36 U.S.C. § 22707Chapter 227

§22707. Restrictions

Primary source

Verbatim text below is from the United States Code (GovInfo), a public-domain U.S. government work.

Full Text

§22707. Restrictions

(a) Profit.—The corporation shall operate as a not-for-profit corporation, exclusively for charitable, educational, patriotic, and civic improvement purposes.

(b) Stock and Dividends.—The corporation may not issue stock or declare or pay a dividend.

(c) Political Activities.—The corporation or an officer of the corporation or member of its executive committee 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.

(d) 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 of the corporation, except on dissolution or final liquidation of the corporation.

(e) Loans.—The corporation may not make a loan or advance to a director or officer. Directors who vote for or assent to making a loan or advance to a director or officer, 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.

Historical and Revision Notes
Revised Section	Source (U.S. Code)	Source (Statutes at Large)
22707(a)	36:67b(11) (1st–8th words and words after semicolon).	July 23, 1947, ch. 298, §§3(11), 5(1), (2), 15, 16, 61 Stat. 405, 406, 408.
22707(b)	36:67n.
22707(c)	36:67d(1), (2).
22707(d)	36:67b(11) (9th word through semicolon).
22707(e)	36:67o.

In subsection (b), the words "shares of" are omitted as unnecessary.

In subsection (e), the words "or advance" are added in 2 places for consistency in the subsection.

Last amended: December 31, 2024

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.