Arizona § 6-405 Power to borrow

Arizona Statutes

§ 6-405 — Power to borrow

Arizona § 6-405

Title 6Arizona Revised Statutes

Ch. 3SAVINGS AND LOAN ASSOCIATIONS

Art. 1General Provisions

This text of Arizona § 6-405 (Power to borrow) is published on Counsel Stack Legal Research, covering Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ariz. Rev. Stat. Ann. § 6-405 (2026).

Text

A.No insured institution shall borrow an aggregate amount exceeding one-half the amount paid in and credited on accounts, except that with prior approval of the deputy director, any such association may borrow without limitation on such terms and conditions as may be required by the lender. No action of an insured institution in obtaining funds through borrowing, in accordance with this section, shall be deemed a violation hereof if its aggregate borrowings exceed the limitation of this section because of a subsequent reduction in the amounts paid in and credited on accounts.

B.A debt incurred by the association in violation of this section is not invalid or illegal as to the rights of the lender.

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A. No insured institution shall borrow an aggregate amount exceeding one-half the amount paid in and credited on accounts, except that with prior approval of the deputy director, any such association may borrow without limitation on such terms and conditions as may be required by the lender. No action of an insured institution in obtaining funds through borrowing, in accordance with this section, shall be deemed a violation hereof if its aggregate borrowings exceed the limitation of this section because of a subsequent reduction in the amounts paid in and credited on accounts.

B. A debt incurred by the association in violation of this section is not invalid or illegal as to the rights of the lender.