A.R.S. § 6-633 — Arizona Code / Title 6 / Chapter 5 / Article 2 / Section 633
6-633 Computation of finance charges
Status: in_force

6-633. Computation of finance charges

A. A licensee shall compute and measure finance charges on consumer loans on unpaid balances outstanding from time to time. A licensee may also precompute finance charges on consumer loans on scheduled unpaid principal balances as provided in section 6-634. For the purposes of computing finance charges on consumer loans that are not precomputed, a licensee may calculate the finance charges on an annual basis of twelve months of thirty days each month or on a daily basis if a day is counted either as 1/360th, 1/365th or 1/366th of a year, as the licensee and consumer may agree in writing.

B. A licensee shall compute periodic finance charges on consumer revolving loans or home equity revolving loans on the unpaid balance of the consumer revolving loan or home equity revolving loan by either of the following methods:

1. By multiplying the daily periodic rate by the actual unpaid balance of the consumer revolving loan or home equity revolving loan each day during the billing cycle period. The daily periodic rate shall be determined by dividing the annual percentage rate by three hundred sixty-five.

2. By multiplying the monthly periodic rate by the average daily balance of the consumer revolving loan or home equity revolving loan during the billing cycle. The average daily balance is the sum of the unpaid balances of the consumer revolving loan or home equity revolving loan each day during the billing cycle period divided by the number of days in the billing cycle period. The monthly periodic rate is determined by dividing the annual percentage rate by twelve. The unpaid balance on any day is determined by adding to any balance unpaid as of the beginning of that day all advances and allowed additional fees and deducting all payments and other credits to the consumer revolving loan or home equity revolving loan that day.

C. A licensee may compute finance charges only on the unpaid principal balance, allowed additional fees and prepaid finance charges. A licensee shall not compound finance charges. Precomputation of the finance charges on a consumer loan does not constitute compounding of finance charges.

D. If part or all of the principal of a consumer loan is the unpaid principal balance of a prior precomputed consumer loan, the principal amount payable under such consumer loan may include any unpaid finance charges on the prior loan that have accrued within sixty days before the making of that consumer loan.
A.R.S. § 6-1501 — Arizona Code / Title 6 / Chapter 15 / Article 1 / Section 1501
6-1501 Method of taxing national banking associations
Status: in_force

6-1501. Method of taxing national banking associations

A. Each national banking association:

1. Shall be taxed on its net income under title 43.

2. Is subject to all other taxes that are authorized by 12 United States Code section 548 and that are levied or imposed by this state or any political subdivision of this state.

B. The allowable cost factor that is attributable to exempt income from United States government obligations and municipal bonds shall be determined pursuant to section 43-961, paragraph 2.
A.R.S. § 6-192 — Arizona Code / Title 6 / Chapter 2 / Article 1 / Section 192
6-192 Investments in international and foreign banking and financing corporations; limitation; consent; exceptions
Status: in_force

6-192. Investments in international and foreign banking and financing corporations; limitation; consent; exceptions

A. No bank, without the consent of the deputy director, may invest in stock or other evidence of ownership in any of the following:

1. Corporations organized under the laws of the United States or any state and principally engaged in international or foreign banking or in other international or foreign financial operations, or in banking or other financial operations in a dependency or insular possession of the United States, either directly or through the agency, ownership or control of local institutions in foreign countries, or in such dependencies or insular possessions.

2. Banks organized under the laws of a foreign country or a dependency or insular possession of the United States. No investment shall be made in a foreign bank if it is engaged directly or indirectly in any activity in the United States unless the activity is in the judgment of the deputy director, incidental to the international or foreign business of such bank.

B. The aggregate amount invested in all banks and corporations described in subsection A of this section shall not exceed, at the time any such investment is made, twenty-five percent of the capital account of the bank as defined in section 6-351.

C. The consent of the deputy director for any investment under subsection A of this section shall be subject to such conditions as the deputy director prescribes in the deputy director's order of approval, and the investment shall be subject to his regulations.

D. The provisions of subsections A and B of this section shall not apply to shares or evidences of ownership acquired by a bank in the regular course of securing or collecting a debt contracted in good faith but shares or evidence of ownership acquired in collecting a debt shall be disposed of within a reasonable time unless otherwise lawfully held under subsections A and B of this section.
A.R.S. § 6-1215 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1215
6-1215 Notice and information requirements for a change of key individuals
Status: in_force

6-1215. Notice and information requirements for a change of key individuals

A. A licensee adding or replacing any key individual shall provide both of the following:

1. Notice in a manner prescribed by the director within fifteen days after the effective date of the key individual's addition or replacement.

2. Information as required by section 6-1210 within forty-five days after the effective date of the key individual's addition or replacement.

B. Within ninety days after the date on which the notice provided pursuant to subsection A of this section is determined to be complete, the director may issue a notice of disapproval of a key individual if the competence or experience of the individual is not in the best interests of the public or the customers of the licensee to allow the individual to be a key individual of the licensee.

C. A notice of disapproval shall contain a statement of the basis for disapproval and shall be sent to the licensee and the disapproved individual.  A licensee may appeal a notice of disapproval pursuant to title 41, chapter 6, article 10.

D. If the notice provided pursuant to subsection A of this section is not disapproved within ninety days after the date on which the notice is determined to be complete, the key individual is approved.

E. If a multistate licensing process includes a key individual notice review and disapproval process pursuant to this section and the licensee is subject to the multistate licensing process:

1. The director may accept the determination of another state if the investigating state has sufficient staffing, expertise and minimum standards for the purposes of this section.

2. If this state is a lead investigative state, the director may investigate the applicant subject to the time frames established by agreement through the multistate licensing process.
A.R.S. § 6-991 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991
6-991 Definitions
Status: in_force

6-991. Definitions

In this article, unless the context otherwise requires:

1. "Affiliate" means an entity that directly or indirectly, through intermediaries, controls, is controlled by or is under common control with the entity specified.

2. "Clerical or support duties" means duties subsequent to the receipt of a residential mortgage loan application, including both of the following:

(a) The receipt, collection, distribution and analysis of information common for the processing or underwriting of a residential mortgage loan.

(b) The communication with a consumer to obtain the information necessary for the processing or underwriting of a loan if the communication does not include offering or negotiating loan rates or terms or counseling consumers about residential mortgage loan rates or terms.

3. "Consumer lender" means a person who is licensed pursuant to chapter 5 of this title.

4. "Continuing education unit" means a fifty minute period of time in a continuing education course that relates to the mortgage industry or to mortgage transactions, including courses taken to maintain recognized industry designations.

5. "Depository institution" has the same meaning prescribed in the federal deposit insurance act (12 United States Code section 1813) and includes credit unions.

6. "Federal banking agency" means the board of governors of the federal reserve system, the comptroller of the currency, the director of the office of thrift supervision, the national credit union administration or the federal deposit insurance corporation.

7. "Immediate family member" means a spouse, child, sibling, parent, grandparent, grandchild, stepparent, stepchild or stepsibling whether related by adoption or blood.

8. "Judgment" means either:

(a) A final judgment in a court of competent jurisdiction.

(b) A criminal restitution order issued pursuant to section 13-603 or 18 United States Code section 3663.

(c) An arbitration award that includes findings of fact and conclusions of law, that has been confirmed and reduced to judgment pursuant to section 12-133 and that was rendered according to title 12 and the rules of the American arbitration association or another recognized arbitration body.

9. "Judgment debtor" means any defendant under this article who is the subject of a judgment.

10. "License" means a license issued under this article.

11. "Licensee" means a person licensed under this article.

12. "Loan originator":

(a) Means a natural person who for compensation or gain or in the expectation of compensation or gain does any of the following:

(i) Takes a residential mortgage loan application.

(ii) Offers or negotiates terms of a residential mortgage loan.

(iii) On behalf of a borrower, negotiates with a lender or noteholder to obtain a temporary or permanent modification in an existing residential mortgage loan agreement.

(b) Does not include:

(i) An individual engaged solely as a loan processor or underwriter except as provided in section 6-991.02.

(ii) A person who only performs real estate brokerage activities and who is licensed in accordance with title 32, chapter 20, unless the person is compensated by a lender, a mortgage broker or any other loan originator or by an agent of the lender, mortgage broker or other loan originator.

(iii) A person solely involved in extensions of credit relating to a timeshare plan as defined in 11 United States Code section 101(53D).

(iv) A person who originates five or fewer mortgage loans per calendar year if the source of the prospective financing also makes five or fewer mortgage loans per calendar year.

(v) A person who takes back a purchase money mortgage in connection with the sale of residential real estate.

(vi) An employer making a mortgage loan to an employee.

13. "Loan processor or underwriter" means an individual who performs clerical or support duties as an employee at the direction of and subject to the supervision and instruction of a person who is licensed or who is exempt from licensure under article 1 or 2 of this chapter.

14. "Mortgage banker" means a person who is licensed pursuant to article 2 of this chapter.

15. "Mortgage broker" means a person who is licensed pursuant to article 1 of this chapter.

16. "Mortgage loan" or "residential mortgage loan" means a loan for personal family or household use that is secured by a mortgage, deed of trust or other equivalent consensual security interest on a dwelling, as defined in the truth in lending act (15 United States Code section 1602(v)), or residential real estate on which a dwelling is constructed or intended to be constructed.

17. "Real estate brokerage activity" means any activity that involves offering or providing real estate brokerage services to the public, including:

(a) Acting as a real estate salesperson or real estate broker for a buyer, seller, lessor or lessee of real property.

(b) Bringing together parties interested in the sale, purchase, lease, rental or exchange of real property.

(c) Negotiating on behalf of any party any portion of a contract relating to the sale, purchase, lease, rental or exchange of real property other than in connection with providing financing with respect to any transaction.

(d) Engaging in any activity for which a person is required to be licensed as a real estate salesperson or real estate broker under title 32, chapter 20.

(e) Offering to engage in any activity or act in any capacity described in subdivision (a), (b), (c) or (d) of this paragraph.

18. "Registered loan originator" means any individual who is both of the following:

(a) A loan originator who is registered with and maintains a unique identifier through the nationwide mortgage licensing system and registry established by the secure and fair enforcement for mortgage licensing act of 2008 (P.L. 110-289; 122 Stat. 2810; 12 United States Code sections 5101 through 5116) or its successor.

(b) An employee of one of the following:

(i) A depository institution.

(ii) A subsidiary that is owned and controlled by a depository institution and regulated by a federal banking agency.

(iii) An institution regulated by the farm credit administration.

19. "Residential mortgage loan servicer" means any person who does either of the following:

(a) On behalf of the noteholder, collects or receives payments, including payments of principal, interest, escrow monies and other monies due, on obligations due and owing to the noteholder pursuant to a residential mortgage loan.

(b) When the borrower is in default or in foreseeable likelihood of default, works on behalf of the noteholder with the borrower to modify the obligations either temporarily or permanently in order to avoid foreclosure or otherwise to finalize collection through the foreclosure process.

20. "Residential real estate" means any property that is located in this state and on which a dwelling is constructed or intended to be constructed.

21. "Unique identifier" means the number assigned to the loan originator by the nationwide mortgage licensing system and registry or its successor or as the term is used under the secure and fair enforcement for mortgage licensing act of 2008 (P.L. 110-289; 122 Stat. 2810; 12 United States Code sections 5101 through 5116).
A.R.S. § 6-454 — Arizona Code / Title 6 / Chapter 3 / Article 5 / Section 454
6-454 Appraisal of real estate owned
Status: in_force

6-454. Appraisal of real estate owned

At the time of acquisition by purchase, foreclosure or otherwise, an association shall cause to be appraised, in the manner, and by appraisers appointed in accordance with section 6-457, each parcel of real estate acquired and shall keep a signed copy of such appraisal in its records. An association shall not carry real estate on its books for a sum in excess of the total amount actually invested by the association on account of such real estate, including reasonable advances, costs and improvements, but excluding accrued and uncollected interest.
A.R.S. § 6-833.01 — Arizona Code / Title 6 / Chapter 7 / Article 3 / Section 833.01
6-833.01 Priority of distribution during receivership
Status: reserved

6-833.01. Priority of distribution during receivership

A. In a receivership proceeding filed against an escrow agent, the priority of distribution of claims from the general assets of the escrow agent shall be as provided by this section. Every claim in each class shall be paid in full or adequate monies shall be reserved for the payment before the members of the next class may receive any payment. Subclasses may not be established in any class. The order of distribution is as follows:

1. The costs and expenses of administration incurred in connection with the receivership proceedings.

2. Claims for compensation actually owing to employees of the escrow agent other than its officers for services rendered within three months before the beginning of a receivership against the escrow agent. A claim for compensation may not exceed two months of monetary compensation for each employee. The compensation owed shall be paid as soon as is practicable after the receivership begins, except that the receiver at all times shall reserve enough monies that in the receiver's opinion are sufficient to cover the expenses of administration. This priority is in lieu of any other similar priority authorized by law as to wages or compensation of employees.

3. Claims for breach of escrow agreements.

4. Claims of general creditors that do not fall within any other priority under this section.

5. Claims of the federal, any state or a local government except those claims that are treated as secured claims.

6. Claims of shareholders, members or other owners in that capacity.

B. The owner of a secured claim against an escrow agent for which a receiver has been appointed may surrender the security, and any deficiency shall be treated as a claim against the general assets of the escrow agent on the same basis as claims of unsecured creditors.
A.R.S. § 6-857 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 857
6-857 Issuance of certificate; hearing
Status: in_force

6-857. Issuance of certificate; hearing

A. On the filing of an application for a certificate, the deputy director shall make or cause to be made an investigation and examination of the facts concerning the truth of the statements and the background of the management, controlling shareholder or shareholders, directors and executive officers and shall issue a certificate if the deputy director finds:

1. The applicant is a corporation having powers and purposes to engage in the trust business organized under the laws of this state or authorized to do business in this state as a foreign corporation.

2. The applicant has complied with all of the applicable provisions of this article.

3. The general financial standing, business qualifications and ability of the persons involved in the management of the applicant's business are such as to demonstrate that the trust company will be operated in a safe, sound and lawful manner.

4. The proposed capital meets the requirements of section 6-856.

5. The applicant has submitted a business plan demonstrating a knowledge of potential markets and the ability to generate business.

6. The applicant has procured a fidelity bond as prescribed in section 6-868.

7. The applicant has procured insurance as prescribed in section 6-859, subsections E and F.

B. The deputy director may conditionally accept the application on specific requirements being met, but a certificate shall not be issued until such conditions have been met.

C. The certificate may be granted or denied without a hearing, but the deputy director may, and shall at the request of the applicant, fix a date for a hearing on the application. At the hearing any person may be heard with reference to the facts to be investigated.
A.R.S. § 6-491 — Arizona Code / Title 6 / Chapter 3 / Article 9 / Section 491
6-491 Effect of approval and consents
Status: in_force

6-491. Effect of approval and consents

A. When a plan has been approved by the court and the required consents given, the plan shall be binding on the deputy director, the association, the holders of accounts and shares of guaranty capital, and creditors of the association and all other persons affected thereby, and the association and such persons shall be conclusively deemed to have consented to the terms and conditions of the plan whether or not all of the persons have actually consented thereto and whether or not all of them have received notice of the plan or the hearing. Such steps shall be taken by the deputy director, the association and all other persons affected by the plan, and all acts shall be done, all instruments executed and all securities issued, as may be required by the plan so approved and as may be necessary or desirable for consummation of the plan.

B. The deputy director shall supervise and direct, subject to the order of the court, the consummation of the plan. The deputy director shall have and may exercise the same authority and power with respect to the business, property or affairs of an association retained by or delivered to the deputy director pursuant to any plan that the deputy director may have with respect to the business, property and affairs of any association of which the deputy director has taken possession. The deputy director shall have and may exercise the same authority and power with respect to an association formed pursuant to any plan, or to which the business, property or affairs may be returned or transferred pursuant to any plan, as the deputy director would have of the association if it had been formed or had acquired its business, property and affairs by means other than a plan.
A.R.S. § 6-450 — Arizona Code / Title 6 / Chapter 3 / Article 5 / Section 450
6-450 Modification agreements
Status: in_force

6-450. Modification agreements

The association at any time may enter into a written agreement with the borrower to modify, in any manner not inconsistent with the provisions of this chapter, the terms of a loan as to the amount, time, or method of the payments to be made, the interest rate, and any other provisions of the loan contract, and the loan contract and the security instrument shall not be prejudiced by the making of any such modification, even if such a modification was not provided for in the loan contract.
A.R.S. § 6-395.12 — Arizona Code / Title 6 / Chapter 2 / Article 13 / Section 395.12
6-395.12 Payment of claims and distribution to stockholders on liquidation
Status: in_force

6-395.12. Payment of claims and distribution to stockholders on liquidation

From time to time after full provision has been made for the payment of disputed claims and claims having priority, the receiver shall make ratable distribution on all claims that have been proved to his satisfaction or adjudicated in a court of competent jurisdiction. After all claims have been finally settled and paid, the balance of the assets shall be distributed to the stockholders of the bank in proportion to the stock by them respectively held.
A.R.S. § 6-991.11 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991.11
6-991.11 Statute of limitations; service of summons; application for payment; insufficient monies; definition
Status: in_force

6-991.11. Statute of limitations; service of summons; application for payment; insufficient monies; definition

A. An action for a judgment that subsequently results in an order for payment from the mortgage recovery fund shall be started not later than five years after the accrual of the cause of action.

B. If an aggrieved person commences an action for a judgment that may result in an order for payment from the mortgage recovery fund and the defendant licensee cannot be served process personally in this state, the summons may be served by the alternative methods of service provided for by the Arizona rules of civil procedure, including service by publication. A judgment that complies with this section and that was obtained after service by publication only applies to and is enforceable against the mortgage recovery fund. The department may intervene in and defend any such action.

C. An aggrieved person may apply to the department for payment from the mortgage recovery fund after the aggrieved person obtains a judgment against a loan originator based on the licensee's act, representation, transaction or conduct in violation of this title or the rules adopted pursuant to this title. The claimant must file the original application, including appendices, within two years after the termination of all proceedings, reviews and appeals connected with the judgment. The deputy director, in the deputy director's sole discretion, may waive the two-year application deadline if the deputy director determines that the waiver best serves the public interest. Delivery of the application must be by personal service or by certified mail, return receipt requested.

