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<section article="gca" article_name="Corporations and Associations" number="2-416" title_number="2" title_name="Corporations in General -- Formation, Organization, and Operation" subtitle_number="4" subtitle_name="Directors and Officers">
  <level label="a">
    <text>A corporation may lend money to, guarantee an obligation of, or otherwise assist an officer or other employee of the corporation or of its direct or indirect subsidiary, including an officer or employee who is a director of the corporation or the subsidiary, if the loan, guarantee, or assistance:</text>
    <level label="1">
      <text>In the judgment of the directors, reasonably may be expected to benefit the corporation; or</text>
    </level>
    <level label="2">
      <text>Is an advance made against indemnification in accordance with § 2-418(f) of this subtitle.</text>
    </level>
  </level>
  <level label="b">
    <text>The loan, guarantee, or other assistance may be:</text>
    <level label="1">
      <text>With or without interest;</text>
    </level>
    <level label="2">
      <text>Unsecured; or</text>
    </level>
    <level label="3">
      <text>Secured in any manner that the board of directors approves, including a pledge of the stock of the corporation.</text>
    </level>
  </level>
</section>
