A.R.S. § 6-1108 — Arizona Code / Title 6 / Chapter 11 / Article 1 / Section 1108
6-1108 Failure to act on application as approval
Status: in_force

6-1108. Failure to act on application as approval

An application that is not denied or approved by the deputy director within sixty 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. The deputy director and the applicant may extend the sixty-day period by agreement. If the deputy director gives notice of a hearing, the sixty-day period is extended to the date fixed by order of the deputy director. For the purposes of this section, an application is not deemed filed until all amendments, supplements and additional information required by the deputy director have been received.
A.R.S. § 6-865 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 865
6-865 Unsafe condition; receivership
Status: in_force

6-865. Unsafe condition; receivership

If the deficiency in capital has not been made good or the trust company is in an unsafe or unsound condition that is not remedied within the time prescribed under an order of the deputy director issued pursuant to section 6-137, the deputy director may apply to the superior court to be appointed receiver for the liquidation or rehabilitation of the company. The expense of such receivership shall be paid out of the assets of the trust company.
A.R.S. § 6-834.01 — Arizona Code / Title 6 / Chapter 7 / Article 3 / Section 834.01
6-834.01 Escrow; loan agreement
Status: in_force

6-834.01. Escrow; loan agreement

An escrow agent may use monies in an escrow account only to make a onetime payment or multiple payments pursuant to the loan agreement unless one of the following applies:

1. The loan agreement specifically states that the monies may be used for another purpose and that purpose is expressly stated in the loan agreement.

2. A deed in lieu of foreclosure agreement specifically states the monies may be used for another purpose and that purpose is stated in the deed in lieu of foreclosure agreement.

3. An agreement is entered into by the parties to negotiate a settlement of the loan and that agreement includes a provision for the use of the monies.

4. An agreement is entered into by the parties that provides for a portion of the escrow account to be used to bring an account that is in arrears to a current status.
A.R.S. § 6-1002 — Arizona Code / Title 6 / Chapter 10 / Article 1 / Section 1002
6-1002 Legal relationship in use of safe deposit facilities
Status: in_force

6-1002. Legal relationship in use of safe deposit facilities

A. The relationship between the lessor and the lessee shall be that of landlord and tenant in the absence of a written contract to the contrary, notwithstanding that the lessor prescribes the hours of entry into its repositories, retains and requires the use of a preparation or guard key and in the case of vault storage reserves the right to change the space occupied by lessees' property or documents from time to time. The rights, duties, powers and privileges of the lessor in the transaction shall be that of landlord and for all purposes the lessee shall be deemed by law to be in possession of the repository and the contents thereof.

B. The lessor shall not be charged with knowledge of the contents of any repository. The lessor may limit its liability to the lessee by provisions contained in a lease, except that the lessor shall be liable for the acts of its officers and employees for failure to exercise ordinary care.
A.R.S. § 6-815 — Arizona Code / Title 6 / Chapter 7 / Article 2 / Section 815
6-815 Renewal of license
Status: in_force

6-815. Renewal of license

A licensee shall make application for renewal as prescribed by the deputy director and pay the renewal fee prescribed in section 6-126 not later than December 31 of each year. For each day after December 31 that the renewal application is not received by the deputy director the applicant shall pay $25 in addition to the fee prescribed by section 6-126. Licenses for which renewal applications are not received by the deputy director by December 31 are suspended, and the licensee shall not act as an escrow agent until the license is renewed or a new license is issued pursuant to this article. A license of a licensee that has not filed its renewal application and paid the renewal fee by January 31 expires. A license shall not be granted to the holder of an expired license except as provided in this article for the issuance of an original license.
A.R.S. § 6-910 — Arizona Code / Title 6 / Chapter 9 / Article 1 / Section 910
6-910 Noncompliance not to affect validity of loan
Status: in_force

6-910. Noncompliance not to affect validity of loan

A failure to comply with this article does not affect the validity or enforceability of any debt, mortgage, deed of trust or any other lien interest on real estate. A person acquiring a mortgage loan or any interest in a mortgage loan as mortgagee or beneficiary or as an assignee, holder or transferee or as a pledgee or the holder of a security interest is not required to ascertain whether this article has been complied with.
A.R.S. § 6-394 — Arizona Code / Title 6 / Chapter 2 / Article 12 / Section 394
6-394 Prohibited ownership or control of a financial institution and interest in insurer insuring deposits; assets and reserves of insurer
Status: in_force

6-394. Prohibited ownership or control of a financial institution and interest in insurer insuring deposits; assets and reserves of insurer

A. No person may own or control a financial institution and at the same time have an interest in an insurer that directly or indirectly insures or purports to insure the deposit accounts of the financial institution.

B. No insurer of the deposit accounts of a financial institution other than a federal insurance corporation shall have and maintain assets and reserves equaling less than fifty per cent of the withdrawal accounts or investment certificates of the insured financial institution.
A.R.S. § 6-186 — Arizona Code / Title 6 / Chapter 2 / Article 1 / Section 186
6-186 Annual audit and report
Status: in_force

6-186. Annual audit and report

A. An audit of the affairs of the bank including an out-of-state bank 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 bank's or out-of-state bank'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.

B. An out-of-state bank may satisfy an audit requirement by filing with the deputy director a copy of the audit report that is required by its home state regulator within fifteen days after filing that report with the home state.
A.R.S. § 6-983 — Arizona Code / Title 6 / Chapter 9 / Article 3 / Section 983
6-983 Required accounting practices and records; escrow of monies; disclosure
Status: in_force

6-983. Required accounting practices and records; escrow of monies; disclosure

A. A commercial mortgage banker 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 complying with this article. A commercial mortgage banker shall make records available to the deputy director in this state not more than three business days after demand and shall 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.  A commercial mortgage banker shall maintain original documents or clearly legible copies of all commercial mortgage loan transactions for at least two years after the date of the commercial mortgage loan closing.

B. A commercial mortgage banker shall observe generally accepted accounting principles and practices.

C. If a commercial mortgage banker requires an advance or fee to be paid in connection with an application for a commercial mortgage loan, there shall be a written agreement. The parties shall sign the written agreement, and the agreement shall contain terms pertaining to the payment of the fee or disposition of the advance or fee, whether the loan is finally consummated or not, and a term for which the agreement is to remain in force before return of the advance or fee for nonperformance can be required. The licensee shall immediately deposit advances or fees in a trust account in a bank, savings bank or savings and loan association that is fully insured by the federal deposit insurance corporation or any successor agency, and the advances or fees shall not be commingled with other monies. The trust account shall designate the licensee as trustee and shall provide for withdrawing the monies without previous notice. Withdrawals shall only be disbursed according to the terms of the agreement.  A licensee who receives advances or fees shall preserve and on request make available to the deputy director all deposits, withdrawal receipts and statements of account rendered by the bank, savings bank or savings and loan association. The licensee shall further preserve all agreements between the parties involved in the transaction and all contracts, agreements and instructions to or with the depository and shall keep an accurate accounting of each separate bank account in which the trust monies have been deposited. If the loan is declined by or on behalf of the lender or canceled by the applicant, all documents provided by or at the expense of the applicant, including any appraisal, are the property of the applicant. At the applicant's discretion, the documents shall be returned or transferred to any designated financial institution or enterprise without additional consideration except for fees for which the applicant has previously contracted, if the document is not prohibited by law from being transferred or returned.

D. If periodic payments are to be collected from the mortgagor to provide for payments by the mortgagee of taxes, assessments, insurance premiums, ground rents or other current charges against the real estate security, the estimated payment amount stated to the mortgagor by the commercial mortgage banker shall be such that the total of these payments collected for each category during the tax or other period will approximate the actual tax or other payment when due. The licensee shall annually account to the borrower for all such periodic payments of taxes, assessments, insurance premiums, ground rents and other current charges and, to the extent monies have been collected for payment, shall pay them promptly.
A.R.S. § 6-1303 — Arizona Code / Title 6 / Chapter 13 / Article 1 / Section 1303
6-1303 Application for registration
Status: in_force

6-1303. Application for registration

A. Application for registration as an advance fee loan broker may be made by any person. An application for registration shall be signed by the applicant and duly verified by oath. The application shall be filed with the deputy director and shall contain such information as the deputy director prescribes by rule and deems necessary in determining whether the applicant is entitled to engage in the advance fee loan broker business.

B. The deputy director shall rule on an application within sixty days following the date the application is filed with the deputy director.
A.R.S. § 6-611 — Arizona Code / Title 6 / Chapter 5 / Article 1 / Section 611
6-611 Prohibited acts
Status: in_force

6-611. Prohibited acts

A licensee shall not knowingly advertise, display, distribute, broadcast or televise, or cause or permit to be advertised, displayed, distributed, broadcast or televised, in any manner, any false, misleading or deceptive statement or representation with regard to the rates, terms or conditions for a consumer lender loan. To the extent applicable, all advertising shall comply with the advertising requirements of the truth in lending act.
A.R.S. § 6-543 — Arizona Code / Title 6 / Chapter 4 / Article 5 / Section 543
6-543 Action without meeting
Status: in_force

6-543. Action without meeting

A. Unless the articles of incorporation or bylaws provide otherwise, action required or allowed to be taken at a board of directors' meeting may be taken by electronic means without a meeting as provided in this section if notice is given to each member of the board.  The notice shall state the action to be taken and the date and time by which a director must respond.

B. Action may be taken under this section only if, at the end of the date and time stated in the notice, both of the following apply:

1. The votes that are received by the board chairman or board president by electronic means and that are in favor of the action equal or exceed the minimum number of votes that would be necessary to take the action at a meeting at which all of the directors then in office were present and voted.

2. The board chairman, board president or board secretary has not received a written demand by a director as described in subsection C of this section.

C. Any director may demand that an action not be taken without a meeting by delivering a signed communication to the board chairman, board president or secretary before the date given in the notice prescribed by subsection A of this section.

D. Action taken pursuant to this section:

1. Has the same effect as action taken at a meeting of the board of directors and may be described as such in any document.

2. Shall be included in the minutes filed at the next board of directors' meeting along with a record of how each director voted on the action.

E. All communication pursuant to this section may be done by electronic means and each director's vote must be signed using an electronic signature employing a security procedure as defined in section 44-7002.
A.R.S. § 6-234 — Arizona Code / Title 6 / Chapter 2 / Article 4 / Section 234
6-234 Deposit of minor; school saving plan
Status: in_force

6-234. Deposit of minor; school saving plan

A. A bank may operate a deposit account in the name of a minor or in the name of two or more persons, one or more of whom are minors, and all rights and liabilities of the bank and any depositor arising out of such account and any act of the parties in relation thereto shall be of the same legal effect as if the minor is of full legal age.

B. Subject to such regulations as the deputy director may prescribe for the protection of depositors, a bank may contract with the proper authorities of any elementary or secondary school, or of any institution caring for minors, for the participation by the bank in any school or institutional thrift or savings plan, and it may accept deposits at such a school or institution, either by its own collector or by any representative of the school or institution who becomes the agent of the bank for such purpose.
A.R.S. § 6-185 — Arizona Code / Title 6 / Chapter 2 / Article 1 / Section 185
6-185 Board of directors' meetings; review; report of failure of quorum to meet
Status: in_force

6-185. Board of directors' meetings; review; report of failure of quorum to meet

A meeting of the board of directors of a bank shall be called each month or each quarter. The deputy director shall designate for each bank whether the board shall meet monthly or quarterly. The deputy director may change the designation at any time without providing the bank advance notice. At the meetings, the board shall review the loans and investments and other material activities of the bank or review a report thereof prepared under the direction of the board as a regular item of business. The board shall keep minutes of all meetings including a record of attendance. If at any required meeting a majority of the members are not present, the bank shall notify the deputy director in writing of that fact.
A.R.S. § 6-1236 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1236
6-1236 Cryptocurrency kiosk operator; disclosures; receipt; fraud prevention; refunds; enforcement; definitions
Status: in_force

6-1236. Cryptocurrency kiosk operator; disclosures; receipt; fraud prevention; refunds; enforcement; definitions

A. A cryptocurrency kiosk operator shall disclose in a clear, conspicuous and easily readable and understandable manner in the chosen language of the customer all relevant terms and conditions that are generally associated with the products, services and activities of the cryptocurrency kiosk operator and virtual currency. The cryptocurrency kiosk operator shall receive an acknowledgment of receipt of all disclosures required under this section from a customer through confirmation or consent.

B. A cryptocurrency kiosk operator shall provide the following disclosures separately in a font that contrasts with the background where the written warning appears and the customer must accept the two separate disclosures before executing a cryptocurrency kiosk transaction:

1. Warning: Consumer fraud often starts with contact from a stranger who is initiating a dishonest scheme or a criminal or fraudulent activity that may appear in many forms, including any of the following:

(a) Claims of a frozen bank account or credit card.

(b) Claims of a fraudulent bank transaction.

(c) Claims of identity theft or an offer of employment in exchange for payment.

(d) Requests for a payment to a government agency or company.

(e) Requests for disaster relief donations or loans.

(f) Offers to purchase lottery tickets or sweepstakes or drawings for vehicles.

(g) Prompts to click on desktop pop-ups that include virus warnings or communication from alleged familiar merchants.

(h) Communication from someone impersonating a representative of your bank or a law enforcement officer.

If you believe you have been scammed, stop and call your local law enforcement and the cryptocurrency kiosk operator.

2. Warning: Losses due to fraudulent or accidental transactions are not recoverable. Transactions in virtual currency are irreversible. People may use virtual currency transactions to steal your money by impersonating the government, organizations or people you know. Impersonators may threaten jail time, say your identity has been stolen, allege your computer has been hacked, insist you withdraw money from your bank account to purchase virtual currency or use a number of other scams. Do not disclose your private key that is associated with your virtual wallet to a third party.  If you believe you are being scammed, stop and call your local law enforcement and the cryptocurrency kiosk operator.

C. On the completion of each cryptocurrency kiosk transaction, the cryptocurrency kiosk operator shall provide the individual who made the transaction at the cryptocurrency kiosk with a physical or digital receipt in the language chosen by the individual that contains all of the following information:

1. The cryptocurrency kiosk operator's name and contact information, including a telephone number to answer questions and register complaints.

2. The state and local law enforcement or government agency that receives complaints of fraud.

3. The type, value, date and precise time of a transaction, the transaction hash and each applicable virtual currency address.

4. The name and contact information of the sender.

5. The name, contact information and virtual wallet number of the designated recipient.

6. DAI fees charged. For the purposes of this paragraph, "DAI" means a decentralized stablecoin token that is designed to maintain a value of the United States dollar.

7. The exchange rate of the virtual currency to the United States dollar.

8. A statement of the cryptocurrency kiosk operator's refund policy.

9. Any additional information that a government authority may require.

D. A cryptocurrency kiosk operator shall use blockchain analytics and tracing software to help prevent fraud by not sending purchased virtual currency from a cryptocurrency kiosk operator to a virtual wallet known to be affiliated with fraud at the time of a transaction. A relevant government authority may request evidence from any cryptocurrency kiosk operator of current use of blockchain analytics.

E. All cryptocurrency kiosk operators shall take reasonable steps to detect and prevent fraud, including establishing and maintaining a written antifraud policy and conforming to federal know your consumer and anti-money laundering laws.

F. A cryptocurrency kiosk operator may not accept transactions of more than $2,000 United States dollars in cash or the equivalent in virtual currency in one day from a new customer in this state through one or more cryptocurrency kiosks. For existing customers, a cryptocurrency kiosk operator shall ensure that the cryptocurrency kiosk, in connection with cryptocurrency services for a single person in this state using one or more cryptocurrency kiosks, does not accept or dispense in a single day more than $10,500.

G. All cryptocurrency kiosk operators performing business in this state shall provide live customer service at a minimum of twenty-four hours a day, seven days per week. The customer service toll-free number shall be prominently displayed on the cryptocurrency kiosk or the cryptocurrency kiosk screens.

H. If a new customer as defined in subsection L, paragraph 7 of this section has been fraudulently induced to engage in a cryptocurrency kiosk transaction, the cryptocurrency kiosk operator shall issue a full refund for the fraudulently induced cryptocurrency kiosk transaction, including any fees charged in association with the transaction, if the new customer does all of the following:

1. Contacts the cryptocurrency kiosk operator within thirty days after the cryptocurrency kiosk transaction.

2. Contacts a law enforcement agency or the attorney general within thirty days after the cryptocurrency kiosk transaction.