D. The application must be within the limitations prescribed in section 6-991.09 and for the amount that is unpaid on the judgment and that represents the claimant's actual and direct loss on the transaction.

E. The department shall prescribe and supply an application form that includes detailed instructions with respect to documentary evidence, pleadings, court rulings, the products of discovery in the underlying litigation and notice requirements to the judgment debtor under section 6-991.12. The claimant must submit the claim on an application form supplied by the department.  The application must include:

1. The claimant's name and address.

2. If the claimant is represented by an attorney, the attorney's name, business address and telephone number.

3. The judgment debtor's name and address or, if unknown, the names and addresses of persons who may know the judgment debtor's present location.

4. A detailed narrative statement of the facts explaining the allegations of the complaint on which the underlying judgment is based, with a copy of the contracts, receipts and other documents from the transaction, the last amended complaint, all existing recorded judgments, documentation of actual and direct out-of-pocket losses and any offsetting payment received and all collection efforts attempted.

5. The identification of the judgment, the amount of the claim and an explanation of its computation, including an itemized list of actual and compensatory damages awarded and claimed.

6. For the purpose of an application that is not based on a criminal restitution order, a statement by the claimant, signed under penalty of perjury, that the complaint on which the underlying judgment is based was prosecuted conscientiously and in good faith. For the purposes of this paragraph, "conscientiously and in good faith" means that all of the following apply:

(a) No party who was potentially liable to the claimant in the underlying transaction was intentionally and without good cause omitted from the complaint.

(b) No party named in the complaint who otherwise reasonably appeared capable of responding in damages was intentionally and without good cause dismissed from the complaint.

(c) The claimant employed no other procedural means contrary to the diligent prosecution of the complaint in order to seek to qualify for the recovery fund.

7. For the purpose of an application that is based on a criminal restitution order, all of the following statements by the claimant, signed under penalty of perjury:

(a) The claimant has not intentionally and without good cause failed to pursue any person potentially liable to the claimant in the underlying transaction other than a defendant who is the subject of a criminal restitution order.

(b) The claimant has not intentionally and without good cause failed to pursue in a civil action for damages all persons who are potentially liable to the claimant in the underlying transaction and who otherwise reasonably appeared capable of responding in damages other than a defendant who is the subject of a criminal restitution order.

(c) The claimant employed no other procedural means contrary to the diligent prosecution of the complaint in order to seek to qualify for the mortgage recovery fund.

8. The following statements, signed under penalty of perjury, and information from the claimant:

(a) The claimant is not a spouse of the judgment debtor or a personal representative of the spouse.

(b) The claimant has complied with all of the requirements of this article.

(c) The judgment underlying the claim meets the requirements of this article.

(d) The claimant has recorded a certified copy of the superior court judgment or transcript of judgment pursuant to sections 33-961 and 33-962 in the county in which the judgment was obtained and in the county in which all judgment debtors reside and has provided a copy of the recorded judgment to the deputy director.

(e) The claimant has caused the judgment debtor to make discovery under oath, pursuant to section 12-1631, concerning the debtor's property.

(f) The claimant has caused a writ of execution to be issued on the judgment and the officer executing the writ has made a return showing that either:

(i) No personal or real property of the judgment debtor liable to be levied on in satisfaction of the judgment could be found, sold or applied.

(ii) The amount realized on the sale of the property, or as much of the property that was found, under the execution was insufficient to satisfy the judgment.

(g) The claimant has caused a writ of garnishment to be issued to each known employer of the judgment debtor ascertained by the claimant, that each garnishee defendant has complied with the respective writ and any judgment or order resulting from the writ and that the amount realized from all judgments against the garnishee defendants was insufficient to satisfy the balance due on the judgment.

(h) The claimant has deducted the following amounts from the actual or compensatory damages awarded by the court:

(i) Any amount recovered or anticipated from the judgment debtor or debtors.

(ii) Any amount recovered through collection efforts undertaken pursuant to subdivisions (d) through (g) of this paragraph and including an itemized valuation of the assets discovered and amounts applied.

(iii) Any amount recovered or anticipated from bonding, insurance or title companies, including recovery of punitive damages.

(iv) Any amount recovered or anticipated from in court or out of court settlements.

(v) Any amount of tax benefits accrued or taken as deductions on federal, state or local income tax returns.

F. If the claim is based on a judgment against a loan originator and the claimant has not obtained a judgment against the loan originator's employing mortgage broker, mortgage banker or consumer lender if any, or has not diligently pursued the assets of the employing mortgage broker, mortgage banker or consumer lender the department shall deny the claim for failure to diligently pursue the assets of all other persons liable to the claimant in the transaction unless the claimant demonstrates, by clear and convincing evidence, that either:

1. The loan originator was not employed by a mortgage broker, mortgage banker or consumer lender at the time of the transaction.

2. The loan originator's employing mortgage broker, mortgage banker or consumer lender would not have been liable to the claimant because the loan originator acted outside the scope of employment in the transaction.

G. The deputy director, at the deputy director's sole discretion, may waive compliance with one or more of the requirements prescribed by subsection E, paragraph 8 or subsection F of this section if the claim is based on an award pursuant to a criminal restitution order or if the deputy director is satisfied that the claimant has taken all reasonable steps to collect the amount of the judgment or the unsatisfied part of the judgment from all judgment debtors but has been unable to collect.

H. If the deputy director finds it is likely that the total remaining liability of the recovery fund is insufficient to pay in full the valid claims of all aggrieved persons who may have claims against any one licensee, the deputy director may petition the court to initiate a proration proceeding. The court shall grant the petition and order a hearing to distribute the total remaining liability of the fund among the applicants in the ratio that their respective claims bear to the aggregate of the valid claims or in another manner that the court deems equitable.  The deputy director or any party may file a proposed plan for equitable distribution of the available monies.  The distribution of monies shall be among the persons entitled to share them, without regard to the order of priority in which their respective judgments may have been obtained or their respective applications may have been filed. The court may require all applicants and prospective applicants against one licensee to be joined in one action if the respective rights of all the applicants to the recovery fund may be equitably adjudicated and settled. The court shall not include in the claims for proration the claim of any person who has not, within ninety days after the court has entered the order for proration, filed a complaint with the court, served the licensee and provided written notice of the claim to the deputy director. The liability of the fund on any application affected by a proration proceeding is based on the limits in effect on the date when the last application for payment is filed.  The court may refuse to consider or award prorated recovery to any person who fails to expeditiously prosecute a claim against the licensee or promptly file an application for payment and submit supporting documentation as required by this article.

I. If, at any time, the money deposited in the mortgage recovery fund is insufficient to satisfy any duly authorized claim or portion of a claim, the deputy director, when sufficient money has been deposited in the mortgage recovery fund, shall satisfy the unpaid claims or portions of claims, in the order that the claims or portions of claims were originally filed, plus accumulated interest at the rate of four percent a year.

J. For the purposes of this section, "complaint" means the facts of the transaction on which the judgment is based.
A.R.S. § 6-945 — Arizona Code / Title 6 / Chapter 9 / Article 2 / Section 945
6-945 Denial, suspension or revocation of licenses
Status: in_force

6-945. Denial, suspension or revocation of licenses

A. The deputy director may deny a license to a person or suspend or revoke a license if the deputy director finds that an applicant or licensee:

1. Is insolvent as defined in section 47-1201.

2. Refuses to allow an examination by the deputy director of the licensee's books and affairs or refuses or fails, within a reasonable time, to furnish any information or make any report that may be required by the deputy director.

3. Has been convicted in any state of a felony or any crime involving breach of trust or dishonesty.

4. Has had a final judgment entered against the applicant or licensee in a civil action on grounds of fraud, deceit or misrepresentation and the conduct on which the judgment is based indicates that it would be contrary to the interest of the public to allow the person to be licensed or to control or manage a licensee.

5. Has had an order entered against the applicant or licensee involving fraud, deceit or misrepresentation by any administrative agency of this state, the federal government or any other state or territory of the United States and the facts relating to the order indicate that it would be contrary to the interest of the public to allow the person to be licensed or to control or manage a licensee.

6. Has violated any applicable law, rule or order.

B. If any person to whom a license is issued or who has applied for a license under this article is indicted or informed against for forgery, embezzlement, obtaining money under false pretenses, extortion, criminal conspiracy to defraud, or a like offense or offenses and a certified copy of the indictment or information or other proper evidence of such an indictment or information is filed with the deputy director, the deputy director may suspend the license issued to the licensee or refuse to grant a license to an applicant pending trial on the indictment or information.

C. If a licensee is other than a natural person, it is sufficient cause for the denial, suspension or revocation of the license if an officer, director, member, partner, trustee, employee, while acting in the course of the mortgage banker business, or person entitled to vote more than twenty percent of the outstanding voting shares of the licensed corporation, partnership, association or trust has acted or failed to act in the same manner as would be cause for suspending or revoking a license of the party as an individual. If a licensee is a natural person, it is sufficient cause for the suspension or revocation of the license if an employee of the person has acted or failed to act in the course of the mortgage banker business of the licensee in the same manner as would be cause for suspending or revoking a license of the party as an owner.

D. The deputy director shall grant or deny a license within one hundred twenty days after receiving the completed application and fees.
A.R.S. § 6-991.09 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991.09
6-991.09 Mortgage recovery fund; liability limits
Status: in_force

6-991.09. Mortgage recovery fund; liability limits

A. The deputy director shall establish and maintain a mortgage recovery fund consisting of the monies received by the deputy director pursuant to this article for the benefit of any person aggrieved by any act, representation, transaction or conduct of a licensed loan originator that violates this title or the rules adopted pursuant to this title.

B. On notice from the deputy director, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.

C. Notwithstanding any other law, the deputy director may spend interest monies from the fund that are necessary to increase public awareness of the fund, but that do not exceed $50,000 in any fiscal year.

D. The fund shall only pay for a loss that is an actual and direct out-of-pocket loss to an aggrieved person directly arising out of a mortgage transaction, including reasonable attorney fees and court costs.

E. The mortgage recovery fund's liability shall not exceed:

1. $200,000 for each transaction, regardless of the number of persons aggrieved or the number of licensees or parcels of real estate involved.

2. $500,000 for each licensee.

F. The liability of the fund for the acts of a licensed loan originator is terminated on the issuance of orders authorizing payments from the fund in an aggregate amount as prescribed by subsection E of this section.

G. The fund is liable to pay only against the license of a natural person, not on that of a corporation, a partnership or any other fictitious entity.

H. The fund is liable to pay only for damages arising out of a transaction in which the defendant licensee performed acts for which a loan originator license was required or when the defendant licensee engaged in fraud or misrepresentation and the aggrieved person was harmed due to reliance on the defendant's licensed status.

I. The fund shall not pay any claim until the penal sums of the bonds required under section 6-903 or 6-943 have been exhausted.
A.R.S. § 6-1214 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1214
6-1214 Acquisition of control
Status: in_force

6-1214. Acquisition of control

A. Any person or group of persons acting in concert, seeking to acquire control of a licensee, shall obtain the written approval of the director before acquiring control.  An individual is not deemed to acquire control of a licensee and is not subject to this section when the individual becomes a key individual in the ordinary course of business.

B. A person or group of persons acting in concert, seeking to acquire control of a licensee, in cooperation with the licensee shall:

1. Submit an application in a form prescribed by the director.

2. Submit a nonrefundable fee as prescribed in section 6-126.

C. On request, the director may allow a licensee or the person or group of persons acting in concert to submit some or all information required by the director pursuant to subsection B, paragraph 1 of this section without using NMLS.

D. The application required by subsection B, paragraph 1 of this section shall include information required by section 6-1210 for any new key individuals that have not previously completed the requirements of section 6-1210 for a licensee.

E. When an application for acquisition of control under this section appears to include all of the items and address all of the matters that are required, the application shall be considered complete.  The director shall promptly notify the applicant in a record of the date on which the application was determined to be complete and all of the following apply:

1. The director shall approve or deny the application within sixty days after the completion date.

2. If the application is not approved or denied within sixty days after the completion date:

(a) The application is approved.

(b) The person or group of persons acting in concert is not prohibited from acquiring control.

3. The director may extend the application period for good cause.

F. A determination by the director that an application is complete and is accepted for processing means only that the application appears to include all of the items and address all of the matters that are required and is not an assessment of the substance of the application or of the sufficiency of the information provided.

G. When an application is filed and considered complete under subsection E of this section, the director shall investigate the financial condition and responsibility, financial and business experience, character and general fitness of the person or group of persons acting in concert, seeking to acquire control.  The director shall approve an acquisition of control pursuant to this section if the director finds that all of the following conditions have been fulfilled:

1. The requirements of subsections B and D of this section have been met, as applicable.

2. The financial condition and responsibility, financial and business experience, competence, character and general fitness of the person or group of persons acting in concert, seeking to acquire control and the competence, experience, character and general fitness of the key individuals and persons that would be in control of the licensee after the acquisition of control indicate that it is in the interest of the public to allow the person or group of persons acting in concert to control the licensee.

H. If an applicant participates in a multistate licensing process:

1. The director may accept the investigation results of a lead investigative state for the purpose of subsection G of this section if the lead investigative state has sufficient staffing, expertise and minimum standards.

2. If this state is a lead investigative state, the director may investigate the applicant pursuant to subsection G of this section and the time frames established by agreement through the multistate licensing process apply.

I. The director shall issue a formal written notice of the denial of an application to acquire control within thirty days after the decision is made to deny the application.  The director shall set forth in the notice of denial the specific reasons for the denial of the application and inform the applicant of its right to appeal pursuant to title 41, chapter 6, article 10.

J. The requirements of subsections A and B of this section do not apply to any of the following:

1. A person that acts as a proxy for the sole purpose of voting at a designated meeting of the shareholders or holders of voting shares or voting interests of a licensee or a person in control of a licensee.

2. A person that acquires control of a licensee by devise or descent.

3. A person that acquires control of a licensee as a personal representative, custodian, guardian, conservator or trustee or as an officer appointed by a court of competent jurisdiction or by operation of law.

4. A person that is exempt under section 6-1202, subsection A, paragraph 7.

5. A person that the director determines is not subject to subsection A of this section based on the public interest.

6. A public offering of securities of a licensee or a person in control of a licensee.

7. An internal reorganization of a person in control of the licensee in which the ultimate person in control of the licensee remains the same.

K. Persons prescribed in subsection J, paragraphs 2, 3, 4, 6 and 7 of this section, in cooperation with the licensee, shall notify the director within fifteen days after the acquisition of control.

L. The requirements of subsections A and B of this section do not apply to a person that receives approval to engage in money transmission under this article or is identified as a person in control in a prior application filed with and approved by the director or by a money services business accredited state pursuant to a multistate licensing process, if:

1. The person has not had a license revoked or suspended or controlled a licensee that has had a license revoked or suspended while the person was in control of the licensee in the previous five years.

2. The person is a licensee and well managed and receives at least a satisfactory rating for compliance at its most recent examination by an money services business accredited state if a rating was given.

3. The licensee to be acquired is projected to meet the requirements of sections 6-1227, 6-1228 and 6-1229 after the acquisition of control is completed and if the person acquiring control is a licensee, that licensee is also projected to meet the requirements of sections 6-1227, 6-1228 and 6-1229 after the acquisition of control is completed.

4. The licensee to be acquired will not implement any material changes to its business plan as a result of the acquisition of control and if the person acquiring control is a licensee, that licensee will not implement any material changes to its business plan as a result of the acquisition of control.

5. The person provides notice of the acquisition in cooperation with the licensee and attests to paragraphs 1 through 4 of this subsection in a form prescribed by the director. If the notice is not disapproved within thirty days after the date on which the notice was determined to be complete, the notice is deemed approved.

M. Before filing an application for approval to acquire control of a licensee, a person may request in writing a determination from the director as to whether the person would be considered a person in control of a licensee on consummation of a proposed transaction.  If the director determines that the person would not be a person in control of a licensee, the proposed person and transaction is not subject to the requirements of subsections A and B of this section.

N. If a multistate licensing process includes a determination pursuant to subsection M of this section and an applicant is subject to the multistate licensing process:

1. The director may accept the control determination of a lead investigative state with sufficient staffing, expertise and minimum standards.

2. If this state is a lead investigative state, the director may investigate the applicant subject to the time frames established by agreement through the multistate licensing process.
A.R.S. § 6-459 — Arizona Code / Title 6 / Chapter 3 / Article 6 / Section 459
6-459 Amendment of articles of incorporation
Status: in_force

6-459. Amendment of articles of incorporation

An association may amend its articles of incorporation from time to time, in accordance with the procedure prescribed in this article; but the articles of incorporation, as amended, shall conform to all legal requirements which pertain to original articles adopted at the time of such amendment. Any number of amendments may be submitted to the members, and voted upon by them, at one meeting.
A.R.S. § 6-706 — Arizona Code / Title 6 / Chapter 6 / Article 1 / Section 706
6-706 Fees
Status: in_force

6-706. Fees

A. An applicant, at the time of filing an application for a license under the terms of this article, shall pay to the deputy director the fee prescribed in section 6-126. The fee for an agency license is the same as the fee prescribed for a branch.

B. On or before June 30 of each year, each licensee may obtain a renewal of each license without investigation by payment of the fee prescribed in section 6-126. The fee for renewal of an agency license is the same as the fee prescribed for a branch.
A.R.S. § 6-130 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 130
6-130 Limitation of personal liability
Status: in_force

6-130. Limitation of personal liability

No officer or employee of the department shall be liable in any civil action for damages for any act done or omitted in good faith in performing the functions of the department.
A.R.S. § 6-410 — Arizona Code / Title 6 / Chapter 3 / Article 2 / Section 410
6-410 Deputy director's approval and issuance of permit to organize
Status: in_force

6-410. Deputy director's approval and issuance of permit to organize

The deputy director shall not approve the application and issue a permit to organize unless the deputy director finds:

1. A need exists for an association, and that the public convenience and advantage will be promoted by the proposed association, in the community or area of operation stated in the application.

2. The proposed capital meets the requirements of this chapter.

3. The general character of the proposed management is such as to assure reasonable probability of the success of the association.

4. The name of the proposed association is not the same as, or deceptively similar to, the name of any other association or bank in the community or area of operation.

