{"data":{"id":"us-nd/n.d.-cent.-code-10-19.1-89","jurisdiction":"us-nd","citation":"N.D. Cent. Code § 10-19.1-89","heading":"Loans - Guarantees - Suretyship","body":"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:\na.Is in the usual and regular course of business of the corporation;\nb.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;\nc.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\nd.Whether or not any separate consideration has been paid or promised to the corporation has been approved by:\n(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\n(2)The unanimous affirmative vote of the holders of all outstanding shares, whether or not entitled to vote.\n2.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.\n3.This section does not grant any authority to act as a bank or to carry on the business of banking.","path":["Title 10 Corporations","Chapter 10-19.1 North Dakota Business Corporation Act"],"source_url":"https://ndlegis.gov/cencode/t10c19-1.pdf","current_through":"2026-07-31T11:12:02","vintage":"","retrieved_at":"2026-09-02T21:04:14Z","sha256":"9ad36f0748b7e75275823cc96ad1ddb2bea61e373c6bf378e81e6b05a2a10f74","source_id":"us-nd","stale":true,"prev":"us-nd/n.d.-cent.-code-10-19.1-88","next":"us-nd/n.d.-cent.-code-10-19.1-90"},"notice":"GroundRules: Original legal text. Not legal advice."}