The Arizona Revised Statutes have been updated to include the revised sections from the 54th Legislature, 1st Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 54th Legislature, 2nd Regular Session, which convenes in January 2020.
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6-424 - Shares of guaranty capital; nature; consideration
6-424. Shares of guaranty capital; nature; consideration
A. Shares of guaranty capital shall constitute a secondary reserve out of which losses shall be paid after all other available reserves have been exhausted, and such shares shall be:
1. Nonwithdrawable, except as provided in section 6-428, until all liabilities of the association have been satisfied in full, including payment of the withdrawal value of all accounts.
2. Entitled to dividends only as provided in section 6-442.
B. The consideration for the issuance of shares of guaranty capital may be paid to the association, or a wholly owned subsidiary of the association, in whole or in part, in cash, in other property, tangible or intangible, including promissory notes, or in labor or services actually performed for the association. Shares are deemed to be fully paid and nonassessable if payment of the consideration for which the shares are to be issued has been received by the association or a wholly owned subsidiary of the association. In the absence of bad faith in the valuation of the consideration, the judgment of the board of directors or the shareholders, as the case may be, as to the value of the consideration received for shares is conclusive.