TITLE 35. CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS

CHAPTER 2. NONPROFIT CORPORATIONS

Part 4. Directors and Officers -- Indemnification

Loans To Or Guaranties For Directors And Officers

35-2-435. Loans to or guaranties for directors and officers. (1) A corporation may not lend money to or guarantee the obligation of a director or officer of the corporation.

(2) The fact that a loan or guaranty is made in violation of this section does not affect the borrower's liability on the loan.

History: En. Sec. 93, Ch. 411, L. 1991.