5. Such association can be established without undue injury to properly conducted existing associations.
A.R.S. § 6-415 — Arizona Code / Title 6 / Chapter 3 / Article 3 / Section 415
6-415 Members' meetings
Status: in_force

6-415. Members' meetings

A. Each annual meeting of the members shall be held at the time specified in the articles of incorporation; but the failure to hold an annual meeting at the time so specified shall not work a forfeiture or dissolution of the association. The board of directors, or the holders of not less than twenty per cent of the outstanding guaranty shares or of the withdrawal value of all withdrawable capital of the association, or such other person or persons as may be designated by the by-laws, may call a special meeting of the members. Every annual or special meeting shall be held at the business office of the association, or in such other place within the same county as shall be specifically designated in the notice of such meeting. Notice of an annual or any special meeting shall be published twice, and the last publication shall be not less than ten days nor more than forty days before the date of the meeting. Such notice shall state the place, day, hour and purpose of the meeting.

B. A quorum at any meeting of the members shall consist of the members present in person or represented by proxy, who are entitled to cast a majority of the total number of votes which all members of the association are entitled to cast at such meeting; except that the articles of incorporation may specify some other quorum requirement, but not less than one-third of such total number of votes. Any meeting, including one at which a quorum is not present, may be adjourned by majority vote to a specified date without further notice.

C. Voting at a meeting may be either in person or by proxy executed in writing by the shareholder or by his duly authorized attorney-in-fact. No proxy shall be valid after eleven months from the date of its execution, unless otherwise specifically provided in the proxy.

D. Unless the articles of incorporation provide otherwise, in the determination of all questions requiring ascertainment of the members entitled to vote and of the number of outstanding shares, the following rules shall apply:

1. The date of determination shall be as provided in section 6-416.

2. Each person holding one or more accounts shall have the vote of one share for each one hundred dollars of the aggregate withdrawal value of such accounts, and shall have the vote of one share for any fraction of one hundred dollars.

3. Each holder of guaranty shares shall have one vote for each guaranty share which he holds.

4. Each borrowing member as such shall have the vote of one share in addition to any vote which he may have otherwise.

5. Shares owned by the association shall not be counted or voted.
A.R.S. § 6-125 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 125
6-125 Annual examination assessment of financial institutions and enterprises; costs of foreign examination; payment
Status: in_force

6-125. Annual examination assessment of financial institutions and enterprises; costs of foreign examination; payment

A. Before August 31 of each year the deputy director shall make the following annual assessments:

1. On banks, the annual assessment set by the deputy director.

2. On savings and loan associations, a charge not to exceed the annual assessment set for state banks under paragraph 1 of this subsection.

3. On credit unions, the annual assessment set by the deputy director.

B. The deputy director shall assess against the institution or enterprise examined a charge at the rate set by the deputy director but not to exceed $65 per hour for each examiner employed in the following examinations:

1. Any examination of a trust company.

2. Any examination of the trust operation of a bank or a savings and loan association.

3. Any examination of a financial institution ordered by the deputy director in addition to the regular examination required under section 6-122.

4. Any examination of an enterprise ordered by the deputy director.

5. Any examination of a financial institution holding company or international banking facility.

6. Any examination of a consumer lender.

C. For a financial institution or enterprise maintaining an office outside this state, in addition to the annual assessment or examination assessment, the deputy director shall make an assessment equal to the travel and subsistence expense incurred in the examination of the office in the foreign state or country. Notwithstanding any other limitation prescribed by law, examiners engaged in examination of a foreign office shall be reimbursed for their necessary travel and subsistence expenses. Reimbursement for examiners' expenses shall be credited to the appropriation account of the department.

D. Assessments under this section are due and payable to the department within thirty days after notice of the assessment is mailed by the department. The deputy director shall assess a penalty of $50 for each day after the thirty-day period that the financial institution or enterprise fails to remit the assessment, unless, on good cause shown, a written request for an extension is approved by the deputy director prior to the expiration of the specified time. In no event shall the total penalty exceed the examination assessment.

E. The deputy director shall set the amount of the annual assessment to be charged to banks and credit unions. In setting the annual assessment on banks, the deputy director shall consider the annual assessment set by the comptroller of currency for national banks. In setting the annual assessment on credit unions the deputy director shall consider the annual assessment set by the national credit union administration for federal credit unions.
A.R.S. § 6-1502 — Arizona Code / Title 6 / Chapter 15 / Article 1 / Section 1502
6-1502 Method of taxing banks, investment companies and savings and loan associations
Status: in_force

6-1502. Method of taxing banks, investment companies and savings and loan associations

Banks, including national banking associations, investment companies and savings and loan associations, including federal savings and loan associations, are subject to all taxes that are levied or imposed generally on a nondiscriminatory basis, throughout this state or any political subdivision of this state, to the same extent as taxes are levied or imposed on other corporations.
A.R.S. § 6-991.08 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991.08
6-991.08 Reasonable efforts to secure advantageous loan for borrower
Status: in_force

6-991.08. Reasonable efforts to secure advantageous loan for borrower

A loan originator shall make reasonable efforts to secure a loan that is reasonably advantageous to the borrower considering all of the circumstances, including the interest rates, charges and repayment terms of the loan.
A.R.S. § 6-1413 — Arizona Code / Title 6 / Chapter 14 / Article 1 / Section 1413
6-1413 Other charges allowed
Status: in_force

6-1413. Other charges allowed

A. A licensee may contract for, and if so contracted for, may collect a service charge for financing or arranging the financing of premiums under the agreement in an amount not to exceed ten dollars for each premium finance agreement. The service charge need not be refunded on cancellation, prepayment or acceleration of the agreement.

B. A premium finance agreement on a contract providing insurance coverage for an individual, family or household purpose, may provide for the payment by the insured of a delinquency charge of five per cent of the delinquent installment or ten dollars, whichever is less, on any installment which is in default for a period of five days or more.

C. A premium finance agreement on a contract providing insurance coverage for any entity involved in transactions solely for business purposes may provide for the payment by the insured of a delinquency charge of five per cent of the delinquent installment on any installment which is in default for a period of five days or more.

D. If the default results in the cancellation of any insurance contract listed in the premium finance agreement, the premium finance agreement may provide for the payment by the insured of a cancellation charge of fifteen dollars.

E. A licensee that receives a check, draft, negotiable order of withdrawal or similar instrument drawn on a bank or other depository institution which is offered by an insured in full or partial payment on a premium finance agreement and the instrument is not paid or is dishonored by the institution, may charge and collect from the insured a bad check charge in the amount of ten dollars or the actual charge made to the premium finance company by the depository institution for the return of the unpaid or dishonored instrument, whichever is more.

F. A premium finance agreement may provide for payment of collection costs, attorney fees equal to twenty per cent of the outstanding indebtedness and any other charges which arise because of breach of the contract.

G. The charges referred to in this section shall not be considered directly or indirectly to be interest or prepaid finance charges for entering into a premium finance agreement.

H. A premium finance company shall not, except as otherwise provided by law, impose, take, receive from, reserve or charge an insured greater charges than are permitted by this article.
A.R.S. § 6-716 — Arizona Code / Title 6 / Chapter 6 / Article 1 / Section 716
6-716 Fees collected
Status: in_force

6-716. Fees collected

All fees collected under the provisions of this article shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund.
A.R.S. § 6-1232 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1232
6-1232 Authorized delegate suspension and revocation
Status: in_force

6-1232. Authorized delegate suspension and revocation

A. The director may suspend or revoke the designation of an authorized delegate if the director finds that:

1. The authorized delegate violated this article.

2. The authorized delegate did not cooperate with an examination or investigation by the director.

3. The authorized delegate engaged in fraud, intentional misrepresentation or gross negligence.

4. The authorized delegate is convicted of a violation of a state or federal anti-money laundering statute.

5. The competence, experience, character or general fitness of the authorized delegate or a person in control of the authorized delegate indicates that it is not in the public interest to allow the authorized delegate to provide money transmission.

6. The authorized delegate is engaging in an unsafe or unsound practice. To determine whether an authorized delegate is engaging in an unsafe or unsound practice, the director may consider the size and condition of the authorized delegate's provision of money transmission, the magnitude of the loss, the gravity of the violation of this article and the previous conduct of the authorized delegate.

B. An authorized delegate may appeal a suspension or revocation pursuant to title 41, chapter 6, article 10.
A.R.S. § 6-702 — Arizona Code / Title 6 / Chapter 6 / Article 1 / Section 702
6-702 Exemptions
Status: in_force

6-702. Exemptions

The provisions of this chapter shall not be applicable to:

1. Attorneys at law, whose principal activities are other than debt management, when debt management is only incidental to their regular activities.

2. Banks, savings and loan associations or financing and lending institutions duly authorized and licensed to transact business under the laws of this state or of the United States.

3. Judicial officers or others acting under court orders.

4. Nonprofit religious, fraternal or cooperative organizations that:

(a) Are bonded as provided by section 6-704.

(b) Offer debt management service exclusively for their members.

(c) Do not collect any compensation directly or indirectly from debtors.

(d) File an annual report as provided in section 6-709, subsection M.

5. Nonprofit corporations or nonprofit debt counselor associations that:

(a) Are bonded as provided by section 6-704.

(b) Are organized to render financial planning service or debt management service to the public.

(c) Do not collect any compensation directly or indirectly from debtors.

(d) File an annual report as provided in section 6-709, subsection M.

6. Any transaction in which money or other property is paid to a joint control agent for dispersal or use in the payment of the cost of labor, materials, services, permits, fees, or other items of expense incurred in construction of improvements upon real property.

7. A person licensed pursuant to chapter 7 of this title.

8. A person licensed pursuant to chapter 9, article 2 of this title.

9. A bill paying service provider that complies with all of the following:

(a) Does not accept bills on invoices that are contractually past due at the time of receipt by the debtor.

(b) Does not initiate any contact with individual creditors of the debtor to compromise a debt or arrange a new payment schedule.

(c) Does not provide any debt counseling services.

(d) Makes a written contract with the debtor and immediately furnishes the debtor with a copy of the complete contract.

(e) Furnishes the debtor with a written statement of the debtor's account each month and a verbal accounting at any time the debtor requests it during normal business hours.

(f) Does not take physical possession of any debtor monies except for fees and charges for services rendered as agreed to in writing. Nothing in this subdivision shall be construed to prevent a service provider from obtaining check signing authority on an account if the account remains solely in the debtor's name, the debtor maintains control over the monies deposited in the account and the check signing authority is limited to the payment of obligations that are approved and authorized by the debtor.
A.R.S. § 6-907 — Arizona Code / Title 6 / Chapter 9 / Article 1 / Section 907
6-907 Required disclosure to investors
Status: in_force

6-907. Required disclosure to investors

A. Before payment of any money by an investor in connection with a mortgage loan, a licensee shall provide to an investor that is not a financial institution, state or national bank, state or federal savings and loan association, state or federal savings bank, state or federal credit union, financial enterprise, licensed real estate broker or salesman, profit sharing or pension trust or insurance company:

1. An opinion from an independent source stating the value of the property subject to the mortgage loan being made or sold. The opinion shall state the value of the property as it exists on the date of the opinion.

2. A copy of the preliminary title report that states the condition of title and discloses any encumbrances, assessments and liens of record on the property securing the mortgage loan being made or sold.

3. A disclosure statement that includes the following information:

(a) The name and address of the fee owner of the property securing the mortgage loan being made or sold.

(b) Information relative to the ability of the borrower to meet the obligations of the mortgage loan.

(c) A legal description or address of the property securing the mortgage loan being made or sold.

(d) The existence of any improvements on the property or any utilities on or adjacent to the property that will serve the property.

(e) The terms and conditions of the mortgage loan being made or sold, including the principal balance owed and the status of principal and interest payments thereon.

(f) The terms and conditions of all liens on the property securing the mortgage loan being made or sold.

(g) A statement as to whether the mortgage broker is acting as principal or agent in the transaction.

(h) Any additional information prescribed by the deputy director.

B. After using the licensee's best efforts to verify all of the information required by this section, the licensee shall sign the statement attesting to the validity of the information to the best of the licensee's knowledge and belief.  The licensee shall maintain a record of acknowledgment from the lender of the receipt of this information for not less than two years from the date of the mortgage loan closing.
A.R.S. § 6-854.02 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 854.02
6-854.02 Board of directors; number; bylaws
Status: in_force

6-854.02. Board of directors; number; bylaws

A. A trust company shall have at least three directors. The shareholders of the company shall elect all of the directors.

B. Unless the articles of incorporation provide otherwise, the board of directors may adopt or amend the bylaws as long as the bylaws adopted or amended by the board do not conflict with the bylaws adopted by the shareholders. The board of directors shall file a current copy of the bylaws with the deputy director.
A.R.S. § 6-129.01 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 129.01
6-129.01 Enterprise documents open to public inspection
Status: in_force

6-129.01. Enterprise documents open to public inspection

All papers, documents, reports and other written instruments filed with the deputy director pursuant to the requirements of this title by an enterprise shall be open to public inspection, except that the deputy director may withhold from public inspection for such time as the deputy director considers necessary any information which in the deputy director's judgment the public welfare or the welfare of the financial enterprise requires to be so withheld.
A.R.S. § 6-563 — Arizona Code / Title 6 / Chapter 4 / Article 7 / Section 563
6-563 Other loan programs
Status: in_force

6-563. Other loan programs

A. A credit union may participate in loans to its members jointly with other credit unions, credit union organizations or other organizations pursuant to written policies established by the board of directors. A credit union that originates such a loan shall retain an interest of at least five percent of the outstanding principal balance of the loan. Before participating in a loan transaction, each credit union shall perform its own independent evaluation of the creditworthiness of the borrower.

B. In making loans to its members, a credit union may participate in any guaranteed loan program of the federal or state government under the terms and conditions specified in the law or rules under which such a program is provided.

C. A credit union may finance for any person the sale of the credit union's property, including property obtained as a result of defaults in obligations owed to it, under the terms, conditions and rates provided by this chapter.
A.R.S. § 6-1220 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1220
6-1220 Bank secrecy act reports
Status: in_force

6-1220. Bank secrecy act reports

A licensee and an authorized delegate shall file all reports required by federal currency reporting, recordkeeping and suspicious activity reporting requirements as set forth in the bank secrecy act (P.L. 91-508; 84 Stat. 1114) and other federal and state laws relating to money laundering.  The timely filing of a complete and accurate report required under this section with the appropriate federal agency is deemed compliance with the requirements of this section.
A.R.S. § 6-638 — Arizona Code / Title 6 / Chapter 5 / Article 2 / Section 638
6-638 Other insurance
Status: in_force

6-638. Other insurance

A. A licensee who is licensed to sell life insurance pursuant to title 20 may sell and include in the principal amount of a consumer lender loan the cost of the premium for life insurance that is not for credit if all of the following apply:

1. The insurance policy or certificate is approved by the director.

2. The purchase of the insurance is not a condition of the consumer lender loan.

3. The consumer signs an application for the insurance that is separate from the consumer lender loan application.

4. The licensee does not offer or discuss with the consumer the option of life insurance until after the consumer lender loan application is completed and the consumer lender loan is approved.

B. A licensee who is licensed to sell disability insurance pursuant to title 20 may sell and include in the principal amount of the consumer lender loan the cost of the premium for accidental death and dismemberment insurance or disability income protection insurance, or both, if all of the following apply:

1. The insurance policy or certificate is approved by the director.

2. The purchase of the insurance is not a condition of the consumer lender loan.

3. The consumer signs an application for the insurance that is separate from the consumer lender loan application.

4. The licensee does not offer or discuss with the consumer the option of accidental death and dismemberment insurance or disability income protection insurance until after the consumer lender loan application is completed and the consumer lender loan is approved.

C. Any insurance purchased by the consumer pursuant to this section is optional and the licensee shall disclose in writing to the consumer that the insurance is optional.

D. The consumer may cancel the insurance for any reason at any time within thirty days after the date of purchase and the consumer shall receive a full refund of the premium within five days after the date of cancellation. If the consumer cancels the insurance after thirty days from the date of purchase, the consumer shall receive a refund of the unearned premium in accordance with the insurance policy. In the event the consumer cancels the insurance, the licensee shall give the consumer the amount of any refund of premium or shall credit the consumer's lender loan at the option of the consumer.  For the purposes of this subsection, the date of cancellation is defined as the date the licensee receives the receipt for the notice of cancellation for the insurance policy.

E. If the consumer decides to cancel the policy, the consumer shall either:

1. Return the policy to the insurer or to the licensee at the licensee's place of business.

2. Provide written notice of cancellation to the insurer or to the licensee at the licensee's place of business.

F. The licensee shall give the consumer a written copy of the provisions of this section.
A.R.S. § 6-846.01 — Arizona Code / Title 6 / Chapter 7 / Article 4 / Section 846.01
6-846.01 Filing of escrow rates
Status: in_force

6-846.01. Filing of escrow rates

A. Every escrow agent who is required to make escrow rates under section 6-846 shall file with the deputy director the escrow agent's schedules of fees, every manual of classifications, the rules and plans pertaining to the manual and every modification of any of the foregoing. The filing shall state the proposed effective date and shall indicate the character and extent of the contemplated service.

B. The deputy director shall review the filings as necessary to carry out the provisions of this article.

C. Subject to subsection E of this section, each filing does not become effective until fifteen days after the date of filing. On written notice to the escrow agent making the filing, the deputy director may extend the waiting period for up to an additional fifteen days. The waiting period may be extended further with the consent of the escrow agent making the filing. On written application by the escrow agent making the filing, the deputy director may authorize part or all of a filing to become effective before the expiration of the waiting period or any extension.

D. Except in the case of rates filed under subsection E of this section, a filing that has become effective is deemed to meet the requirements of this article.

