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.

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Answered on 7/13/06, 11:50 pm


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