§ 220108. Restrictions
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/usc/title-36/section-220108A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Profit.— The corporation may not engage in business activity for profit unless the activity is substantially related to—
(1)the purposes stated in section 220102 of this title; or
(2)raising funds to accomplish those purposes.
(b)Stock and Dividends.— The corporation may not issue stock or declare or pay a dividend.
(c)Political Activities.— The corporation shall be nonpolitical and may not provide financial aid or assistance to, or otherwise promote the candidacy of, an individual seeking elective public office. A substantial part of the activities of the corporation may not involve carrying on propaganda or otherwise attempting to influence legislation.
(d)Distribution of Income or Assets.— The income or assets of the corporation may not inure to the benefit of a governor, officer, member, or employee or be distributed to any person during the life of the corporation or on its dissolution or final liquidation. This subsection does not prevent the payment of reasonable compensation to an officer, employee, or other person or reimbursement for actual necessary expenses in amounts approved by the board of governors.
(e)Loans.— The corporation may not make a loan to a governor, officer, member, or employee.
(Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1461.)
In subsection (a), before clause (1), the word “pecuniary” is omitted as unnecessary.
In subsection (b), the words “any shares of capital” are omitted as unnecessary.
In subsection (c), the words “as an organization” are omitted as unnecessary.
In subsection
(d)the words “inure to the benefit of” are substituted for “inure to” for consistency in the revised title.
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U.S. Code
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- Pub. L. 105–225
- 112 Stat. 1461
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