E. If the deputy director finds that a rate for a particular kind or class of escrow service cannot practicably be filed before it is used or a kind of escrow service, by reason of rarity or peculiar circumstances, does not lend itself to advance determination and filing of rates, the deputy director pursuant to rules adopted by the deputy director may allow the rate to be used without a previous filing and waiting period.
A.R.S. § 6-494 — Arizona Code / Title 6 / Chapter 3 / Article 9 / Section 494
6-494 Authority of fiduciaries
Status: in_force

6-494. Authority of fiduciaries

An executor, administrator, guardian, receiver, trustee of any kind or nature, and an insurance company may consent to any plan or exchange any shares of guaranty capital, accounts, creditors' claims or other rights or claims for securities issued pursuant to any plan and may continue to hold as a legal investment securities so received.
A.R.S. § 6-191 — Arizona Code / Title 6 / Chapter 2 / Article 1 / Section 191
6-191 Foreign banking offices; additional powers; separate accounts; additional offices; definition
Status: in_force

6-191. Foreign banking offices; additional powers; separate accounts; additional offices; definition

A. In addition to its other powers, a bank may through any foreign banking office act as fiscal agent of the United States and, except as prohibited or limited by regulations of the deputy director, exercise such powers as are usual in connection with the business of banking in the places where such foreign banking office transacts its business.

B. The accounts of each foreign banking office shall be maintained independently of the accounts of all other banking offices and the profit or loss of the office for each fiscal year shall be recorded as a separate item in the general ledger of the bank.

C. A bank having a foreign banking office, on thirty days' notice to the deputy director, or such shorter notice as may be approved by the deputy director in individual cases, may establish such additional banking office or offices as specified in the notice in the same country without filing an application for approval, unless otherwise ordered by the deputy director.

D. For the purposes of this section, the term "foreign banking office" means a banking office in a foreign country or in a dependency or insular possession of the United States.
A.R.S. § 6-980 — Arizona Code / Title 6 / Chapter 9 / Article 3 / Section 980
6-980 Annual renewal; expiration on failure to renew
Status: in_force

6-980. Annual renewal; expiration on failure to renew

A. For licenses approved on or before March 31, 2009:

1. Licenses that are not renewed by March 31, 2009 are suspended, and the licensee shall not act as a commercial mortgage banker until the license is renewed or a new license is issued pursuant to this article.

2. A person may renew a suspended license by making an application for renewal as prescribed by the deputy director.

3. Licenses that are not renewed by April 30, 2009 expire. A license shall not be granted to the holder of an expired license except as provided in this article for issuing an original license.

B. For licenses approved after or renewed on March 31, 2009:

1. If a license is not renewed by December 31, 2009 and by December 31 of each subsequent year, the license is suspended. The licensee shall not act as a commercial mortgage banker until the license is renewed or a new license is issued pursuant to this article.

2. A person may renew a suspended license by applying for renewal as prescribed by the deputy director.

3. Licenses that are not renewed by January 31 expire.  A license shall not be granted to the holder of an expired license except as provided in this article for issuing an original license.
A.R.S. § 6-802 — Arizona Code / Title 6 / Chapter 7 / Article 1 / Section 802
6-802 Acknowledgment of report of examination; penalty
Status: in_force

6-802. Acknowledgment of report of examination; penalty

A. The deputy director shall examine or cause to be examined each escrow agent as prescribed by section 6-122. The deputy director shall forward a report of the examination to the board of directors of the escrow agent within thirty days after the report is completed. Within thirty days after the report is received, the directors shall meet to consider its contents. Within ten days after the directors' meeting, the chairman of the board of directors shall notify the deputy director of its meeting, shall acknowledge that each director has reviewed the report and shall describe the board's responses to the recommendations of the examiners, including any remedies for violations of this title. In each case, the deputy director may extend the time period in this subsection for a period not to exceed one hundred twenty days applicable to actions by the board of directors and its chairman.

B. Unless excused by the deputy director for cause before or after the date the response is due, an escrow agent who fails to file a timely response to the report of examination shall pay the department up to $100 for each day of delinquency, as assessed by the department.
A.R.S. § 6-507 — Arizona Code / Title 6 / Chapter 4 / Article 2 / Section 507
6-507 Certificate of approval; filing with corporation commission; certificate of incorporation
Status: in_force

6-507. Certificate of approval; filing with corporation commission; certificate of incorporation

A. The deputy director shall act on the completed application within sixty days. The deputy director shall issue a certificate of approval if the certificate of organization and the bylaws are in conformity with this chapter and the deputy director is satisfied that all of the following are true:

1. The field of membership, the bylaws and the business plan are favorable to the economic viability of the proposed credit union.

2. The reputation, character and financial experience of the initial board of directors and supervisory committee provide assurance that the credit union's affairs will be properly administered.

3. The share and deposit accounts of the credit union will be insured by an insuring organization when the credit union commences business.

B. On receipt of the  deputy director's certificate of approval the incorporators shall file the certificate of organization, with the certificate of approval attached, with the corporation commission and record a certified copy of the filing under the seal of the commission with the county recorder of the county or counties in which the credit union is to do business. On proof of the recording, the corporation commission shall issue a certificate of incorporation to the credit union. The credit union shall forward a certified copy of the certificate of incorporation showing the filing and recording to the deputy director.

C. The credit union shall also file with the corporation commission the appointment of an agent on whom service of process may be made. The incorporators shall then be deemed a credit union, incorporated in accordance with this chapter.

D. If a certificate of approval is denied, the deputy director shall notify the incorporators and set forth the reasons for the denial.
A.R.S. § 6-833 — Arizona Code / Title 6 / Chapter 7 / Article 3 / Section 833
6-833 Seizure of property of impaired escrow agent
Status: in_force

6-833. Seizure of property of impaired escrow agent

A. When the deputy director ascertains by examination or otherwise that the assets or capital of any agent are impaired, or that the agent's affairs are in an unsafe condition, the deputy director may immediately take possession of all the property, business and assets of the agent that are located in this state and retain possession of them pending the further proceedings specified in this section. If the board of directors or any officer or person in charge of the offices of the agent refuses to allow the deputy director to take possession as prescribed by this subsection, the deputy director shall communicate such fact to the attorney general, whereupon the attorney general shall immediately institute such proceedings as may be necessary to place the deputy director in immediate possession of the property of the agent. The deputy director shall make or have made an inventory of the assets and known liabilities of the agent. The deputy director shall file one copy of the inventory in the deputy director's office and one copy in the office of the clerk of the superior court of the county in which the principal office of the agent is located. The clerk of the superior court shall mail one copy to each stockholder of the agent at each stockholder's last known address, if by the exercise of reasonable diligence it can be determined.  The clerk of the court with whom the copy of the inventory is filed shall file it as any other case or proceeding pending in the court.

B. The officers, directors or stockholders of the agent may have sixty days after the date the deputy director takes possession of the property, business and assets to make good any deficit that may exist or to remedy the unsafe condition of its affairs. At the expiration of this time, if the deficiency in assets or capital has not been made good or the unsafe condition remedied, the deputy director may apply to the court to be appointed receiver and proceed to liquidate the assets of the agent that are located in this state in the same manner as provided by law for liquidation of a private corporation in receivership. The inventory made by the deputy director and all claims filed by creditors shall be open at all reasonable times for inspection and any action taken by the receiver on any of the claims shall be subject to the approval of the court before whom the cause is pending. The expenses of the receiver and compensation of counsel, as well as expenditures required in the liquidation proceedings, shall be fixed by the deputy director, subject to the approval of the court, and on certification of the deputy director shall be paid out of the funds in the deputy director's hands as receiver.
A.R.S. § 6-1211 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1211
6-1211 License issuance
Status: in_force

6-1211. License issuance

A. When an application for an original license under this article includes all of the required items and addresses, the application is complete and the director shall promptly notify the applicant in a record of the date on which the application is determined to be complete.  The director shall approve or deny the application within one hundred twenty days after the completion date.  If the application is not approved or denied within one hundred twenty days after the completion date, all of the following apply:

1. The application is approved.

2. The license takes effect as of the first business day after expiration of the one hundred twenty-day period.

3. The director for good cause may extend the application period.

B. The director's determination that an application is complete and is accepted for processing means only that the application, on its face, appears to include all of the items, including the criminal background check response from the federal bureau of investigation, and to address all of the matters that are required, and is not an assessment of the substance of the application or of the sufficiency of the information provided.

C. When an application is filed and considered complete under this section, the director shall investigate the applicant's financial condition and responsibility, financial and business experience, character and general fitness.  The director may conduct an on-site investigation of the applicant, the reasonable cost of which the applicant must pay.  The director shall issue a license to an applicant under this section if the director finds that all of the following conditions have been fulfilled:

1. The applicant has complied with sections 6-1209 and 6-1210.

2. The financial condition and responsibility, financial and business experience, competence, character and general fitness of the applicant and the competence, experience, character and general fitness of the key individuals and persons in control of the applicant indicate that it is in the interest of the public to allow the applicant to engage in money transmission.

D. If an applicant avails itself or is otherwise subject to a multistate licensing process, either:

1. The director may accept the investigation results of a lead investigative state for the purpose of subsection C of this section if the lead investigative state has sufficient staffing, expertise and minimum standards.

2. If this state is a lead investigative state, the director may investigate the applicant pursuant to subsection C of this section and the time frames established by agreement through the multistate licensing process apply, except that the time frame must also comply with the application period in subsection A of this section.

E. The director shall issue a formal written notice of the denial of a license application within thirty days after the decision is made to deny the application. The director shall set forth in the notice of denial the specific reasons for the denial of the application and inform the applicant of its right to appeal pursuant to title 41, chapter 6, article 10.

F. The initial license term shall begin on the day the application is approved.  The license shall expire on December 31 of the year in which the license term began except that if the initial license date is between November 1 and December 31, the initial license term shall run through December 31 of the following year.
A.R.S. § 6-434 — Arizona Code / Title 6 / Chapter 3 / Article 4 / Section 434
6-434 Shares and accounts of certain associations as legal investments; deposit of fiduciary monies
Status: in_force

6-434. Shares and accounts of certain associations as legal investments; deposit of fiduciary monies

A. All accounts of a federal savings and loan association and all accounts of a savings and loan association operating under this chapter, whose accounts are insured by the federal deposit insurance corporation, as provided in title IV of the national housing act, as now or hereafter amended, are legal investments for the funds of executors, administrators, guardians, receivers and trustees of every kind and nature and insurance companies, and such associations are qualified to act as trustee or custodian within the provisions of the federal self-employed individual's tax retirement act of 1962, as amended.

B. Monies held by a savings and loan association as fiduciary may be deposited to the credit of the savings and loan association on time or demand account with itself or with any bank or other savings and loan association the deposits of which are insured by instrumentalities of, or corporations chartered by, the United States for the purpose of insuring the accounts of banks or savings and loan associations. Unless otherwise provided by the writing creating the trust, if the monies are deposited with itself the savings and loan association shall secure the deposits with securities described in section 6-446, subsection A, paragraphs 1 and 2 or other security approved by the deputy director for such a purpose, in the amount of the deposit, less the amount by which the deposits are insured by the federal deposit insurance corporation or such other instrumentality of, or corporation chartered by, the United States as may be established for the purpose of insuring the accounts of savings and loan associations.
A.R.S. § 6-559 — Arizona Code / Title 6 / Chapter 4 / Article 6 / Section 559
6-559 Savings promotion accounts
Status: in_force

6-559. Savings promotion accounts

Notwithstanding any other law, a credit union may offer a savings promotion account that is a savings account or certificate of deposit that includes an incentive in which the sole requirement to obtain the incentive is the deposit of a specified amount of money in the account.
A.R.S. § 6-461 — Arizona Code / Title 6 / Chapter 3 / Article 6 / Section 461
6-461 Existing associations; adoption of articles and by-laws
Status: in_force

6-461. Existing associations; adoption of articles and by-laws

Any existing association may, at an annual or special meeting, amend its present articles of incorporation or other instruments concerning organization by adopting articles of incorporation containing the provisions enumerated in section 6-413. The procedure to be followed in adopting or amending articles of incorporation shall be that prescribed in section 6-460.
A.R.S. § 6-587 — Arizona Code / Title 6 / Chapter 4 / Article 12 / Section 587
6-587 Merger or consolidation of credit unions
Status: in_force

6-587. Merger or consolidation of credit unions

A. Any two or more credit unions may merge or consolidate into a single credit union. The merger or consolidation may be with a credit union organized under the laws of this state, the laws of any other state or territory of the United States or the laws of the United States.

B. If two or more credit unions merge, they shall either designate one of them as the continuing credit union or they shall structure a totally new credit union and designate it as the new credit union. All participating credit unions other than the continuing or new credit union shall be designated as merging credit unions.

C. Any merger of credit unions shall be done according to a plan of merger. After approval by the boards of directors of all participating credit unions, the plan shall be submitted to the deputy director for preliminary approval. If the plan includes the creation of a new credit union, all documents required by section 6-506 shall be submitted as part of the plan. In addition, each participating credit union shall submit the following:

1. The time and place of the meeting of the board of directors at which the plan was agreed on.

2. The vote of the directors in favor of the adoption of the plan.

3. A copy of the resolution or other action by which the plan was agreed on.

D. The deputy director shall grant preliminary approval if the plan has been approved properly by each board of directors, if the documentation required to form a new credit union, if any, complies with section 6-506 and if the deputy director is of the opinion that the merged or continuing credit union should be approved.

E. After the deputy director grants preliminary approval, each merging credit union shall conduct a membership vote on its participation in the plan. The credit union shall conduct the vote either at a special membership meeting called for that purpose or by mail ballot. If a majority of the members voting approves the plan, the credit union shall submit a record of that fact to the deputy director indicating the vote by which the members approved the plan and either the time and place of the membership meeting or the mailing date and closing date of the mail ballot.

F. The deputy director shall grant final approval of the plan of merger after determining that the requirements of subsection E of this section in the case of each merging credit union have been met and if proof of insurance of accounts, as required by section 6-558, has been furnished. The deputy director shall notify all participating credit unions of the deputy director's action on the plan. If approved, the continuing credit union shall file copies of the certificate showing the approval of the deputy director with the corporation commission and a certified copy of the filing under the seal of the commission recorded with the county recorder of the county in which each credit union participating in the merger has its principal place of business with a copy filed with the deputy director. When the copies have been filed the merged credit union terminates as a legal entity, and the continuing credit union remains and continues in operation.

G. On final approval of the plan by the deputy director, all property, property rights and members' interests in each merging credit union vest in the continuing or new credit union as applicable without deed, endorsement or other instrument of transfer, and all debts, obligations and liabilities of each merging credit union are deemed to have been assumed by the continuing or new credit union. The rights and privileges of the members of each participating credit union remain intact, except that if a person is a member of more than one of the participating credit unions that person is entitled to only a single set of membership rights in the continuing or new credit union.

H. If the continuing or new credit union is chartered by another state or territory of the United States, it is subject to the requirements of section 6-511.

I. Notwithstanding any other law, the deputy director may authorize a merger or consolidation of a credit union that is insolvent or is in danger of insolvency with any other credit union or may authorize a credit union to purchase any of the assets or assume any of the liabilities of any other credit union that is insolvent or in danger of insolvency if the deputy director is satisfied that:

1. An emergency requiring expeditious action exists with respect to the other credit union.

2. Other alternatives are not reasonably available.

3. The public interest would best be served by approval of the merger, consolidation, purchase or assumption.
A.R.S. § 6-187 — Arizona Code / Title 6 / Chapter 2 / Article 1 / Section 187
6-187 Authority to declare dividends; limitation
Status: in_force

6-187. Authority to declare dividends; limitation

The board of directors of a bank may declare dividends as allowed by the general laws governing Arizona corporations, except that dividends payable other than in the bank's own stock may be paid out of capital surplus only with the approval of the deputy director.
A.R.S. § 6-490 — Arizona Code / Title 6 / Chapter 3 / Article 9 / Section 490
6-490 Time of giving consents; jurisdiction of court
Status: in_force

6-490. Time of giving consents; jurisdiction of court

A. The consents required by section 6-489 may be given before the plan is presented to the court, or after the presentation and before the court has approved it, or after approval. If, at the time the plan is approved by the court, the required consents have not been given, the order of court may provide that on satisfactory proof of the fact that the required consents have been given, a further order may be entered ex parte providing that the plan shall become operative which shall be binding on the deputy director, the association, all holders of accounts and of shares of guaranty capital, creditors, and all other persons affected thereby.

B. The superior court in which the petition is pending is given jurisdiction to determine all questions required to be determined in respect to any plan including, without limiting the generality of the foregoing, the following:

1. Whether a plan, either in its original or modified form, is fair and equitable.

2. Whether it discriminates in favor of any class of holders of accounts, creditors or other persons affected thereby.

3. Whether it is feasible.

4. Whether the terms and conditions of the proposed issuance and exchange of securities thereunder are fair and to approve or disapprove the terms and conditions.

5. The total liabilities of the association.

6. The conditions requisite to the plan becoming operative, including jurisdiction to determine, for the purposes of the plan and the consents, the division of the creditors and other persons affected by the plan into classes according to the nature of their respective claims and interests.
A.R.S. § 6-991.18 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991.18
6-991.18 Subrogation of rights; collection
Status: in_force

6-991.18. Subrogation of rights; collection

A. Before receiving payment from the fund, a claimant must complete and execute, as judgment creditor, an assignment of judgment lien and notice of subrogation and assignment of rights to the claimant's judgment on a form provided by the department.

B. If the deputy director has paid from the mortgage recovery fund any sum to the judgment creditor, the deputy director shall be subrogated to all of the rights of the judgment creditor and the judgment creditor shall assign all the rights, title and interest in the judgment to the deputy director. The deputy director may record the assignment of judgment lien and notice of subrogation and assignment of rights.  Any amount and interest recovered by the deputy director on the judgment shall be deposited in the fund.

C. If the deputy director is subrogated to a claimant's rights as judgment creditor, the claimant shall not file a full or partial satisfaction of judgment without the deputy director's prior written consent.

D. The attorney general shall bring any actions to recover amounts paid from the fund, including interest, attorney fees and costs of collection, pursuant to this article in the name of this state in the superior court in the county in which the violation occurred or in a county in which the deputy director maintains an office.  A certified copy of a deputy director's order requiring payment from the fund may be filed in the office of the clerk of the superior court. The clerk shall treat the deputy director's order in the same manner as a judgment of the superior court.  A deputy director's order so filed has the same effect and may be recorded, enforced or satisfied in a similar manner, as a judgment of the superior court.  No filing fee is required under this subsection.
A.R.S. § 6-1308 — Arizona Code / Title 6 / Chapter 13 / Article 1 / Section 1308
6-1308 Denial, revocation or suspension of registration
Status: in_force

6-1308. Denial, revocation or suspension of registration

A. The deputy director may deny, revoke or suspend the registration of an advance fee loan broker if the deputy director finds that:

1. The application for registration, any supplemental statement or any other document filed with the deputy director is incomplete, inaccurate or misleading.