3. Provides the cryptocurrency kiosk operator with a report from the law enforcement agency or attorney general's office that determines that the new customer was fraudulently induced to engage in a cryptocurrency kiosk transaction.

I. A victim of fraud is eligible to receive a refund even if a cryptocurrency kiosk operator provides the required disclosures prescribed in subsections A and B of this section and the receipt prescribed in subsection C of this section.

J. The attorney general shall enforce this section. Any act or practice that violates this section is a violation of section 44-1522.

K. Notwithstanding any other law, all individuals or entities subject to this section shall be classified as a new customer for the purposes of compliance on September 26, 2025. A new customer automatically converts to an existing customer ten days after becoming a new customer. An existing customer is subject to the transaction limits prescribed in this section.

L. For the purposes of this section:

1. "Blockchain analytics" means the analysis of data from blockchains or public distributed ledgers, including associated transaction information.

2. "Blockchain analytics and tracing software" means a software service that uses blockchain analytics data to provide risk-specific information and tracing of virtual currency wallet addresses, among other virtual items.

3. "Cryptocurrency kiosk":

(a) Means a physical, electronic terminal that is a mechanical agent of the cryptocurrency kiosk operator and that enables a cryptocurrency kiosk operator to facilitate the purchase, sale or exchange of cryptocurrency for money, bank credit or any other virtual currency.

(b) Includes a virtual currency exchange, which performs the actual virtual currency transmission or drawing on the virtual currency that is in the possession of the electronic terminal operator.

4. "Cryptocurrency kiosk operator" means an individual or entity:

(a) That engages in virtual currency business activity through a money transmission kiosk in this state.

(b) That operates or manages a money transmission kiosk where virtual currency business activity is offered in this state.

5. "Cryptocurrency kiosk transaction" means both:

(a) A transaction conducted or performed, in whole or in part, by electronic means through a cryptocurrency kiosk.

(b) A transaction made at a cryptocurrency kiosk to purchase virtual currency with fiat currency or to sell virtual currency for fiat currency.

6. "Existing customer" means a consumer transacting at a cryptocurrency kiosk in this state who has been a customer with a cryptocurrency kiosk operator for at least ten days.

7. "New customer" means a consumer transacting at a cryptocurrency kiosk in this state who has been a customer of a cryptocurrency kiosk operator for less than ten days.

8. "Transaction hash" means a unique identifier made up of a string of characters that acts as a record of and provides proof that the transaction was verified and added to the blockchain.

9. "Virtual currency address":

(a) Means a unique public alphanumeric identifier that is associated with a virtual currency type and wallet and that identifies the location where virtual currency transaction can be sent.

(b) Is referred to as a public key.

10. "Virtual wallet":

(a) Means a software application or other mechanism that provides a means to hold, store or transfer virtual currency or nonfungible tokens.

(b) Includes a public key, private key and a public receiving address. For the purposes of this subdivision, a private key may be used to sign for a transaction when sending cryptocurrency from a virtual wallet.
A.R.S. § 6-801 — Arizona Code / Title 6 / Chapter 7 / Article 1 / Section 801
6-801 Definitions
Status: in_force

6-801. Definitions

In this chapter, unless the context otherwise requires:

1. "Account servicing" means the holding of documents or written instruments and the receipt and disbursement of payments according to the instructions of the parties to the documents or written instruments.

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

3. "Control" means ownership or the power to vote, either directly or indirectly, more than twenty per cent of the outstanding voting shares of the controlled person.

4. "Escrow" means any transaction in which any escrow property is delivered with or without transfer of legal or equitable title, or both, and irrespective of whether a debtor-creditor relationship is created, to a person not otherwise having any right, title or interest therein in connection with the sale, transfer, encumbrance or lease of real or personal property, to be delivered or redelivered by that person upon the contingent happening or nonhappening of a specified event or performance or nonperformance of a prescribed act, when it is then to be delivered by such person to a grantee, grantor, promisee, promisor, obligee, obligor, bailee or bailor, or any designated agent or employee of any of them. Escrow includes subdivision trusts and account servicing.

5. "Escrow agent" means any person engaged in the business of accepting escrows.

6. "Escrow business" means a commercial activity characterized by the regular and continuous carrying on of escrow transactions.

7. "Escrow property" means property, money, a written instrument or evidence of title or possession to real or personal property or any other thing of value.

8. "License" means a license issued pursuant to this chapter.

9. "Licensee" means a person licensed pursuant to this chapter.

10. "Subdivision trust" means an agreement in which title to real property or an interest therein is held for the limited purpose of holding, subdividing, developing or selling real property or an interest therein, or to facilitate any business transaction with respect thereto and under which agreement the trustee acts pursuant to direction of its beneficiaries, and without discretionary powers, with respect to the holding, subdivision, development or sale of real estate or an interest therein or the disposition of the proceeds therefrom. Subdivision trusts are, for the purpose of regulation under this chapter, escrows, except that this paragraph shall not be construed to limit the obligation or liability of trustees of subdivision trusts under common law or otherwise.
A.R.S. § 6-464 — Arizona Code / Title 6 / Chapter 3 / Article 6 / Section 464
6-464 Effect of conversion
Status: in_force

6-464. Effect of conversion

When an association effects a conversion in accordance with either of the two preceding sections, the corporate functions of such association shall not be interrupted; but the identity of the association under a new name and new jurisdiction shall continue, together with all of the obligations and liabilities of the association with such revision of the corporate structure as may have been authorized; and all of its rights and interests in and to every kind of property, real, personal or mixed, shall continue without the necessity of a deed or other transfer. Any reference to the association before conversion, contained in any writing, whether executed or effective before or after the conversion, shall be deemed a reference also to the association after conversion, if not inconsistent with the other provisions of such writing. No pending action or other judicial proceeding to which the association is a party shall be abated or discontinued by reason of such conversion, but the same may be prosecuted to final judgment, order, or decree in the same manner as if such conversion had not occurred.
A.R.S. § 6-271 — Arizona Code / Title 6 / Chapter 2 / Article 6 / Section 271
6-271 Reserves against deposits; rule; limitations
Status: in_force

6-271. Reserves against deposits; rule; limitations

Banks that are not members of the federal reserve system shall maintain such legal reserves as are from time to time fixed by rule of the deputy director, not to exceed fourteen percent of demand deposits or seven percent of time and savings deposits.
A.R.S. § 6-985 — Arizona Code / Title 6 / Chapter 9 / Article 3 / Section 985
6-985 Noncompliance not to affect validity of loan
Status: in_force

6-985. Noncompliance not to affect validity of loan

A failure to comply with a provision of this article does not affect the validity or enforceability of any debt or any mortgage, deed of trust or lien interest on real estate. A person who acquires a commercial mortgage loan or an interest in a commercial mortgage loan as mortgagee or beneficiary, as an assignee, holder or transferee or as a pledgee or the holder of a security interest is not required to ascertain compliance with this article.
A.R.S. § 6-862 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 862
6-862 Trust funds
Status: in_force

6-862. Trust funds

All monies received by a trust company as fiduciary on trust business within this state shall be deposited in a bank or savings and loan association in this state in a specially designated account or accounts, shall not be commingled with any funds of the trust company and shall remain on deposit until disbursed or invested in accordance with powers and duties of the trust company in its capacity as such fiduciary.
A.R.S. § 6-902.01 — Arizona Code / Title 6 / Chapter 9 / Article 1 / Section 902.01
6-902.01 Exemption; responsible individual; fees; revocation; rules
Status: in_force

6-902.01. Exemption; responsible individual; fees; revocation; rules

A. A parent company may apply for and be granted a certificate of exemption on behalf of an entity that allows a responsible individual, as prescribed in section 6-903, subsection H, to reside out of state if the responsible individual meets the following criteria:

1. Is a natural person.

2. Meets all of the requirements pursuant to this article.

3. Receives notification from the parent company that the parent company was granted a certificate of exemption by the director.

B. The parent company must apply on behalf of the entity and submit an attestation form as prescribed by the director that the parent company meets all of the following requirements:

1. Maintains a physical presence in this state.

2. Does not have any disciplinary actions by the department.

3. Has a class of securities registered with the United States securities and exchange commission.

C. The applicant shall pay all applicable fees as prescribed in rule.

D. The director may revoke the certificate if the director finds either of the following:

1. The interests of the consumer are not met.

2. The requirements of the responsible individual prescribed by this section are not met.

E. The duration of the certificate of exemption is continuous during the license period unless the certificate of exemption is revoked pursuant to this section.

F. If the director denies the application for or revokes a certificate of exemption, the director shall issue an order outlining the findings of fact, conclusions of law and reasons for the denial or revocation.  The applicant has a right to a hearing pursuant to title 41, chapter 6, article 10.

G. The director may prescribe rules to carry out this section.
A.R.S. § 6-275 — Arizona Code / Title 6 / Chapter 2 / Article 6 / Section 275
6-275 Computation of reserves
Status: in_force

6-275. Computation of reserves

Compliance with reserve requirements shall be determined as of the close of business on the first Thursday following the effective date of this chapter and every alternate Thursday thereafter on the basis of the average daily reserves maintained during the fourteen day period ending on such Thursday and the average daily net deposit balances for the fourteen day period ending on the Tuesday previous to such Thursday.
A.R.S. § 6-991.05 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991.05
6-991.05 Denial, suspension or revocation of licenses
Status: in_force

6-991.05. 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. Has violated any law, rule or order.

2. Has been convicted of or pled guilty or nolo contendere to a misdemeanor if it involved an act of fraud, dishonesty or breach of trust or money laundering at any time preceding the date of application.

3. 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.

4. Has had an administrative agency of this state, the federal government or any other state or territory of the United States enter an order against the applicant or licensee involving fraud, deceit or misrepresentation 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.

5. Has made a material misstatement or suppressed or withheld information on the application for a license or any document required to be filed with the deputy director.

6. Has had a loan originator license, consumer lender license, mortgage broker license or mortgage banker license revoked or denied in this state or any other state.

B. The deputy director shall deny a license to a person or suspend or revoke a license if the deputy director finds that either of the following applies:

1. The applicant or licensee has been convicted of or pled guilty or nolo contendere to a felony in a domestic, foreign or military court during the seven-year period immediately preceding the date of the application or at any time preceding the date of application if the felony involved an act of fraud, dishonesty or a breach of trust or money laundering.

2. The applicant or licensee does not have the financial responsibility, experience or competence to adequately serve the public or to warrant the belief that the applicant or licensee will act lawfully pursuant to this article.

C. If a licensee or applicant 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 and a certified copy of the indictment or information or other proper evidence of the indictment or information is filed with the deputy director, the deputy director may suspend the license or refuse to grant a license to the applicant pending trial on the indictment.
A.R.S. § 6-846.04 — Arizona Code / Title 6 / Chapter 7 / Article 4 / Section 846.04
6-846.04 Deviations in escrow rates; civil penalty
Status: in_force

6-846.04. Deviations in escrow rates; civil penalty

A. An escrow agent may not deviate from his escrow rates that are in effect pursuant to section 6-846.01.

B. If the deputy director finds that an escrow rate has been charged that deviates from the escrow rate in effect pursuant to section 6-846.01, the escrow agent may be subject to a penalty that is equal to the difference between the rate charged and the allowable rate in effect pursuant to section 6-846.01.

C. If the deputy director finds that an escrow agent knowingly or with such frequency as to indicate a general business practice violated subsection A of this section with respect to a particular provision of the applicable escrow rate, the deputy director, in addition to the penalty imposed under subsection B of this section, may:

1. For each violation, impose an additional penalty of not more than two times the penalty imposed under subsection B of this section.

2. Revoke the escrow agent's license.

D. In addition to penalties imposed under subsection B or C of this section, the deputy director may impose civil penalties pursuant to section 6-132 if the deputy director finds that an escrow agent knowingly violated subsection A of this section with respect to a particular provision of the applicable escrow rate by charging rates that are greater than the rates allowable pursuant to section 6-846.01.
A.R.S. § 6-1301 — Arizona Code / Title 6 / Chapter 13 / Article 1 / Section 1301
6-1301 Definitions
Status: in_force

6-1301. Definitions

In this chapter, unless the context otherwise requires:

1. "Advance fee" means a fee, interest or other consideration directly or indirectly received by a person prior to a loan of money or extension of credit or a commitment to loan money or extend credit being made by the person. Advance fees do not include the actual cost of charges paid to a third party which are incurred in making real estate loans secured in whole or in part by a mortgage deed of trust or other security instrument on real estate, including charges for a preliminary title search, title examination and report, title insurance premiums, property survey and appraisal fees.

2. "Advance fee loan broker" means a person who is not exempt under section 6-1302 and who for an advance fee or in the expectation of an advance fee either directly or indirectly makes or procures, attempts to make or procure or offers to make or procure or attempt to make or procure a loan of money or extension of credit.
A.R.S. § 6-947 — Arizona Code / Title 6 / Chapter 9 / Article 2 / Section 947
6-947 Prohibited acts
Status: in_force

6-947. Prohibited acts

A. Except for employment verifications and deposit or account verifications, a person in connection with or incidental to the making of any mortgage banking loan or mortgage loan shall not induce, require or permit any document to be signed by a party to the transaction if the document contains any blank spaces to be filled in after it has been signed, except that the party may specifically authorize the licensee or the escrow agent handling the transaction, in writing, to complete blank spaces in certain documents.

B. A person is not entitled to receive compensation in connection with arranging for or negotiating a mortgage banking loan or mortgage loan if the person is not licensed pursuant to this article. A mortgage banker shall not pay compensation to, contract with or employ as an independent contractor a person who is acting as a mortgage broker or mortgage banker but who is not licensed under this chapter.

C. A mortgage banker may not commingle monies of borrowers or monies held for the benefit of borrowers with monies of the mortgage banker.

D. A person engaged in the mortgage banking business shall not knowingly advertise, display, distribute, broadcast or televise, or cause or permit to be advertised, displayed, distributed, broadcast or televised, in any manner whatever, any false, misleading or deceptive statement or representation with regard to the rates, terms or conditions for a mortgage banking loan or mortgage loan. The charges or rates of charge, if stated, shall be set forth in a clear and concise manner.

E. A mortgage banker shall not request or require a person seeking a mortgage banking loan or mortgage loan, on real property designed principally for the occupancy of from one to four families, in an amount of two hundred thousand dollars or less to enter into an agreement which prohibits the person from seeking the loan from another source.

F. A mortgage banker shall not, except in good faith, delay or cause delay in the closing of a loan that results in increased costs to a borrower.

G. A mortgage banker shall not record or cause to be recorded any document which would give rise to liability under section 33-420.

H. A person who is employed by a licensee to act in the capacity of a mortgage banker shall not be concurrently employed by any other licensee to act in the capacity of a mortgage banker, except with the prior written approval of all such concurrently employing licensees.

I. A mortgage banker shall not collect compensation for rendering services as a real estate broker or real estate salesman unless both of the following apply:

1. The mortgage banker is licensed pursuant to title 32, chapter 20.

2. The mortgage banker has disclosed to the person from whom the compensation is collected that the mortgage banker is receiving compensation both for mortgage banker services, if applicable, and for real estate broker or real estate salesman services.

J. A licensee shall not accept any assignment of the borrower's wages or salary in connection with activities governed by this article.

K. A mortgage banker shall not, for compensation, either directly or indirectly make or negotiate or offer to make or negotiate a loan of money in an amount of ten thousand dollars or less that is not secured by a mortgage or deed of trust or other lien interest in real property.

L. A mortgage banker shall not make a false promise or misrepresentation or conceal an essential or material fact in the course of the mortgage banker business.

M. A mortgage banker shall not fail to truthfully account for the monies belonging to a party to a mortgage loan or mortgage banking loan transaction or fail to disburse monies in accordance with his agreements.

N. A mortgage banker shall not record a mortgage or deed of trust if monies are not available for the immediate disbursal to the mortgagor unless, before that recording, the mortgage banker informs the mortgagor in writing of a definite date by which payment shall be made and obtains the mortgagor's written permission for the delay.

O. A mortgage banker shall not require a person seeking a loan secured by real property to obtain property insurance coverage in an amount that exceeds the replacement cost of the improvements as established by the property insurer.

