Loans to or Guarantees for Directors and Officers

Ala. Code § 10A-3A-8.33 — under Title 10A.

Ala. Code § 10A-3A-8.33

(a) A nonprofit corporation may not lend money to or guarantee the obligation of a director or officer of the nonprofit corporation. (b) The fact that a loan or guarantee is made in violation of this section does not affect the borrower’s liability on the loan.

History: (Act 2023-503, §1.)