(a) A corporation may not lend money to or guaranty the obligation of a director or officer of the corporation.

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Terms Used In Hawaii Revised Statutes 414D-151

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Corporation: means a nonprofit corporation unless otherwise specified. See Hawaii Revised Statutes 414D-14
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(b) The fact that a loan or guaranty is made in violation of this section shall not affect the borrower’s liability on the loan.