Arizona Revised Statutes Title 6. Banks and Financial Institutions § 6-424. Shares of guaranty capital; nature; consideration

A. Shares of guaranty capital shall constitute a secondary reserve out of which losses shall be paid after all other available reserves have been exhausted, and such shares shall be:

B. The consideration for the issuance of shares of guaranty capital may be paid to the association, or a wholly owned subsidiary of the association, in whole or in part, in cash, in other property, tangible or intangible, including promissory notes, or in labor or services actually performed for the association. Shares are deemed to be fully paid and nonassessable if payment of the consideration for which the shares are to be issued has been received by the association or a wholly owned subsidiary of the association. In the absence of bad faith in the valuation of the consideration, the judgment of the board of directors or the shareholders, as the case may be, as to the value of the consideration received for shares is conclusive.