapter for any of the activities of the corporation.

(Added Pub. L. 118–31, div. E, title LI, § 5103(a), Dec. 22, 2023, 137 Stat. 937.)

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