§ 70908. Restrictions

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

(b) Political Activities.— The corporation or a director, officer, or member as such 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 corporation may not inure to the benefit of, or be distributed to, a director, officer, or member, except on dissolution or final liquidation of the corporation.

(d) Loans.— The corporation 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.

(Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1358.)

Historical And Revision

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.