§ 18436 Loan Restrictions For Insiders

• •A company that lends money can't give loans to its bosses or their friends in charge.
• •This includes bosses at the main company or any connected companies.
• •The rule stops them from promising to pay someone else's debt if that someone is a boss.

The boss of a loan company wants to borrow money from their own company to buy a house.

The company can't give the boss a loan because it's against the rules to lend money to its own bosses.