51A-12-4. Loan to customer used for partnership or corporation.
75 words·~1 min read·
/sd/title-51/chapter-51-12/51a-12-4·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A loan or other extension of credit to a customer, the proceeds of which the customer intends to place in a partnership in which he is a partner or a corporation in which he is a stockholder, is not required to be combined with obligations of the partnership or corporation for the purpose of § 51A-12-2 unless the loan is made in reliance on the assets and repayment ability of the partnership or the corporation.