Md. Code, Corporations and Associations § 2-416
This is the official text of Md. Code, Corporations and Associations § 2-416, part of Maryland’s Code, Corporations and Associations — governs the formation and operation of corporations, LLCs, and partnerships.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
§2–416.
Official statutory text
(a) 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:
(1) In the judgment of the directors, reasonably may be expected to benefit the corporation; or
(2) Is an advance made against indemnification in accordance with § 2-418(f) of this subtitle.
(b) The loan, guarantee, or other assistance may be:
(1) With or without interest;
(2) Unsecured; or
(3) Secured in any manner that the board of directors approves, including a pledge of the stock of the corporation.
(1) In the judgment of the directors, reasonably may be expected to benefit the corporation; or
(2) Is an advance made against indemnification in accordance with § 2-418(f) of this subtitle.
(b) The loan, guarantee, or other assistance may be:
(1) With or without interest;
(2) Unsecured; or
(3) Secured in any manner that the board of directors approves, including a pledge of the stock of the corporation.
Status: in_force · Read it on the official government site
Dealing with a business matter in Maryland?
See all Maryland Business lawyers
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.