15A:6-11 - Loans to officers or employees - New Jersey Statutes

15A:6-11.  Loans to officers or employees
    A corporation may lend money to, or guarantee any obligation of, or otherwise assist, any officer or other employee of the corporation or of any subsidiary, whenever, in the judgment of the board, the loan, guarantee or assistance may reasonably be expected to benefit the corporation, except that a  corporation shall not lend money to, guarantee any obligation of, or otherwise  assist, any officer or other employee who is also a trustee of the corporation  unless the loan, guarantee or assistance is authorized by the certificate of  incorporation or bylaws and then only when authorized by at least two-thirds of  the entire board, with the vote of the interested trustee not counted.  The  loan, guarantee or other assistance may be made with or without interest, and  may be unsecured or secured in a manner as the board shall approve, and may be  made upon other terms and conditions as the board may determine.

     L.1983, c. 127, s. 15A:6-11, eff. Oct. 1, 1983.