N.Y. Not-For-Profit Corp. Law § 716

§ 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