§ 260. Formation of association; by-laws; inspection and disposition
of funds. 1. The officers, non-commissioned officers, petty officers or
members of any unit or units of the organized militia may organize
themselves into an association or associations of which the senior
officer, senior non-commissioned officer or senior petty officer, as the
case may be, shall be president; provided, however, that such
associations shall by an affirmative vote of two-thirds of all their
members adopt by-laws not inconsistent with this chapter, and which
shall conform to regulations issued pursuant to this chapter and be
submitted to the adjutant general for his approval; and which by-laws
shall provide that the treasurer of such association shall furnish
proper security for the faithful performance of his duties; that all
funds of the association shall be kept in a bank of deposit in a
separate account in the name of the association; that checks upon such
funds shall be signed both by the treasurer and the president of such
association; and that the books and accounts of such associations shall
at all times be open to the inspection of any member of the association,
the commanding officer of the unit concerned and any officer whose duty
it is to inspect the organized militia. Such by-laws may contain such
other provisions as are not inconsistent with the provisions of this
chapter and of regulations issued pursuant thereto, and when approved by
the adjutant general such by-laws shall be binding upon all members of
such association; but they may be altered in the manner provided for
their adoption from time to time as may be found necessary, provided,
however, that the essential provisions hereinabove set forth shall in no
case be omitted or qualified. Every association already formed which has
not adopted by-laws as herein provided and every association heretofore
formed which has adopted by-laws that do not contain the essential
requirements hereinabove set forth, shall adopt revised by-laws
containing such requirements and submit the same for approval to the
adjutant general, except that the adjutant general may direct the
revision of by-laws heretofore approved by the commanding officer of any
force of the organized militia to conform with any of the requirements
of this section and it shall not be necessary to submit such revised
by-laws to the adjutant general for his approval unless he expressly
requires such action.

2. Any funds used for the benefit of units of the organized militia,
other than those of associations referred to in this section or funds
derived from the state pursuant to the provisions of this chapter, will
be administered by the commanding officer of the unit concerned and a
treasurer appointed by him and will be kept, expended, accounted for and
subject to inspection in the manner prescribed by regulations issued
pursuant to this chapter.

3. In case a unit of the organized militia is disbanded, deactivated
or ordered into the active military service of the United States, the
adjutant general is authorized and empowered to direct the disposition
of any moneys and other property remaining in the hands of its
associations referred to in this section, and of other funds remaining
in the hands of or used for the benefit of the unit, other than funds of
such associations or funds derived from the state pursuant to this
chapter.

4. The officers, noncommissioned officers, petty officers or members
of any unit or units of the organized militia may organize themselves
into a not-for-profit corporation or not-for-profit corporations
pursuant to the not-for-profit corporation law for the purposes of
promoting the esprit de corps, morale and welfare of such personnel and
for such other lawful purposes as the adjutant general shall promulgate
by rules and regulations. Such not-for-profit corporation may dispense
liquor, beer and wine to be consumed on the premises provided a retail
license for on-premises consumption is obtained therefor.
Notwithstanding the provisions of any other law to the contrary, there
shall be no fees paid to the department of state for filing a
certificate of incorporation as provided herein; provided however that
such certificate of incorporation shall have endorsed thereon or annexed
thereto the approval of the adjutant general.