Section 5108 Of Article 2. General Definitions From California Financial Code >> Division 2. >> Chapter 1. >> Article 2.

. "Impaired condition" means a condition in which the assets of an association in the aggregate do not have a value, as determined in accordance with generally accepted accounting principles, equal to or greater than the aggregate amount of liabilities of the association to its creditors, including the holders of its savings accounts and all other persons who are creditors.