Restrictions — Us Code Code § 220108

Us Code Code § 220108 — Restrictions. Reproduced from the official United States Code, with a citation summary, verification link, and related provisions.

§ 220108. Restrictions

(a) Profit.—The corporation may not engage in business activity for profit unless the activity is substantially related to—

(1) the purposes stated in section 220102 of this title; or

(2) raising funds to accomplish those purposes.


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

(c) Political Activities.—The corporation shall be nonpolitical and may not provide financial aid or assistance to, or otherwise promote the candidacy of, an individual seeking elective public office. A substantial part of the activities of the corporation may not involve carrying on propaganda or otherwise attempting to influence legislation.

(d) Distribution of Income or Assets.—The income or assets of the corporation may not inure to the benefit of a governor, officer, member, or employee or be distributed to any person during the life of the corporation or on its dissolution or final liquidation. This subsection does not prevent the payment of reasonable compensation to an officer, employee, or other person or reimbursement for actual necessary expenses in amounts approved by the board of governors.

(e) Loans.—The corporation may not make a loan to a governor, officer, member, or employee.

(Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1461.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
220108(a) 36:1304(b) (last sentence). Dec. 29, 1979, Pub. L. 96–165, §4(a), (b), (d), (e), 93 Stat. 1269, 1270.
220108(b) 36:1304(b) (1st sentence).  
220108(c) 36:1304(a).  
220108(d) 36:1304(d).  
220108(e) 36:1304(e).  

In subsection (a), before clause (1), the word "pecuniary" is omitted as unnecessary.

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

In subsection (c), the words "as an organization" are omitted as unnecessary.

In subsection (d) the words "inure to the benefit of" are substituted for "inure to" for consistency in the revised title.

About This Section

36 U.S.C. § 220108 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. § 220108. 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

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Sources

Source: official Us Code text · Last verified 2026-08-27

At a glance

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It addresses "Restrictions". Read the section together with the surrounding provisions listed under "Nearby provisions" for the full picture.

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