§ 504.834 — Loans to or guarantees for directors and officers

Iowa § 504.834

• Jurisdiction: Iowa
• Title XII: BUSINESS ENTITIES
• Ch. 504: REVISED IOWA NONPROFIT CORPORATION ACT

Text

1. Acorporationshallnotlendmoneytoorguaranteetheobligationofadirectororofficer
of the corporation.
2. This section does not apply to the situation where the director or officer is a full-time
employee of the corporation and involves any of the following:

a. An advance to pay reimbursable expenses reasonably expected to be incurred by a
director or officer.
b. An advance to pay premiums on a policy of life insurance if the advance is secured by
the policy’s death benefit proceeds or cash surrender value, or both.
c. Advances pursuant to part 5 of this subchapter.
d. Loans or advances pursuant to employee benefit plans.
e. A loan secured by the principal residence of an officer.
f. A loan to pay relocation expenses of an officer.
3. The fact that a loan or guarantee is made in violation of this section does not affect the
borrower’s liability on the loan.