Section 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.