P. A mortgage banker must reasonably supervise the activities of a loan originator who is licensed pursuant to article 4 of this chapter and who is employed by the mortgage banker.
A.R.S. § 6-855 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 855
6-855 Fees
Status: in_force

6-855. Fees

A. Each application to establish a trust company or branch or to renew the license of a trust company or branch shall be accompanied by the fee prescribed in section 6-126.

B. The annual renewal fee is payable on or before January 1 of each year the certificate is outstanding. A penalty payment of one hundred dollars shall be assessed for each day after January 15 that such fee is not received by the department.
A.R.S. § 6-478 — Arizona Code / Title 6 / Chapter 3 / Article 8 / Section 478
6-478 Reports to deputy director and members
Status: in_force

6-478. Reports to deputy director and members

A. Every association operating under this chapter shall file with the deputy director within sixty days following the close of each fiscal year of such association, a statement showing its financial condition at the close of the fiscal year and its operations for the year then ended. Each such statement shall be on forms prescribed by the deputy director and in conformity with generally accepted accounting principles, and shall be verified under oath by the secretary and certified by a committee of three or more members who are not officers of the association, or by a licensed certified public accountant appointed by the board of directors, or by two officers of the association.

B. Every association shall file also such other reports as the deputy director may require from time to time.

C. Within sixty days after the date of such statement, the association either shall mail to each member the annual statement of condition, or a condensed form thereof approved by the deputy director, or shall publish the same at least once.
A.R.S. § 6-555 — Arizona Code / Title 6 / Chapter 4 / Article 6 / Section 555
6-555 Minors' accounts
Status: in_force

6-555. Minors' accounts

The credit union may receive payment on share and deposit accounts from a minor, who may withdraw monies from the accounts, including any dividends or interest on the accounts. Payments on the accounts by a minor and withdrawals by the minor are valid in all respects. For these purposes a minor is deemed of legal age.
A.R.S. § 6-508 — Arizona Code / Title 6 / Chapter 4 / Article 2 / Section 508
6-508 Certificate of organization and bylaws
Status: in_force

6-508. Certificate of organization and bylaws

A. The deputy director shall prepare standard forms of the certificate of organization and bylaws, consistent with this chapter, which may be used by credit union incorporators.

B. The board of directors may adopt proposed amendments to the certificate of organization at a duly held meeting. The board of directors shall submit the proposed amendments to the members for ratification at a regular or special meeting, after which they shall be submitted to the deputy director for the deputy director's approval or disapproval. If approved by the deputy director, the board of directors shall follow the procedure for organization prescribed in section 6-507, subsection B.

C. The board of directors may adopt proposed amendments to the bylaws at any duly held meeting by a three-fourths majority vote. After proposed amendments have been approved, the board shall submit the proposed amendments to the deputy director for the deputy director's approval. The amendments are effective on approval of the deputy director. At the next regular or special meeting of the membership the board shall submit all amendments to the bylaws to the members for ratification.
A.R.S. § 6-709 — Arizona Code / Title 6 / Chapter 6 / Article 1 / Section 709
6-709 Requirements
Status: in_force

6-709. Requirements

A. A licensee at all times shall maintain minimum liquid assets of at least $2,500 in excess of the licensee's business liabilities and of the licensee's liabilities on account of monies received in the business of a debt management company. The deputy director may determine by general rule what assets are liquid assets within the meaning of this section and may determine by specific ruling or demand that a particular asset is or is not a liquid asset within the meaning of this section.

B. A licensee shall make a written contract between the licensee and a debtor and immediately furnish the debtor with a copy of the completed contract. The licensee shall concurrently furnish the debtor with a list of the creditors, as of the time of the signing of the contract, with whom the licensee agrees to manage the debtor's obligations. All contracts shall contain a provision allowing the termination of the contract by either party at any time. Such termination shall be without penalty, except that the licensee shall retain the retainer fee if the termination is by the debtor. Termination shall only be on a five-day notice to the other party.

C. The basis of fees charged to a debtor by a licensee for assuming the responsibility of debt management shall be agreed on in advance and clearly stated in the contract. The fees charged to a debtor shall not exceed:

1. A retainer fee of $39.

2. Three-quarters of one percent of the total indebtedness or $50, whichever is less, may be charged monthly and shall be due and payable at the time such deposited funds are remitted to the creditors.  Unusual and necessary "out of pocket" expense items by the licensee may be charged to the debtor's account if the incurrence of the expense has advance written approval of the debtor and deputy director.

D. The total debt shall be calculated not less often than annually and the charges adjusted based on the new total debt. Any fees charged by the licensee shall not be based on a total debt which includes a mortgage on the residence or a rent payment as a liability or a debt.

E. A licensee shall not be entitled to any fee until the licensee has given notice of the debt management contract to all creditors listed in the application form.

F. A licensee shall make remittances to creditors within seven days after receipt of any funds, unless the reasonable payment of one or more of the debtor's obligations requires that such funds be held for a longer period so as to accumulate a certain sum.

G. A licensee shall on request furnish the debtor with a written statement of the debtor's account each month or a verbal accounting at any time the debtor may request it during normal business hours.

H. A licensee shall, if a compromise of a debt is arranged by the licensee with any one or more creditors, allow the debtor the full benefit of that compromise.

I. A licensee shall maintain a trustee checking account in a bank in this state for the benefit of debtors in which all payments received from the debtors shall be deposited and in which all payments shall remain until disbursed by the licensee in accordance with the terms of the contract.

J. A licensee shall keep and use in the licensee's business books, accounts and records that will enable the deputy director to determine whether such licensee is complying with this article and with the rules of the department. Each licensee shall preserve such books, accounts and records for at least three years after making the final entry on any transaction recorded in the books, accounts or records.

K. If a licensee desires to change the licensee's place of business or the name of the company under which the license is issued, the licensee shall give written notice of the change within fifteen days to the deputy director and shall submit the license to the deputy director who shall enter an order allowing the change and who shall amend the license accordingly.

L. A licensee shall, within fifteen days after termination of a debt management company, a branch office or an agency, inform the deputy director of the name and address of such company, branch office or agency and shall surrender the license to the deputy director.

M. A licensee shall annually on or before August 15 file a report with the deputy director giving such relevant information as the deputy director may require concerning the business and operations of each place of business during the preceding year beginning July 1 and ending June 30. The deputy director may assess a penalty of $5 for each day the licensee fails to file such report.
A.R.S. § 6-115 — Arizona Code / Title 6 / Chapter 1 / Article 2 / Section 115
6-115 Insurance premium transmitters; timely payment required; civil penalty
Status: in_force

6-115. Insurance premium transmitters; timely payment required; civil penalty

A. A person who contracts to receive a payment that includes an amount for payment of a mortgage, deed of trust or any other obligation secured by real estate and any amounts to be tendered for payment of an insurance policy premium, a property tax assessment or any other collateral obligation shall make timely payment of those amounts, except as provided in subsection C of this section.

B. Monies collected for payment of an insurance policy premium, a property tax assessment or any other collateral obligation shall be such that the total of the payments collected for each category during the insurance, tax or other period will approximate the actual insurance premium, tax or other payment when due.

C. A person who contracts to receive and tender monies as described in subsection A of this section and who receives a delinquent payment from the payor shall exercise reasonable diligence in tendering those payments and is not subject to a penalty for failure to make a timely payment of those monies when first due.

D. A person who violates this section is subject to a civil penalty under section 6-132.
A.R.S. § 6-476 — Arizona Code / Title 6 / Chapter 3 / Article 8 / Section 476
6-476 Examination
Status: in_force

6-476. Examination

The deputy director shall make a report of each examination to the board of directors of the association examined, and if the affairs of the association are not being conducted in accordance with this chapter, the deputy director may require the directors, officers, or employees to take any necessary corrective action. In the interests of the members of the association, the deputy director may prepare a statement of the condition of the association, and may mail the same to the members or may require a single publication thereof.
A.R.S. § 6-605 — Arizona Code / Title 6 / Chapter 5 / Article 1 / Section 605
6-605 Denial of renewal; suspension; revocation
Status: in_force

6-605. Denial of renewal; suspension; revocation

A. The deputy director may deny renewal of a license or suspend or revoke a license if the deputy director finds that a licensee:

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

2. Has failed to pay the annual renewal fees.

3. Has failed to file an annual report when due or within any extension of time granted by the deputy director for good cause.

4. Has failed to have or maintain at least $25,000 in assets used or readily available for use in conducting the business of each licensed office and branch office.

5. Either knowingly or without the exercise of due care to prevent a violation, has violated any provision of this title or any rule or order adopted or made pursuant to this title.

6. Has failed to operate the business of making consumer lender loans for a continuous period of twelve months or more, except that the deputy director, on good cause shown, may extend the time for operating that business for a single fixed period of not more than twelve months.

B. The deputy director may also deny renewal of a license or suspend or revoke a license if the deputy director finds that any fact or condition exists that, if it had existed at the time of the original application for the license, would have clearly warranted the deputy director to refuse to issue the license.
A.R.S. § 6-1224 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1224
6-1224 Timely transmission
Status: in_force

6-1224. Timely transmission

A. Every licensee shall forward all money received for transmission in accordance with the terms of the agreement between the licensee and the sender unless the licensee has a reasonable belief or a reasonable basis to believe that the sender may be a victim of fraud or that a crime or violation of law has occurred, is occurring or may occur.

B. If a licensee fails to forward money received for transmission pursuant to this section, the licensee must respond to inquiries by the sender with the reason for the failure unless providing a response would violate a state or federal law.
A.R.S. § 6-701 — Arizona Code / Title 6 / Chapter 6 / Article 1 / Section 701
6-701 Definitions
Status: in_force

6-701. Definitions

In this chapter, unless the context otherwise requires:

1. "Agency" means any business serving the public, which as part of its services accepts money for and on behalf of a licensee.

2. "Branch office" means any office operated solely for the purpose of accepting money and performing other services for a licensee.

3. "Creditor" means a person for whose benefit monies are being collected and disbursed by a licensee.

4. "Debt management company" means a corporation, company, firm, partnership, association or society, as well as a natural person, that for compensation engages in the business of receiving money, or evidences thereof, in this state or from a resident of this state as agent of a debtor for the purpose of distributing the same to his creditors in payment or partial payment of his obligations.

5. "Debtor" means a person from whom monies are being accepted for disbursement to creditors.

6. "License" means a license issued under this chapter.

7. "Licensee" means a corporation, company, firm, partnership, association or society, as well as a natural person, licensed by the deputy director to engage in the business of a debt management company pursuant to this chapter.

8. "Nonprofit religious, fraternal or cooperative organizations" means religious, fraternal or cooperative organizations or entities whose primary functions or purposes are not the provision of debt management services.
A.R.S. § 6-1004 — Arizona Code / Title 6 / Chapter 10 / Article 1 / Section 1004
6-1004 Tenancy in two or more names
Status: in_force

6-1004. Tenancy in two or more names

A tenancy in a safe deposit repository may be created by contract with two or more persons, including minors, named as lessees. The terms of the contract may provide that any one or more of the lessees, or the survivor or survivors of the lessees shall have access and entry to the repository and the right to remove the contents from the repository whether the other lessee or lessees be living, incompetent or dead, and the lessor shall not be liable for the removal of any contents.
A.R.S. § 6-979 — Arizona Code / Title 6 / Chapter 9 / Article 3 / Section 979
6-979 Principal place of business; branch office license; change of address
Status: in_force

6-979. Principal place of business; branch office license; change of address

A. Each licensed commercial mortgage banker shall designate and maintain a principal place of business in this state to transact business.  The license shall specify the address of the licensee's principal place of business.

B. If a licensee wishes to maintain one or more locations in addition to a principal place of business, the licensee shall first obtain a branch office license from the deputy director and designate a person for each branch office to oversee the operations of that office.

C. If the deputy director determines that the licensee is qualified, the deputy director shall issue a branch office license indicating the address of the branch office. The licensee shall conspicuously display the branch office license in the branch office.

D. If the address of the principal place of business or of any branch office is changed, the licensee shall immediately notify the deputy director of the change and the deputy director shall endorse the change of address on the license.
A.R.S. § 6-443 — Arizona Code / Title 6 / Chapter 3 / Article 4 / Section 443
6-443 Bonus plans
Status: in_force

6-443. Bonus plans

For the purpose of encouraging thrift, systematic savings and long-term investment, the board of directors may establish by resolution bonus plans for holders of accounts. The board then shall transfer from the periodical profits of the association additional amounts to a bonus reserve, from which reserve payments to holders complying with such plans shall be paid. Every bonus so paid shall be deemed a premium and shall not be construed as a dividend. The bonus plan adopted by the board of directors shall be either one prescribed by the regulations of the federal deposit insurance corporation or its successor instrumentality or shall be in accordance with the following provisions:

1. The holder shall agree to make regular payments at least monthly, of any predetermined amount, until the payments, together with dividends apportioned thereto, equal two hundred times the agreed monthly payment and without a delay of more than thirty days in any payment, without a prepayment of more than twelve months and without making application for withdrawal of all or any part of the account. At the end of the bonus period, the holder shall receive, in addition to the regular monthly payments and dividends apportioned thereto, a bonus at the rate of one per cent per annum computed on the withdrawal value of the account at each apportionment of profits. If the holder applies for withdrawal of his account in part or in full or fails to meet any and all the other terms of his bonus agreement after such account, including dividends apportioned thereto, has reached:

(a) At least fifty but less than one hundred times the agreed monthly payment upon his account in accordance with the terms thereof, such holder shall be entitled to receive one-fourth of the bonus allocable to such account.

(b) At least one hundred but less than one hundred fifty times the agreed monthly payment upon his account in accordance with the terms thereof, such holder shall be entitled to receive one-half of such bonus allocable to such account.

(c) At least one hundred fifty but less than two hundred times the agreed monthly payment upon his account in accordance with the terms thereof, such holder shall be entitled to receive three-fourths of such bonus allocable to such account.

2. The holder shall subscribe to a long-term investment plan providing that if he maintains in his account an agreed minimum balance either:

(a) For a period of four years, he shall be paid a bonus of one-half of one per cent per annum.

(b) For a period of eight years, he shall be paid a bonus of one per cent per annum.

The plan may state the minimum and maximum balances on which a bonus may be paid.

3. If the association effects an enforced retirement of an account which is under a bonus plan before the bonus becomes payable according to the plan, the portion of the bonus reserve allocable to the account shall be paid to the holder.
A.R.S. § 6-564 — Arizona Code / Title 6 / Chapter 4 / Article 7 / Section 564
6-564 Loans to officials
Status: in_force

6-564. Loans to officials

A. A credit union may make loans to an officer, director or member of its supervisory and credit committees if both of the following conditions are met:

1. The loan complies with all requirements of this chapter and is not on terms more favorable than those extended to other borrowers.

2. The aggregate of loans to all such officials, except those fully secured by share or deposit accounts, is not more than twenty percent of the credit union's capital.

B. A credit union may allow officers, directors and members of its supervisory and credit committees to act as comakers, guarantors or endorsers of loans to other members, subject to the requirements of subsection A of this section.

C. Any loan that would result in an official becoming obligated as a direct obligor, endorser, cosigner or guarantor in an aggregate amount of more than one percent of the credit union's net worth must be approved by the board of directors.  At the same time a credit union submits each report of condition, the credit union shall provide to the deputy director a list of the credit obligations of each official if the aggregate obligations of an official to the credit union are more than the lesser of $50,000 or one percent of the credit union's net worth.  For the purposes of this subsection, "net worth" has the same meaning prescribed in 12 Code of Federal Regulations part 702.
A.R.S. § 6-525 — Arizona Code / Title 6 / Chapter 4 / Article 4 / Section 525
6-525 Meetings of members
Status: in_force

6-525. Meetings of members

A. The members of the credit union shall hold the annual meeting and any special meetings as provided in the bylaws.

B. At all such meetings a member has only one vote, irrespective of the member's shareholdings. A member may not vote by proxy, but a member may vote by absentee ballot, mail ballot or other method if the bylaws of the credit union so provide.

C. The board of directors may establish a minimum age, of not more than eighteen, as a qualification of eligibility to vote at meetings of the members or to hold office, or both. Members who are minors may vote through their parent or other legal guardian.

