N.Y. Not-For-Profit Corp. Law § 716

§ 716. Loans to directors and officers.\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 or officers, or to any other corporation,\nfirm, association or other entity in which one or more of its directors\nor officers are directors or officers or hold a substantial financial\ninterest, except a loan by one charitable corporation to another\ncharitable corporation. A loan made in violation of this section shall\nbe a violation of the duty to the corporation of the directors or\nofficers authorizing it or participating in it, but the obligation of\nthe borrower with respect to the loan shall not be affected thereby.\n