(a) Stock and Dividends.—The corporation may not issue stock or declare or pay a dividend.
(b) Political Activities.—The corporation or an officer or agent 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, an officer or member 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 reimbursement for actual necessary expenses in amounts approved by the council of administration of the corporation.
(d) Loans.—The corporation may not make a loan or advance to an officer or member of the corporation. Members of the council of administration who vote for or assent to making a loan or advance to an officer or member, 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.
Open Table
Historical and Revision Notes
|
Revised Section
|
Source (U.S. Code) |
Source (Statutes at Large) |
| 153707(a) |
36:1013. |
Sept. 7, 1962, Pub. L. 87–650, §§10, 11, 13, 76 Stat. 504, 505. |
| 153707(b) |
36:1011. |
|
| 153707(c) |
36:1010(a). |
|
| 153707(d) |
36:1010(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. In the first sentence, the words "or member" are added for consistency in the subsection.
