(1) A corporation may not lend money to or guaranty the obligation of a director or officer of the corporation.
(2) The fact that a loan or guaranty is made in violation of this section does not affect the borrower's liability on the loan.
Ark. Code Ann. § 4-33-832
Loans to or guaranties for directors and officers
Known as the Arkansas Nonprofit Corporation Act
The act spans §§ 4–4 (189 sections).
Acts 1993, No. 1147, § 832.
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.