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https://www.irs.gov/businesses/small-businesses-self-employed/paying-yourself#:~:text=A%20loan%20by%20a%20corporation%20to%20a%20corporate,would%20also%20be%20an%20indication%20of%20a%20loan.
https://www.lawinsider.com/clause/loans-to-officers
Loans to Officers. Make any loans, advances or other extensions of credit to any of Borrowers ' executives, officers, directors, shareholders or employees (or any relatives of any of the foregoing) in an aggregate amount exceeding $200,000, other than those set forth on Schedule 6.17. Sample 1 Sample 2 Sample 3 See All ( 4) Remove Advertising
http://www.njmediator.com/newsletters/business-law/corporate-loans-to-directors-and-officers/index.html
Under the Act, a corporation generally cannot make a personal loan to an officer or a director unless the loan has been approved (or subsequently ratified) by a majority of the shareholders. If an approved loan is challenged, judicial review is often focused on whether the loan was fair overall to the corporation and its shareholders.
https://taxes.uslegal.com/articles/irs-treatment-of-loans-to-officershareholder/
The court outlined certain conditions beneficial for the taxpayer to demonstrate in order for the funds to be treated as a loan, including (1) the existence of corporate records indicating that the corporation itself considered the transfer to be a loan; (2) tax returns filed by the corporation indicating amounts due on loans to shareholders.
https://www.jstor.org/stable/40683336
CORPORATE LOANS TO OFFICERS, DIRECTORS AND SHAREHOLDERS By JOHN F. RICH* There are in effect today some twenty-seven state statutes1 regulating loans to officers, directors or shareholders of business cor- porations. Such legislation must be regarded as the principal deterrent to a dissipation of corporate assets through loans to "insiders".
https://www.lawinsider.com/clause/loans-to-officers-and-directors
Loans to Officers and Directors. Neither the corporation, nor any of its directors or officers acting for and on its behalf, shall directly or indirectly make any advancement on account of services to be performed in the future or loan any of its funds, monies, capital or other property to any director or officer of the corporation. Sample 1
https://www.investopedia.com/terms/l/loanofficer.asp
A loan officer is a representative of a bank, credit union, or other financial institution who assists borrowers in the application process. Loan officers are often called mortgage loan officers...
https://www.calcorporatelaw.com/2016/09/californias-ban-on-loans-to-directors-and-officers
Current Corporations Code Section 315 prohibits corporations (defined in Section 162) from making loans of money or property to, or guaranteeing the obligations of, any director or officer of the corporation or its parent. However, the ban does not apply:
https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-employees-shareholders-and-corporate-officers
Purported “loans” from S corporation to its sole shareholder, officer, and director, were wages for purposes of FICA and FUTA taxes. The loans were unsecured demand notes bearing no interest, loans were made entirely at the discretion of shareholder, and the shareholder regularly performed substantial, valuable services for taxpayer.
https://www.lawjournalnewsletters.com/sites/lawjournalnewsletters/2013/05/24/sox-prohibition-on-loans-to-officers-and-directors/
SOX Prohibition on Loans to Officers and Directors On March 4, 2013, the SEC issued a no-action letter in response to a request for interpretive guidance regarding the applicability of Section 402 to a program that would allow directors and executive officers to obtain credit utilizing equity grants made by a public company issuer.
https://www.irs.gov/businesses/small-businesses-self-employed/paying-yourself
A loan by a corporation to a corporate officer should include the characteristics of a loan made at arm's length. That is, there should be a contract with a stated interest rate, a specified length of time for repayment, and a consequence for failure to repay the loan. Collateral would also be an indication of a loan.
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