2018 South Carolina Code of Laws
Title 33 - Corporations, Partnerships and Associations
CHAPTER 31 - SOUTH CAROLINA NONPROFIT CORPORATION ACT
Section 33-31-832. Loans or guarantees for directors and officers.
(a) A public benefit or religious corporation may not directly or indirectly lend money to or guarantee the obligation of a director or officer of the corporation.
(b) A mutual benefit corporation may not directly or indirectly lend money to or guarantee the obligation of a director of the corporation unless:
(1) the loan or guarantee is approved by a majority of all classes of members, except the votes of the affected director, if a member, and any votes controlled directly or indirectly by the affected director shall not be counted; or
(2) 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 general plan authorizing loans and guarantees or either of them; and
(3) the approving action taken pursuant to (1) or (2) is authorized by the corporation's articles or bylaws.
(c) The fact that a loan or guarantee is made in violation of this section does not affect the borrower's liability on the loan.
HISTORY: 1994 Act No. 384, Section 1.
