Legal Question in Business Law in California
Non-profit legal oblilgations
Our non-profit director has just signed 3 notes payable for our organization for a total of $250,000 with approval of our Board of Directors, but without a lawyer. Who is on the hook if the organization is unable to pay back the loans in their entirety. They are due in 5 years. Is the director and the Board liable?
Asked on 7/13/06, 10:10 pm
1 Answer from Attorneys
Carl Starrett
Law Offices of Carl H. Starrett II
Re: Non-profit legal oblilgations
Nobody other than the nonprofit organization would be liable unless someone signed a promise to personally guarantee payment of the notes.
Answered on 7/13/06, 11:50 pm
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