---
kind: "section"
citation: "36 U.S.C. § 70107"
title: "36"
title_heading: "Patriotic and National Observances, Ceremonies, and Organizations"
number: "70107"
heading: "Restrictions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/36/70107"
units:
  - "Subtitle II — Patriotic and National Organizations"
  - "Part B — Organizations"
  - "Chapter 701 — Fleet Reserve Association"
---

# §70107. 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 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 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.
- (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.

## Source credit

(Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1348.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 70107(a) | 36:5608(c). | Sept. 23, 1996, Pub. L. 104–201, title XVIII, § 1808(a)–(d), 110 Stat. 2761. |
| 70107(b) | 36:5608(a). |  |
| 70107(c) | 36:5608(b). |  |
| 70107(d) | 36:5608(d). |  |

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

In subsection (b), the words “This subsection does not” are substituted for “Nothing in this subsection may be construed to” for consistency in the revised title.

In subsection (d), the words “by virtue of this chapter” are omitted as unnecessary.