36 USC § 70908 Restrictions | United States Code | US Law

36 USC § 70908

Restrictions

October 21, 2020

USC

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

(b) Political Activities.—The FFA or a director, officer, or member acting on behalf of the FFA may not contribute to, support, or assist a political party or candidate for elective public office.

(c) Distribution of Income or Assets.—The income or assets of the FFA may not inure to the benefit of, or be distributed to, a director, officer, or member, except on dissolution or final liquidation of the FFA.

(d) Loans.—The FFA may not make a loan to a director, officer, or employee. Directors who vote for or assent to making a loan to a director, officer, or employee, and officers who participate in making the loan, are jointly and severally liable to the corporation for the amount of the loan until it is repaid.

(e) Prizes, Awards, Grants, or Loans to Student Officers and Members Meeting Criteria.—This section does not preclude prizes, awards, grants, or loans to student officers and members meeting the criteria established by the board of directors for selecting recipients of those benefits.

Open Table

Historical and Revision Notes
Revised Section	Source (U.S. Code)	Source (Statutes at Large)
70908(a)	36:282.	Aug. 30, 1950, ch. 823, §§9, 10, 12, 64 Stat. 566.
70908(b)	36:280.
70908(c)	36:279(a).
70908(d)	36:279(b).
70908(e)	36:279(c).

In subsection (a), the words "any shares or" and "its objects and purposes being solely educational" are omitted as unnecessary and for consistency in the revised title.

In subsection (c), the words "inure to the benefit of" are substituted for "inure to" for consistency in the revised title. The words "as provided in section 285 of this title" are omitted as unnecessary.

Editorial Notes

Amendments

2019—Subsec. (a). Pub. L. 116–7, §9(1), substituted "FFA" for "corporation".

Subsec. (b). Pub. L. 116–7, §9(2), substituted "FFA or a director, officer, or member acting on behalf of the FFA" for "corporation or a director, officer, or member as such".

Subsec. (c). Pub. L. 116–7, §9(3), substituted "FFA" for "corporation" in two places.

Subsec. (d). Pub. L. 116–7, §9(4), substituted "FFA" for "corporation" in first sentence.

Tried the LawStack mobile app?

Join thousands and try LawStack mobile for FREE today.

Carry the law offline, wherever you go.
Download CFR, USC, rules, and state law to your mobile device.