The bylaws could require that all contracts on behalf of the corporation be authorized by the board of directors or could specifically delegate the authority to enter into contracts to particular officers.
Extraordinary contracts remain subject to board approval.
The bylaws may provide that no loans shall be made, or debts incurred, in the name of the corporation unless authorized by the board. Because directors could potentially be liable to the corporation if these actions were taken improperly, it is appropriate that the board first consider and approve all borrowing. It is also a safety feature for board members who thereby have an opportunity to examine corporate activities that might be harmful to the corporation. The organizers must decide who will manage the corporation's money. The president and the treasurer are logical choices, but other people could also be designated.