Terms Used In California Codes > Corporations Code > Title 1 > Division 1.5 > Chapter 3 - Directors and Management

• Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
• Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. ^{Source: FDIC}
• Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. ^{Source: OCC}
• Person: includes a corporation as well as a natural person. See California Corporations Code 18
• Trustee: A person or institution holding and administering property in trust.