Iowa Code » Chapter 504 — REVISED IOWA NONPROFIT CORPORATION ACT
Iowa Code

Iowa Code § 504.834 (2026)

Loans to or guarantees for directors and officers

✓ current as of July 2026
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1. A corporation shall not lend money to or guarantee the obligation of a director or officer of the corporation.

2. This section does not apply to the situation where the director or officer is a full-time employee of the corporation and involves any of the following:\n\nTue Dec 09 22:06:39 2025 Iowa Code 2026, Chapter 504 (45, 0) §504.834, REVISED IOWA NONPROFIT CORPORATION ACT 42\n\n a. An advance to pay reimbursable expenses reasonably expected to be incurred by a director or officer.

b. An advance to pay premiums on a policy of life insurance if the advance is secured by the policy’s death benefit proceeds or cash surrender value, or both.

c. Advances pursuant to part 5 of this subchapter.

d. Loans or advances pursuant to employee benefit plans.

e. A loan secured by the principal residence of an officer.

f. A loan to pay relocation expenses of an officer.

3. The fact that a loan or guarantee is made in violation of this section does not affect the borrower’s liability on the loan. 2004 Acts, ch 1049, §93, 192; 2015 Acts, ch 45, §10; 2016 Acts, ch 1073, §141 \n

Notes of Decisions
Cited in 1 case (1 in the last 5 years), 2023–2023 · leading case: Safe Bldg. Compliance & Tech. v. Michelle Bernholtz, n/k/a Michelle Naughton (Iowa Ct. App. 2023).
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Safe Bldg. Compliance & Tech. v. Michelle Bernholtz, n/k/a Michelle Naughton (Iowa Ct. App. 2023). · cites it 10× “” Iowa Code § 504.834 (2)(b). Assuming we accept Naughton’s argument that the insurance policies were part of an employee benefit package, we think the better method of reviewing Naughton’s liability for the insurance premiums is to consider whether Naughton is liable under…”
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