D. An organization having membership in the credit union may be represented and have its vote cast by one of its members or shareholders, if the person has been duly authorized by the organization.
A.R.S. § 6-991.04 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991.04
6-991.04 Issuance of license; notice from employing mortgage broker, mortgage banker or consumer lender or registered exempt person; renewal; inactive status; address change; fee
Status: in_force

6-991.04. Issuance of license; notice from employing mortgage broker, mortgage banker or consumer lender or registered exempt person; renewal; inactive status; address change; fee

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

B. On issuance of the license, the deputy director shall keep the loan originator's license until a mortgage broker or mortgage banker licensed pursuant to this chapter or a consumer lender employs the loan originator and the employer provides a written notice that the employer has hired the loan originator or until an exempt person who is registered pursuant to section 6-912 provides a written notice that the exempt person has engaged the loan originator on an exclusive contract with the exempt person. The employer shall provide the notice before the loan originator begins working for the employer. Exempt persons who are registered pursuant to section 6-912 shall provide the notice before the loan originator begins work under the exclusive contract with the exempt person. The notice shall be from an officer or other person authorized by the employer or registered exempt person.

C. Licenses shall be issued for a one-year period.

D. A loan originator shall apply for renewal on forms prescribed by the deputy director. The application shall include original certificates evidencing the loan originator's successful completion of eight continuing education units during the preceding one-year period by a continuing education provider approved by the deputy director.

E. A loan originator shall pay the renewal fee every year on or before December 31.  Licenses not renewed by December 31 are suspended, and the licensee shall not act as a loan originator until the license is renewed or a new license is issued pursuant to this article. A person may renew a suspended license by paying the renewal fee plus a dollar amount to be determined by the deputy director for each day after December 31 that a license renewal fee is not received by the deputy director.

F. Licenses that are not renewed by January 31 of each year expire.  A license shall not be granted to the holder of an expired license except as provided in this article for the issuance of an original license.

G. From December 1 through December 31 of each renewal period, a licensee may request inactive status for the following license period.  The license shall be placed on inactive status after the licensee pays to the deputy director the inactive status renewal fee and surrenders the license to the deputy director. During inactive status, an inactive licensee shall not act as a loan originator.  The license expires if the licensee violates this subsection.

H. At renewal, an inactive licensee may return to active status by doing all of the following:

1. Providing the deputy director with evidence that the licensee has met the requirements of section 6-991.03, subsection B.

2. Making a written request to the deputy director for reactivation.

3. Paying the annual licensing fee.

4. Providing the deputy director with proof that the licensee meets all other requirements for acting as a loan originator.

I. The mortgage broker, mortgage banker, consumer lender or registered exempt person shall keep and maintain at the principal place of business in this state the loan originator's license during the loan originator's employment or exclusive contract term. A copy of the loan originator's license shall be available for public inspection during regular business hours.

J. A loan originator shall immediately notify the deputy director of a change in the loan originator's residence address. The deputy director shall endorse the change of address on the license for a fee to be determined by the deputy director.

K. Within five business days after any licensee's employment termination, the employing mortgage broker, mortgage banker, consumer lender or registered exempt person shall do both of the following:

1. Notify the deputy director of the licensee's termination.

2. Return the license to the deputy director.

L. An applicant for a loan originator license who is currently registered with 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 may be granted a temporary license for a period of not more than one hundred eighty days.

M. The deputy director shall establish a process for loan originators to challenge information that the deputy director enters into the nationwide mortgage licensing system and registry.
A.R.S. § 6-144 — Arizona Code / Title 6 / Chapter 1 / Article 4 / Section 144
6-144 Acquisition of control; approval of deputy director
Status: in_force

6-144. Acquisition of control; approval of deputy director

A person shall not, directly or indirectly, make a tender offer for, request or invite a tender offer for, offer to exchange securities for or acquire in the open market or otherwise, any voting security or any security convertible into a voting security of a bank, trust company, savings and loan association or controlling person if such a transaction would result in the person acquiring control of a bank, trust company or savings and loan association or controlling person unless the deputy director has approved such acquisition of control, except that this section does not prohibit a person from negotiating or entering into agreements subject to the condition that the acquisition of control will not be effective until approval of the deputy director is obtained.
A.R.S. § 6-422 — Arizona Code / Title 6 / Chapter 3 / Article 4 / Section 422
6-422 Types of capital; personal property
Status: in_force

6-422. Types of capital; personal property

A. The capital of an association may be represented by capital notes and debentures, accounts or guaranty capital, as provided in this article and as authorized by the articles of incorporation.

B. All accounts, capital notes and debentures and guaranty capital shall be personal property in the hands of their holders, transferable as provided in this chapter and the bylaws of the association.
A.R.S. § 6-838 — Arizona Code / Title 6 / Chapter 7 / Article 3 / Section 838
6-838 Surrender of license
Status: in_force

6-838. Surrender of license

A licensee that desires to surrender its license shall file with the deputy director a certified copy of the resolution of its board of directors or a verified statement of intent signifying this desire, and thereafter shall not accept additional escrow business. On receipt of the resolution or statement of intent, the deputy director shall make an investigation, and if the deputy director determines that the licensee has been discharged from all duties that it has undertaken as an escrow agent, the deputy director shall issue an order to the licensee certifying that it is no longer authorized to exercise the powers of an escrow agent and the licensee shall immediately surrender its license.
A.R.S. § 6-631 — Arizona Code / Title 6 / Chapter 5 / Article 2 / Section 631
6-631 Disclosures; penalty
Status: in_force

6-631. Disclosures; penalty

A. To the extent applicable, a licensee shall comply with the disclosure requirements of the truth in lending act.

B. Each note or agreement evidencing a consumer lender loan shall contain the following disclosure statement in at least ten-point type that is in English and in Spanish and in close proximity to the consumer's signature line:

Notice: You may request that the initial disclosures prescribed in the truth in lending act (15 United States Code sections 1601 through 1666j) be provided in Spanish before signing any loan documents.

C. A licensee shall continuously and conspicuously display a sign printed in at least twelve-point bold type containing the notice prescribed by subsection B of this section and the following notice at each desk in each licensed office or branch office at which consumer lender loans are usually and normally closed:

Notice

Before signing any loan documents or otherwise committing to a loan, you may take copies of those documents away from the consumer lender's place of business for review.

D. A licensee shall give to the consumer a receipt or another written record of the amount of any payment made in currency on any consumer lender loan, either at the time the payment is made or within ten days after the payment is made, or the licensee may reflect the payment on the periodic statement sent to the consumer for the billing period that includes the date of that payment.

E. A licensee shall mail periodic statements for consumer revolving loans and home equity revolving loans to the consumer within fourteen days after the end of each monthly billing cycle period. A billing cycle period is considered monthly if the closing date of the billing cycle period is the same day each month or does not vary by more than four days from that day.

F. If the licensee fails to make the disclosure statement prescribed in subsection B of this section, the deputy director shall assess the licensee a one-time penalty of up to $300 for every violation.
A.R.S. § 6-811 — Arizona Code / Title 6 / Chapter 7 / Article 2 / Section 811
6-811 Exemptions
Status: in_force

6-811. Exemptions

A. The provisions of this chapter do not apply to and the term "escrow agent" does not include:

1. Any person who is licensed to practice law in this state and who is not actively engaged in conducting an escrow business.

2. Any person doing any of the acts specified in section 6-801, paragraph 4 pursuant to the order of a court.

3. Trustees of deeds of trust to the extent the activities are performed as a trustee under a deed of trust.

4. Any person doing any of the acts specified in section 6-801, paragraph 4 in a fiduciary capacity for any person, trust or estate pursuant to the order of a court.

5. Licensed real estate brokers who render certain services by collecting rents for others, as to such rents, and who within a reasonable time account for such rents to the person or persons properly entitled to such accounting.

6. Licensed real estate brokers who in the regular course of their business accept earnest money for the purpose of effecting the sale or transfer of property, as to such earnest money, and who within a reasonable time account for such earnest money to the prospective buyer or seller or to a licensed escrow agent.

7. Persons licensed pursuant to title 32, chapter 9, but only to the extent that these activities are regulated by title 32, chapter 9.

8. Any person who is licensed pursuant to chapter 9, article 2 of this title and who is approved to service loans for either:

(a) The federal national mortgage association.

(b) The federal home loan mortgage corporation.

(c) The government national mortgage association.

9. Any person licensed pursuant to chapter 14, article 1 of this title.

10. Any person who is licensed pursuant to chapter 9, article 3 of this title.

B. The provisions of this article do not apply to:

1. A person doing business under the laws of this state or the United States relating to banks, credit unions, savings banks, trust companies and savings and loan associations, except that this subsection does not exempt such banks, credit unions, trust companies, savings banks and savings and loan associations from regulation of such escrow activities under other statutes or laws of this state or of the United States nor does this subsection allow an affiliate of the bank, credit union, savings bank, trust company or savings and loan association to engage in the escrow business unless it is licensed pursuant to this article and engages in such a business in accordance with this chapter.

2. A person who is licensed pursuant to chapter 9, article 2 of this title and who is not approved to service loans for either:

(a) The federal national mortgage association.

(b) The federal home loan mortgage corporation.

(c) The government national mortgage association.
A.R.S. § 6-1703 — Arizona Code / Title 6 / Chapter 17 / Article 1 / Section 1703
6-1703 Required disclosures; counseling
Status: in_force

6-1703. Required disclosures; counseling

A. Before accepting a final and complete application for a reverse mortgage or assessing any fees, the originator shall:

1. Provide the borrower with a list of at least five housing counseling agencies, including at least two housing counseling agencies that can provide counseling by telephone.

2. Receive from the borrower or the borrower's authorized representative a certification that the borrower has received counseling from a housing counseling agency. The certification shall be signed by the borrower and the housing counseling agency counselor and shall include the date of the counseling and the name and address of both the counselor and the borrower. The date on the certification must show that the counseling occurred within the six months preceding the borrower accepting a final and complete application for a reverse mortgage. An electronic copy of the housing counseling certification satisfies the requirements of this paragraph. The originator shall maintain the certification in an accurate, reproducible and accessible format for the term of the reverse mortgage.

B. At least ten days before loan closing, the originator shall make available to the borrower a statement informing the borrower that the borrower's liability under the reverse mortgage is limited and explaining the borrower's rights, obligations, remedies with respect to temporary absences from the home, late payments and payment default by the originator and all conditions requiring satisfaction of the loan obligation.

C. Before entering into a reverse mortgage, an originator shall fully disclose in writing:

1. All costs charged by the originator, including costs of estate planning, financial advice and other services that are related to the reverse mortgage but that are not required to obtain the reverse mortgage. The disclosure shall clearly identify which charges are required to obtain the reverse mortgage and which charges are not required to obtain the reverse mortgage.

2. All terms and provisions with respect to insurance, repairs, alterations, payment of taxes, default reserve, delinquency charges, foreclosure proceedings, anticipation of maturity and any additional and secondary liens.

3. The projected total cost of the reverse mortgage to the borrower based on the projected total future loan balance for at least two projected loan terms.  This statement shall include:

(a) The cost for a short-term mortgage.

(b) The cost for a loan term equaling the actuarial life expectancy of the borrower.
A.R.S. § 6-553 — Arizona Code / Title 6 / Chapter 4 / Article 6 / Section 553
6-553 Deposit accounts
Status: in_force

6-553. Deposit accounts

A. A credit union may only accept deposit accounts from its members, employers of members, sponsors of profit or pension trusts of those members, other credit unions and governmental units, and from nonmembers in the case of credit unions serving predominantly low income members in accordance with nonmember deposit requirements of the national credit union administration for federal credit unions, and subject to the terms, rates, limits and conditions established by the board of directors.

B. The credit union may pay interest on deposit accounts at various rates with due regard to the conditions that pertain to each type of account such as minimum balance, notice and time requirements.

C. A deposit account is a debt owed by the credit union to the account holder. Ownership of a deposit account does not confer membership or voting rights and does not represent an interest in the capital of the credit union.
A.R.S. § 6-408 — Arizona Code / Title 6 / Chapter 3 / Article 2 / Section 408
6-408 Application for permit to organize
Status: in_force

6-408. Application for permit to organize

The application for a permit to organize an association shall be addressed to the deputy director in such form as the deputy director shall provide, be in duplicate, be personally signed by each applicant and be verified under oath by each applicant.  The applicants shall submit with their application statements, exhibits, maps and other data, which shall be sufficiently detailed and comprehensive to enable the deputy director to pass on the application.
A.R.S. § 6-574 — Arizona Code / Title 6 / Chapter 4 / Article 8 / Section 574
6-574 Retirement accounts
Status: in_force

6-574. Retirement accounts

A credit union may act as trustee or custodian of any form of retirement, pension, profit sharing or deferred income accounts for its members, pension funds of self-employed individuals eligible for membership and pension funds of a company or organization whose employees or members are eligible for membership in the credit union.
A.R.S. § 6-504 — Arizona Code / Title 6 / Chapter 4 / Article 1 / Section 504
6-504 Advertising
Status: in_force

6-504. Advertising

A credit union shall not make, advertise, display, distribute, broadcast or televise, or cause or permit to be made, advertised, displayed, distributed, broadcast or televised, in any manner whatever any false, misleading or deceptive statement or representation.
A.R.S. § 6-475 — Arizona Code / Title 6 / Chapter 3 / Article 8 / Section 475
6-475 Branch office
Status: in_force

6-475. Branch office

A. A branch office is a legally established place of business of the association, other than the home office, authorized by the board of directors and approved by the deputy director, at which payments on, and withdrawal from, accounts and loan payments may be accepted and applications for loans may be received, and at which account books and membership certificates may be issued and loans may be closed.

B. Each association shall be operated from the home office, which shall be the association's principal place of business. All branch offices shall be subject to direction from the home office.

C. An association may establish or acquire a branch office in any location, whether within or outside this state, with the approval of the deputy director. An association shall make an application for establishment or acquisition of a branch office in writing in the form the deputy director prescribes and supported by the information, data and records the deputy director requires to make the findings necessary for approval. Each application for approval of the establishment and maintenance of a branch office shall state the proposed location of the branch office, the need for the branch office, the functions to be performed in the branch office, the estimated annual expense of the branch office, and the mode of payment for the branch office. Each such application shall be accompanied by a budget of the association for the current dividend period and for the next succeeding semiannual period, which reflects the estimated additional expense of the maintenance of such a branch office. The deputy director shall approve the application if the deputy director finds that the prospects for a successful operation of the branch office are favorable.

D. An association shall not establish or maintain an automated teller machine without the prior written approval of the deputy director. An association shall accompany each application for approval of the establishment and maintenance of an automated teller machine with the fee prescribed by section 6-126. The application shall state the proposed location of the automated teller machine, the need for the automated teller machine, the functions to be performed by the automated teller machine, the estimated annual expense of the automated teller machine and the mode of payment by the automated teller machine. The deputy director shall approve the application if the deputy director finds that the prospects for a successful operation of the automated teller machine are favorable.
A.R.S. § 6-991.03 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991.03
6-991.03 Licensing; renewal; qualifications; application; fees
Status: in_force

6-991.03. Licensing; renewal; qualifications; application; fees

A. A natural person shall not act as a loan originator unless the person is licensed under this article.

B. The deputy director shall not grant a loan originator license to a person, other than a natural person. An applicant for an original loan originator's license shall have done all of the following:

1. Satisfactorily completed a course of study, including at least twenty hours of education, for loan originators approved by the deputy director during the three-year period immediately preceding the time of application.  The twenty hours of education must include at least all of the following:

(a) Three hours of federal law.

(b) Three hours of ethics, which shall include instruction on fraud, consumer protection and fair lending issues.

(c) Two hours of training related to lending standards of the nontraditional mortgage product marketplace.

(d) Four hours of the laws of this state.

2. Completed late continuing education for the purposes of satisfying continuing education for the last year that the loan originator was in renewable status.

3. Passed a loan originator's examination pursuant to section 6-991.07.  The applicant shall demonstrate knowledge and understanding of the following:

(a) Federal laws.

(b) Other applicable laws.

(c) Subjects described in section 6-991.07, subsection A.

4. Retaken the loan originator's examination if the licensed loan originator failed to maintain a valid license for a period of five years or longer, not including any time during which the applicant is a registered loan originator.

5. Obtained 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.

6. Deposited with the deputy director a bond executed by the applicant's employer or registered exempt person as principal and a surety company licensed to do business in this state as a surety pursuant to section 6-903, 6-912 or 6-943.

