CDT: Legal issues aside, if your SH lends money to your coop, she's really lending it to all the SHs. I don't think it would sit well with them no matter how good the terms are. She may hold it over them, and unless she's a very community-conscious, selfless person, she expects something out of it. Maybe just having everyone say how wonderful she is, or maybe she wants to run for the Board and hopes SHs will vote for her out of guilt because she did something for them. I'd question the motives of anyone who made an offer like this. Just my opinion.