KRS 275.525: Loans to members and managers by nonprofit limited liability company

prohibited -- Exception for some business entities.

(1) Unless a nonprofit limited liability company has only business entities formed for a

nonprofit purpose as its members, no lo an shall be made by the company to its

members or managers, and any member or manager who assents to or participates in

the making of a loan violating this prohibition shall be liable to the company for the

amount of the loan until its repayment.

(2) No loan shall be made by a nonprofit limited liability company to its managers, and

any member or manager who assents to or participates in the making of a loan

violating this prohibition shall be liable to the company for the amount of the loan

until its repayment.