32. Loans to or guarantees for directors and officers. (a) A nonprofit corporation shall not lend money to or guarantee the obligation of a director or officer of the corporation. (b) This section shall not apply to: (1) An advance to pay reimbursable expenses reasonably expected to be incurred by a director or officer; (2) An advance to pay premiums on life insurance if the advance is secured by the cash value of the policy; (3) Advances pursuant to part E of this subchapter; (4) Loans or advances pursuant to employee benefit plans; (5) A loan secured by the principal residence of an officer; or (6) A loan to pay relocation expenses of an officer. (c) The fact that a loan or guarantee is made in violation of this section shall not affect the borrower’s liability on the loan. (July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720.) Section References This section is referenced in § 29-403.02.
District of Columbia Legal Code