1. 1. A corporation shall not lend money to or guarantee the obligation of a director or officer of the corporation.

2. 2. This section does not apply to the situation where the director or officer is a full-time employee of the corporation and involves any of the following:

   1. a. An advance to pay reimbursable expenses reasonably expected to be incurred by a director or officer.
   2. b. An advance to pay premiums on a policy of life insurance if the advance is secured by the policy’s death benefit proceeds or cash surrender value, or both.
   3. c. Advances pursuant to part 5 of this subchapter.
   4. d. Loans or advances pursuant to employee benefit plans.
   5. e. A loan secured by the principal residence of an officer.
   6. f. A loan to pay relocation expenses of an officer.
3. 3. The fact that a loan or guarantee is made in violation of this section does not affect the borrower’s liability on the loan.

2004 Acts, ch 1049, §93, 192; 2015 Acts, ch 45, §10; 2016 Acts, ch 1073, §141