2006 New York Code - Loans To Directors And Officers.

 
  § 716. Loans to directors and officers.
    No  loans,  other  than  through the purchase of bonds, debentures, or
  similar obligations of the type customarily sold in public offerings, or
  through ordinary deposit of  funds  in  a  bank,  shall  be  made  by  a
  corporation  to  its directors or officers, or to any other corporation,
  firm, association or other entity in which one or more of its  directors
  or  officers  are  directors or officers or hold a substantial financial
  interest, except a loan by one type B  corporation  to  another  type  B
  corporation.  A  loan  made  in  violation  of  this  section shall be a
  violation of the duty to the corporation of the  directors  or  officers
  authorizing  it  or  participating  in  it,  but  the  obligation of the
  borrower with respect to the loan shall not be affected thereby.