No loans shall be made by a nonprofit corporation to its directors or officers. Any director or officer who assents to or participates in the making of any loan shall be liable to the nonprofit corporation for the amount of the loan until the repayment thereof.
Structure Code of Alabama
Title 10A - Alabama Business and Nonprofit Entities Code.
Chapter 3 - Nonprofit Corporations.
Article 2 - Substantive Provisions.
Division D - Entity Specific Powers; Limitations.
Section 10A-3-2.41 - Shares of Stock and Dividends Prohibited; Compensation and Benefits Permitted.
Section 10A-3-2.42 - Loans to Directors and Officers Prohibited.
Section 10A-3-2.43 - Power to Indemnify Directors or Officers.
Section 10A-3-2.44 - Assertion of Lack of Capacity or Power; Defense of Ultra Vires