§ 220308. Restrictions
269 words·~1 min read·
/usc/title-36/section-220308A 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)Distribution of Income or Assets.— The income or assets of the corporation may not inure to the benefit of, or be distributed to, a trustee, officer, or member as such 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 or employee or reimbursement for actual expenses in amounts approved by the board of trustees.
(c)Loans.— The corporation may not make a loan or advance to a trustee, officer, or employee. Trustees who vote for or assent to making a loan or advance to a trustee, officer, or employee, and officers 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. 1464.)
In subsection (a), the words “any shares of” are omitted as unnecessary.
In subsection (b), 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 subsection, however, shall be construed to prevent” for consistency in the revised title and to eliminate unnecessary words.
In subsection (c), the words “or advance” are added the first time they appear for consistency in the subsection. The word “Trustees” is substituted for “Any director”, and the word “trustee” is substituted for “director”, for clarity and consistency in the revised chapter.
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- Pub. L. 105–225
- 112 Stat. 1464
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§ 220308
Restrictions
Pub. L.Pub. L. 105–225
Stat.112 Stat. 1464
Cites 2Cited by 0 across 0 sources