Arizona § 10-2255 - Loans by members
Full text of Arizona Arizona Revised Statutes § 10-2255 — Loans by members, with citation guidance and answers to common questions.
§ 10-2255. Loans by members
A. Notwithstanding the provisions of any other law, the notes or other interest-bearing obligations of a corporation shall be legal investments for the members of the corporation, subject to the applicable loan limits of subsection B.
B. As required by its loan agreement, a member shall lend funds to the corporation as and when called upon by it to do so, but the total amount in which a corporation may be indebted to a member at any one time shall not exceed:
1. If a bank, two per cent of the total of the bank's capital stock, surplus, capital notes and capital debentures.
2. If a savings and loan association, one per cent of loans outstanding or two hundred fifty thousand dollars, whichever is the lesser.
C. All loan limits shall be established at the thousand dollars nearest to the amount computed on an actual basis. All calls of funds which members are committed to lend to a corporation shall be prorated by the corporation among the members in the same proportion that the lending commitment of each bears to the aggregate lending commitments of all members of the corporation. Upon six months' prior written notice to the corporation of its intention, a member may terminate its loan agreement and after the effective date of withdrawal, the member shall not be obligated to make any loan to the corporation, but shall remain a member so long as the corporation is indebted to it.
D. At no time shall the total obligations of a corporation exceed ten times the amount of its paid-in capital and surplus.
Source: official Arizona text · Last verified 2026-08-27
Frequently Asked Questions About Arizona § 10-2255
What does Arizona Revised Statutes § 10-2255 cover?
Section 10-2255 ("Loans by members") 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 § 10-2255?
A common citation format is "Arizona Revised Statutes § 10-2255" (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 § 10-2255 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.