---
kind: "section"
citation: "36 U.S.C. § 20106"
title: "36"
title_heading: "Patriotic and National Observances, Ceremonies, and Organizations"
number: "20106"
heading: "Restrictions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/36/20106"
units:
  - "Subtitle II — Patriotic and National Organizations"
  - "Part B — Organizations"
  - "Chapter 201 — Agricultural Hall of Fame"
---

# §20106. 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 governor, officer, employee, or member as such may not contribute to, support, or assist a political party or candidate for public office.
- (c) **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 governor, officer, or member as such 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 compensation to an officer or employee in an amount approved by the board of governors.
- (d) **Loans.—** The [corporation](/usc/36/220501.md?p=b-7) may not make a loan or advance to a governor, officer, employee, or member. Governors who vote for or assent to making a loan or advance to a governor, officer, employee, or member, and officers who participate in making the loan or advance, are jointly and severally liable to the [corporation](/usc/36/220501.md?p=b-7) for the amount of the loan or advance until it is repaid.
- (e) **Contributions to Certain Organizations.—** None of the principal or interest of a fund referred to in [section 20102(1) of this title](/usc/36/20102.md?p=1) may be contributed to an organization if—
  - (1) a substantial part of its activities is carrying on propaganda or attempting to influence legislation; or
  - (2) any part of its net earnings benefits a private shareholder or individual.

## Source credit

(Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1285.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 20106(a) | 36:982. | Aug. 31, 1960, Pub. L. 86–680, §§ 3(A) (1st sentence proviso), 9, 10, 12, 74 Stat. 573, 575, 576. |
| 20106(b) | 36:980. |  |
| 20106(c) | 36:979(a). |  |
| 20106(d) | 36:979(b). |  |
| 20106(e) | 36:973(A) (proviso). |  |

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

In subsection (d), the words “or advance” are added in 2 places for consistency in the subsection.