N.Y. Not-For-Profit Corp. Law § 716
Loans to directors, officers and key persons
Redline — January 1, 2015 → current.View current text →
Current — January 1, 2020
As of January 1, 2015
§ 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
§ 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
Official source: NYS Open Legislation (New York State Senate). Reproduced from public-domain New York statutes; confirm against the official source for the current text. Not legal advice.