§ 150508. Restrictions

268 words·~1 min read·/usc/title-36/section-150508

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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 an officer or member as such may not contribute to, support, or assist a political party or candidate for elective public office. The corporation may not carry on propaganda.

(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 except on dissolution or final liquidation of the corporation.

(d)Loans.— The corporation may not make a loan or advance to an officer or member of the board of representatives. Officers and members of the board who vote for or assent to making a loan or advance to an officer or member of the board, and officers or members of the board 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.

(Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1390.)

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

In subsection (b), the words “The corporation may not” are substituted for “No part of the activities of the corporation shall consist of” to eliminate unnecessary words.

In subsection (c), the words “inure to the benefit of” are substituted for “inure” for consistency in the revised title. The words “as provided in section 417 of this title” are omitted as unnecessary.

In subsection (d), the words “or advance” are added in 2 places for consistency in the subsection.

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Pub. L. 105–225
112 Stat. 1390
section 417 of this title

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§ 150508

Restrictions

Pub. L.Pub. L. 105–225

Stat.112 Stat. 1390

Citesection 417 of this title

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