No loans shall be made by a corporation to its directors. Any director who assents to or participates in the making of any loan is liable to the corporation for the amount of loan until its repayment.
R.I. Gen. Laws § 7-6-32
Loans to directors prohibited
Known as the Rhode Island Nonprofit Corporation Act
The act spans §§ 7–7 (116 sections).
P.L. 1984, ch. 380, § 1; P.L. 1984, ch. 444, § 1.
Official source: Rhode Island General Assembly. Reproduced from public-domain Rhode Island statutes; confirm against the official source for the current text. Not legal advice.