(a) A corporation may not lend money to or guaranty the obligation of a director or officer of the corporation.
(b) The fact that a loan or guaranty is made in violation of this section does not affect the borrower's liability on the loan.
Loans to or guaranties for directors and officers
Ark. Code Ann. § 4-33-832, under The Arkansas Nonprofit Corporation Act of 1993.
Ark. Code Ann. § 4-33-832