Power To Assist Employee Or Officer

Sec. 22.055. POWER TO ASSIST EMPLOYEE OR OFFICER. (a) A corporation may lend money to or otherwise assist an employee or officer of the corporation, but not a director, if the loan or assistance may reasonably be expected to directly or indirectly benefit the corporation. (b) A loan made to an officer must be: (1) made for the purpose of financing the officer's principal residence; or (2) set in an original principal amount that does not exceed: (A) 100 percent of the officer's annual salary, if the loan is made before the first anniversary of the officer's employment; or (B) 50 percent of the officer's annual salary, if the loan is made in any subsequent year. Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.