---
kind: "section"
citation: "36 U.S.C. § 31106"
title: "36"
title_heading: "Patriotic and National Observances, Ceremonies, and Organizations"
number: "31106"
heading: "Restrictions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/36/31106"
units:
  - "Subtitle II — Patriotic and National Organizations"
  - "Part B — Organizations"
  - "Chapter 311 — Boys & Girls Clubs of America"
---

# §31106. 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 or officer 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 director, 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 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 or advance to a director, officer, or employee. Directors who vote for or assent to making a loan or advance to a director, officer, or employee, 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. 1328.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 31106(a) | 36:702. | Aug. 6, 1956, ch. 976, §§ 9, 10, 12, 70 Stat. 1055. |
| 31106(b) | 36:700. |  |
| 31106(c) | 36:699(a). |  |
| 31106(d) | 36:699(b). |  |

In subsection (a), the words “any shares of” 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.

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