A. A person commits receiving deposits in an insolvent financial institution if, as an officer, manager or other person participating in the direction of a financial institution, such person receives or permits the receipt of a deposit, premium payment or investment in the institution in excess of the amount insured by the federal deposit insurance corporation, the federal savings and loan insurance corporation or the national credit union administration knowing that the institution is insolvent.
Terms Used In Arizona Laws 13-2207
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Felony: means an offense for which a sentence to a term of imprisonment in the custody of the state department of corrections is authorized by any law of this state. See Arizona Laws 13-105
- Financial institution: means a bank, insurance company, credit union, savings and loan association, investment trust or other organization held out to the public as a place of deposit for funds or medium of savings or collective investment. See Arizona Laws 13-2201
- Insolvent: means that, for any reason, a financial institution is unable to pay its obligations in the ordinary or usual course of business or the present fair salable value of its assets is less than the amount that will be required to pay its probable liabilities on its existing debts as they become absolute and matured. See Arizona Laws 13-2201
- National Credit Union Administration: The federal regulatory agency that charters and supervises federal credit unions. (NCUA also administers the National Credit Union Share Insurance Fund, which insures the deposits of federal credit unions.) Source: OCC
- Person: means a human being and, as the context requires, an enterprise, a public or private corporation, an unincorporated association, a partnership, a firm, a society, a government, a governmental authority or an individual or entity capable of holding a legal or beneficial interest in property. See Arizona Laws 13-105
B. It is a defense to prosecution under this section that the person making the deposit, premium payment or investment was fully informed of the financial condition of the institution.
C. Receiving deposits in an insolvent financial institution is a class 5 felony.