Arizona Laws 6-353. Obligations of directors, officers and employees; reports
A. No bank shall make any loan to any of its own directors, officers or employees that shall cause the outstanding loans of the bank to such person to exceed one percent of the capital account of the bank unless the loan is expressly authorized by the board of directors with any interested director taking no part in such vote. Any loan in violation of this subsection shall be payable on demand to the extent required to bring the loan into compliance with this subsection.
Terms Used In Arizona Laws 6-353
- Bank: means a corporation that holds a banking permit issued pursuant to chapter 2 of this title. See Arizona Laws 6-101
- Capital: means the aggregate primary capital and secondary capital. See Arizona Laws 6-351
- Deputy director: means the deputy director of the financial institutions division of the department. See Arizona Laws 6-101
- Person: includes an individual, a corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership, joint venture or association or any other legal or commercial entity. See Arizona Laws 6-351
- Process: means a citation, writ or summons issued in the course of judicial proceedings. See Arizona Laws 1-215
B. Each bank shall include with but not as a part of each report of condition to the deputy director a report of the obligations to the bank of each director and officer outstanding at the date of the report of condition, if the aggregate obligations of such person, exclusive of obligations outstanding in the regular process of bank collection transactions, exceeds the lesser of $50,000 or one percent of the capital account of the bank.