Arizona Laws 6-351. Definitions
In this article, unless the context otherwise requires:
Terms Used In Arizona Laws 6-351
- Capital: means the aggregate primary capital and secondary capital. See Arizona Laws 6-351
- 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.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Primary capital: means the aggregate of the following:
(a) Common and perpetual preferred stock. See Arizona Laws 6-351
- Secondary capital: means the aggregate of the following:
(a) Limited life preferred stock. See Arizona Laws 6-351
1. "Capital" means the aggregate primary capital and secondary capital.
2. "Obligation" means a primary or contingent liability for the payment of money.
3. "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.
4. "Primary capital" means the aggregate of the following:
(a) Common and perpetual preferred stock.
(b) Capital surplus.
(c) Undivided profits.
(d) Contingency and other capital reserves.
(e) The allowance for loan and lease losses.
(f) Mandatory convertible debt only to the extent that it does not exceed twenty per cent of the aggregate of subdivisions (a) through (e) of this paragraph.
5. "Secondary capital" means the aggregate of the following:
(a) Limited life preferred stock.
(b) Subordinated notes and debentures.
(c) Mandatory convertible debt not included in primary capital.