No loans, other than through the purchase of bonds, debentures, or
similar obligations of the type customarily sold in public offerings, or
through ordinary deposit of funds in a bank, shall be made by a
corporation to its directors, officers or key persons, or to any other
corporation, firm, association or other entity in which one or more of
its directors, officers or key persons are directors, officers or key
persons or hold a substantial financial interest, except a loan by one
charitable corporation to another charitable corporation. A loan made in
violation of this section shall be a violation of the duty to the
corporation of the directors or officers authorizing it or participating
in it, but the obligation of the borrower with respect to the loan shall
not be affected thereby.
Structure New York Laws
NPC - Not-For-Profit Corporation
Article 7 - Directors and Officers
703 - Election and Term of Office of Directors; Alternates.
704 - Classification of Directors.
705 - Newly Created Directorships and Vacancies.
709 - Greater Requirement as to Quorum and Vote of Directors.
710 - Place and Time of Meetings of the Board.
711 - Notice of Meetings of the Board.
712 - Executive Committee and Other Committees.
715 - Related Party Transactions.
715-A - Conflict of Interest Policy.
716 - Loans to Directors, Officers and Key Persons.
717 - Duty of Directors, Officers and Key Persons.
718 - List of Directors, Officers and Key Persons.
719 - Liability of Directors in Certain Cases.
720 - Actions Against Directors, Officers and Key Persons.
720-A - Liability of Directors, Officers, Trustees and Key Persons.
721 - Nonexclusivity of Statutory Provisions for Indemnification of Directors and Officers.
722 - Authorization for Indemnification of Directors and Officers.
723 - Payment of Indemnification Other Than by Court Award.
724 - Indemnification of Directors and Officers by a Court.
725 - Other Provisions Affecting Indemnification of Directors and Officers.
726 - Insurance for Indemnification of Directors and Officers.