NONPROFIT CORPORATION ACT (EXCERPT) Act 162 of 1982
450.2548 Loan, guaranty, or assistance by corporation for officer or employee; corporation as charitable purpose corporation.
Sec. 548.
(1) Except as provided in subsection (4) and unless otherwise prohibited by law, a corporation may lend money to, or guarantee an obligation of, or otherwise assist an officer or employee of the corporation or a subsidiary, including an officer or employee who is a director of the corporation or subsidiary, if in the judgment of the board, the loan, guaranty, or assistance is reasonably expected to benefit the corporation.
(2) A loan, guaranty, or assistance described in subsection (1) may be with or without interest, and may be unsecured, or secured in a manner that the board approves.
(3) This section does not deny, limit, or restrict the powers of guaranty or warranty of a corporation at common law or under any statute.
(4) If a corporation is a charitable purpose corporation, the corporation shall not provide loans to or guarantee an obligation of an officer or director of the corporation or a subsidiary of a corporation, unless the officer or director is also a client of the corporation and the loan or guaranty is necessary to carry out the corporation's charitable purposes.
NONPROFIT CORPORATION ACT (EXCERPT) Act 162 of 1982
450.2548 Loan, guaranty, or assistance by corporation for officer or employee; corporation as charitable purpose corporation.
Sec. 548.
(1) Except as provided in subsection (4) and unless otherwise prohibited by law, a corporation may lend money to, or guarantee an obligation of, or otherwise assist an officer or employee of the corporation or a subsidiary, including an officer or employee who is a director of the corporation or subsidiary, if in the judgment of the board, the loan, guaranty, or assistance is reasonably expected to benefit the corporation.
(2) A loan, guaranty, or assistance described in subsection (1) may be with or without interest, and may be unsecured, or secured in a manner that the board approves.
(3) This section does not deny, limit, or restrict the powers of guaranty or warranty of a corporation at common law or under any statute.
(4) If a corporation is a charitable purpose corporation, the corporation shall not provide loans to or guarantee an obligation of an officer or director of the corporation or a subsidiary of a corporation, unless the officer or director is also a client of the corporation and the loan or guaranty is necessary to carry out the corporation's charitable purposes.
NONPROFIT CORPORATION ACT (EXCERPT) Act 162 of 1982
450.2548 Loan, guaranty, or assistance by corporation for officer or employee; corporation as charitable purpose corporation.
Sec. 548.
(1) Except as provided in subsection (4) and unless otherwise prohibited by law, a corporation may lend money to, or guarantee an obligation of, or otherwise assist an officer or employee of the corporation or a subsidiary, including an officer or employee who is a director of the corporation or subsidiary, if in the judgment of the board, the loan, guaranty, or assistance is reasonably expected to benefit the corporation.
(2) A loan, guaranty, or assistance described in subsection (1) may be with or without interest, and may be unsecured, or secured in a manner that the board approves.
(3) This section does not deny, limit, or restrict the powers of guaranty or warranty of a corporation at common law or under any statute.
(4) If a corporation is a charitable purpose corporation, the corporation shall not provide loans to or guarantee an obligation of an officer or director of the corporation or a subsidiary of a corporation, unless the officer or director is also a client of the corporation and the loan or guaranty is necessary to carry out the corporation's charitable purposes.
