{"data":{"id":"us-nc/n.c.-gen.-stat.-55-8-32","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 55-8-32","heading":"Loans to directors.","body":"(a)\tExcept as provided by subsection (c), a corporation may not directly or indirectly lend money to or guarantee the obligation of a director of the corporation unless:\n(1)\tThe particular loan or guarantee is approved by a majority of the votes represented by the outstanding voting shares of all classes, voting as a single voting group, except the votes of shares owned by or voted under the control of the benefited director; or\n(2)\tThe corporation's board of directors determines that the loan or guarantee benefits the corporation and either approves the specific loan or guarantee or a general plan authorizing loans and guarantees.\n(b)\tThe fact that a loan or guarantee is made in violation of this section does not affect the borrower's liability on the loan.\n(c)\tThis section does not apply to loans and guarantees authorized by statute regulating any special class of corporations.\n(d)\tFor purposes of this section, a loan or guarantee is made indirectly to or for a director if such director has an indirect interest in the loan or guarantee as defined in G.S. 55-8-31 (b). (1955, c. 1371, s. 1; 1959, c. 1316, s. 6; 1961, c. 198; 1969, c. 751, s. 9; 1989, c. 265, s. 1.)","path":["Chapter 55. North Carolina Business Corporation Act.","Article 8. Directors and Officers.","Part 3. Standards of Conduct."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_55/GS_55-8-32.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:05:57Z","sha256":"1b94ede3d13ad17e29c4f46217e2f0965fedfb116baa72350b1fd599b608bc13","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-55-8-31","next":"us-nc/n.c.-gen.-stat.-55-8-33"},"notice":"GroundRules: Original legal text. Not legal advice."}