2. The advance fee loan broker is insolvent or is in an unsound financial condition.

3. The advance fee loan broker has violated this chapter or any rule or order of the deputy director.

4. The advance fee loan broker has refused to allow an examination of the books, records and accounts in connection with transactions involving the receipt and disbursement of funds received by the advance fee loan broker.

5. The advance fee loan broker has failed to pay the original application fee or any supplemental statement fees as required by this chapter.

B. It is sufficient cause for denial, revocation or suspension of registration of an advance fee loan broker as provided in this section, if the advance fee loan broker is a partnership, corporation, unincorporated association or trust, that a member of the partnership, an officer or a director of the corporation or unincorporated association or the trustee or other fiduciary of the trust or a person controlling, controlled by or under common control with the broker has been guilty of any act or omission that would be sufficient grounds for denying, revoking or suspending the registration of an individual broker.
A.R.S. § 6-489 — Arizona Code / Title 6 / Chapter 3 / Article 9 / Section 489
6-489 Consents required for plan to operate; exceptions
Status: in_force

6-489. Consents required for plan to operate; exceptions

A. After completion of the hearing provided by section 6-488, the court shall approve, modify or disapprove the plan. The plan shall not become operative unless and until it has been approved in its original or modified form by the court, nor unless and until the plan has been consented to, either in person or by a duly appointed agent, attorney or committee of the following persons:

1. If the association has shares of guaranty capital outstanding, then by the holders of a majority of the outstanding shares of guaranty capital.

2. By the holders of two-thirds in amount of the total accounts of all classes of the association.

3. If the association has creditors, then by two-thirds of each class of creditors of the association.

4. By two-thirds in amount of each class of other persons, if any, affected by the plan.

B. Consents required by subsection A of this section are not required:

1. In the case of the holder of an account, creditor or other person affected, or of any class of holders of accounts, creditors or other persons affected, if the rights of the person or class are not materially affected by the plan, or if the plan provides for the payment in cash of the amount of the right or interest of such person or class.

2. From holders of shares of guaranty capital of an association if the value of the assets of the association is less than the liabilities thereof, including the total amount of all outstanding accounts but excluding the amount of the outstanding shares of guaranty capital, or if the business property and affairs of the association are then in the possession of the deputy director.
A.R.S. § 6-586 — Arizona Code / Title 6 / Chapter 4 / Article 11 / Section 586
6-586 Distribution of assets of liquidating credit union
Status: in_force

6-586. Distribution of assets of liquidating credit union

If there is either a voluntary or involuntary liquidation of a credit union the assets of the credit union or the proceeds from any disposition of the assets shall be applied and distributed in the following order:

1. Taxes owed to the United States, this state or any other governmental unit.

2. Secured creditors up to the fair market value of their collateral, not to exceed the amount of their debt.

3. Costs and expenses of liquidation.

4. Wages due the employees of the credit union.

5. Costs and expenses incurred by creditors in successfully opposing the release of the credit union from certain debts as allowed by the deputy director.

6. Debts owed to the United States or this state.

7. General creditors, secured creditors, to the extent their claims exceed the fair market value of their collateral, and owners of deposit accounts, to the extent the accounts are uninsured.

8. Members, to the extent of uninsured accounts, and the insuring organization that insured the accounts of the credit union.
A.R.S. § 6-165 — Arizona Code / Title 6 / Chapter 1 / Article 5 / Section 165
6-165 Enforcement of order
Status: in_force

6-165. Enforcement of order

The deputy director may apply to the superior court for the enforcement of any effective and outstanding order issued under this article, and the court has jurisdiction to order and require compliance with the order. Except as otherwise provided in this article, a court has jurisdiction to affect by injunction or otherwise the issuance or enforcement of any order under this article or to review, modify, suspend, terminate or set aside any such order.
A.R.S. § 6-163 — Arizona Code / Title 6 / Chapter 1 / Article 5 / Section 163
6-163 Judicial review
Status: in_force

6-163. Judicial review

Except as provided in section 41-1092.08, subsection H, any party to a proceeding under this article may obtain judicial review of any final order pursuant to title 12, chapter 7, article 6 other than an order issued with consent of the financial institution or enterprise or other person concerned if the complaint seeking review is filed with the superior court. The commencement of proceedings for judicial review shall not, unless specifically ordered by the court, operate as a stay of the order.  During the pendency of the action for review, the deputy director may not modify, terminate or set aside the order except with permission of the court.
A.R.S. § 6-449 — Arizona Code / Title 6 / Chapter 3 / Article 5 / Section 449
6-449 General loan contract provisions
Status: in_force

6-449. General loan contract provisions

A. Each loan, and any agreement for securing the same, shall be evidenced by one or more written instruments, consistent with sound lending practices in the locality, and whenever recording of such an agreement is necessary to establish priority over the claim of any third party, the agreement shall be recorded.

B. The loan contract terms shall afford full protection to the association and shall include, among other things, provisions for:

1. The payment of taxes, assessments, other governmental levies, maintenance and repairs, granting the association the right to make payments thereon or for any other item which, if unpaid, would create a lien prior to that of the loan contract.

2. Adequate insurance to cover the usual risks on the property offered as security for the loan, and in such form, coverage and amounts and in such company or companies as the board of directors may approve.

3. The right to repay the loan in whole or in part at any time, but the association may require payment of not more than six months' advance interest on that part of the aggregate amount of all prepayments on a loan in one year that exceeds the amount otherwise payable in such year under the terms of the loan.

C. The loan contract may provide for:

1. An assignment of rents.

2. Additional or future advances to be made at the option of the parties up to a total amount stated in the recorded security instrument.

3. Regular periodical payments to create a separate trust fund in the association to pay when due all taxes, assessments, insurance premiums, ground rents, and other current charges against the real estate security, and the application or crediting of such payments. All such funds so collected shall be promptly deposited in a separate trust bank account.

4. The payment or deduction of a premium charge for property insurance, life insurance or health and accident insurance assigned as collateral, mortgage guaranty insurance or insurance of mortgages by the United States or any instrumentality thereof, actual costs of title examination or title insurance, appraisal, credit report, survey, drawing of papers, closing of loan, and other necessary incidental services in such reasonable amounts as are actually charged and as may be fixed by the board of directors, all of which shall be itemized on a loan settlement sheet delivered to the borrower at the time of closing the loan. No person regularly serving the association shall receive from the association or other source any fee or compensation of any kind in connection with procuring a particular loan from or by such association.

5. A single initial service charge, premium or discount and a charge or penalty for nonpayment when due of agreed payments on any loan, but the charges, penalties or discount, when added to the interest charge of the loan, over the contractual term of the loan, shall not exceed in the aggregate the applicable interest rate of this state, and the charge or penalty shall not be either compounded or cumulated. All such charges and penalties shall be accounted for as a part of the receipts of the association.

6. Any other covenant or agreement that the association may deem necessary or that is customary in the locality.

7. The charges herein authorized to be made shall be in addition to interest authorized by law and shall not be deemed as included therein, except as prohibited by section 44-1205 and subsection C, paragraph 5 of this section.

D. If any payment required to be made by the borrower to discharge the performance of any obligation under the loan contract is not made, or if any fund created for such payment is insufficient to discharge the obligation completely, the association may advance the same and add the required amount to the unpaid balance of the loan as of the first day of the month during which such advance was made, and the advance and interest thereon shall be secured by the security instrument.

E. The first payment on any regular installment loan, a construction loan, insured loan, or guaranteed loan shall begin at such time as fixed by rules and regulations of the deputy director.
A.R.S. § 6-906 — Arizona Code / Title 6 / Chapter 9 / Article 1 / Section 906
6-906 Required accounting practices and records; escrow of monies; disclosure
Status: in_force

6-906. Required accounting practices and records; escrow of monies; disclosure

A. Every mortgage broker shall keep and maintain at all times correct and complete records as prescribed by the deputy director that will enable the deputy director to determine whether the licensee is conducting the licensee's business in accordance with this article.  A mortgage broker shall make records available to the deputy director in this state not more than three business days after demand and provide for the acceptance of collect calls or provide a toll-free telephone number to borrowers to obtain information from the records if the licensed place of business in this state cannot readily provide the information requested by the borrowers.  Every mortgage broker shall maintain original documents or clearly legible copies of all mortgage loan transactions for not less than five years after the date of the mortgage loan closing.

B. Every mortgage broker shall observe generally accepted accounting principles and practices.

C. A mortgage broker shall immediately deposit all monies received by the mortgage broker in an escrow account with an escrow agent licensed pursuant to chapter 7 of this title. Withdrawals shall only be disbursed according to the terms of the escrow instructions. The escrow agent shall not be the mortgage broker. A mortgage broker, however, may accept an appraisal fee, which the mortgage broker shall only use to obtain an appraisal, a credit investigation fee and a fee in connection with an application for a mortgage loan. The mortgage broker shall not commingle the appraisal fee or credit investigation fee with other monies of the mortgage broker. A mortgage broker shall not accept any monies or documents in connection with an application for a mortgage loan in an amount of $200,000 or less, except as provided in this section and pursuant to a written agreement. The parties shall sign the written agreement and the agreement shall contain terms pertaining to the disposition of the monies and documents, whether the loan is finally consummated or not, the term for which the agreement is to remain in force before return of the monies and documents for nonperformance can be required and an itemized list of all estimated costs to the borrower of obtaining the mortgage loan, including all costs charged by third parties. The licensee shall preserve all agreements between the parties involved in the transaction and all contracts, agreements and escrow instructions to or with the depository. All documents provided by the borrower or at the expense of the borrower to the mortgage broker, including any appraisals, are the property of the borrower and, at the borrower's request, shall be returned to the borrower or transferred to any person designated by the borrower without further expense to the borrower if the loan is not consummated, provided that any such document is not prohibited by law from being transferred or returned.

D. Before a mortgage loan closing on residential real property designed principally for the occupancy of from one to four families, a licensee shall fully comply, to the extent applicable, with the real estate lending disclosure requirements of title I of the consumer credit protection act (15 United States Code sections 1601 through 1666j), the real estate settlement procedures act (12 United States Code sections 2601 through 2617) and the regulations promulgated under those acts.
A.R.S. § 6-402 — Arizona Code / Title 6 / Chapter 3 / Article 1 / Section 402
6-402 Scope of chapter; application to federal associations and federal savings banks
Status: in_force

6-402. Scope of chapter; application to federal associations and federal savings banks

A. This chapter applies to all existing savings and loan associations, and other similar associations and savings banks by whatever name called, organized under this or any prior act.

B. Every federal savings and loan association and federal savings bank shall have all the rights, powers and privileges and shall be entitled to the same exemptions and immunities as savings and loan associations organized under the laws of this state unless prohibited by federal law.  In addition to all other rights, powers and privileges, savings and loan associations organized under the laws of the state, whose accounts are insured by an insurance corporation, shall have all the rights, powers and privileges and shall be entitled to the same exemptions and immunities as federal savings and loan associations doing business in this state unless prohibited by this chapter.
A.R.S. § 6-427 — Arizona Code / Title 6 / Chapter 3 / Article 4 / Section 427
6-427 Shares of guaranty capital; advertisement; sales; collection of subscription
Status: in_force

6-427. Shares of guaranty capital; advertisement; sales; collection of subscription

A. All prospectae and advertising matter regarding the subscription for shares of guaranty capital shall include a statement to the effect that such shares of guaranty capital are not insured.

B. No association shall pay to any person any commission or other compensation for obtaining any subscription to or sale of shares of guaranty capital without the prior approval of the deputy director.

C. The board of directors shall establish a separate account to receive all funds paid in for shares of guaranty capital, and shall maintain such account until further action is authorized as follows:

1. When the aggregate amount of such funds equals or exceeds the amount of the minimum initial guaranty capital that the association must obtain, and either the board of directors has decided by resolution to proceed under the guaranty capital plan, or one year has elapsed after the date on which the issuance of shares of guaranty capital was authorized and the board has taken no action, then the separate account may be terminated and the funds may be transferred to the association's general account.

2. If the aggregate amount of such funds fails to reach the amount of the minimum initial guaranty capital that the association must obtain and one year has elapsed after the date on which the issuance of shares of guaranty capital was authorized or if the board of directors, within such one-year period, has decided by resolution to abandon the guaranty capital plan, the funds in the separate account shall be returned to the respective subscribers and shall not become a liability of the association or its officers or directors.
A.R.S. § 6-1707 — Arizona Code / Title 6 / Chapter 17 / Article 1 / Section 1707
6-1707 Enforcement
Status: in_force

6-1707. Enforcement

A. An act or practice in violation of this chapter is an unlawful practice under section 44-1522 and is subject to enforcement through private action and prosecution by the attorney general.

B. Any provision of a reverse mortgage agreement that violates this chapter is unenforceable against the borrower.

C. A private action against an originator shall be commenced subject to the applicable statute of limitations for written contracts.

D. The remedies provided in this chapter are not intended to be the exclusive remedies available to the borrower.
A.R.S. § 6-117 — Arizona Code / Title 6 / Chapter 1 / Article 2 / Section 117
6-117 Assumed business name; trade name; notification; definition
Status: in_force

6-117. Assumed business name; trade name; notification; definition

A. Unless otherwise required by this title or rules adopted by the department, an enterprise or a consumer lender is not required to obtain a separate license when doing business under an assumed name or a trade name if the enterprise or consumer lender notifies the department in writing, on a form prescribed by the director, before using the assumed name or trade name.

B. A licensee may not use an assumed name or trade name that either:

1. Is so substantially similar to the assumed name or trade name of another department licensee that it may cause uncertainty or confusion among the public.

2. Tends to deceive or mislead the public as to the nature of business that the licensee conducts.

C. An individual may not use an assumed name or a trade name if the individual is licensed, certified or registered pursuant to either:

1. Chapter 9, article 4 of this title.

2. Title 32, chapter 36, article 2 or 4.

D. A person using an assumed name or a trade name shall notify the director within fifteen days after any material change to the information provided in subsection A of this section.

E. For the purposes of this section, "consumer lender" has the same meaning prescribed in section 6-601.
A.R.S. § 6-881 — Arizona Code / Title 6 / Chapter 8 / Article 3 / Section 881
6-881 Definitions
Status: in_force

6-881. Definitions

In this article, unless the context otherwise requires:

1. "Savings account" means monies received or held by the trust company in the usual course of business and for which the trust company is obligated to give conditional or unconditional credit.

2. "Time deposit" means a deposit that the depositor does not have a right to withdraw for at least seven days after the date of deposit.
A.R.S. § 6-1218 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1218
6-1218 Authorized delegate reporting
Status: in_force

6-1218. Authorized delegate reporting

A. Each licensee shall submit a report of authorized delegates within forty-five days after the end of the calendar quarter. The director may use NMLS for the submission of the report required by this subsection if functionality complies with this section.

B. The authorized delegate report shall include the following information for each authorized delegate:

1. The company legal name.

2. The taxpayer employer identification number.

3. The principal provider identifier.

4. The physical address, if any.

5. The mailing address.

6. Any business conducted in other states.

7. Any fictitious or trade name.

8. The contact person name, telephone number and email address.

9. The start date as the licensee's authorized delegate.

10. The end date as the licensee's authorized delegate, if applicable.

11. Any other information the director reasonably requires with respect to the authorized delegate.
A.R.S. § 6-401 — Arizona Code / Title 6 / Chapter 3 / Article 1 / Section 401
6-401 Definitions
Status: in_force

6-401. Definitions

In this chapter, unless the context otherwise requires:

1. "Account" means withdrawable capital deposited with or invested in an association in accordance with any plan authorized by this chapter unless such term is otherwise designated or qualified.

2. "Aggregate withdrawal value" means the sum of all payments made on all accounts of the association, all dividends and bonuses credited or allocated to such accounts and all dividends credited to "divided profits" for subsequent crediting to accounts on maturity, less all withdrawals, retirements and other proper deductions from accounts and all unpaid charges on the accounts.

3. "Association" means every association to which this chapter applies as defined in the section concerning scope of chapter.

4. "Community" means a city, incorporated town, unincorporated town, community or village.

5. "Continuing association" means the association that continues to exist after a merger of associations has been effected.

6. "Federal association" means a savings and loan association or savings association operating under the laws and regulations of the United States.

7. "Impaired" or "impairment", with respect to capital, means a condition in which the value of the association's assets is less than the aggregate amount of the association's liabilities to creditors, the aggregate value of its accounts and the aggregate par value of its guaranty capital.

8. "Improved real estate" means real estate which is, or which from the proceeds of the loan will become, a home, combination of home and business property or other improved real estate.

9. "Insurance corporation" means the federal deposit insurance corporation or such other instrumentality of, or corporation chartered by, the United States as may be established for the purpose of insuring the accounts of savings and loan associations or any other equivalent deposit insurer approved by the deputy director.

10. "Insured association" means an association, the accounts of which are insured wholly or in part by an insurance corporation.

11. "Investment" means to put funds to use in order to secure profits.

12. "Mail" or "mailed" means, with respect to a writing or notice, deposit in a United States post-office mailing facility in this state with postage prepaid and correctly addressed to the proper person at the person's address stated on the association's records or otherwise agreed on or if no address has been so established then to the last known address.

13. "Merger" includes consolidation.

14. "Merging association" means an association that plans or effects a merger with one or more other associations in accordance with the provisions of this chapter concerning merger.

15. "Other improved real estate" means real estate other than a home or combination home and business property that, because of its state of improvement, or improvement from the proceeds of the loan, will produce sufficient income to maintain the property and retire the loan in accordance with the terms of the loan.

16. "Participating interests" means the purchase or acquisition of an interest in an existing permanent mortgage loan.

17. "Prior act" means any statute of this state that, before June 25, 1960, has governed the formation or operation of associations of the type described in the section of this chapter concerning scope of the chapter.

18. "Profits" means, as determined by the application of proper accounting principles, gross income less the aggregate of operating and other expenses, losses actually sustained and not charged to reserves under this chapter and interest paid or accrued on borrowings and non-recurring charges.

