---
kind: "section"
citation: "36 U.S.C. § 22707"
title: "36"
title_heading: "Patriotic and National Observances, Ceremonies, and Organizations"
number: "22707"
heading: "Restrictions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/36/22707"
units:
  - "Subtitle II — Patriotic and National Organizations"
  - "Part B — Organizations"
  - "Chapter 227 — Amvets (american Veterans)"
---

# §22707. Restrictions

- (a) **Profit.—** The [corporation](/usc/36/220501.md?p=b-7) shall operate as a not-for-profit [corporation](/usc/36/220501.md?p=b-7), exclusively for charitable, educational, patriotic, and civic improvement purposes.
- (b) **Stock and Dividends.—** The [corporation](/usc/36/220501.md?p=b-7) may not issue stock or declare or pay a dividend.
- (c) **Political Activities.—** The [corporation](/usc/36/220501.md?p=b-7) or an officer of the [corporation](/usc/36/220501.md?p=b-7) or member of its executive committee as such may not contribute to, support, or assist a political party or candidate for elective public office. The [corporation](/usc/36/220501.md?p=b-7) may not carry on propaganda.
- (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, or member of the [corporation](/usc/36/220501.md?p=b-7), except on dissolution or final liquidation of the [corporation](/usc/36/220501.md?p=b-7).
- (e) **Loans.—** The [corporation](/usc/36/220501.md?p=b-7) may not make a loan or advance to a director or officer. Directors who vote for or assent to making a loan or advance to a director or officer, 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.

## Source credit

(Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1308.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 22707(a) | 36:67b(11) (1st–8th words and words after semicolon). | July 23, 1947, ch. 298, §§ 3(11), 5(1), (2), 15, 16, 61 Stat. 405, 406, 408. |
| 22707(b) | 36:67n. |  |
| 22707(c) | 36:67d(1), (2). |  |
| 22707(d) | 36:67b(11) (9th word through semicolon). |  |
| 22707(e) | 36:67o. |  |

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

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