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District of Columbia Code Division V. Local Business Affairs § 29-406.32. Loans to or guarantees for directors and officers.

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) A nonprofit corporation shall not lend money to or guarantee the obligation of a director or officer of the corporation.

(b) This section shall not apply to:

(1) An advance to pay reimbursable expenses reasonably expected to be incurred by a director or officer;

(2) An advance to pay premiums on life insurance if the advance is secured by the cash value of the policy;

(3) Advances pursuant to part E of this subchapter;

(4) Loans or advances pursuant to employee benefit plans;

(5) A loan secured by the principal residence of an officer; or

(6) A loan to pay relocation expenses of an officer.

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

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Cite this article: FindLaw.com - District of Columbia Code Division V. Local Business Affairs § 29-406.32. Loans to or guarantees for directors and officers. - last updated January 01, 2024 | https://codes.findlaw.com/dc/division-v-local-business-affairs/dc-code-sect-29-406-32/

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