No bank shall take or hold its capital stock or its capital obligations as security for an obligation to the bank unless such security is necessary to prevent loss on an obligation previously contracted.

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Terms Used In Arizona Laws 6-354

  • 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
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Obligation: means a primary or contingent liability for the payment of money. See Arizona Laws 6-351