Lending--Duty to give first opportunity to lending institution

The corporation shall lend money only when credit is not elsewhere readily available. Before granting any loan, the board of directors or a committee thereof shall endeavor, so far as is reasonably possible, to ascertain that the first opportunity to grant such loan has been given to lending institutions which may desire such loans generally in the course of their business. Source: SL 1957, ch 314, § 7; SDC Supp 1960, § 55.6007.