7. Submitted fingerprints to the department for the purpose of a background investigation.

8. Paid an amount to be determined by the deputy director for deposit in the mortgage recovery fund established pursuant to section 6-991.09 or deposited with the deputy director a bond executed by the applicant's employer or registered exempt person as principal and a surety company licensed or approved to do business in this state 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. Notwithstanding section 6-903 or 6-943, the amount of the bond shall be in an amount of not less than $200,000. Loan originators working under the employer or registered exempt person bond described in this paragraph do not have to contribute to the mortgage recovery fund.

C. A person shall apply for a license or renewal of a license in writing in the manner prescribed by the deputy director and accompanied by the information prescribed by the deputy director.

D. Before submitting a renewal application, an applicant for renewal of a loan originator license shall have satisfactorily completed eight approved continuing education units that include at least:

1. Three hours of federal law.

2. Two hours of ethics, including instruction on fraud, consumer protection and fair lending issues.

3. Two hours of training related to lending standards for the nontraditional mortgage product marketplace.

4. One hour of the laws of this state.

E. Education courses taken before licensure shall be reviewed and approved by 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.

F. Continuing education courses shall be reviewed and approved by 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.  A licensed loan originator:

1. May only receive credit for a continuing education course in the year in which the course is taken.

2. May not take the same approved course in the same year or successive years to meet the annual requirements for continuing education.

G. The nonrefundable application fee shall accompany each application for an original loan originator license.

H. A license issued pursuant to this article is not transferable or assignable.

I. At the deputy director's discretion, application fees may be waived if the applicant is a housing counselor certified by the United States department of housing and urban development and employed by a nonprofit agency.

J. Each mortgage broker, mortgage banker or registered exempt person shall submit to 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 reports of condition that are in a form and that contain information required by the nationwide mortgage licensing system.

K. The deputy director shall establish a process for loan originators to challenge information that the deputy director enters into the nationwide mortgage licensing system and registry.
A.R.S. § 6-634 — Arizona Code / Title 6 / Chapter 5 / Article 2 / Section 634
6-634 Precomputation of consumer loan
Status: in_force

6-634. Precomputation of consumer loan

A. A precomputed consumer loan shall require repayment in substantially equal consecutive monthly installments of principal and finance charges combined. The first installment of a precomputed consumer loan is due not less than fifteen days but not more than forty-five days after the precomputed consumer loan is made. The licensee may precompute finance charges at the agreed consumer loan rate on scheduled unpaid principal balances and add those charges to the principal amount of the precomputed consumer loan. The licensee shall calculate the finance charges on precomputed loans on an annual basis of twelve months of thirty days per month. All computations are based on the assumption that all payments are made as scheduled. The licensee may round the consumer loan rate to the nearest one-quarter of one per cent.

B. If a precomputed consumer loan is prepaid in full, the licensee shall provide the consumer with a refund or credit of the precomputed finance charges that apply to all of the fully unexpired months of the precomputed consumer loan as originally scheduled, or if deferred, as deferred, and that follow the installment date nearest to the date of the prepayment. For this purpose the applicable finance charge is the total of those finance charges that would have been made for each unexpired month by applying scheduled payments to unpaid balances of principal according to the actuarial method at that single consumer loan rate that would result in the original amount of precomputed finance charges on the consumer loan, assuming finance charges had not been precomputed at the agreed to consumer loan rate but had been computed by the actuarial method at the agreed to single consumer loan rate from the inception of the consumer loan.

C. The licensee may agree to defer payment of all wholly unpaid installments for one or more full months and extend the due date of each installment and the maturity of the precomputed consumer loan for the same amount of time. The deferment period is the month or months in which the consumer makes no scheduled payment or in which no payment is required by reason of the deferment. If a deferment is made, the licensee may charge and collect a deferral fee that is not more than the agreed to consumer loan rate applied to the amount or amounts deferred for the period of deferral without regard to differences in the lengths of months, but applied proportionately for a part of a month by counting each day as one-thirtieth of a month. The licensee may collect a deferral fee at the time the licensee assesses the deferral fee or at any time after the assessment. No rebate of deferral fees is required unless prepayment occurs before the due date of the first deferred installment.

D. If the maturity of a precomputed consumer loan is accelerated, the licensee shall reduce the outstanding balance of that precomputed consumer loan by the refund or credit of precomputed finance charges that the consumer would be entitled to receive pursuant to subsection B on prepayment in full on the date of acceleration. After application of that refund or credit, the licensee may charge and receive finance charges at the agreed to consumer loan rate computed on the unpaid balances of the consumer loan for the actual time outstanding from the installment date nearest the date of acceleration until paid in full.

E. The note or agreement evidencing a precomputed consumer loan may provide that the licensee, with or without accelerating maturity, may recompute the entire consumer loan on a per cent per month basis or may reduce the outstanding balance as of any installment date by the refund or credit of precomputed finance charges that the consumer would be entitled to receive pursuant to subsection B on prepayment in full on the installment date. After recomputing the loan or applying the refund or credit of precomputed finance charges, the licensee may charge and receive finance charges at the agreed to consumer loan rate computed on unpaid balances of the consumer loan for the actual time outstanding from the installment date until the consumer loan is paid in full.
A.R.S. § 6-859 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 859
6-859 Records; audits; preservation of records; protection; insurance; bond; contingency plan
Status: in_force

6-859. Records; audits; preservation of records; protection; insurance; bond; contingency plan

A. A bank, savings and loan association or trust company shall keep and use in its business any books, accounts and records which will enable the deputy director to determine whether the bank, savings and loan association or trust company is complying with this article and the rules of the deputy director. The deputy director by rule may provide the periods of time and the manner in which such books, accounts and records shall be preserved.

B. A certified public accountant shall audit the corporate records and trust business of each trust company at least once each fiscal year.  The trust company shall file a copy of the audit report with the deputy director not more than one hundred twenty days after the end of the trust company's fiscal year. The audit requirement may be satisfied by filing a copy of the audit report of the parent of the trust company if the audit report is prepared by a certified public accountant and includes a detailed examination of the trust company's assets and liabilities and trust business. If the trust company shows good cause the deputy director may extend the time to file the audit report by not more than ninety days.

C. The audit shall include an examination of the trust company's internal control structure over the financial reporting and accounting of the trust business plus any reportable conditions of the trust company's internal control structure. For purposes of this subsection, "reportable conditions" means significant deficiencies in the design or operation of the internal control structure that would adversely affect the trust company's ability to perform its business activities and carry out its fiduciary duties and responsibilities consistent with the safe, sound and lawful operation of the trust business.

D. The board of directors of a trust company shall require protection and indemnity for the trust company, pursuant to section 6-868, against dishonesty, fraud, defalcation, forgery, theft, embezzlement, and other similar insurable losses, with corporate insurance or surety companies authorized to do business in this state. Coverage against such losses shall include all agents who do not otherwise provide protection and indemnity for the trust company, directors, officers and employees of the trust company acting independently or in collusion or combination with any person or persons whether or not they draw salary or compensation.

E. The board of directors shall require suitable insurance to protect the trust company against burglary, robbery, theft and other insurable hazards to which it may be exposed in the operation of the business.

F. The board of directors shall procure errors and omissions insurance of at least $500,000.

G. At least once each year the board of directors shall review the fidelity bond and the errors and omissions insurance to determine the adequacy of coverage in relation to the exposure. The minimum amount of insurance required in this chapter does not automatically represent adequate bond and insurance coverage in relation to the exposure. The actions by the board of directors shall be recorded in the minutes of the board. Immediately after procuring the bonds, the board of directors shall file them with the deputy director.

H. The board of directors and senior management shall:

1. Establish policies, procedures and responsibilities for comprehensive contingency planning.

2. Annually review and approve the trust company's contingency plans and record the actions in the minutes of the board of directors.

I. If the trust company receives information processing from a service bureau the board of directors and senior management shall:

1. Evaluate the adequacy of contingency plans for its service bureau.

2. Ensure that the trust company's contingency plan is compatible with its service bureau's plan.
A.R.S. § 6-870.01 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 870.01
6-870.01 Acceptance of other examinations; cooperative agreements
Status: in_force

6-870.01. Acceptance of other examinations; cooperative agreements

A. Instead of an examination prescribed by section 6-122, the deputy director may accept the examination report of a federal or state agency that has regulatory or supervisory authority over the trust company. The deputy director's acceptance of the examination report does not constitute a waiver of the licensing fees and assessments provided by law. An accepted examination report becomes an official report of the department.

B. The deputy director may enter into cooperative agreements and take joint action with other regulatory or supervisory authorities that have concurrent jurisdiction over a trust company.
A.R.S. § 6-976 — Arizona Code / Title 6 / Chapter 9 / Article 3 / Section 976
6-976 Responsible individual; employees
Status: in_force

6-976. Responsible individual; employees

A. A license entitles the licensee and all officers, directors, members, partners, trustees and employees of the licensee to engage in commercial mortgage banking 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 licensee under this article. 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, employee does not include an independent contractor.

B. The responsible individual shall be active in managing the activities of the licensee governed by this article and shall meet the qualifications prescribed by section 6-973, subsection D, paragraph 1 for a licensee. A licensee shall notify the deputy director that its responsible individual will cease to be active in managing the activities of the licensee within ten days after learning of that fact. Within ninety days after the notification is received by the deputy director, the licensee shall replace the responsible individual with a qualified replacement and 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.

C. 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 at least two years after termination.

D. The licensee is liable for any damages caused by any employee while acting as an employee of the licensee.
A.R.S. § 6-1416 — Arizona Code / Title 6 / Chapter 14 / Article 1 / Section 1416
6-1416 Return premiums
Status: in_force

6-1416. Return premiums

A. Except as provided in subsection B, if a financed insurance policy is cancelled by any party, the insurer shall return the gross unearned premiums due under the policy directly to the premium finance company for the account of the insured as soon as reasonably possible, but not more than twenty days after the effective date of cancellation of a policy providing insurance coverage for an individual, family or household purpose or not more than forty-five days after the effective date of cancellation of a policy providing insurance coverage for any entity involved in transactions solely for business purposes. The licensee shall maintain a list of all insurers that fail to return gross unearned premiums due under the insurance policy within the period specified by this subsection. The list shall include the name of the insurer, the name of the insured, the applicable insurance policy number, the date of cancellation of the insurance policy and the date the licensee received the gross unearned premium due under the insurance policy.

B. If a financed insurance policy is cancelled by any party in connection with a policy that provides insurance coverage for any entity involved in transactions solely for business purposes in which the policy is subject to an audit to calculate the actual premium of the policy, the insurer shall return any gross unearned premiums due under the policy directly to the premium finance company for the account of the insured as soon as reasonably possible, but not more than forty-five days after the effective date of cancellation. If an audit is required to calculate the actual premium due, the insurer shall notify the licensee not more than forty-five days after the effective date of cancellation and specify the time to complete the audit and make the payment to the licensee. The licensee shall maintain a list of all insurers that fail to return gross unearned premiums due under the insurance policy within the period specified by this subsection. The list shall include the name of the insurer, the name of the insured, the applicable insurance policy number, the date of cancellation of the insurance policy, the final premium determined as a result of the audit and the date the licensee received the gross unearned premium due under the insurance policy.

C. If an insurer returns any unearned premium to a person other than the premium finance company named in the premium finance agreement, the insurer is liable to that premium finance company for any and all unearned premiums due as a result of the cancellation. The insurer shall furnish to the agent or broker placing the insurance a report setting forth an itemization of the unearned premiums under the policy.

D. If the crediting of return premiums to the account of the insured results in a surplus over the amount due from the insured, the licensee shall refund the excess within ten working days of receipt of the return premium by mailing to the agent or broker placing the insurance a check for the excess made payable jointly to the insured and the agent or broker, and shall furnish the agent or broker a report setting forth an itemization of the unearned finance charge and other charges under the premium finance agreement. A refund is not required when the excess due the insured is less than one dollar.

E. On receipt of the refund check from the licensee, the agent or broker shall return any unearned premiums to the insured either in person or by depositing the refund in the mail within ten working days of receipt of the refund.

F. Failure to refund any surplus or return any unearned premium or to furnish any reports required under subsection D shall not invalidate a notice of cancellation given in accordance with this chapter.
A.R.S. § 6-1104 — Arizona Code / Title 6 / Chapter 11 / Article 1 / Section 1104
6-1104 Acquisition of control; approval by deputy director
Status: in_force

6-1104. Acquisition of control; approval by deputy director

A. A person shall not, directly or indirectly, make a tender offer for, request or invite a tender offer for, offer to exchange securities for or acquire in the open market or otherwise any voting security or any security convertible into a voting security of a financial institution or controlling person if the transaction would result in the person becoming a financial institution holding company unless the deputy director has approved the acquisition of control pursuant to this article.  This section does not prohibit a person from negotiating or entering into agreements subject to the condition that the acquisition of control is not effective until approval of the deputy director pursuant to this article is obtained.

B. A person who has been approved pursuant to this article is not required to make a subsequent application pursuant to this article to acquire additional control or fractions of control of the financial institution or controlling person for which it was approved if the person has remained in continuous control of the financial institution or controlling person.
A.R.S. § 6-1204 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1204
6-1204 Examinations; investigations; records
Status: in_force

6-1204. Examinations; investigations; records

A. The director may conduct an examination or investigation and take action authorized by this title or by a rule adopted or order issued under this title to administer and enforce this article and other applicable law, including the bank secrecy act (P.L. 91-508; 84 Stat. 1114) and the patriot act (P.L. 107-56; 115 Stat. 272).

B. Persons whose activity is regulated under this article shall provide, and the director shall have full and complete access to, all records the director may reasonably require to conduct a complete examination or investigation. The records must be provided at the location and in the format specified by the director. The director may use multistate record production standards and examination procedures when the standards reasonably achieve the requirements of this subsection.
A.R.S. § 6-411 — Arizona Code / Title 6 / Chapter 3 / Article 2 / Section 411
6-411 Subscription to capital and temporary organization
Status: in_force

6-411. Subscription to capital and temporary organization

On receipt of the permit to organize an association, the applicants shall constitute the organization committee and shall perfect a temporary organization by electing a chairman, vice chairman, and a secretary, who shall act as the temporary officers of such association until their successors are duly elected and qualified. Such temporary officers shall proceed to:

1. Secure subscriptions for the required amount of capital in form and manner approved by the deputy director.

2. Call a meeting of subscribers, who shall adopt articles of incorporation and elect directors to serve until the first annual meeting of the association and until their successors are elected and qualified.

3. The directors so elected shall proceed to:

(a) Organize as a board and qualify as directors.

(b) Adopt by-laws.

(c) Elect officers pursuant to the by-laws.

(d) Collect subscriptions to the required capital, but only after the persons designated to collect such subscriptions have been bonded as provided in section 6-420.

(e) Take such other action as may be necessary to complete the organization.

(f) Report the completion of the organization to the deputy director. Unless such report is made to the deputy director within six months after the date of the permit to organize, the permit shall be deemed revoked and any subscriptions collected shall be refunded unless the deputy director, on good cause shown, shall extend the time for filing such report for a fixed period which shall not exceed three months.
A.R.S. § 6-978 — Arizona Code / Title 6 / Chapter 9 / Article 3 / Section 978
6-978 Consent of deputy director for transferring, assigning or acquiring control of licensee; definition
Status: in_force

6-978. Consent of deputy director for transferring, assigning or acquiring control of licensee; definition

A license is not transferable or assignable and control of a licensee may not be acquired through a stock purchase or any other device without the prior written consent of the deputy director. The deputy director shall not give written consent if the deputy director finds that any of the grounds for denial, revocation or suspension of a license as set forth in section 6-982 apply to the acquiring person. For the purpose of this section, "control" means the power to vote more than twenty percent of the outstanding voting shares of a licensed corporation, partnership, association or trust.
A.R.S. § 6-864 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 864
6-864 Continuing jurisdiction
Status: in_force

6-864. Continuing jurisdiction

If the certificate of a trust company is surrendered, suspended or revoked, the company shall nevertheless continue to be subject to the provisions of this chapter for so long as it acts as a fiduciary with respect to any trust business previously undertaken.
A.R.S. § 6-135.01 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 135.01
6-135.01 Department receivership revolving fund; use of fund
Status: in_force

6-135.01. Department receivership revolving fund; use of fund

A. The department receivership revolving fund is established to be administered by the deputy director. The fund shall consist of monies from the following sources:

1. Monies awarded and received as fees and costs in receiverships in which the deputy director was the receiver, as provided in section 6-131.01.

