1. A corporation shall not lend money toor guarantee the obligation of a director or officer of the corporation. 2. This section does not apply to the situation where the director or officer isa full-time employee of the corporation and involves any of the following: a. An advance to pay reimbursable expenses reasonably expected to be incurred by a director or officer. b. An advance to pay premiums on a policy of lifeinsurance ifthe advance is secured by the policy’s death benefit proceeds or cash surrender value, or both. c. Advances pursuant to part 5 of this subchapter. d. Loans or advances pursuant to employee benefit plans. e. A loan secured by the principal residence of an officer. f. A loan to pay relocation expenses of an officer. 3. The fact that a loan or guarantee ismade in violation of this section does not affect the borrower’s liability on the loan.
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