{"data":{"id":"us-al/ala.-code-10a-1-2.12","jurisdiction":"us-al","citation":"Ala. Code § 10A-1-2.12","heading":"Consideration for Indebtedness.","body":"(a) Unless otherwise provided by its governing documents or this title a domestic entity may create indebtedness for any consideration the entity considers appropriate, including:\n(1) cash;\n(2) property;\n(3) a contract to receive property;\n(4) a debt or other obligation of the entity or of another person;\n(5) services performed or a contract for services to be performed; or\n(6) a direct or indirect benefit realized by the entity.\n(b) In the absence of fraud in the transaction, the judgment of the governing authority of a domestic entity as to the value of the consideration received by the entity for indebtedness is conclusive.\n(c) For purposes of establishing the receipt of consideration under this section, a domestic entity is treated as part of the entity creating indebtedness if the domestic entity is directly or indirectly or wholly or partly owned by that entity.","path":["Title 10A Alabama Business and Nonprofit Entities Code.","Chapter 1 General Provisions.","Article 2 Purposes and Powers of Domestic Entity.","Division B Powers of Domestic Entity."],"source_url":"https://alison.legislature.state.al.us/code-of-alabama?section=10A-1-2.12","current_through":"Act 2026-611","vintage":"","retrieved_at":"2026-09-03T14:01:53Z","sha256":"eb36b1aa2810a17790ff5d7590e51744c03fe3e8593a5689cd15660dbb67ad94","source_id":"us-al","stale":false,"prev":"us-al/ala.-code-10a-1-2.11","next":"us-al/ala.-code-10a-1-2.13"},"notice":"GroundRules: Original legal text. Not legal advice."}