What is not allowed in regards to loans from the cemetery authority?

The choice indicating that loans to relatives of trustees are not allowed reflects a critical ethical and legal consideration in cemetery management. This restriction is in place to avoid conflicts of interest that could arise if trustees were permitted to lend money to their own family members. Such transactions could lead to favoritism or the perception that the trustee is taking advantage of their position for personal gain.

Maintaining the integrity of the cemetery authority is essential, and this rule upholds accountability and transparency. By preventing loans to relatives, the cemetery authority ensures that all financial dealings remain impartial and uphold a standard of fairness, which is vital for fostering trust among stakeholders and the community.

The other choices suggest scenarios that are permissible under certain conditions, thus emphasizing the importance of adhering strictly to the ethical guidelines set forth for the management of cemetery operations. For example, loans to non-residents, while potentially contentious, may still be permissible if specific criteria are met, and loans secured by real estate can provide additional security for the authority. Loans over a specific limit, such as $500, could also be allowable depending on regulatory stipulations that guide cemetery financial practices.