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.
(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.
History: 1982, Act 162, Eff. Jan. 1, 1983
Am. 2008, Act 222, Imd. Eff. July 16, 2008
© 2009 Legislative Council, State of Michigan