---
kind: "section"
citation: "36 U.S.C. § 130507"
title: "36"
title_heading: "Patriotic and National Observances, Ceremonies, and Organizations"
number: "130507"
heading: "Restrictions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/36/130507"
units:
  - "Subtitle II — Patriotic and National Organizations"
  - "Part B — Organizations"
  - "Chapter 1305 — Little League Baseball, Incorporated"
---

# §130507. Restrictions

- (a) **Stock and Dividends.—** The [corporation](/usc/36/220501.md?p=b-7) may not issue stock or declare or pay a dividend.
- (b) **Political Activities.—** The [corporation](/usc/36/220501.md?p=b-7) or a director, officer, or agent as such may not contribute to, support, or assist any political party or candidate for office.
- (c) **Distribution of Income or Assets.—** The income and assets of the [corporation](/usc/36/220501.md?p=b-7) may not inure to the benefit of, or be distributed to, a director, officer, or member during the life of the [corporation](/usc/36/220501.md?p=b-7) or on its dissolution or final liquidation. This subsection does not prevent the payment of reasonable compensation to an officer in an amount approved by the board of directors.
- (d) **Loans.—** The [corporation](/usc/36/220501.md?p=b-7) 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](/usc/36/220501.md?p=b-7) for the amount of the loan until it is repaid.

## Source credit

(Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1378.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 130507(a) | 36:1082. | July 16, 1964, Pub. L. 88–378, §§ 9, 10, 12, 78 Stat. 327. |
| 130507(b) | 36:1080. |  |
| 130507(c) | 36:1079(a). |  |
| 130507(d) | 36:1079(b). |  |

In subsection (a), the words “any shares of” are omitted as unnecessary.

In subsection (b), the words “or otherwise” 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. The words “This subsection does not prevent” are substituted for “Nothing in this subsection, however, shall be construed to prevent” for consistency in the revised title and to eliminate unnecessary words.