New York § 716 Loans to directors, officers and key persons

New York Statutes

§ 716 — Loans to directors, officers and key persons

New York § 716

Law NPCNot-for-Profit Corporation

Art. 7Directors and Officers

This text of New York § 716 (Loans to directors, officers and key persons) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.Y. Not-for-Profit Corporation § 716 (2026).

Text

§ 716. Loans to directors, officers and key persons.\n  No loans, other than through the purchase of bonds, debentures, or\nsimilar obligations of the type customarily sold in public offerings, or\nthrough ordinary deposit of funds in a bank, shall be made by a\ncorporation to its directors, officers or key persons, or to any other\ncorporation, firm, association or other entity in which one or more of\nits directors, officers or key persons are directors, officers or key\npersons or hold a substantial financial interest, except a loan by one\ncharitable corporation to another charitable corporation. A loan made in\nviolation of this section shall be a violation of the duty to the\ncorporation of the directors or officers authorizing it or participating\nin it, but the obligation of the bo

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§ 716. Loans to directors, officers and key persons.\n No loans, other than through the purchase of bonds, debentures, or\nsimilar obligations of the type customarily sold in public offerings, or\nthrough ordinary deposit of funds in a bank, shall be made by a\ncorporation to its directors, officers or key persons, or to any other\ncorporation, firm, association or other entity in which one or more of\nits directors, officers or key persons are directors, officers or key\npersons or hold a substantial financial interest, except a loan by one\ncharitable corporation to another charitable corporation. A loan made in\nviolation of this section shall be a violation of the duty to the\ncorporation of the directors or officers authorizing it or participating\nin it, but the obligation of the borrower with respect to the loan shall\nnot be affected thereby.\n