6-351. Definitions

150 words·~1 min read·/az/title-6/6-351

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

In this article, unless the context otherwise requires:

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.