HRS §414D-151
Loans to or guaranties for directors and officers
This section bans a corporation from lending money to or backing the debts of its own directors or officers. Even if such a loan or guaranty is made illegally, the borrower still owes the money.
businesses
The statute, as written — Loans to or guaranties for directors and officers
(a) A corporation may not lend money to or guaranty the obligation of a director or officer of the corporation. (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.
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