40-811. Contracting debt exceeding means of corporation to pay; classification; validity of debt A. Every officer, agent or stockholder of a railroad company, who knowingly assents to or has any agency in contracting a debt by or on behalf of such company, unauthorized by law for the purpose, the amount of which debt with other debts of the company exceeds the means for payment of its debts available, in its possession, under its control and belonging to it at the time such debt is contracted, including its bona fide and available stock subscriptions and exclusive of its real property, is guilty of a class 2 misdemeanor. B. The validity of the debt as against the company is not affected by the provisions of subsection A.
Arizona Legal Code