19. "Publication", "publish" or "published" means printed in the English language in a newspaper of general circulation published in the community in which the association's business office is located or if no such newspaper exists in said community then in the county in which such business office is located. Unless otherwise specified in this chapter publication shall be made once each week for two successive weeks.

20. "Total assets" means the total value of all loan contracts without deduction for the withdrawal value of any accounts of the association held as collateral for loans and the total value of all other assets of the association as determined by the application of proper accounting principles.

21. "Withdrawal value" of an account means the sum of all payments made by the holder on the account and all dividends and bonuses credited or allocated to such account less all withdrawals, retirements and other proper deductions from the account and all unpaid charges on the account.
A.R.S. § 6-975 — Arizona Code / Title 6 / Chapter 9 / Article 3 / Section 975
6-975 Bond or other security
Status: in_force

6-975. Bond or other security

A. Each licensed commercial mortgage banker shall deposit with the deputy director, before doing business as a commercial mortgage banker, a bond executed by the licensee as principal and a surety company authorized to do business in this state as surety. The bond shall be conditioned on the licensee's faithful compliance, including the directors, officers, members, partners, trustees and employees, with this article. Only one bond is required for any person, firm, association or corporation regardless of the number of officers, directors, members, partners or trustees who are employed by or are members of the firm, association or corporation.

B. The bond is payable to any person who is injured by the wrongful act, default, fraud or misrepresentation of the licensee or the licensee's employees and to this state for the benefit of the person injured. No suit may be commenced on the bond after the expiration of one year following the commission of the act on which the suit is based, except that claims for fraud or mistake are limited to the limitation period prescribed in section 12-543, paragraph 3. If an injured person commences an action for a judgment to collect on the bond, the injured person shall notify the deputy director of the action in writing when the action is commenced and shall provide copies of all documents relating to the action to the deputy director on request.

C. The bond required by this section is $25,000 for licensees whose investors are limited solely to institutional investors and $100,000 for licensees whose investors include any other investors.

D. Notwithstanding section 35-155, in lieu of the bond described in this section, an applicant for a license or a licensee may deposit with the deputy director a deposit in the form of cash or alternatives to cash in the same amount as the bond required under subsection C of this section. The deputy director may accept any of the following as an alternative to cash:

1. Certificates of deposit, investment certificates or share accounts that are payable or assigned to the state treasurer, issued by banks, savings banks or savings and loan associations doing business in this state and fully insured by the federal deposit insurance corporation or any successor institution.

2. Certificates of deposit, investment certificates or share accounts that are payable or assigned to the state treasurer, issued by a credit union doing business in this state and fully insured by the national credit union administration or any successor institution.

E. The deputy director shall deposit the cash or alternatives to cash received under this section with the state treasurer. The state treasurer shall hold the cash or alternatives to cash in the name of this state to guarantee the faithful performance of all legal obligations of the person required to post bond pursuant to this section. The person is entitled to receive any accrued interest earned from the alternatives to cash. The state treasurer may impose a fee to reimburse the state treasurer for administrative expenses. The fee shall be paid by the applicant or licensee. The state treasurer may prescribe rules relating to the terms and conditions of each type of security provided by this section.

F. In addition to such other terms and conditions as the deputy director prescribes by rule or order, the principal amount of the deposit shall be released only on written authorization of the deputy director or on the order of a court of competent jurisdiction. The principal amount of the deposit shall not be released before the expiration of three years after the first to occur of any of the following:

1. The date of substitution of a bond for a cash alternative.

2. The surrender of the license.

3. The revocation of the license.

4. The expiration of the license.
A.R.S. § 6-204 — Arizona Code / Title 6 / Chapter 2 / Article 2 / Section 204
6-204 Issuance of banking permit; trust business; conditional approval; hearing; banker's bank; definitions
Status: in_force

6-204. Issuance of banking permit; trust business; conditional approval; hearing; banker's bank; definitions

A. On the filing of an application for a banking permit, the deputy director shall make or cause to be made an investigation and examination of the facts concerning the applicant.  Except as provided in subsection F of this section, the deputy director shall issue the permit if, but only if, the deputy director finds:

1. The applicant is a corporation organized under the laws of this state having powers and purposes to engage in the banking business.

2. The deposits of the bank will be insured by the federal deposit insurance corporation when the bank commences business.

3. The ability of the persons involved in the organization and management of the proposed bank is such as to demonstrate that it will be operated in a sound and lawful manner.

4. The applicant has paid in capital that is adequate for its prospective business.

5. The need for the bank in the community or area where the bank will be located is such as to demonstrate the favorable prospect for a sound banking operation.

B. An application that is not denied or approved by the deputy director within ninety days after the application is filed with the deputy director is deemed to be approved by the deputy director as of the first day after the period.

C. A banking permit may initially or by amendment include the authority of a bank to engage in the trust business.

D. The deputy director may approve the application conditioned on specific requirements being met, but a permit shall not be issued unless such conditions have been met within the time specified in the order or any extension.

E. The permit may be granted or denied without a hearing, but the deputy director may, and shall at the request of the applicant, fix a date for a hearing on the application. At the hearing any person may be heard with reference to the facts to be investigated.

F. The deputy director shall not issue a banking permit pursuant to subsection A of this section for a banker's bank unless all of the following apply:

1. The stock of the applicant is owned exclusively by one or more state or nationally chartered banks or, if the stock is owned by a holding company, the holding company's stock is owned exclusively by one or more state or nationally chartered banks.

2. The applicant engages in or will engage exclusively in providing banking services to or for other depository institutions or their holding companies and the directors, officers or employees of the depository institutions.

3. The applicant offers or will offer correspondent banking services for other depository institutions or their holding companies.

4. The applicant is fully insured by the federal deposit insurance corporation.

5. No single entity acquires or retains at any time ownership, control or power to vote more than ten percent of any class of voting securities of the banker's bank.

G. For purposes of this section:

1. "Banker's bank" means an entity that is owned exclusively by one or more state or nationally chartered banks or bank holding companies and that exclusively provides banking services to or for other depository institutions and their holding companies.

2. "Nationally chartered bank" means a bank or savings bank chartered by the office of the comptroller of the currency or the office of thrift supervision.
A.R.S. § 6-1401 — Arizona Code / Title 6 / Chapter 14 / Article 1 / Section 1401
6-1401 Definitions
Status: in_force

6-1401. Definitions

In this chapter, unless the context otherwise requires:

1. "Branch office" means any place of business maintained by a licensee in addition to the principal place of business of a licensee.

2. "Insured" means any person covered under an insurance contract or other evidence of insurance coverage subject to regulation under title 20.

3. "Insurer" has the same meaning as defined by section 20-104.

4. "Managing general agent" has the same meaning prescribed in section 20-311.

5. "Premium finance agreement" means a written agreement by which an insured or prospective insured agrees to pay to a premium finance company the amount advanced or to be advanced under the written agreement to an insurance producer in payment of premiums of an insurance contract together with interest or discount and a service charge as authorized and limited by this article.

6. "Premium finance company" means a person engaged in whole or in part in the business of financing insurance premiums, entering into premium finance agreements with insureds or otherwise acquiring premium finance agreements from insurance producers or other premium finance companies.
A.R.S. § 6-381 — Arizona Code / Title 6 / Chapter 2 / Article 11 / Section 381
6-381 Authority of bank to engage in the trust business
Status: in_force

6-381. Authority of bank to engage in the trust business

A bank may not engage in the trust business unless authorized by its banking permit. A bank which engages in the trust business is subject to the provisions of chapter 8 of this title in the administration of its trust accounts.
A.R.S. § 6-854 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 854
6-854 Application for certificate
Status: in_force

6-854. Application for certificate

A. An application for a certificate shall be in writing, in such form as the deputy director shall prescribe, verified under oath and supported by such information, data and records as the deputy director may require.

B. An application for a certificate shall include the applicant's executed articles of incorporation and the fee prescribed in section 6-126.
A.R.S. § 6-463 — Arizona Code / Title 6 / Chapter 3 / Article 6 / Section 463
6-463 Conversion from federal to state association
Status: in_force

6-463. Conversion from federal to state association

A. Any federal association may become an association operating under this chapter, pursuant to the laws and regulations of the United States and in accordance with the following procedure:

1. The board of directors shall by a majority vote of all the directors adopt by resolution a plan of conversion which shall set forth among other terms:

(a) A financial statement of the association as of the last business day of the month preceding the adoption of the plan.

(b) The disposition of the withdrawable value of all accounts, general and other reserves and surplus.

(c) The disposition of any obligation or liabilities.

(d) The disposition of the assets of the association.

2. Such plan and resolution shall be submitted to the deputy director at least fifteen days prior to the members' meeting at which action of the members is to be taken. If the deputy director, after appropriate examination, finds that the association complies sufficiently with the requirements of this chapter to entitle it to become an association operating under this chapter, the deputy director shall approve the plan of conversion. The deputy director may prescribe terms and conditions, to be fulfilled either prior to or after the conversion, to cause the association to conform with the requirements of this chapter.

3. After receipt of the deputy director's approval, the plan of conversion may be submitted at an annual or special meeting of the members. The plan will be adopted on receiving, in the affirmative, fifty-one percent or more of the total number of votes that all members of the association are entitled to cast.  Thereupon, such action shall be taken by the members to adopt articles of incorporation, to elect directors, to adopt bylaws, and to elect officers, as is prescribed for a new association in article 2 of this chapter. A report of proceedings at such meeting, certified by the president or a vice president and attested by the secretary, shall be filed promptly with the deputy director.

4. If the deputy director finds that such proceedings have been in accordance with this section, the deputy director shall issue a certificate authorizing the filing of the articles of incorporation with the corporation commission and the taking of the other steps required by title 10, to complete the formation of a corporation.  On the issuance of a certificate of incorporation by the corporation commission, the deputy director shall issue a certificate of conversion.

5. The expenses of any examination made by or at the direction of the deputy director in connection with the conversion shall be paid by the converting association as a fee for special examination as authorized by section 6-125.

B. The conversion shall be effective on the compliance with the laws and regulations of the United States and the provisions of this section.
A.R.S. § 6-841 — Arizona Code / Title 6 / Chapter 7 / Article 3 / Section 841
6-841 Internal control structure; definition
Status: in_force

6-841. Internal control structure; definition

A. An escrow agent shall adopt a systematic internal control structure to ensure that persons employed by or associated with the escrow agent's business do not make significant errors or perpetuate significant irregularities or fraud without timely detection.

B. For purposes of this section, "internal control structure" means the policies and procedures established to provide reasonable assurance that the escrow agent will achieve the following objectives:

1. Safeguarding of the customers' assets.

2. Reliability in financial reporting.

3. Reliability in recording of all escrow transactions.
A.R.S. § 6-129 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 129
6-129 Records; disclosure and limitations on disclosure; evidentiary effect
Status: in_force

6-129. Records; disclosure and limitations on disclosure; evidentiary effect

A. Except as otherwise provided by this title, the records of the department relating to financial institutions are not public documents, are not open for inspection by the public and the director and any member of the director's staff may not disclose any information obtained in the discharge of official duties to any person not connected with the department.

B. Records and information may be disclosed as follows:

1. To representatives of federal agencies insuring accounts in the financial institution.

2. To representatives of state or federal agencies and foreign countries having regulatory or supervisory authority over the activities of the financial institution or enterprise or similar financial institutions or enterprises if such representatives are permitted to and do, on request of the director, disclose similar information respecting those financial institutions or enterprises under their regulation or supervision or to such representatives who state in writing under oath that they shall maintain the confidentiality of such information.

3. To the attorney general of this state.

4. To a select committee of the legislature of this state appointed for the purpose of inspecting such records, but this paragraph does not permit disclosure of information as to the condition of any particular financial institution or enterprise, or disclosure of information as to any particular transaction or transactions of a financial institution or enterprise, or disclosure of information that has been disclosed to a financial institution or enterprise by or on behalf of any person in connection with a transaction or proposed transaction with such financial institution or enterprise.

5. To a federal, state or county grand jury in response to a lawful subpoena.

6. To the auditor general of this state for the purpose of conducting audits authorized by law.

7. To state and federal law enforcement agencies.

8. To a federal home loan bank, as defined by the federal home loan act of 1932 (12 United States Code section 1422), after the department receives authorization to release the records from the financial institution that is the subject of the records.

C. The director may:

1. Disclose the fact of filing of applications with the department pursuant to this title, give notice of a hearing, if any, regarding such applications, and announce the  director's action thereon.

2. Disclose whether a person is or was certified or licensed by the department, the type of license or certificate held and the status of the license or certificate.

3. Disclose final decisions in connection with proceedings for the suspension or revocation of licenses or certificates issued pursuant to this title.

4. Disclose final decisions in connection with the issuance of an order to cease and desist issued pursuant to section 6-137.

5. Disclose to the financial institution or enterprise or its holding company the results of any examination, inquiry or investigation by the department regarding that financial institution or enterprise.

6. Disclose to the financial institution or enterprise any complaint made concerning that financial institution or enterprise.

7. Disclose to any person who complains to the department concerning any financial institution or enterprise the result of any investigation concerning the complaint.

8. Prepare and circulate reports reflecting the assets and liabilities of financial institutions, including such other information considered pertinent to the purpose of each report for general statistical information.

9. Prepare and circulate reports provided by law.

D. Every official report of the department is prima facie evidence of the facts therein stated in any action or proceeding wherein the director is a party.

E. Disclosure of the results of any examination, inquiry or investigation disclosed to the financial institution or enterprise pursuant to subsection C, paragraph 5 of this section or disclosure of any complaint to the financial institution or enterprise pursuant to subsection C, paragraph 6 of this section does not make that information a public record, and the financial institution or enterprise or its holding company may not disclose any of the information to the general public.  Under no circumstances shall any of the comments, conclusions or results of an examination, inquiry or investigation disclosed pursuant to subsection C, paragraph 5 of this section be used or referenced in any form by a financial institution, enterprise or holding company in any type of communication to a customer or potential customer.

F. This section does not prevent the disclosure of information that is admissible in evidence in any civil or criminal proceeding brought by or at the request of the director or this state to enforce or prosecute violations of this title or the rules or orders issued or adopted pursuant to this title.
A.R.S. § 6-991.15 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991.15
6-991.15 Final decision and order on claim; notice
Status: in_force

6-991.15. Final decision and order on claim; notice

A. The deputy director shall make a final written decision and order on a claim within ninety calendar days after receiving a completed application except in the following cases:

1. A proration hearing is pending under section 6-991.11.

2. An application is deficient or fails to comply substantially with the requirements of section 6-991.11 or rules adopted pursuant to this article as determined pursuant to section 6-991.13.

3. The claimant agrees in writing to extend the time for making a decision.

B. If the deputy director fails to render a written decision and order on a claim within ninety calendar days after receiving a completed application, or within an extended period of time provided under subsection A of this section, the claim is considered to be approved on the day following the final day for rendering the decision.

C. The deputy director may approve or deny an application or may enter into a compromise with the claimant to pay less in settlement than the full amount of the claim. If the claimant refuses to accept a settlement offered by the deputy director, the deputy director shall deny the claim.

D. The deputy director shall give notice of a decision and order with respect to the claim to the claimant and to any judgment debtor who has filed a timely response to the claim pursuant to section 6-991.12 as follows:

1. If the deputy director denies the application, the notice shall include the following:

The claimant's application has been denied. If the claimant wishes to pursue the application in court, the claimant must file the application in the court in which the underlying judgment was entered within six months after receiving this notice, pursuant to section 6-991.16, Arizona Revised Statutes.

2. If the deputy director's decision is to make a payment to the claimant out of the mortgage recovery fund, the following notice shall be given to the judgment debtor with a copy of the decision and order of the deputy director:

The decision of the deputy director of the financial institutions division of the department of insurance and financial institutions on the claim of (name of claimant) is to pay $__________ from the mortgage recovery fund.  A copy of that decision and order is enclosed. If you desire a judicial review of the deputy director's decision and order or the termination of your licenses and license rights, you may petition the superior court, in the county in which the judgment that is the basis of this claim was rendered, for a judicial review. To be timely, you must file the petition with the court within thirty calendar days after receiving this notice.
A.R.S. § 6-233 — Arizona Code / Title 6 / Chapter 2 / Article 4 / Section 233
6-233 Adverse claim to bank deposit; court order required; definitions
Status: in_force

6-233. Adverse claim to bank deposit; court order required; definitions

A. Notice to a bank of an adverse claim is not sufficient to require the bank to refuse to honor the order of any person to whose credit the account stands or who has prior authority on the books of the bank to operate the account, nor is such notice sufficient to require the bank to recognize the adverse claimant in any respect, unless the bank is directed to do so by a lawful order of a court in the United States. In the absence of such court order the bank may refuse to honor the order on the account by any person.

B. For the purposes of this section:

1. "Adverse claim" means a claim by any person who asserts the right to all or part of a deposit account to the exclusion of anyone to whose credit the account stands on the records of the bank. "Adverse claim" also includes conflicting claims of any persons to the right to operate an account.

2. "Adverse claimant" means any person asserting an adverse claim.
A.R.S. § 6-351 — Arizona Code / Title 6 / Chapter 2 / Article 9 / Section 351
6-351 Definitions
Status: in_force

6-351. Definitions

In this article, unless the context otherwise requires:

1. "Capital" means the aggregate primary capital and secondary capital.

2. "Obligation" means a primary or contingent liability for the payment of money.

3. "Person" includes an individual, a corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership, joint venture or association or any other legal or commercial entity.

4. "Primary capital" means the aggregate of the following:

(a) Common and perpetual preferred stock.

(b) Capital surplus.

(c) Undivided profits.

(d) Contingency and other capital reserves.

(e) The allowance for loan and lease losses.

(f) Mandatory convertible debt only to the extent that it does not exceed twenty per cent of the aggregate of subdivisions (a) through (e) of this paragraph.

5. "Secondary capital" means the aggregate of the following:

(a) Limited life preferred stock.

(b) Subordinated notes and debentures.

