Arizona Laws 6-427. Shares of guaranty capital; advertisement; sales; collection of subscription
A. All prospectae and advertising matter regarding the subscription for shares of guaranty capital shall include a statement to the effect that such shares of guaranty capital are not insured.
Terms Used In Arizona Laws 6-427
- Account: means withdrawable capital deposited with or invested in an association in accordance with any plan authorized by this chapter unless such term is otherwise designated or qualified. See Arizona Laws 6-401
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Association: means every association to which this chapter applies as defined in the section concerning scope of chapter. See Arizona Laws 6-401
- Deputy director: means the deputy director of the financial institutions division of the department. See Arizona Laws 6-101
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- subscription: includes a mark, if a person cannot write, with the person's name written near it and witnessed by a person who writes the person's own name as witness. See Arizona Laws 1-215
B. No association shall pay to any person any commission or other compensation for obtaining any subscription to or sale of shares of guaranty capital without the prior approval of the deputy director.
C. The board of directors shall establish a separate account to receive all funds paid in for shares of guaranty capital, and shall maintain such account until further action is authorized as follows:
1. When the aggregate amount of such funds equals or exceeds the amount of the minimum initial guaranty capital that the association must obtain, and either the board of directors has decided by resolution to proceed under the guaranty capital plan, or one year has elapsed after the date on which the issuance of shares of guaranty capital was authorized and the board has taken no action, then the separate account may be terminated and the funds may be transferred to the association’s general account.
2. If the aggregate amount of such funds fails to reach the amount of the minimum initial guaranty capital that the association must obtain and one year has elapsed after the date on which the issuance of shares of guaranty capital was authorized or if the board of directors, within such one-year period, has decided by resolution to abandon the guaranty capital plan, the funds in the separate account shall be returned to the respective subscribers and shall not become a liability of the association or its officers or directors.