2. Monies received from the department revolving fund, as provided in section 6-135, subsection B.

B. Monies in the fund may be used to pay any costs incurred by the division arising out of the administration of a receivership in which the deputy director is the receiver.

C. The director shall submit to the legislature with the department's annual budget request a full and complete account of the department receivership revolving fund through the end of its most recent fiscal year.
A.R.S. § 6-453 — Arizona Code / Title 6 / Chapter 3 / Article 5 / Section 453
6-453 Purchase of real estate for office and rental purposes
Status: in_force

6-453. Purchase of real estate for office and rental purposes

An association may invest in land on which to erect an office building, an office building or buildings and appurtenances, for the transaction of such association's business, or for the transaction of such business and for rental, but no such investment may be made if the total amount of all investments of the association in such building or buildings exceeds the aggregate amount of the association's outstanding shares of guaranty capital, reserves available for losses and surplus, unless the deputy director, on a proper showing, shall approve a larger amount consistent with the needs of the association's business and its immediate expansion. An association shall not purchase an office building, or any part of an office building, or land on which to erect an office building, from an affiliated institution, from an officer, director or employee of such association, or from a corporation or association in which any officer, director or employee is a stockholder or is an officer, director or employee, or from a partnership in which any officer, director or employee is a partner, without the prior written approval of the deputy director.
A.R.S. § 6-465 — Arizona Code / Title 6 / Chapter 3 / Article 6 / Section 465
6-465 Merger of associations or corporations
Status: in_force

6-465. Merger of associations or corporations

A. An association operating under this chapter may merge into or with one or more associations, whether operating under this chapter or otherwise, or into or with any other corporation, except a corporation or association operating an insurance business, other than title insurance, pursuant to title 20. The board of directors of each merging association or corporation, by resolution adopted by a majority vote of all members of such board, must approve the plan of merger, which shall set forth:

1. The name of each merging association or corporation, and the name of the continuing association or corporation and the location of its principal office.

2. The amount of capital, reserves, and undivided profits of the continuing association or corporation, and the kinds of shares and other types of capital to be issued thereby.

3. The articles of incorporation of the continuing association or corporation.

4. A detailed pro forma financial statement of the assets and liabilities of the continuing association or corporation.

5. The manner and basis of converting the capital of each merging association or corporation into capital of the continuing association or corporation.

6. The other terms and conditions of the merger and the method of effectuating the same.

7. Such other provisions with respect to the merger as appear necessary or desirable, or as the deputy director may reasonably require to enable the deputy director to discharge the deputy director's duties with respect to such merger.

B. The plan of merger adopted shall be submitted to the deputy director for approval, together with a certified copy of the authorizing resolution of each board of directors, showing approval by a majority of the entire board of each merging association operating under this chapter and evidence of proper action by the board of any other merging association or corporation. The deputy director may make or cause to be made an examination of the affairs of each of the merging associations or corporations. The deputy director may approve the plan of merger if, after appropriate inquiry into the affairs of each of the merging associations or corporations, the deputy director finds that:

1. If the resulting association or corporation is an association operating under this chapter, the continuing association meets the requirements of this chapter as to the organization of a new association.

2. The plan provides an adequate capital structure.

3. The plan is fair to all persons affected.

4. The plan meets the approval of the insurance corporation, if such approval is required.

C. If the deputy director disapproves the plan of merger, the deputy director shall state the deputy director's objections in writing and give the merging associations or corporations an opportunity to amend the plan of merger to eliminate such objections.

D. Except as provided by subsection F of this section, after approval by the deputy director, the plan of merger shall be submitted to a vote of the members of each merging association operating under this chapter and to the members or stockholders of any other merging association or corporation to the extent required by the laws and rules applicable to the other merging association or corporation. Each meeting of the members of an association operating under this chapter shall be called and held in accordance with section 6-415. The plan shall be approved by the members of an association operating under this chapter if the plan receives, in the affirmative, a majority of the total number of votes that all members of the association are entitled to cast or such greater percentage of the votes as the articles of incorporation of the association require. Each meeting of any other association or corporation shall be called and held, and the required majority must be obtained, in accordance with the law and regulations applicable to such association or corporation.

E. A report of proceedings at the meeting of the members or stockholders of each association or corporation, certified by the president or a vice president and attested by the secretary thereof, and setting forth the notice given and time of mailing thereof, the vote on the plan of merger, and the total number of votes that all members or stockholders of the association or corporation were entitled to cast thereon, shall be filed in duplicate with the deputy director, except that if no member or stockholder vote is required by an association or corporation, the association or corporation shall file a report to that effect, in duplicate, certified by the president or vice president and attested by the secretary of the association or corporation. Any report filed under this subsection shall be accompanied by the plan of merger, duly executed by each merging association or corporation. The deputy director thereupon shall issue to the continuing association or corporation a certificate of merger, setting forth the name of each merging association or corporation and the name of the continuing association or corporation, and the articles of incorporation of the continuing association or corporation.

F. Unless required by its articles of incorporation, a vote of the members of the continuing association or corporation is not necessary to authorize a merger if either:

1. No shares of common stock are to be issued by the continuing association or corporation and no shares, securities or obligations convertible into such stock are to be issued or delivered under the plan of merger.

2. The authorized but unissued shares or the treasury shares of common stock of the continuing association or corporation to be issued or delivered under the plan of merger plus those initially issuable on conversion of any other shares, securities and obligations to be issued or delivered under the plan do not exceed twenty percent of the shares of common stock of the association or corporation outstanding immediately before the effective date of the merger. If a plan of merger is adopted pursuant to this subsection, a statement that the plan has been so adopted and that, as of the date of the statement, the outstanding shares of the continuing association or corporation were such as to render this subsection applicable shall be certified by the president or vice president and attested by the secretary and shall be attached to the plan of merger. The plan so approved and the statement described in this subsection shall be filed in duplicate with the deputy director.

G. The merger shall become effective on the filing with the corporation commission of the certificate of merger in the same manner as articles of incorporation, and the recording of a copy certified by the corporation commission in each county in this state in which the business office of any of the merging associations or corporations was located, and in the county in which the business office of the continuing association or corporation is located, if any.

H. The expenses of any examination made by or at the direction of the deputy director in connection with a proposed merger shall be paid by the merging association or corporation in accordance with the fees fixed for special examination by section 6-125.

I. If the continuing association or corporation is to be governed by the laws of any jurisdiction other than this state, it shall comply with the applicable provisions of the laws under which it is organized and shall comply with the laws of this state with respect to foreign corporations if it is to transact business in this state.
A.R.S. § 6-991.12 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991.12
6-991.12 Notice of claim to judgment debtor; response
Status: in_force

6-991.12. Notice of claim to judgment debtor; response

A. Within the same time prescribed by section 6-991.11, subsection C for applying for payment from the mortgage recovery fund, an aggrieved party who applies for payment shall serve notice of the claim on the judgment debtor, together with a copy of the application. The notice shall be in the following form:

NOTICE

Based on a judgment against you in favor of (enter name of claimant), application is being made to the Arizona department of insurance and financial institutions for payment from the mortgage recovery fund.

If you wish to contest payment from the mortgage recovery fund, you must file a written response to the application. The deputy director of the financial institutions division of the department of insurance and financial institutions must receive your response at (address) within thirty-five calendar days after the date this notice is (mailed, delivered, first published).  You must also send a copy of the response to the claimant.  If you fail to respond as required, you waive your right to present your objections to payment.

B. If the judgment debtor holds a current license issued by the department, the notice and copy of the application may be served by certified mail, return receipt requested, addressed to the judgment debtor's latest business or residence address on file with the department.  If the judgment debtor does not hold a current license and if personal delivery cannot be effected by exercising reasonable diligence, the claimant must publish the notice once a week for two consecutive weeks in a newspaper of general circulation in the county in which the judgment debtor was last known to reside.

C. If the judgment debtor fails to file a written response to the application with the department within thirty-five calendar days after service under subsection B of this section or after the first publication of the notice, the judgment debtor is not entitled to notice of any action taken or proposed to be taken by the deputy director with respect to the claim.
A.R.S. § 6-703 — Arizona Code / Title 6 / Chapter 6 / Article 1 / Section 703
6-703 License required
Status: in_force

6-703. License required

No person shall engage in the business for compensation of receiving money as agent of a debtor for the purpose of distributing that money to the debtor's creditors in payment or partial payment of the debtor's obligations without first obtaining a license from the deputy director.
A.R.S. § 6-446 — Arizona Code / Title 6 / Chapter 3 / Article 5 / Section 446
6-446 Other investments and powers
Status: in_force

6-446. Other investments and powers

A. An association may invest funds as follows:

1. In an account of any state or federal association, the accounts of which are insured by an insurance corporation.

2. In obligations of or fully guaranteed by the United States, in stock or obligations of federal home loan banks or in stocks or obligations of the federal national mortgage association or other agencies of the United States approved by rule of the deputy director.

3. In any of the following where the aggregate amount invested in all such investments does not exceed twenty percent of the association's total assets:

(a) Bonds or other direct obligations of or guaranteed as to principal and interest by this state.

(b) Obligations that by the laws of this state are made legal investments for savings and loan associations.

(c) Bonds or other evidences of indebtedness that are direct general obligations of any county, incorporated city or town, school district, improvement district or other political subdivision or municipal corporation of this state and, subject to such rules as the deputy director may adopt, readily marketable corporate debt securities of the type commonly regarded as investment securities that were publicly distributed when issued and that are publicly traded at the time of acquisition by the association and loans or securities, which meet standards of sound lending practices.

4. In certificates of deposit issued by any bank that is a member of the federal deposit insurance corporation, provided that the purchase or renewal of certificates issued by banks that do not have their principal offices in this state are governed by such rules as the deputy director may prescribe.

5. In accordance with this paragraph and any rules of the deputy director, any Arizona association may invest in the capital stock, obligations or other securities of any service corporation, under whatever laws organized, if the entire corporate stock of the service corporation is available for purchase only by savings and loan associations of this state and federal savings and loan associations having their home office in this state, but an association may not make any investment under this section if its aggregate outstanding investment under this section, determined as prescribed by the rules of the deputy director, would exceed six percent of its assets and provided that any investment in excess of five percent of its assets serves primarily community, inner-city or community development purposes. The deputy director shall prescribe rules under this authority to effectuate the intent of section 6-402, subsection B. If a service corporation engages in an activity that is prohibited under this section for a service corporation in which an association may invest, an association having an investment in such a service corporation shall dispose of such an investment promptly unless, within ninety days following notice to such an association, the prohibited activity is discontinued. The service corporation shall file a certified audit as provided in section 6-477, and the deputy director may examine service corporations as provided in section 6-476.

6. With or without security, make loans, advance credit and purchase obligations representing loans and advances of credit for the payment of expenses of community college, college or university education, but no association may have loans under this paragraph, exclusive of any loan that is or that at the time of its making was otherwise authorized, aggregating at any one time more than five percent of its total assets. An association making a loan under this paragraph may require a comaker or comakers, insurance, guaranty under a government student loan guarantee plan or other protection against contingencies. The borrower shall certify to the association that the proceeds of the loan are to be used by a full-time student solely for the payment of expenses of community college, college or university education at an institution that provides an education program for which it awards a bachelor's degree or provides not less than a two-year program that is acceptable for full credit toward such a degree.

7. Notwithstanding any other provision of this article, but subject to such prohibitions, limitations, conditions and restrictions as the deputy director may prescribe, an association may do any of the following:

(a) Invest in primarily residential real property, including interests in such real property, located within this state.

(b) Acquire, develop and improve such property or interests in the property for primarily residential usage.

(c) Hold, sell or otherwise dispose of, lease, improve and operate any such property or any interest in the property. An association shall not make any investment under this paragraph if its aggregate outstanding investment would exceed ten percent of its assets.  For the purposes of this paragraph, "improve" includes any type of improvement other than the construction of residential housing.

8. Subject to chapter 1, article 4 of this title, in any class of capital stock of any bank or savings and loan association, under whatever laws organized, or any corporation which directly or indirectly acting through one or more persons owns or has the power to vote twenty-five percent or more of any class of voting stock of any such bank or savings and loan association.

9. In an amount not exceeding ten percent of the association's assets, in any other investments not prohibited by rules adopted by the deputy director. No investment made under the authority of this paragraph may be made in a service corporation referred to in paragraph 5 of this subsection. An investment made under the authority of this paragraph may be made or continued for the purpose of creating or acquiring, directly or through any affiliate or subsidiary, any obligation of a purchaser of consumer goods created in the acquisition of such goods or any monetary obligation of a member of the association.

B. Notwithstanding any other provision of law, but except as provided in subsection A, paragraphs 5 and 7 of this section, an association shall have the following powers:

1. To offer and accept savings accounts or other accounts for fixed, minimum or indefinite periods of time or in the form of demand or transaction accounts including overdraft privileges incident thereto to any person or entity.

2. To make, invest in or acquire loans or participating interests in loans, secured or unsecured, of any type and for any purpose to any person or entity.

3. To make, invest in or acquire loans on the security of any residential or nonresidential property interest, of any priority, whether fee or leasehold to any person or entity.

4. To make or acquire loans on the security of, or invest in, commercial paper, securities and other corporate debt obligations of any type.

5. To issue debt or equity securities for cash or other consideration.

6. To acquire, invest in or hold real or personal property for rental or sale, which at the time of such acquisition or investment would not exceed twenty percent of an association's assets, and to enter into or create lease financing arrangements with respect to such property.

7. To act as trustee, executor, administrator, personal representative, conservator, guardian or custodian, or in any other fiduciary capacity, to offer trust or fiduciary services incident thereto and to receive reasonable compensation therefor.

C. The association in the exercise of such powers provided herein may do so without regard to geographic limitations and on terms and provisions in accordance with this section unless restricted by rules of the deputy director.

D. An association shall not invest in or acquire a loan or a participating interest in a loan originated or acquired by an affiliate or by a subsidiary of a related holding company or companies other than a service corporation qualified as provided in this section. Before making an investment in or acquiring a loan or a participating interest in a loan the association shall evaluate the creditworthiness of the obligor in the same manner as though the association were originating the loan. The association shall document and retain the credit review in the loan file.

E. All of the provisions of this section are subject to section 33-1571.
A.R.S. § 6-424 — Arizona Code / Title 6 / Chapter 3 / Article 4 / Section 424
6-424 Shares of guaranty capital; nature; consideration
Status: in_force

6-424. Shares of guaranty capital; nature; consideration

A. Shares of guaranty capital shall constitute a secondary reserve out of which losses shall be paid after all other available reserves have been exhausted, and such shares shall be:

1. Nonwithdrawable, except as provided in section 6-428, until all liabilities of the association have been satisfied in full, including payment of the withdrawal value of all accounts.

2. Entitled to dividends only as provided in section 6-442.

B. The consideration for the issuance of shares of guaranty capital may be paid to the association, or a wholly owned subsidiary of the association, in whole or in part, in cash, in other property, tangible or intangible, including promissory notes, or in labor or services actually performed for the association. Shares are deemed to be fully paid and nonassessable if payment of the consideration for which the shares are to be issued has been received by the association or a wholly owned subsidiary of the association. In the absence of bad faith in the valuation of the consideration, the judgment of the board of directors or the shareholders, as the case may be, as to the value of the consideration received for shares is conclusive.
A.R.S. § 6-533 — Arizona Code / Title 6 / Chapter 4 / Article 5 / Section 533
6-533 Compensation of officials
Status: in_force

6-533. Compensation of officials

A credit union may compensate an officer, director or committee member for the officer's, director's or committee member's services to the credit union.  Providing reasonable life, health, accident and similar insurance protection is not considered compensation. Directors, officers and committee members may be reimbursed for necessary expenses incidental to the performance of official business of the credit union.
A.R.S. § 6-1243 — Arizona Code / Title 6 / Chapter 12 / Article 2 / Section 1243
6-1243 Investigations
Status: in_force

6-1243. Investigations

A. The attorney general may conduct investigations within or outside this state to determine if a licensee, authorized delegate, money transmitter, financial institution or person engaged in a trade or business has failed to file a report required by this article or has engaged or is engaging in an act, practice or transaction that constitutes a money laundering violation as provided in section 13-2317.

