271B.8-320 Loans to directors.
(1) Except as provided by subsection (3) of this section, a corporation may not lend
money to or guarantee the obligation of a director of the corporation unless: <br>(a) The particular loan or guarantee is approved by a majority of the votes
represented by the outstanding voting shares of all classes, voting as a single <br>voting group, except the votes of shares owned by or voted under the control <br>of the benefited director; or
(b) The corporation's board of directors determines that the loan or guarantee
benefits the corporation and either approves the specific loan or guarantee or a <br>general plan authorizing loans and guarantees.
(2) The fact that a loan or guarantee is made in violation of this section shall not affect
the borrower's liability on the loan or the corporation's liability on the guarantee.
(3) This section shall not apply to loans and guarantees authorized by statute regulating
any special class of corporations.
Effective: January 1, 1989 <br>History: Created 1988 Ky. Acts ch. 23, sec. 87, effective January 1, 1989.
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