Section 22.055 - Power to Assist Employee or Officer(a) A corporation may lend money to or otherwise assist an employee or officer of the corporation, but not a director, if the loan or assistance may reasonably be expected to directly or indirectly benefit the corporation.(b) A loan made to an officer must be: (1) made for the purpose of financing the officer's principal residence; or(2) set in an original principal amount that does not exceed:(A) 100 percent of the officer's annual salary, if the loan is made before the first anniversary of the officer's employment; or(B) 50 percent of the officer's annual salary, if the loan is made in any subsequent year.Tex. Bus. Org. Code § 22.055
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. 1/1/2006.