Loans to or guarantees for directors and officers.

A nonprofit corporation shall not lend money to or guarantee the obligation of a director or officer of the corporation. This section shall not apply to: An advance to pay reimbursable expenses reasonably expected to be incurred by a director or officer; An advance to pay premiums on life insurance if the advance is secured by the cash value of the policy; Advances pursuant to part E of this subchapter; Loans or advances pursuant to employee benefit plans; A loan secured by the principal residence of an officer; or A loan to pay relocation expenses of an officer. The fact that a loan or guarantee is made in violation of this section shall not affect the borrower’s liability on the loan.