§ 150708. Restrictions
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/usc/title-36/section-150708A 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 issue stock or declare or pay a dividend.
(b)Political Activities.— The corporation or a director, officer, or member as such may not contribute to, support, or assist a political party or candidate for elective public office, or advocate, sponsor, or promote legislation in the Congress of the United States or in the legislature of a State.
(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, officer, or member except on dissolution or final liquidation of the corporation. This subsection does not prevent the executive committee from adopting terms of employment of the executive director as provided in section 150705(e) of this title.
(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. 1393.)
In subsection (a), the words “any shares of” and “its objects and purposes being solely patriotic and educational” are 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 “such person, agency, or organization” are interpreted as referring to a “member, officer, or director” and are omitted as unnecessary. The words “as provided in section 445 of this title” are omitted as unnecessary. The words “This subsection does not prevent” are substituted for “Nothing in this subsection, however, shall be construed to prevent” to eliminate unnecessary words.
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U.S. Code
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- Pub. L. 105–225
- 112 Stat. 1393
- section 445 of this title
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§ 150708
Restrictions
Pub. L.Pub. L. 105–225
Stat.112 Stat. 1393
Citesection 445 of this title
Cites 4Cited by 0 across 0 sources