---
kind: "section"
citation: "36 U.S.C. § 70507"
title: "36"
title_heading: "Patriotic and National Observances, Ceremonies, and Organizations"
number: "70507"
heading: "Restrictions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/36/70507"
units:
  - "Subtitle II — Patriotic and National Organizations"
  - "Part B — Organizations"
  - "Chapter 705 — The Foundation of the Federal Bar Association"
---

# §70507. 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.—**
  - (1) **In general.—** The activities, funds, income, and property of the [corporation](/usc/36/220501.md?p=b-7) may not be used to carry on political activity or attempt to influence legislation.
  - (2) **No contribution, support, or participation.—** The [corporation](/usc/36/220501.md?p=b-7) or a director or officer in the corporate capacity of the director of[^1] officer may not contribute to, support, or participate in any political activity or in any manner attempt to influence legislation.
- (c) **Distribution of Income or Assets.—**
  - (1) **In general.—** 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, in amounts approved by the board of directors, of—
    - (A) reasonable compensation; or
    - (B) reimbursement for expenses incurred in undertaking the [corporation](/usc/36/220501.md?p=b-7)’s business, to officers, directors, or members.
  - (2) **Rule of construction.—** This subsection shall not be construed to—
    - (A) prevent the award of a grant to a Federal Bar Association chapter of which an officer, director, or member may be a member; or
    - (B) prevent the payment of reasonable compensation to the [corporation](/usc/36/220501.md?p=b-7)’s employees for services undertaken on behalf of the [corporation](/usc/36/220501.md?p=b-7).
- (d) **Loans.—** The [corporation](/usc/36/220501.md?p=b-7) may not make a loan to a director, officer, member, or employee.
- (e) **Immunity From Liability.—** Members and private individuals are not liable for the obligations of the [corporation](/usc/36/220501.md?p=b-7).
- (f) **Claim of Governmental Approval or Authority.—** The [corporation](/usc/36/220501.md?p=b-7)—
  - (1) may not claim congressional approval or the authority of the United States Government for any of its activities; and
  - (2) may acknowledge this charter.

## Footnotes

[^1]: So in original. Probably should be “or”.

## Source credit

(Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1353; Pub. L. 119–57, § 5, Dec. 12, 2025, 139 Stat. 711.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 70507(a) | 36:582. | Aug. 24, 1954, ch. 911, §§ 9, 10, 12, 68 Stat. 799. |
| 70507(b) | 36:580. |  |
| 70507(c) | 36:579(a) (words before last comma). |  |
| 70507(d) | 36:579(b). |  |
| 70507(e) | 36:579(a) (words after last comma). |  |

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

In subsection (b)(1), the words “directly or indirectly” are omitted as unnecessary.

In subsection (c), the word “income” is substituted for “net earnings” for consistency in the revised title.

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

### Editorial Notes

### Amendments

2025—Pub. L. 119–57 amended section generally. Prior to amendment, section set out restrictions on the corporation relating to stock and dividends, political activities, distribution of income, and loans and provided for immunity from liability.