Us Code § 230508 - Restrictions

Full text of Us Code United States Code § 230508 — Restrictions, with citation guidance and answers to common questions.

§ 230508. Restrictions

(a) Stock and Dividends.—The corporation may not issue stock or declare or pay a dividend.

(b) Distribution of Income or Assets.—The income or assets of the corporation 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 reimbursement for actual necessary expenses in amounts approved by the board of directors.

(c) Loans.—The corporation may not make a loan to a director, officer, or employee.

(d) Claim of Governmental Approval or Authority.—The corporation may not claim congressional approval or the authority of the United States Government for any of its activities.

(Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1487.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
230508(a) 36:3809(c). May 23, 1986, Pub. L. 99–318, §9, 100 Stat. 475.
230508(b) 36:3809(a).  
230508(c) 36:3809(b).  
230508(d) 36:3809(d).  

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

In subsection (b), the words "No part of" are omitted as unnecessary. The words "inure to the benefit of" are substituted for "inure to", the words "the charter granted by this chapter" are substituted for "this charter", and the words "This subsection does not prevent" are substituted for "Nothing in this subsection shall be construed to prevent", for consistency in the revised title.

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

About This Section

36 U.S.C. § 230508 is part of Title 36 of the United States Code. The United States Code is the official codification of federal statutes maintained by the Office of the Law Revision Counsel of the U.S. House of Representatives. Congress amends the Code through new public laws, which are eventually incorporated into the relevant title.

This section may be cited in legal writing as 36 U.S.C. § 230508. For the most current official text, including any recent amendments, use the official source links below. Do not rely on this page as the sole authority for legal citation or litigation.

How to Read This Statute

Statutes are organized by title, chapter, section, and subsection. Pay attention to words like "shall," "may," "and," and "or," because they determine whether a requirement is mandatory or permissive and whether multiple conditions must all be met. Historical notes and amendments often appear at the end of a section.

Using This Page

This page is intended for research and educational use. Lawyers, students, journalists, and compliance professionals can use it as a starting point, but should always verify the current text through an official government source before relying on it for legal advice, filings, or compliance decisions.

Sources

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Frequently Asked Questions About Us Code § 230508

What does United States Code § 230508 cover?

Section 230508 ("Restrictions") is part of the United States Code, the codified statutory law of Us Code. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Us Code § 230508?

A common citation format is "United States Code § 230508" (Us Code). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Us Code law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Us Code official source linked on this page or consult a licensed Us Code attorney.

How does Us Code § 230508 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Us Code can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

Not legal advice. Verify against the official source and consult a licensed attorney in Us Code.