10-2263. Investment of excess funds
A. If the board of directors determines at any time that funds are available in
excess of the demands and needs of the corporation, the corporation may invest such funds
as follows:
1. In an account of any bank or savings and loan association authorized to do
business in Arizona.
2. In obligations of or fully guaranteed by the United States government.
3. Bonds or other direct obligations of or guaranteed as to principal and interest
by this state.
4. Bonds or other evidences of indebtedness which are direct general obligations of
any county, incorporated city or town, school district, or other political subdivision or
municipal corporation of this state.
B. A corporation shall not deposit or invest any of its funds in any bank or
savings and loan association unless such institution has been designated as a depository
by a vote of the majority of the directors of the corporation, exclusive of any director
who is an officer or director of the depository so designated. A corporation shall not
receive money on deposit.
C. A corporation shall not make any loan, directly or indirectly, to any of its
officers or directors or to any person, corporation or other form of organization in
which such officer or director is a member, director or officer or in which such officer
or director has any interest, direct or indirect, financial or otherwise, except when a
full and complete disclosure of the relationship is made at a regularly called meeting of
the board of directors of the corporation, entered upon the minutes, and voted on by
secret ballot with the officer or director making such disclosure refraining from voting
on the motion.
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