(c) Mandatory convertible debt not included in primary capital.
A.R.S. § 6-479 — Arizona Code / Title 6 / Chapter 3 / Article 8 / Section 479
6-479 Information to federal authorities
Status: in_force

6-479. Information to federal authorities

The deputy director may give copies of reports of the deputy director's examinations of an association, and copies of the association's reports to the deputy director, and any other information that the deputy director has concerning the association, to the federal home loan bank, or its successor instrumentality, of which the association is a member, or to the insurance corporation that has insured the association's capital. No such action by the deputy director shall relieve the association from compliance with any requirements of such federal instrumentality concerning examinations or reports, or limit the deputy director's powers to examine or to require reports from the association.
A.R.S. § 6-1414 — Arizona Code / Title 6 / Chapter 14 / Article 1 / Section 1414
6-1414 Splitting of premium finance agreement prohibited
Status: in_force

6-1414. Splitting of premium finance agreement prohibited

No agent or broker or premium finance company shall induce an insured to become obligated under more than one premium finance agreement for the purpose of obtaining a higher rate of interest than would otherwise be permitted by this chapter or obtaining more than one service charge.
A.R.S. § 6-595 — Arizona Code / Title 6 / Chapter 4 / Article 13 / Section 595
6-595 Reserves
Status: in_force

6-595. Reserves

A. A corporate credit union shall establish and maintain a corporate reserve in accordance with the reserve requirements of the national credit union administration for federal corporate credit unions.

B. A corporate credit union may make charges to the corporate reserve for losses on risk assets and to meet such other classes of losses as approved by the deputy director. A corporate credit union shall not distribute the corporate reserve except on liquidation of the credit union or in accordance with a plan approved by the deputy director.
A.R.S. § 6-908 — Arizona Code / Title 6 / Chapter 9 / Article 1 / Section 908
6-908 Testing committee; testing of applicants; approval by deputy director; definition
Status: in_force

6-908. Testing committee; testing of applicants; approval by deputy director; definition

A. The deputy director shall establish a testing committee to create, periodically update and establish standards for passing a test for mortgage brokers. The committee shall consist of five members appointed by the deputy director once every two years. Four of the members shall be licensees appointed from nominations submitted by licensees and one of the members shall be an employee of the department. Licensees who serve as members of the committee shall serve without expense to this state. The test is subject to the approval of the deputy director.

B. Each applicant for an original license, before issuance of the license, shall personally take and pass the written test given under the supervision of the department. The test must reasonably examine the applicant's knowledge of:

1. The obligations between principal and agent, the applicable canons of business ethics, the provisions of this article and the rules adopted under this article.

2. The arithmetical computations common to mortgage brokerage.

3. The principles of real estate lending.

4. The general purposes and legal effect of mortgages, deeds of trust and security agreements.

C. The department shall administer the test to applicants for licenses not less than once every six months. The deputy director may contract for the testing of applicants. The department or the department's contractor shall reasonably prescribe the time, place and conduct of testing and collect a fee for administration of the test to be assessed to all persons taking the test. The fee is $50 per testing. If the deputy director contracts for the testing of applicants, the testing fee owed pursuant to this section is payable by the applicant directly to the contractor.  The deputy director may allow a contractor to charge a reasonable testing fee that is more than the fee prescribed in this subsection. An applicant may not take the test more than four times within a twelve-month period.

D. All tests shall be given, conducted and graded in a fair and impartial manner and without unfair discrimination between individuals tested. The committee shall inform the applicant of the result of the test within thirty days.

E. For testing purposes, the department shall prepare a handbook for mortgage brokers and distribute it to all applicants for a fee of not to exceed the actual cost of producing and distributing the handbook.

F. For the purposes of this section "applicant" means a person who has submitted a completed application in the form prescribed by law, accompanied by a letter of inquiry to a surety company authorized to do business in this state regarding the procurement of a bond pursuant to section 6-903, to be issued on completion of all requirements for the granting of a license.
A.R.S. § 6-841.03 — Arizona Code / Title 6 / Chapter 7 / Article 3 / Section 841.03
6-841.03 Notice of uninsured monies; rules
Status: in_force

6-841.03. Notice of uninsured monies; rules

When an escrow is established and not later than three business days after an escrow agent receives any escrow monies, the escrow agent shall provide a complete and accurate disclosure to each buyer and seller of a residential dwelling as defined in section 6-841.02 that monies deposited in an escrow account are not insured against loss from fraud or theft by this state or the United States government. The deputy director by rule may prescribe requirements for the disclosure form.
A.R.S. § 6-1701 — Arizona Code / Title 6 / Chapter 17 / Article 1 / Section 1701
6-1701 Definitions
Status: in_force

6-1701. Definitions

In this chapter, unless the context otherwise requires:

1. "Agreement" means the document that on execution obligates the borrower and originator under the reverse mortgage.

2. "Dwelling" means a residence that is designed principally for at least one and not more than four families in which the borrower occupies at least one of the units.

3. "Housing counseling agency" means an agency that is approved by the United States department of housing and urban development to provide reverse mortgage counseling.

4. "Originator" means a person who regularly makes or brokers reverse mortgages, including a creditor or broker.

5. "Reverse mortgage" means a nonrecourse consumer credit obligation to which all of the following apply:

(a) A mortgage, deed of trust or equivalent consensual security interest securing one or more advances is created in the borrower's principal dwelling.

(b) Any principal, interest or shared appreciation or equity is due and payable only after the borrower dies, the dwelling is transferred or the borrower ceases to occupy the dwelling as a principal dwelling. This subdivision does not apply in the case of default.

(c) Cash advances may be provided to a borrower:

(i) Based on the equity or the value in the borrower's owner occupied principal residence.

(ii) If loan proceeds are used by the borrower to purchase the borrower's dwelling that secures the reverse mortgage.

(d) The consumer credit obligation is not a home equity conversion mortgage insured by the federal housing authority.
A.R.S. § 6-264 — Arizona Code / Title 6 / Chapter 2 / Article 5.1 / Section 264
6-264 Principles of law and equity
Status: in_force

6-264. Principles of law and equity

Title 47, consumer protection law, law governing deposits generally, law related to escheat and abandoned or unclaimed property, and the principles of law and equity, including law related to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress, coercion, mistake, and bankruptcy, supplement this article except to the extent inconsistent with this article.
A.R.S. § 6-428 — Arizona Code / Title 6 / Chapter 3 / Article 4 / Section 428
6-428 Retirement or reduction of shares of guaranty capital
Status: in_force

6-428. Retirement or reduction of shares of guaranty capital

A. The board of directors of an association operating with guaranty capital may propose an amendment to the articles of incorporation providing for the retirement of all of the guaranty capital, and a detailed plan for effectuating such an amendment. The resulting capital of the association shall be not less than the minimum initial capital that the association, if it were being organized, would be required to have under this chapter concerning applicants and initial capital. The proposal shall be submitted to the deputy director for the deputy director's approval.

B. If the deputy director approves the proposal, the association's board of directors may request in writing an appraisal of the value of the shares of guaranty capital. The deputy director then shall cause such an appraisal to be made and receive therefor the fees for a special examination as provided by section 6-125, allowing proper credit to such shares from the association's segregated surplus, if any exists, and from other reserves and undivided profits. The value of the shares of guaranty capital so determined may be considered in the further proceedings under this section.

C. The proposal then may be submitted to the members at an annual or special meeting. The proposal shall be adopted on receiving in the affirmative the votes of the holders of two-thirds or more of the outstanding shares of guaranty capital, and also two-thirds or more of the total number of votes that all other members of the association are entitled to cast thereon. The proposal shall become effective on completion of the procedure provided in this chapter for the amendment of articles of incorporation.

D. An association may amend its articles of incorporation, in accordance with the procedure provided in this chapter for such amendments, to reduce its shares of guaranty capital, but in no event to an amount that is less than the minimum guaranty capital that the association would be required by this chapter to issue if it were newly authorized to issue guaranty capital.
A.R.S. § 6-444 — Arizona Code / Title 6 / Chapter 3 / Article 4 / Section 444
6-444 Promotional activities prohibited; definitions
Status: in_force

6-444. Promotional activities prohibited; definitions

A. After the effective date hereof, an association shall not give for the opening of, or increasing the amount of, any account, any giveaway that has a monetary value in excess of the sum fixed for specified classes of accounts by rule of the deputy director. The monetary value of any giveaway so given shall be the cost of the giveaway to the association and the association shall keep in its records for a period of at least two years suitable evidence of such cost. If the giveaway is purchased or obtained by the association together with, in connection with, or at the same time as another item or other items from the same supplier, not identical therewith, such value shall be deemed to be the then current regular selling price or charge of the supplier on separate sales or dispositions thereof in the quantity included, and the association shall in such case obtain, and keep in its records for a period of at least two years, a signed statement by such supplier of such regular selling price or charge.

B. For the purposes of this section:

1. "Account" means shares of an association of whatsoever class or designation, accounts, share account, investment certificate, share subscription, and credit to the account of the maker thereof other than credit on account of a loan by the association.

2. "Give" means to give, to sell or dispose of for less than full monetary value as hereinbefore defined, or with any agreement or undertaking, contingent or otherwise, for repurchase or redemption, whether total or partial, or to offer, promise, or agree to do any of the foregoing.

3. "Giveaway" means any money, property, service, or other thing of value, whether tangible or intangible.
A.R.S. § 6-874 — Arizona Code / Title 6 / Chapter 8 / Article 2 / Section 874
6-874 Short title
Status: in_force

6-874. Short title

This article may be cited as the uniform common trust fund act.
A.R.S. § 6-813 — Arizona Code / Title 6 / Chapter 7 / Article 2 / Section 813
6-813 License of agent; nontransferable; posting
Status: in_force

6-813. License of agent; nontransferable; posting

A. A person, except those exempt under section 6-811, shall not engage in or carry on, or hold himself out as engaging in or carrying on, the escrow business or act in the capacity of an escrow agent in this state without first obtaining a license.

B. An escrow agent's license is not transferable or assignable and control of a license shall not be acquired through stock purchase or other devices without the prior written consent of the deputy director.

C. A license shall be kept conspicuously posted in all licensed places of business of the licensee.
A.R.S. § 6-982 — Arizona Code / Title 6 / Chapter 9 / Article 3 / Section 982
6-982 Denial, suspension or revocation of licenses
Status: in_force

6-982. Denial, suspension or revocation of licenses

A. The deputy director may deny a license to a person or suspend or revoke a license if the deputy director finds that an applicant or licensee:

1. Is insolvent as defined in section 47-1201.

2. Refuses to allow an examination by the deputy director of the licensee's books and affairs or refuses or fails, within a reasonable time, to furnish any information or make any report that may be required by the deputy director.

3. Has been convicted in any state of a felony or any crime of breach of trust or dishonesty.

4. Has had a final judgment entered against the licensee in a civil action on grounds of fraud, deceit or misrepresentation and the conduct on which the judgment is based indicates that it would be contrary to the interest of the public to allow the person to be licensed or to control or manage a licensee.

5. Has had an order entered against the licensee involving fraud, deceit or misrepresentation by any administrative agency of this state, the federal government or any other state or territory of the United States and the facts relating to the order indicate that it would be contrary to the interest of the public to allow the person to be licensed or to control or manage a licensee.

6. Has violated any applicable law, rule or order.

B. If a person to whom a license is issued or who has applied for a license under this article is indicted or informed against for forgery, embezzlement, obtaining money under false pretenses, extortion, criminal conspiracy to defraud or a similar offense or offenses and a certified copy of the indictment or information is filed with the deputy director, the deputy director may suspend the license issued to the licensee or deny a license to an applicant pending trial on the indictment or information.

C. If a licensee is other than a natural person, it is sufficient cause to suspend or revoke the license if an officer, director, member, partner, trustee or employee, while acting in the course of the commercial mortgage banker business, or a person entitled to vote more than twenty percent of the outstanding voting shares of the licensed corporation, partnership, association or trust has acted or failed to act in the same manner as would be cause to suspend or revoke a license of the party as an individual. If a licensee is a natural person, it is sufficient cause to suspend or revoke the license if an employee of the person, while acting as an employee, has acted or failed to act in the course of the commercial mortgage banker business of the licensee in the same manner as would be cause to suspend or revoke a license of the party as an owner.
A.R.S. § 6-903 — Arizona Code / Title 6 / Chapter 9 / Article 1 / Section 903
6-903 Licensing of mortgage brokers required; qualifications; application; bond; fees; renewal
Status: in_force

6-903. Licensing of mortgage brokers required; qualifications; application; bond; fees; renewal

A. A person shall not act as a mortgage broker if the person is not licensed under this article. A person who brokers only commercial mortgage loans shall obtain either a mortgage broker license or a commercial mortgage broker license. A person who brokers residential mortgage loans shall obtain a mortgage broker license.

B. The deputy director shall not grant a mortgage broker's license or a commercial mortgage broker's license to a person, other than a natural person, that is not registered to do business in this state on the date of granting the license.

C. An applicant for an original mortgage broker's license shall:

1. Have not less than three years' experience as a mortgage broker or loan originator or equivalent lending experience in a related business during the five years immediately preceding the time of application.

2. Have satisfactorily completed a course of study approved by the deputy director during the three years immediately preceding the time of application.

3. Have passed a mortgage broker's test pursuant to section 6-908.

D. An applicant for an original commercial mortgage broker's license shall:

1. Have not less than three years' experience in the commercial mortgage broker business or equivalent lending experience in a related business during the five years immediately preceding the time of application.

2. Have made in the past or intend to make or negotiate or offer to make or negotiate commercial mortgage loans.

3. Provide the deputy director with the following:

(a) A balance sheet prepared within the immediately preceding six months and certified by the licensee.  The deputy director may require a more recent balance sheet.

(b) If the applicant has begun operations, a statement of operations and retained earnings and a statement of changes in financial position.

(c) Notes to the financial statement if applicable.

E. Notwithstanding subsection D, paragraph 3 of this section, commercial mortgage broker licensees and commercial mortgage broker license applicants whose own resources are derived exclusively from correspondent contracts with institutional investors shall provide the deputy director with a current financial statement or that of its parent company prepared according to generally accepted accounting principles, including:

1. A balance sheet prepared within the immediately preceding six months and certified by the licensee.  The deputy director may require a more recent balance sheet.

2. If the applicant has begun operations, a statement of operations and retained earnings and a statement of changes in financial position.

3. Notes to the financial statement if applicable.

F. A person shall apply for a license or for a renewal of a license in writing on the forms, in the manner and accompanied by the information prescribed by the deputy director. The deputy director may require additional information on the experience, background and competency of the applicant and any responsible individual designated by the applicant. If the applicant is a person other than a natural person, the deputy director may require information as to the competency of any officer, director, shareholder or other interested party of the association, corporation or group.

G. The nonrefundable application fee and annual renewal fee are as prescribed in section 6-126. The nonrefundable application fee shall accompany each application for an original license only. The deputy director shall deposit, pursuant to sections 35-146 and 35-147, the monies in the state general fund.

H. If a licensee is a person other than a natural person, the license issued to it entitles all officers, directors, members, partners, trustees and employees of the licensed corporation, partnership, association or trust to engage in the mortgage business if one officer, director, member, partner, employee or trustee of the person or an employee of an affiliated entity or the parent company of the licensee is designated in the license as the individual responsible for the person under this article. If a licensee is a natural person, the license entitles all employees of the licensee to engage in the mortgage business. If the natural person is not a resident of this state, an employee of the licensee shall be designated in the license as the individual responsible for the licensee under this article. For the purposes of this subsection, an employee does not include an independent contractor.  The responsible individual shall be a resident of this state unless the director grants an exemption pursuant to section 6-902.01, shall be in active management of the activities of the licensee governed by this article and shall meet the qualifications set forth in subsection C or D of this section for a licensee.

I. A licensee shall notify the deputy director that its responsible individual will cease to be in active management of the activities of the licensee within ten days after learning that fact. The licensee has ninety days after the notification is received by the deputy director within which to replace the responsible individual with a qualified replacement and to so notify the deputy director. If the license is not placed under active management of a qualified responsible individual and if notice is not given to the deputy director within the ninety-day period, the license of the licensee expires.

J. Every person licensed as a mortgage broker or a commercial mortgage broker shall deposit with the deputy director, before doing business as a mortgage broker or a commercial mortgage broker, a bond executed by the licensee as principal and a surety company authorized to do business in this state as surety. The bond shall be conditioned on the faithful compliance of the licensee, including the licensee's directors, officers, members, partners, trustees and employees, with this article. The bond is payable to any person injured by the wrongful act, default, fraud or misrepresentation of the licensee or the licensee's employees and to this state for the benefit of the person injured. Only one bond is required for any person, firm, association or corporation irrespective of the number of officers, directors, members, partners or trustees who are employed by or are members of such firm, association or corporation. A suit may not be commenced on the bond after the expiration of one year following the commission of the act on which the suit is based, except that claims for fraud or mistake are limited to the limitation period provided in section 12-543, paragraph 3. If an injured person commences an action for a judgment to collect from the bond, the injured person shall notify the deputy director of the action in writing at the time of the commencement of the action and shall provide copies of all documents relating to the action to the deputy director on request.

K. The bond required by this section is $10,000 for licensees whose investors are limited solely to institutional investors and $15,000 for licensees whose investors include any noninstitutional investors.

L. For the purposes of subsection K of this section:

1. "Institutional investor" means a state or national bank, a state or federal savings and loan association, a state or federal savings bank, a state or federal credit union, a federal government agency or instrumentality, a quasi-federal government agency, a financial enterprise, a licensed real estate broker or salesman, a profit sharing or pension trust or an insurance company.

2. "Investor" means any person who directly or indirectly provides to a mortgage broker funds that are, or are intended to be, used in making a loan and any person who purchases a loan or any interest in a loan from a mortgage broker or in a transaction that has been directly or indirectly arranged or negotiated by a mortgage broker.

M. Notwithstanding section 35-155, in lieu of the bond described in this section, an applicant for a license or a licensee may deposit with the deputy director a deposit in the form of cash or alternatives to cash in the same amount as the bond required under subsection J of this section. The deputy director may accept any of the following as an alternative to cash:

1. Certificates of deposits or investment certificates that are payable or assigned to the state treasurer, issued by banks or savings banks doing business in this state and fully insured by the federal deposit insurance corporation or any successor institution.

2. Certificates of deposit, investment certificates or share accounts that are payable or assigned to the state treasurer, issued by a savings and loan association doing business in this state and fully insured by the federal deposit insurance corporation or any successor institution.

