A nonprofit corporation shall not lend money to or guarantee the obligation of a director or officer of the corporation. This section shall not apply to: An advance to pay reimbursable expenses reasonably expected to be incurred by a director or officer; An advance to pay premiums on life insurance if the advance is secured by the cash value of the policy; Advances pursuant to part E of this subchapter ; Loans or advances pursuant to employee benefit plans; A loan secured by the principal residence of an officer; or A loan to pay relocation expenses of an officer. The fact that a loan or guarantee is made in violation of this section shall not affect the borrower’s liability on the loan.
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