---
kind: "section"
citation: "36 U.S.C. § 140406"
title: "36"
title_heading: "Patriotic and National Observances, Ceremonies, and Organizations"
number: "140406"
heading: "Restrictions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/36/140406"
units:
  - "Subtitle II — Patriotic and National Organizations"
  - "Part B — Organizations"
  - "Chapter 1404 — Military Officers Association of America"
---

# §140406. 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) **Distribution of Income or Assets.—** The income or 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 of the [corporation](/usc/36/220501.md?p=b-7) during the life of the charter granted by this chapter. This subsection does not prevent the payment of reasonable compensation to an officer or employee of the [corporation](/usc/36/220501.md?p=b-7) or reimbursement for actual necessary expenses in amounts approved by the board of directors.
- (c) **Loans.—** The [corporation](/usc/36/220501.md?p=b-7) may not make a loan to a director, officer, employee, or member of the [corporation](/usc/36/220501.md?p=b-7).
- (d) **Claim of Governmental Approval or Authority.—** The [corporation](/usc/36/220501.md?p=b-7) may not claim congressional approval or the authority of the United States Government for any of its activities.
- (e) **Corporate Status.—** The [corporation](/usc/36/220501.md?p=b-7) shall maintain its status as a [corporation](/usc/36/220501.md?p=b-7) incorporated under the laws of the Commonwealth of Virginia.

## Source credit

(Added Pub. L. 111–95, § 1(a), Nov. 6, 2009, 123 Stat. 3002.)