---
kind: "section"
citation: "36 U.S.C. § 170106"
title: "36"
title_heading: "Patriotic and National Observances, Ceremonies, and Organizations"
number: "170106"
heading: "Restrictions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/36/170106"
units:
  - "Subtitle II — Patriotic and National Organizations"
  - "Part B — Organizations"
  - "Chapter 1701 — Paralyzed Veterans of America"
---

# §170106. Restrictions

- (a) **Profit.—** The [corporation](/usc/36/220501.md?p=b-7) may not engage in business for profit.
- (b) **Stock.—** The [corporation](/usc/36/220501.md?p=b-7) may not issue stock.
- (c) **Political Activities.—** The [corporation](/usc/36/220501.md?p=b-7) shall be nonpolitical and may not provide financial aid to, or otherwise promote the candidacy of, an individual seeking public office.
- (d) **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, member, or employee 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 or employee or reimbursement for actual necessary expenses in amounts approved by the board of directors.
- (e) **Loans.—** The [corporation](/usc/36/220501.md?p=b-7) may not make a loan to a director, officer, member, or employee. Directors who vote for or assent to making such a loan, 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. 1441.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 170106(a), (b) | 36:1155. | Aug. 11, 1971, Pub. L. 92–93, §§ 5, 6, 14, 85 Stat. 318, 319. |
| 170106(c) | 36:1156. |  |
| 170106(d) | 36:1164(a). |  |
| 170106(e) | 36:1164(b). |  |

In subsection (a), the words “pecuniary” and “or gain” are omitted as unnecessary.

In subsection (b), the word “capital” is omitted as unnecessary.

In subsection (c), the words “as an organization” are omitted as unnecessary.

In subsection (d), the words “inure to the benefit of” are substituted for “inure to” for consistency in the revised title.