39-9-5 - Founding of institution for profit prohibited; payment of dividends; compensation of trustees; charging of fees by institutions.
§ 39-9-5. Founding of institution for profit prohibited; payment of dividends; compensation of trustees; charging of fees by institutions.
No institution for pecuniary profit shall be founded under this chapter; nor shall any dividends be declared or paid by any institution founded under this chapter; and no trustee, officer, member or employee of any institution founded hereunder shall receive, or be entitled to receive, any pecuniary profit from the operations thereof except reasonable compensation for services in effecting or furthering any one or more of the objects or purposes of the institution. In case of a public library any requirements for the payment of fees for various privileges shall not divest such library of its public character when such requirements are usual or customary in case of public libraries throughout the state or the United States. In the case of educational institutions, requirements as to the payment of matriculation fees, laboratory fees, library fees, fees of like kind or nature, board and lodging of students, and any of the requirements customary or usually insisted upon in the public educational institutions of this state shall not divest such institutions of their public character.
Sources: Codes, 1930, § 3638; 1942, § 6195; Laws, 1922, ch. 193.