Arizona § 10-1809 - Capital units, transfers and encumbrances
Full text of Arizona Arizona Revised Statutes § 10-1809 — Capital units, transfers and encumbrances, with citation guidance and answers to common questions.
§ 10-1809. Capital units, transfers and encumbrances
A. Until a statement substantially in the form set forth in subsection B of this section has been filed with the commission, any transfer, hypothecation, other voluntary encumbrance or security interest in or of any capital unit or units shall be void as to creditors and subsequent purchasers for valuable consideration without notice.
B. The statement of transfer, hypothecation or other voluntary encumbrance or security interest in or of any capital unit or units in a close corporation shall be acknowledged and be substantially in one of the following forms:
1. Transfer:
On the ___________________ day of _______________, _____________, the undersigned (name of transferor) transferred to (name of transferee), whose address is (address of transferee) (all or a stated percentage) of the undersigned's interest in the capital units of (name of corporation), an Arizona close corporation.
(signature of transferor)
acknowledgment
2. Hypothecation, other voluntary encumbrance or security interest:
On the __________ day of _______________, ___________, the undersigned (name of debtor) hypothecated and voluntarily encumbered to (name of creditor) (all or a stated percentage) of the undersigned's interest in the capital units of (name of corporation) , an Arizona close corporation.
(signature of debtor)
acknowledgment
C. Sections 47-8101 through 47-8407 and title 47, chapter 9, articles 3, 4 and 5 do not apply to any hypothecation, other voluntary encumbrance or any creation of a security interest in or of capital units of a close corporation. Title 47, chapter 9, article 6 applies to defaults and the rights and remedies for the enforcement of defaults.
Source: official Arizona text · Last verified 2026-08-27
Frequently Asked Questions About Arizona § 10-1809
What does Arizona Revised Statutes § 10-1809 cover?
Section 10-1809 ("Capital units, transfers and encumbrances") is part of the Arizona Revised Statutes, the codified statutory law of Arizona. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Arizona § 10-1809?
A common citation format is "Arizona Revised Statutes § 10-1809" (Arizona). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Arizona law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Arizona official source linked on this page or consult a licensed Arizona attorney.
How does Arizona § 10-1809 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Arizona can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Arizona.