§ 29-406.32 — Loans to or guarantees for directors and officers.

District of Columbia § 29-406.32

• Jurisdiction: District of Columbia
• Title 29: Business Organizations. [Enacted title]
• Ch. 4: Nonprofit Corporations.
• Subch. VI: Directors, Officers, and Employees.
• Part C: Directors.

Text

(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.

Legislative History

July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720