36 U.S. Code Section 22307 - Restrictions 2018

Section Text

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

(b) Political Activities.—The corporation or a director or officer as such may not contribute to, support, or assist a political party or candidate for public office.

(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 as such during the life of the corporation or on its dissolution or final liquidation. This subsection does not prevent the payment of compensation to an officer in an amount approved by the board of directors.

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

Editorial Notes

Historical and Revision Notes Revised SectionSource (U.S. Code)Source (Statutes at Large)22307(a) 36:3412. Oct. 15, 1962, Pub. L. 87–817, §§9, 10, 12, 76 Stat. 932. 22307(b) 36:3410. 22307(c) 36:3409(a). 22307(d) 36:3409(b). In subsection (a), the words "any shares of" 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. In subsection (d), the words "or advance" are added in 2 places for consistency in the subsection.


36 U.S.C. § 22307 (2018)

Disclaimer: Lawrina maintains this website to enhance public access to information about its activities. We make an effort to keep the information about codes timely and accurate. Please note that we cannot guarantee that the U.S.C 2018, Title 36, Subtitle II, Part b, Chapter 223, Section 22307 — Restrictions — exactly reproduces the officially adopted text.