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Tex. Bus. Orgs. Code § 22.225

LOAN TO DIRECTOR PROHIBITED

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff

(a) A corporation may not make a loan to a director.

(b) The directors of a corporation who vote for or assent to the making of a loan to a director, and any officer who participates in making the loan, are jointly and severally liable to the corporation for the amount of the loan until the loan is repaid.

Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.