B. On request of the attorney general, all licensees, authorized delegates, money transmitters and financial institutions shall make their books and records available to the attorney general during normal business hours for inspection and examination in connection with an investigation pursuant to this section.
A.R.S. § 6-243 — Arizona Code / Title 6 / Chapter 2 / Article 5 / Section 243
6-243 Acquisition of property to satisfy or protect loans
Status: in_force

6-243. Acquisition of property to satisfy or protect loans

Except as specifically prohibited by law, a bank may take property of any kind to secure or satisfy or partially secure or partially satisfy an obligation to the bank.
A.R.S. § 6-707 — Arizona Code / Title 6 / Chapter 6 / Article 1 / Section 707
6-707 Issuance of license; display; renewal
Status: in_force

6-707. Issuance of license; display; renewal

A. On the filing of the application and the payment of the fees and the approval of the bond, or bonds, the deputy director shall investigate the facts, and if the deputy director finds that the financial responsibility and experience of the applicant are such as to command the confidence of the community to warrant belief that the business will be operated fairly and honestly and within the purposes of this article, the deputy director shall issue the applicant a license to do business as a debt management company.

B. The license shall be kept conspicuously posted in the business office of the licensee. The license is not transferable or assignable.

C. Licenses expire on December 31 following the date of the issuance unless sooner surrendered, revoked or suspended but may be renewed by filing an application with the deputy director on or before December 31 each year. The application for renewal shall be in the form prescribed by the deputy director and shall be accompanied by the fee prescribed in section 6-126. A separate application shall be made for each initial license of a principal place of business, agency or branch office.
A.R.S. § 6-867 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 867
6-867 Trust company name
Status: in_force

6-867. Trust company name

A. It is unlawful for a person to make use of the words "trust" or "trust company" or any other words in a manner reasonably calculated to convey the impression that the person is engaged in the trust business unless the act is done by or on behalf of a person having authority under this chapter or conducting subdivision trust activity pursuant to chapter 7 of this title.

B. Nothing in this section shall prohibit any existing corporation that does not have authority under this chapter from using in its name the words "trust" or "trust company" if that corporation was originally organized under the laws of the territory of Arizona and has not since the date of its original organization amended or restated its articles of incorporation to delete from its name the words "trust" or "trust company".
A.R.S. § 6-149 — Arizona Code / Title 6 / Chapter 1 / Article 4 / Section 149
6-149 Determination of control of one person by another; hearing; notice
Status: in_force

6-149. Determination of control of one person by another; hearing; notice

Before determining whether a person controls another person or before denying or approving an application for approval to acquire control of a bank, trust company, savings and loan association or controlling person the deputy director may hold a hearing. Notice of such hearing shall be given by the deputy director to the applicant, the bank, trust company, savings and loan association or controlling person concerned and to such other persons as the deputy director determines appropriate. The date for commencement of the hearing shall not be later than thirty days after the date of the notice, unless the applicant consents to an extension of such period.
A.R.S. § 6-245 — Arizona Code / Title 6 / Chapter 2 / Article 5 / Section 245
6-245 Pledge of assets; rediscount; exception to requirement of security
Status: in_force

6-245. Pledge of assets; rediscount; exception to requirement of security

A. A bank may pledge, mortgage or otherwise hypothecate its assets:

1. To qualify the bank to act as a fiscal agent for any governmental entity.

2. To secure deposits which are required by law to be secured.

3. To secure borrowings from one business day to the next from another bank.

4. To secure borrowings from a federal reserve bank or any federal agency.

5. To secure other obligations, exclusive of deposits, provided the aggregate value of the assets as carried on the books of the bank encumbered for purposes other than those specified in paragraphs 1 through 4 of this subsection shall not exceed the capital account of the bank except with the approval of the deputy director.

B. Subsection A of this section does not prohibit or limit the sale or rediscount of commercial paper or securities with endorsement, guarantee or agreement to repurchase.

C. If, by the law of this state, a bank is required to provide security for deposits in the form of collateral, surety bond or any other form, such security is not required to the extent such deposits are insured by the federal deposit insurance corporation. For the purposes of this subsection, acceptable security for deposits includes:

1. Certificates of deposit insured by an agent or instrumentality of the United States.

2. Interest bearing savings deposits in banks and savings and loan associations doing business in this state whose accounts are federally insured.

3. United States government obligations.

4. Municipal bonds and bonds issued by a state, county or school district.

5. Obligations for which the payment of principal and interest is guaranteed by the United States or by an agency or instrumentality of the United States.

6. Registered warrants if offered as security for monies of the county by which they are issued.

7. First mortgages and trust deeds together with the promissory notes or other evidences of indebtedness described in the instruments on improved, otherwise unencumbered real estate located in this state if no single mortgage or trust deed represents more than ten percent of the total collateral security and the promissory note or other evidence of indebtedness secured by the mortgage or trust deed has been in existence for at least three years and no default with respect to the promissory note or other evidence of indebtedness has occurred during its existence.
A.R.S. § 6-161 — Arizona Code / Title 6 / Chapter 1 / Article 5 / Section 161
6-161 Suspension, removal or prohibition; hearing; notice
Status: in_force

6-161. Suspension, removal or prohibition; hearing; notice

A. The deputy director, subject to the requirements of this article, may remove or suspend from office or prohibit from participating in any of the affairs of a financial institution or enterprise any director, officer, employee, agent or other person participating in the conduct of the affairs of the financial institution or enterprise if he finds that the director, officer, employee, agent or other person participating in the conduct of the affairs of the financial institution or enterprise has engaged in any of the following:

1. Any act, omission or practice in any business transaction which demonstrates personal dishonesty or unfitness to continue in office or participate in the conduct of the affairs of the financial institution or enterprise.

2. A wilful violation of an order of the deputy director.

3. Refusal to testify or produce records in response to a subpoena issued by the deputy director.

4. A conviction of a crime, an essential element of which is fraud, misrepresentation or deceit.

5. Any activity described in 12 United States Code section 1818(e)(1). For the purposes of this paragraph, all references to the appropriate federal banking agency are to the deputy director.

6. Any violation of this title relative to the financial institution or enterprise.

7. Any act, practice or transaction that in any way would jeopardize the safety and soundness of the financial institution.

B. The deputy director may issue and serve on the person involved, named as respondent, a written notice of the  deputy director's order of suspension or intention to remove the person from office or to prohibit the person from further participation in any manner in the conduct of the affairs of the financial institution or enterprise. A copy of the notice shall also be served on the financial institution or enterprise. The notice shall contain a statement of the alleged facts and fix a time and place at which a hearing shall be held. The hearing shall be fixed for a date not earlier than thirty days nor later than sixty days after the date of service of the notice, unless an earlier or a later date is set for good cause shown. If the respondent without excusable neglect fails to answer the charges, or if on the record made at the hearing the deputy director finds that any of the charges specified in the notice has been established and constitutes grounds for suspension or removal from office or prohibition from participation in the conduct of the affairs of the financial institution or enterprise, the deputy director may issue the appropriate order. The order becomes effective at the time specified in the order after service on the respondent and remains effective unless stayed, modified, terminated or set aside by action of the deputy director or a reviewing court.

C. The resignation, termination of employment or participation, or separation of the person involved does not affect the jurisdiction and authority of the deputy director to issue any notice and proceed under this section against that person.

D. Notwithstanding section 6-129, an order issued pursuant to this section that has become final is 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 that in the deputy director's judgment the public welfare or the welfare of the financial institution requires to be so withheld.

E. If a removal order has become final, a financial institution or enterprise may not employ the person against whom it was issued without the prior written approval of the deputy director.
A.R.S. § 6-329 — Arizona Code / Title 6 / Chapter 2 / Article 7 / Section 329
6-329 Deposit production offices
Status: in_force

6-329. Deposit production offices

A. Except as prescribed by subsection B of this section, a person shall not establish or operate a deposit production office or similar office in this state for the purpose of soliciting deposits or similar evidence of indebtedness or participation interests in indebtedness.

B. This section does not apply to activities conducted at the main office or a branch of an affiliated financial institution that is acting as an agent as prescribed by section 6-184.

C. In determining whether an activity is prohibited by this section, the deputy director shall consider the factors specified in the Riegle-Neal interstate banking and branching efficiency act of 1994, section 109 (c)(2) (P.L. 103-328; 108 Stat. 2338; 12 United States Code section 1835a(c)(2)).
A.R.S. § 6-259 — Arizona Code / Title 6 / Chapter 2 / Article 5.1 / Section 259
6-259 When creditor process enforceable against bank
Status: in_force

6-259. When creditor process enforceable against bank

A. Subject to subsection B of this section, creditor process with respect to a special deposit is not enforceable against the bank holding the special deposit.

B. Creditor process is enforceable against a bank Holding a special deposit with respect to an amount the bank is obligated to pay a beneficiary or a depositor if the process:

1. Is served on the bank;

2. Provides sufficient information to permit the bank to identify the depositor or the beneficiary from the bank's books and records; and

3. Gives the bank a reasonable opportunity to act on the process.

C. Creditor process served on a bank before it is enforceable against the bank under subsection B of this section does not create a right of the creditor against the bank or a duty of the bank to the creditor.  Other law determines whether creditor process creates a lien enforceable against the beneficiary on a contingent interest of a beneficiary, including a depositor as a beneficiary, even if not enforceable against the bank.
A.R.S. § 6-126 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 126
6-126 Application fees for financial institutions and enterprises
Status: in_force

6-126. Application fees for financial institutions and enterprises

A. The following nonrefundable fees are payable to the department with the filing of the following:

1. To apply for a banking permit, $1,000.

2. To apply for an amendment to a banking or savings and loan association permit, $1,000.

3. To establish each banking branch office, $750.

4. To move a banking office to other than an established office of a bank, $1,000.

5. To apply for a savings and loan association permit, $5,000.

6. To establish each savings and loan association branch office, $1,500.

7. To move an office of a savings and loan association to other than an established office, $1,000.

8. To organize and establish a credit union, $100.

9. To establish each credit union branch or to move a credit union office to other than an established office of a credit union, $250.

10. To organize and establish any other financial institutions for which an application or investigation fee is not otherwise provided by law, $1,000.

11. To acquire control of a financial institution other than a consumer lender, $5,000.

12. To apply for a trust company license, $1,000.

13. To apply for a commercial mortgage banker, mortgage banker, escrow agent or consumer lender license, $1,000.

14. To apply for a mortgage broker, commercial mortgage broker, sales finance company or debt management company license, $500.

15. To apply for a collection agency license, $1,500.

16. To apply for a branch office of an escrow agent, consumer lender, commercial mortgage banker, mortgage banker or trust company, $500.

17. To apply for a branch office of a mortgage broker, commercial mortgage broker, debt management company or sales finance company, $250.

18. To apply for approval for the merger or consolidation of two or more financial institutions, $5,000 per institution.

19. To apply for approval to convert from a national bank or federal savings and loan charter to a state chartered institution, $1,000.

20. To apply for approval to convert from a federal credit union to a state chartered credit union, $500.

21. To apply for approval to merge or consolidate two or more credit unions, $500 per credit union.

22. To change the licensee name on a financial institution or enterprise license, except for a loan originator or appraiser license, not more than $250.

23. To apply for a license pursuant to chapter 12, article 1 of this title, $1,500 plus $25 for each branch office and authorized delegate to a maximum of $4,500.

24. To acquire control of a person that is licensed pursuant to chapter 12, article 1 of this title or a controlling person pursuant to chapter 12 of this title, $2,500.

25. To receive the following publications:

(a) Quarterly bank and savings and loan statement of condition, not more than $10 per copy.

(b) Monthly summary of actions report, not more than $5 per copy.

(c) A list of licensees, a monthly pending actions report and all other in-house prepared reports or listings made available to the public, not more than $1 per page.

26. To apply for a loan originator license, an amount to be determined by the deputy director.

27. To apply for a loan originator license transfer, an amount to be determined by the deputy director.

28. To apply for a conversion from a mortgage banker license to a mortgage broker license, an amount to be determined by the deputy director.

29. For a premium finance company, $300 plus $300 for each branch office.

30. For an advance fee loan broker, $50.

B. On application for a license or permit for an enterprise or consumer lender, the applicant shall pay the first year's annual assessment listed in subsection D of this section, prorated according to the number of quarters remaining until the date of the next annual assessment or renewal.  If the result of the application ends in a denial, the department shall refund the prorated annual assessment that the applicant paid.  Annual renewal fees are nonrefundable.

C. On issuance of a license or permit for a financial institution, the department shall collect the first year's annual assessment or renewal fee for the financial institution, except for a consumer lender that paid on application, prorated according to the number of quarters remaining until the date of the next annual assessment or renewal.

D. The following annual assessments and renewal fees shall be paid each year:

1. For an escrow agent or trust company, $1,000 plus $250 for each branch office.

2. For a debt management company or sales finance company, $500 plus $200 for each branch office.

3. For a collection agency, $600.

4. For an inactive mortgage broker or commercial mortgage broker, $250.

5. For a mortgage banker that negotiates or closes in the aggregate one hundred loans or less in the immediately preceding calendar year, $750, and for a mortgage banker that negotiates or closes in the aggregate over one hundred loans in the immediately preceding calendar year, $1,250. In addition, a mortgage banker shall pay $250 for each branch office.

6. For a commercial mortgage banker, $1,250. In addition, a commercial mortgage banker shall pay $250 for each branch office.

7. For a mortgage broker or commercial mortgage broker that negotiates or closes in the aggregate fifty loans or less in the immediately preceding calendar year, $250 and for a mortgage broker or commercial mortgage broker that negotiates or closes in the aggregate more than fifty loans in the immediately preceding calendar year, $500.  In addition, a mortgage broker or commercial mortgage broker shall pay $200 for each branch office.

8. For a consumer lender, $1,000 plus $200 for each branch office.

9. For a licensee pursuant to chapter 12, article 1 of this title, $500 plus $25 for each branch office and each authorized delegate to a maximum of $2,500.

10. For a loan originator, an amount to be determined by the deputy director.

11. For a loan originator change to inactive status, an amount to be determined by the deputy director.

12. For a premium finance company, $300 plus $300 for each branch office.

13. For an advance fee loan broker, $25.
A.R.S. § 6-1212 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1212
6-1212 License renewal
Status: in_force

6-1212. License renewal

A. A license under this article shall be renewed annually.

B. An applicant for license renewal shall pay all applicable fees as prescribed in section 6-126 not more than sixty days before the license expires.

C. The renewal term shall be for a period of one year and shall begin on January 1 of each year after the initial license term and shall expire on December 31 of the year the renewal term begins.

D. A licensee shall submit a renewal report with the renewal fee in a form prescribed by the director. The renewal report must specify information that is materially different from the information that the licensee submitted in the original license application if the licensee has not previously reported the information to the director.

E. A licensee may renew an expired license not later than January 31 subject to a late fee of $500.

F. The director may use NMLS to process license renewals if functionality is consistent with this section.
A.R.S. § 6-583 — Arizona Code / Title 6 / Chapter 4 / Article 10 / Section 583
6-583 Special reserves
Status: in_force

6-583. Special reserves

In addition to the regular reserve, special reserves for losses shall be established if required by rule or if the deputy director or the board of directors finds it necessary. Special reserves may include allowances for loan losses or investment losses.
A.R.S. § 6-856 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 856
6-856 Minimum capital; dividends; other requirements
Status: in_force

6-856. Minimum capital; dividends; other requirements

A. In order to obtain a certificate, a trust company shall have not less than $500,000 of liquid capital. The trust company shall have additional capital in the following amounts:

1. For each $750,000,000 of nondiscretionary assets, an additional $250,000 of capital.

2. For each $250,000,000 of discretionary assets, an additional $250,000 of capital.

3. For a trust company whose most recent composite rating from the deputy director was four as defined in the revised uniform interagency trust rating system as published in the federal register volume 63, number 197, October 13, 1998, pages 54704 through 54711, an additional $250,000 of capital.

4. For a trust company whose most recent composite rating from the deputy director was five as defined in the revised uniform interagency trust rating system as published in the federal register volume 63, number 197, October 13, 1998, pages 54704 through 54711, an additional $500,000 of capital.

B. A minimum of one-half of the additional capital required under subsection A, paragraphs 1 and 2 of this section shall consist of liquid capital. All of the additional capital required under subsection A, paragraph 3 or 4 of this section shall consist of liquid capital.

