Restrictions — Us Code Code § 220308

Us Code Code § 220308 — Restrictions. Reproduced from the official United States Code, with a citation summary, verification link, and related provisions.

§ 220308. 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 trustee, officer, or member as such 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 or employee or reimbursement for actual expenses in amounts approved by the board of trustees.

(c) Loans.—The corporation may not make a loan or advance to a trustee, officer, or employee. Trustees who vote for or assent to making a loan or advance to a trustee, officer, or employee, and officers who participate in making the loan or advance, are jointly and severally liable to the corporation for the amount of the loan or advance until it is repaid.

(Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1464.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
220308(a) 36:1211. Oct. 20, 1978, Pub. L. 95–493, §§9, 11, 92 Stat. 1646.
220308(b) 36:1209(a).  
220308(c) 36:1209(b).  

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

In subsection (b), the words "inure to the benefit of" are substituted for "inure to" for consistency in the revised title. The words "This subsection does not prevent" are substituted for "Nothing in this subsection, however, shall be construed to prevent" for consistency in the revised title and to eliminate unnecessary words.

In subsection (c), the words "or advance" are added the first time they appear for consistency in the subsection. The word "Trustees" is substituted for "Any director", and the word "trustee" is substituted for "director", for clarity and consistency in the revised chapter.

About This Section

36 U.S.C. § 220308 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. § 220308. 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.

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Sources

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

At a glance

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Statute text is transcribed from the official United States Code. Confirm it against the primary source before relying on it:

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

Common questions

What is the source of United States Code § 220308?

The text above is transcribed from the United States Code, the codified statutes of Us Code. The official publisher link appears under "Verify the text" on this page.

What subject does United States Code § 220308 address?

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

Is United States Code § 220308 still in force?

Statutes are amended, repealed, and renumbered every session. Confirm the current version at the official Us Code source before relying on this text.

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Nearby provisions in Us Code