Page:United States Statutes at Large Volume 112 Part 2.djvu/452

 112 STAT. 1336 PUBLIC LAW 105-225 —AUG. 12, 1998 (2) The board shall have at least 9 directors. (3) The term of office of a director is 2 years. A director may be reappointed. (4) A vacancy on the board of directors shall be filled by a majority vote of the remaining directors. (b) DIRECTOR OF CIVILIAN MARKSMANSHIP.— (1) The board of directors shall appoint the Director of Civilian Marksmanship. (2) The Director is responsible for— (A) the daily operation of the corporation; and (B) the duties of the corporation under subchapter II of this chapter. §40703. Powers The corporation may— (1) adopt, use, and alter a corporate seal, which shall be judicially noticed; (2) make contracts; (3) acquire, own, lease, encumber, and transfer property as necessary or convenient to carry out the activities of the corporation; (4) incur and pay obligations; (5) charge fees to cover the corporation's costs in carrying out the Civilian Marksmanship Program; and (6) do any other act necessary and proper to carry out the activities of the corporation. §40704. Restrictions (a) PROFIT.— The corporation may not operate for profit. (b) USE OF AMOUNTS COLLECTED. —Amounts collected under section 40703(3) and (5) of this title, including proceeds from the sale of firearms, ammunition, repair parts, and other supplies, may be used only to support the Civilian Marksmanship Program. § 40705. Duty to maintain tax-exempt status The corporation shall be operated in a manner and for purposes that qualify the corporation for exemption from taxation under section 501(a) of the Internal Revenue Code of 1986 (26 U.S.C. 501(a)) as an organization described in section 501(c)(3) of that Code (26 U.S.C. 501(c)(3)). § 40706. Distribution of assets on dissolution (a) SECRETARY OF THE ARMY.— On dissolution of the corporation, title to the following items, and the right to possess the items, vest in the Secretary of the Army— (1) firearms stored at Defense Distribution Depot, Anniston, Anniston, Alabama on the date of dissolution. (2) M-16 rifles under control of the corporation. (3) trophies received from the National Board for the Promotion of Rifle Practice through the date of dissolution. (b) TAX-EXEMPT ORGANIZATIONS. —(1) On dissolution of the corporation, an asset not described in subsection (a) of this section may be distributed to an organization that— (A) is exempt from taxation under section 501(a) of the Internal Revenue Code of 1986 (26 U.S.C. 501(a)) as an organization described in section 501(c)(3) of that Code (26 U.S.C. 501(c)(3)); and

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