Loans to or Guarantees for Directors and Officers.
Known as the Alabama Business and Nonprofit Entity Code
The act spans §§ 10A-1-1.01 to 10A-9A-9.09 (1,341 sections).
(Act 2023-503, §1.)
(a) A nonprofit corporation may not lend money to or guarantee the obligation of a director or officer of the nonprofit corporation.
(b) The fact that a loan or guarantee is made in violation of this section does not affect the borrower’s liability on the loan.
Official source: Alabama Legislature (ALISON). Reproduced from public-domain Alabama statutes; confirm against the official source for the current text. Not legal advice.