351.165. Note or obligation not to be considered payment for original issue shares--corporation shall not lend money to shareholder for purchase of shares--liability.
Note or obligation not to be considered payment for originalissue shares--corporation shall not lend money to shareholder forpurchase of shares--liability.
351.165. No note or obligation given by any shareholder, whethersecured by deed of trust, mortgage or otherwise, shall be considered aspayment of any part of any original issue share or shares, and no loan ofmoney for the purpose of such payment shall be made by the corporation toany shareholder therein; and if such loan shall be made to a shareholder,the officers making it, or who shall assent thereto, shall be jointly andseverally liable to the corporation for the repayment of such loan andinterest.
(RSMo 1939 § 5349, A.L. 1943 p. 410 § 18, A.L. 1979 S.B. 216, A.L. 1998 S.B. 680)Prior revisions: 1929 § 4944; 1919 § 10155; 1909 § 3350
(1964) Sale of negotiable notes from stockholders to loan and investment company held not to be void or illegal because part of consideration for sale of notes was the payment or cancellation of loans that had been made to the stockholder in variation of this section. Holt v. Queen City Loan and Investment, Inc. (Mo.), 377 S.W.2d 393.