10-19.1-89. Loans - Guarantees - Suretyship

10-19.1-89. Loans - Guarantees - Suretyship 1. A corporation may lend money to, guarantee or pledge its assets as security for an obligation of, become a surety for, or otherwise financially assist any person, if the transaction, or a class of transactions to which the transaction belongs, is approved by the board and: a. Is in the usual and regular course of business of the corporation; b. Is with, or for the benefit of, a related organization, an organization in which the corporation has a financial interest, a person or organization with which the corporation has a business relationship in the usual and regular course of business, or an organization to which the corporation has the power to make donations; c. Is with, or for the benefit of, an officer or director or other employee of the corporation or a related organization, and may reasonably be expected, in the judgment of the board, to benefit the corporation; or d. Whether or not any separate consideration has been paid or promised to the corporation has been approved by: (1) The holders of two-thirds of the voting power of the shares entitled to vote which are owned by persons other than the interested person or persons; or (2) The unanimous affirmative vote of the holders of all outstanding shares, whether or not entitled to vote. 2. A loan, guarantee, surety contract, or other financial assistance under subsection 1 may be with or without interest and may be unsecured or may be secured in any manner, including a grant of a security interest in shares of the corporation. 3. This section does not grant any authority to act as a bank or to carry on the business of banking.