3. Certificates of deposit, investment certificates or share accounts that are payable or assigned to the state treasurer, issued by a credit union doing business in this state and fully insured by the national credit union administration or any successor institution.

N. The deputy director shall deposit the cash or alternatives to cash received under this section with the state treasurer. The state treasurer shall hold the cash or alternatives to cash in the name of this state to guarantee the faithful performance of all legal obligations of the person required to post bond pursuant to this section. The person is entitled to receive any accrued interest earned from the alternatives to cash. The state treasurer may impose a fee to reimburse the state treasurer for administrative expenses. The fee shall not exceed $10 for each cash or alternatives to cash deposit and shall be paid by the applicant or licensee.  The state treasurer may prescribe rules relating to the terms and conditions of each type of security provided by this section.

O. In addition to such other terms and conditions as the deputy director prescribes by rule or order, the principal amount of the deposit shall be released only on written authorization of the deputy director or on the order of a court of competent jurisdiction. The principal amount of the deposit shall not be released before the expiration of three years from the first to occur of any of the following:

1. The date of substitution of a bond for a cash alternative.

2. The surrender of the license.

3. The revocation of the license.

4. The expiration of the license.

P. A licensee or an employee of the licensee shall not advertise for or solicit mortgage business in any manner without using the license name, or other assumed name or trade name that is submitted to the department pursuant to section 6-117, and the license number. If a license is issued in the name of a natural person, the advertising or solicitation may not imply the license is in the name of another person or entity. For the purposes of this subsection, advertise does not include business cards, radio and television advertising directed at national or regional markets and promotional items except if those items contain rates or terms on which a mortgage loan may be obtained.

Q. A licensee shall not employ any person unless the licensee:

1. Conducts a reasonable investigation of the background, honesty, truthfulness, integrity and competency of the employee before hiring.

2. Keeps a record of the investigation for not less than two years after termination.

R. A license is not transferable or assignable and control of a licensee may not be acquired through a stock purchase or other device without the prior written consent of the deputy director. Written consent shall not be given if the deputy director finds that any of the grounds for denial, revocation or suspension of a license as set forth in section 6-905 are applicable to the acquiring person. For the purposes of this subsection, "control" means the power to vote more than twenty percent of outstanding voting shares of a licensed corporation, partnership, association or trust.

S. The licensee is liable for any damage caused by any of the licensee's employees while acting as an employee of the licensee.

T. A licensee shall comply with the requirements of section 6-114 relating to balloon payments.

U. The examination and course of study requirements of this section shall be waived by the deputy director for any person applying for a license who, within the six months immediately before submitting the application, has been a licensee or a responsible person pursuant to this chapter.

V. If the applicant for renewal of a mortgage broker license is a natural person, the applicant shall have satisfactorily completed twelve continuing education units by a continuing education provider approved by the deputy director before submitting the renewal application. If the applicant is other than a natural person, the designated responsible individual shall have satisfactorily completed twelve continuing education units by a continuing education provider approved by the deputy director before submitting the renewal application.  An applicant for renewal of a commercial mortgage broker license is not subject to the continuing education requirements prescribed by this article.

W. A licensee who employs a loan originator shall comply with section 6-991.03.
A.R.S. § 6-477 — Arizona Code / Title 6 / Chapter 3 / Article 8 / Section 477
6-477 Audit by public accountant
Status: in_force

6-477. Audit by public accountant

An audit of the affairs of the association shall be made annually as of the end of its fiscal year by or under the direction of the board of directors. The deputy director may prescribe certain minimum requirements of the audit and shall require the filing of a copy of the report covering the audit with the deputy director. The audit shall be filed with the deputy director not more than one hundred twenty days after the end of the association's fiscal year, unless the deputy director extends the time period for good cause shown. The audit is not a substitute for or in lieu of the examination by the deputy director required by section 6-122.
A.R.S. § 6-462 — Arizona Code / Title 6 / Chapter 3 / Article 6 / Section 462
6-462 Conversion from state to federal association
Status: in_force

6-462. Conversion from state to federal association

Any association operating under this chapter may become a federal association pursuant to the laws and regulations of the United States and in accordance with the following procedure:

1. The board of directors shall approve a plan of conversion by resolution adopted by majority vote of all of the directors. The plan shall set forth, among other terms:

(a) A financial statement of the association as of the last business day of the month preceding the adoption of the plan.

(b) The disposition of withdrawable capital and guaranty capital, if any.

(c) Adjustments, if any, in the value of accounts when exchanged for comparable accounts in the federal association.

(d) The disposition of any segregated surplus established under section 6-426.

(e) The disposition of any obligations or liabilities.

2. Such plan and resolution shall be submitted to the deputy director at least fifteen days prior to the members' meeting at which action of members is to be taken.

3. If the plan of conversion provides for no adjustment in the accounts of members and all obligations and liabilities are to be assumed by the federal association, the  deputy director's approval of the plan of conversion shall not be required.

4. If the plan of conversion adjusts values of any type of capital, or if the association has a segregated surplus, such plan of conversion shall be subject to the approval of the deputy director. Approval shall be given in such case if the deputy director finds that the plan is equitable and protects the rights of all persons affected, including such contingent interests as theretofore may have been created in the segregated surplus, if any.

5. After receipt of such approval from the deputy director, if required, the plan of conversion may be submitted at an annual or special meeting of the members. The plan will be adopted on receiving, in the affirmative, fifty-one percent or more of the total number of votes that all members of the association are entitled to cast. A report of proceedings at the meeting, certified by the president or a vice president and attested by the secretary, shall be filed promptly with the deputy director.

6. Within ninety days after the date of the meeting, the association shall take the action prescribed and authorized by the laws and regulations of the United States to complete its conversion to a federal association.

7. On receipt of a federal charter, the association shall file promptly with the deputy director and the corporation commission either a copy of said charter or a certificate of the appropriate federal officer setting forth the facts concerning the issuance of such charter and on recording said charter in the same manner as is required for the association's articles of incorporation, the association shall cease to be a state chartered association.
A.R.S. § 6-426 — Arizona Code / Title 6 / Chapter 3 / Article 4 / Section 426
6-426 Shares of guaranty capital; rights of existing shareholders
Status: in_force

6-426. Shares of guaranty capital; rights of existing shareholders

When an association already in operation amends its articles of incorporation to authorize the issuance of shares of guaranty capital, or when an association already in operation with provision in its original articles of incorporation for the issuance of guaranty shares but which has not issued any guaranty shares, proposes to issue such shares:

A. The association shall mail notice to each shareholder who was entitled to vote at the meeting at which the amendment was adopted, or, in the case of an association which is authorized by its original articles of incorporation to issue guaranty shares but has not issued any such shares, to each stockholder of the association on the date of the adoption of the resolution of the board of directors proposing to issue such shares, giving him the prior right for at least sixty days after the date of such notice, to subscribe to the initial issue of shares of guaranty capital, in the same proportion which the withdrawal value of such holder's account bears to the aggregate withdrawal value of all accounts in the association. Such rights to subscribe shall be transferable. No fraction of an original share of guaranty capital need be issued, but in such case fractional subscription rights may be combined to authorize the subscription to one or more whole share of guaranty capital. Fractional subscription rights need not be issued for an account the withdrawal value of which is less than ten dollars.

B. The board of directors shall determine, as of the day prior to the effective date of the amendment, or as of the date of the adoption of the resolution authorizing the issuance of such shares in case the original articles of incorporation provide for such shares, the total amount of loss reserves, undivided profits, and unallocated reserves after making allowances for accrued dividends and expenses, losses not provided for, and such similar items as are chargeable against the income of the association since the last previous apportionment date. The amount so fixed shall constitute a segregated surplus of the association and may be retained in, or allocated to, such reserve accounts, undivided profits accounts, or surplus accounts as may be lawful; and other earnings of the association accruing after the effective date may be allocated to said segregated surplus and an equal amount then may be transferred to any other unsegregated account.

C. Such segregated surplus shall be available for losses from the depreciation of securities or otherwise, except that any loss resulting from operations, including loans and investments made or purchased after the effective date of the amendment, or the date of the adoption of the resolution authorizing the issuance of such shares in case the original articles of incorporation so provide, shall be charged first to loss reserves and undivided profits created after such date until the same are exhausted.

D. If the association merges with another as provided in this chapter the balance of such segregated surplus shall continue to be held in a segregated account or accounts for the same use and disposition as though no merger had occurred.

E. If the association liquidates or effects a sale of all or substantially all of its assets within fifteen years from the effective date of the amendment authorizing the initial issuance of shares of guaranty capital, or from the date of the adoption of the resolution in case the original articles of incorporation provide for such shares, and each holder of the account on the day prior to such effective date who has continued to remain such a holder without interruption, or who has transferred his account from one type or class of account to another, or whose account has been retired by enforced retirement, shall be entitled to an amount, in addition to the withdrawal value of his account, in such proportion of the unused balance of the segregated surplus as he would have been entitled to had the association liquidated on the effective date of such amendment, or the date of the adoption of the resolution, as the case may be.
A.R.S. § 6-1402 — Arizona Code / Title 6 / Chapter 14 / Article 1 / Section 1402
6-1402 Licensure required; contents of application; fees; nontransferable; branch office permit
Status: in_force

6-1402. Licensure required; contents of application; fees; nontransferable; branch office permit

A. A person shall not engage in the business of a premium finance company in this state without first being licensed as a premium finance company by the deputy director. A person who is not exempt under section 6-1403 and who advertises for, solicits or holds himself out as willing to finance premiums or enter into or acquire premium finance agreements is presumed to be engaged in the business as a premium finance company.

B. A licensee shall not establish a branch office without first obtaining a branch office permit from the deputy director.

C. An application for a license or branch office permit shall be made in writing, under oath, and in the form prescribed by the deputy director. The deputy director may require as part of an application such other information as the deputy director deems necessary.

D. An applicant at the time of filing an application for a license or branch office permit shall pay to the deputy director the fee prescribed in section 6-126.

E. Prior to December 31 of each year, each licensee may obtain a renewal of a license or branch office permit by payment of the fee prescribed in section 6-126.

F. A premium finance company license or branch office permit is not transferable or assignable, and control shall not be acquired through stock purchase or other device without the prior written consent of the deputy director. The deputy director may refuse consent if the deputy director finds that any of the grounds for denial, revocation or suspension of a license prescribed by section 6-1404 are applicable to the acquiring person. For purposes of this subsection, "control" means the power to vote more than twenty percent of outstanding voting shares of a licensed corporation, limited liability company, partnership, association or trust.
A.R.S. § 6-1407 — Arizona Code / Title 6 / Chapter 14 / Article 1 / Section 1407
6-1407 Removal of place of business
Status: in_force

6-1407. Removal of place of business

A licensee may change the licensed place of business by giving written notice to the deputy director, who shall amend the license accordingly.
A.R.S. § 6-395.07 — Arizona Code / Title 6 / Chapter 2 / Article 13 / Section 395.07
6-395.07 Sale of bank assets; authority to borrow monies; injunction; hearing
Status: in_force

6-395.07. Sale of bank assets; authority to borrow monies; injunction; hearing

A. The receiver may sell all or any part of the bank's assets to another bank, to a savings and loan association, to the federal deposit insurance corporation or to an instrumentality of the United States government. The receiver may borrow from the federal deposit insurance corporation, an instrumentality of the United States government or a private insurer which insures or guarantees the bank's investment certificates any amount necessary to facilitate the assumption of investment certificate liabilities by a newly chartered or existing bank, assigning any part or all of the assets of the bank as security for that loan.

B. If the receiver has taken possession of the property and business of a bank, that bank, within ten days after the taking, if it deems itself aggrieved, may apply to the court in the county in which the principal place of business of the bank is located to enjoin further proceedings. The receiver may exercise all powers granted by this article during the ten day period after taking possession of the property and business of the bank. The court, after ordering the receiver to show cause why further proceedings should not be enjoined and after a hearing and a determination of the facts on the merits, may dismiss the application or enjoin the receiver from further proceedings and direct the receiver to surrender the property and business to the bank or make such further order as the court determines.
A.R.S. § 6-251 — Arizona Code / Title 6 / Chapter 2 / Article 5.1 / Section 251
6-251 Short title
Status: in_force

6-251. Short title

This article may be cited as the uniform special deposits act.
A.R.S. § 6-246 — Arizona Code / Title 6 / Chapter 2 / Article 5 / Section 246
6-246 Permitted investments; limitations
Status: in_force

6-246. Permitted investments; limitations

A. In addition to other investments authorized by law, a bank or trust company that is acting as a fiduciary may invest and reinvest in the securities of an open-end or closed-end management investment company or investment trust that is registered under the investment company act of 1940 (15 United States Code section 80a-1), as amended, if the portfolios of that investment company or investment trust consist of investments permitted by the applicable fiduciary instrument.  A bank or trust company may invest in these securities notwithstanding that the bank or trust company, or an affiliate of the bank or trust company, provides services to the investment company or investment trust as an investment adviser, custodian, transfer agent, registrar, sponsor, distributor, administrator, manager or otherwise and receives reasonable remuneration for those services.

B. A bank or trust company that invests and reinvests in the securities of an open-end or closed-end management investment company or investment trust authorized under subsection A of this section shall disclose in the statement of the fiduciary account to all persons whose funds are invested in the investment company or investment trust that the bank or trust company provides services for and receives fees from the open-end or closed-end management company or investment trust.  A person who complies with the requirements of section 14-10802, subsection F satisfies the disclosure requirements of this subsection.

C. A bank may purchase for its own account any class of equity securities issued by a banker's bank, as defined in section 6-204, if the aggregate investment does not exceed ten per cent of the bank's capital.
A.R.S. § 6-594 — Arizona Code / Title 6 / Chapter 4 / Article 13 / Section 594
6-594 Participation in central system
Status: in_force

6-594. Participation in central system

A corporate credit union may enter into agreements and subscribe to any required shares for the purpose of participation in the national credit union administration central liquidity facility or in any other state or federal central liquidity facility or central financial system available to credit unions. It may also enter into agreements with any third parties to aid credit unions to obtain additional sources of liquidity.
A.R.S. § 6-974 — Arizona Code / Title 6 / Chapter 9 / Article 3 / Section 974
6-974 Application for license; issuance or denial; fees
Status: in_force

6-974. Application for license; issuance or denial; fees

A. A person shall apply for a license or for a renewal of a license in writing on the forms, in the manner and accompanied by the information prescribed by the deputy director. The deputy director may require additional information on the experience, background and competency of the applicant and any responsible individual designated by the applicant. If the applicant is a person other than a natural person, the deputy director may require this information as to the competency of any officer, director, shareholder, member, partner, trustee, employee or other interested party of the firm, association or corporation.

B. The deputy director, on determining that the applicant is qualified, shall issue a commercial mortgage banker's license to the applicant that is evidenced by a continuous certificate. The deputy director shall grant or deny a license within one hundred twenty days after receiving the completed application. An applicant who has been denied a license may not reapply for a license before one year after the date of the previous application.

C. The nonrefundable application fee and annual renewal fee are as prescribed by the deputy director. Application fees and annual renewal fees shall be based on the cost to the department to process the application and regulate licensees. The nonrefundable application fee shall accompany each application for an original license only. The deputy director shall deposit, pursuant to sections 35-146 and 35-147, the monies in the state general fund.
A.R.S. § 6-425 — Arizona Code / Title 6 / Chapter 3 / Article 4 / Section 425
6-425 Shares of guaranty capital; authorization of issuance; minimum amount
Status: in_force

6-425. Shares of guaranty capital; authorization of issuance; minimum amount

A. An association may provide for the issuance of shares of guaranty capital, either by its original articles of incorporation or by an amendment to the articles of incorporation.

B. The aggregate initial guaranty capital of an association being organized under this chapter shall be not less than the minimum initial guaranty capital required under section 6-407.

C. In the case of an association that shall at any time be operating and its original articles of incorporation authorize the issuance of guaranty shares but the association has issued no guaranty shares, or in the case of an association already in operation that amends its articles to authorize the issuance of guaranty shares, the aggregate initial guaranty capital shall be not less than either:

1. The initial guaranty capital required under section 6-407.

2. An amount that, together with the amount of surplus and all reserves required or designated as available for losses, equals in the aggregate not less than the required capital and reserves necessary to obtain and maintain insurance of accounts by the insurance corporation, whichever is greater.

D. In the case of an association already in operation and having issued and outstanding guaranty shares, the aggregate guaranty capital shall be an amount not less than an amount that, together with the amount of surplus, amount of outstanding capital notes and debentures, and all reserves required or designated for use for losses, equals in the aggregate not less than the required capital and reserves necessary to obtain and maintain insurance of accounts by the insurance corporation.

E. Any plan for the issuance of shares of guaranty capital shall be subject to the approval of the deputy director as being in conformity with this chapter, and the rules and regulations of the deputy director pertaining thereto.
A.R.S. § 6-853 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 853
6-853 Certificate required; exceptions
Status: in_force

6-853. Certificate required; exceptions

A. A person shall not engage in the trust business without first obtaining a certificate from the deputy director except as provided by subsection B or C of this section, or by section 6-852, subsection C.

B. A bank, if a member of the federal deposit insurance corporation and otherwise authorized under the laws of the United States, this state or any other state to engage in the trust business in this state, may engage in that business as a bank without obtaining a certificate under this chapter, and shall not be subject to this article, except for section 6-859, subsection A and section 6-860.

C. If a savings and loan association or savings bank is a member of the federal deposit insurance corporation and is authorized under the laws of the United States, this state or any other state to engage in the trust business in this state, the savings and loan association or savings bank may engage in that business as a savings and loan association or savings bank without obtaining a certificate under this chapter and is not subject to this article, except for section 6-859, subsection A and section 6-860.
A.R.S. § 6-188 — Arizona Code / Title 6 / Chapter 2 / Article 1 / Section 188
6-188 Bonds and insurance; coverage
Status: in_force

6-188. Bonds and insurance; coverage

The board of directors shall require protection and indemnity for the bank against defalcation, forgery, theft and other similar insurable losses, with corporate insurance or surety companies authorized to do business in this state. Coverage against defalcation shall include all active officers and employees of the bank whether or not they draw salary or compensation.