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Ark. Code Ann. § 4-28-220

Loans to directors and officers prohibited

Acts 1963, No. 176, § 9; A.S.A. 1947, § 64-1909.

(1) No loans shall be made by a corporation to its directors or officers.

(2) The directors of a corporation who vote for or assent to the making of a loan to a director or officer and any officers participating in the making of the loan shall be jointly and severally liable to the corporation for the amount of the loan until repayment thereof.

Current official text: Arkansas General Assembly. Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Arkansas statutes; confirm against the official source for the current text. Not legal advice.