C. The trust company shall notify the deputy director of the form in which and location where the liquid capital is held and its date of maturity.

D. A trust company that has a certificate issued before June 30, 2001 has until December 31, 2002 to comply with the additional capital requirements prescribed in subsection A of this section.

E. The deputy director may reduce the amount of the additional capital requirement prescribed in subsection A of this section if the deputy director determines that the trust company is a subsidiary of a financial institution or financial holding company that is capable of providing sufficient support.

F. A trust company that has been issued a certificate by the deputy director shall maintain capital in the amount required under subsection A of this section.

G. A trust company may declare a dividend to be paid from net profits. A dividend shall not be declared, credited or paid if there is an impairment of the liquid capital. A trust company that proposes dividends in a calendar year that are more than the net profit for the same calendar year shall obtain the deputy director's approval before declaring the dividends.

H. Notwithstanding subsection A of this section, a trust company that accepts monies to be held in a savings account or time deposit prescribed in section 6-882 shall comply with all of the rules and requirements necessary to obtain and maintain insurance issued by the federal deposit insurance corporation or its successor.
A.R.S. § 6-122 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 122
6-122 Deputy director; authority; duties
Status: in_force

6-122. Deputy director; authority; duties

A. The deputy director has the authority and responsibility for the discharge of all duties imposed by law on the division.

B. The deputy director shall:

1. Examine or cause to be examined each financial institution annually, except financial institution holding companies, banks, savings and loan associations, credit unions and consumer lenders, and more frequently if the deputy director considers it necessary.

2. Examine or cause to be examined each bank, credit union and savings and loan association at the  deputy director's discretion but at least once in every twenty-four month period.

3. Examine or cause to be examined the business and affairs of any enterprise and any consumer lender for the purpose of administering and enforcing this title at the deputy director's discretion.

4. Examine or cause to be examined financial institution holding companies as frequently as the deputy director considers necessary to administer and enforce this title.

5. Notwithstanding paragraph 3 of this subsection, examine or cause to be examined the accounts held in trust by each escrow agent at least once in every two-year period and examine or cause to be examined each escrow agent at least once in every four-year period or more frequently if the deputy director considers it necessary.

6. Publish a consumer information brochure that includes:

(a) The finance charges allowed by this state.

(b) The types of insurance that may be offered but that are not required by law to be purchased with the granting of a loan.

(c) Interest rate limitations on all lenders including amounts that may not be charged to borrowers.

(d) Consumer rights and means of recourse from unfair practitioners.

7. Make it a priority to encourage the growth of state-chartered financial institutions in this state and by February 1 of each calendar year notify the governor, the president of the senate and the speaker of the house of representatives if the total number of state-chartered banks or state-chartered credit unions decreases during the prior calendar year.

C. Notwithstanding subsection B, paragraph 5 of this section, an escrow agent shall be examined within twelve months when an escrow agent's license is transferred or assigned pursuant to section 6-813 or when control of the license is otherwise acquired.
A.R.S. § 6-552 — Arizona Code / Title 6 / Chapter 4 / Article 6 / Section 552
6-552 Dividends
Status: in_force

6-552. Dividends

A. After provision for the required reserves, the board of directors may declare dividends to be paid on share accounts from the undivided earnings.

B. A credit union may pay dividends at various rates with due regard to the conditions that pertain to each type of share account, such as minimum balance, notice and time requirements. A credit union may, but is not required to, pay a dividend on membership shares.
A.R.S. § 6-517 — Arizona Code / Title 6 / Chapter 4 / Article 3 / Section 517
6-517 Federal parity
Status: in_force

6-517. Federal parity

In addition to all other rights, powers and privileges, a credit union organized under the laws of this state whose accounts are insured by an insuring organization has all of the rights, powers and privileges and is entitled to the same exemptions and immunities as any credit union chartered under the laws of the United States.
A.R.S. § 6-944 — Arizona Code / Title 6 / Chapter 9 / Article 2 / Section 944
6-944 Issuance of license; renewal; branch office license; application; fee
Status: in_force

6-944. Issuance of license; renewal; branch office license; application; fee

A. If the deputy director determines that the applicant has met the requirements set forth in section 6-943, subsection C, is qualified and has paid the fees, the deputy director shall issue a mortgage banker's license to the applicant evidenced by a continuous certificate. The license is not transferable or assignable.  An applicant who has been denied a license may not reapply for such a license before one year from the date of the previous application.  A person may not acquire control of a licensee 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 6-945 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.

B. For licenses approved on or before March 31, 2009, a licensee shall make an application and pay the renewal fee set forth in section 6-126 on or before March 31, 2009 but not sooner than February 1, 2009 and on or before December 31 for subsequent years beginning in 2009. Licenses not renewed by March 31, 2009 are suspended, and the licensee shall not act as a mortgage banker until the license is renewed or a new license is issued pursuant to this article. A person may renew a suspended license by paying the renewal fee plus $25 for each day after March 31, 2009 that a license renewal fee is not received by the department and making application for renewal as prescribed by the deputy director. Licenses which 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 the issuance of an original license.

C. For licenses approved after or renewed on March 31, 2009, a licensee shall pay the renewal fee on or before December 31, beginning in 2009.  Licenses not renewed by December 31 are suspended, and the licensee shall not act as a mortgage banker until the license is renewed or a new license is issued pursuant to this article. A person may renew a suspended license by paying the renewal fee plus $25 for each day after December 31 that a license renewal fee is not received by the deputy director and applying for renewal as prescribed by the deputy director. 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 the issuance of an original license.

D. A licensee shall prominently display the mortgage banker license in the office of the mortgage banker.

E. Every licensed mortgage banker shall designate and maintain a principal place of business in this state for the transaction of business. The license shall specify the address of the principal place of business. If a licensee wishes to maintain one or more locations in addition to a principal place of business, the licensee shall first obtain a branch office license from the deputy director and designate a person for each branch office to oversee the operations of that office. The licensee shall submit a fee as prescribed in section 6-126 for each branch office license. If the deputy director determines that the applicant is qualified, the deputy director shall issue a branch office license indicating the address of the branch office. The licensee shall conspicuously display the branch office license in the branch office. If the address of the principal place of business or of any branch office is changed, the licensee shall notify the deputy director before the change and the deputy director shall endorse the change of address on the license for a fee as prescribed in section 6-126.
A.R.S. § 6-430 — Arizona Code / Title 6 / Chapter 3 / Article 4 / Section 430
6-430 Who may hold capital and membership
Status: in_force

6-430. Who may hold capital and membership

Accounts, shares of guaranty capital, and membership in an association may be held:

1. By any person in his own right, regardless of his age or marital status, or by two or more of such persons.

2. By a government or governmental instrumentality when authorized by law.
A.R.S. § 6-1217 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1217
6-1217 Audited financial statements; certificate of opinion
Status: in_force

6-1217. Audited financial statements; certificate of opinion

A. Within ninety days after the end of each fiscal year or within any extended time as the director prescribes, each licensee shall file with the director both of the following:

1. An audited financial statement of the licensee for the fiscal year prepared in accordance with United States generally accepted accounting principles.

2. Any other information the director reasonably requires.

B. The audited financial statements shall be prepared by an independent certified public accountant or independent public accountant who is satisfactory to the director.

C. The audited financial statements shall include or be accompanied by a certificate of opinion of the independent certified public accountant or independent public accountant that is satisfactory in form and content to the director.  If the certificate or opinion is qualified, the director may order the licensee to take any action as the director may find necessary to enable the independent certified public accountant or independent public accountant to remove the qualification.
A.R.S. § 6-846.03 — Arizona Code / Title 6 / Chapter 7 / Article 4 / Section 846.03
6-846.03 Disapproval of escrow filings
Status: in_force

6-846.03. Disapproval of escrow filings

A. Before issuing an order of disapproval and not less than twenty days after written notice, the deputy director shall hold a hearing on an escrow rate filing. The notice shall specify in reasonable detail the matters to be considered at the hearing and shall be sent to every escrow agent who made the filing. If after the hearing the deputy director finds that all or part of the filing does not satisfy this article, the deputy director shall issue an order that specifies what part of the filing failed and, if the filing has become effective under section 6-846.01, when all or part of the filing will be deemed no longer effective. At any time an escrow agent may withdraw all or part of a filing. The deputy director shall send copies of the order to each escrow agent affected. The order does not affect any escrow that was contracted before the expiration of the period set forth in the order.

B. On written application to the deputy director, a person or organization other than the escrow agent who made the filing that is aggrieved with respect to any rate filing that is in effect may request a hearing. The application shall specify in reasonable detail the grounds on which the applicant is relying. If within thirty days after receipt of the application the deputy director finds that the application was made in good faith, that the applicant would be aggrieved if the applicant's grounds are established and that the grounds justify a hearing, the deputy director, not less than twenty days after written notice to the applicant and every escrow agent who made the filing, shall hold a hearing. If after the hearing the deputy director finds that all or part of the filing does not satisfy this article, the deputy director shall issue an order that specifies what part of the filing failed and, if the filing has become effective under section 6-846.01, when all or part of the filing will be deemed no longer effective. The deputy director shall send copies of the order to the applicant and to each escrow agent affected. The order does not affect any escrow that was contracted before the expiration of the period set forth in the order.

C. A filing or modification shall not be disapproved if the rates satisfy the requirements of this article.
A.R.S. § 6-385 — Arizona Code / Title 6 / Chapter 2 / Article 11 / Section 385
6-385 Substitution of corporate fiduciary
Status: in_force

6-385. Substitution of corporate fiduciary

Any fiduciary capacity of a trust company, a bank or a savings and loan association as trustee, executor, administrator, guardian, conservator, registrar of stocks and bonds, assignee, receiver or any other fiduciary capacity may be transferred to and assumed by a bank authorized under its banking permit to conduct trust business in this state or a savings and loan association authorized to conduct trust business in this state, without any order or other action on the part of any court or interested person, with the approval of the deputy director to the extent the substitution is specified in the order of approval. The deputy director's order of approval shall be conclusive evidence of the authority of the assuming bank or savings and loan association to hold and enjoy all rights of property, franchises and interests, including appointments, designations and nominations, and all other rights and interests in each such fiduciary capacity in the same manner and to the same extent as such rights, franchises and interests were held or enjoyed by the bank, savings and loan association  or trust company for which the assuming bank or savings and loan association has been substituted. The substitution of fiduciary provided in this section is to assure a continuity of fiduciary administration and is supplemental to other rights and powers of substitution which require no approval by the deputy director. Substitution by order of the deputy director shall not affect the authority of the court having jurisdiction over the trust to determine the right of any other person to succeed to the fiduciary capacity of the assuming bank or savings and loan association.
A.R.S. § 6-492 — Arizona Code / Title 6 / Chapter 3 / Article 9 / Section 492
6-492 Appeals
Status: in_force

6-492. Appeals

A. An appeal from an order of the superior court approving a plan shall not be effectual for any purpose, unless within thirty days after the entry of the order the appellant files with the clerk of the court a bond with a surety company authorized by law to transact business in this state as surety thereon to the effect that the appellant, in the event the order is affirmed on appeal, will pay all costs and expenses, including attorneys' fees, arising from the appeal, and also all losses and damages to the holders of accounts and shares of guaranty capital, creditors and other persons affected by the plan, arising from any delay in consummating the plan caused by the appeal. The form and amount of the bond shall be approved by the superior court, but the bond shall not be for an amount less than one per cent of the total liabilities of the association.

B. Appeals from orders approving plans shall be given preference to other appeals except contested election cases and cases in which the state is a party.
A.R.S. § 6-835 — Arizona Code / Title 6 / Chapter 7 / Article 3 / Section 835
6-835 Limit of legal action
Status: in_force

6-835. Limit of legal action

Nothing in this chapter shall limit any statutory or common law right of any person to bring an action in any court having jurisdiction for any act involved in the transaction of the escrow business or the right of the state to punish any person for any violation of any law based on such act.
A.R.S. § 6-1101 — Arizona Code / Title 6 / Chapter 11 / Article 1 / Section 1101
6-1101 Definitions
Status: in_force

6-1101. Definitions

In this chapter, unless the context otherwise requires:

1. "Acquisition of control" means a transaction by which a person obtains, directly or indirectly, control of a financial institution.

2. "Application" means an application which is made pursuant to this article for approval of the deputy director to become a financial institution holding company.

3. "Control" means direct or indirect ownership or power to vote twenty-five percent or more of the outstanding voting securities of a financial institution or controlling person or to control in any manner the election of a majority of the directors of a financial institution or controlling person. For the purposes of determining the percentage of voting securities owned, controlled or held by a person, there shall be aggregated with the voting securities attributed to the person the voting securities of any other person directly or indirectly controlling, controlled by or under common control with the other person, by any officer, partner, employee or agent of the person or by any spouse, parent or child of the person.

4. "Controlling person" means a person who is directly or indirectly in control of a financial institution.

5. "Financial institution" means a bank, trust company, savings and loan association, international banking facility and holding company of a bank, trust company, savings and loan association and international banking facility under the jurisdiction of the department.

6. "Financial institution holding company" means a corporation, trust, association, partnership or similar organization that directly or indirectly, acting through one or more persons, controls a financial institution or a controlling person.

7. "Voting security" means any security presently entitling the owner or holder of the security to vote for the election of directors of a financial institution or controlling person, excluding, in the case of a savings and loan association, votes attributable to savings accounts. A specified percentage of outstanding voting securities is the amount of the outstanding voting securities that entitles the holder or holders of the securities to cast that specified percentage of the aggregate votes that the holders of all outstanding voting securities are entitled to cast.
A.R.S. § 6-557 — Arizona Code / Title 6 / Chapter 4 / Article 6 / Section 557
6-557 Liens
Status: in_force

6-557. Liens

A. A credit union has a lien on the share and deposit accounts and accumulated dividends of a member for any amount owed the credit union by the member and for any loan endorsed by the member. The credit union has a right of immediate setoff with respect to each share and deposit account on default of the owner of the account in an obligation owed to the credit union.

B. The credit union may waive its rights to a lien, to immediate setoff, to restrict withdrawals or to any combination of these rights with respect to any share or deposit account.
A.R.S. § 6-503 — Arizona Code / Title 6 / Chapter 4 / Article 1 / Section 503
6-503 Accounting and records
Status: in_force

6-503. Accounting and records

A. A credit union shall keep and use in its business those books, accounts and records that will enable the deputy director to readily ascertain the true financial condition of the credit union and whether the credit union is complying with this chapter.

B. A credit union and any of its officers, directors, employees and agents shall give the deputy director full access to all books, papers, securities, records and other sources of information under their control. All books and records of the credit union shall be maintained at the address of the credit union as filed with the deputy director.
A.R.S. § 6-941 — Arizona Code / Title 6 / Chapter 9 / Article 2 / Section 941
6-941 Definitions
Status: in_force

6-941. Definitions

In this article, unless the context otherwise requires:

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

2. "Compensation" means anything of value or any benefit including points, commissions, bonuses, referral fees, loan origination fees and other similar fees but excluding periodic interest resulting from the application of the note rate of interest to the outstanding principal balance remaining unpaid from time to time.

3. "Generally accepted accounting principles" means United States generally accepted accounting principles issued by the financial accounting standards board or the international financial reporting standards issued by the international accounting standards board.

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

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

6. "Mortgage banker" means a person who is not exempt under section 6-942 and who for compensation or in the expectation of compensation either directly or indirectly makes, negotiates or offers to make or negotiate a mortgage banking loan or a mortgage loan.

7. "Mortgage banking loan" means a loan which is funded exclusively from the mortgage banker's own resources, which is directly or indirectly secured by a mortgage or deed of trust or any lien interest on real estate located in this state and which is created with the consent of the owner of the real property. For the purposes of this paragraph, "own resources" means any of the following:

(a) Cash, corporate capital, warehouse credit lines at commercial banks, savings banks or savings and loan associations or other sources that are liability items on the mortgage banker's financial statements for which its assets are pledged.

(b) Correspondent contracts between the mortgage banker and a bank, savings bank, trust company, savings and loan association, credit union, profit sharing or pension trust, consumer lender or insurance company.

(c) The mortgage banker's affiliates' cash, corporate capital, warehouse credit lines at commercial banks or other sources that are liability items on the affiliates' financial statements for which the affiliates' assets are pledged.

8. "Mortgage banking loan closing" means the day by which all documents relating to the mortgage banking loan or mortgage loan have been executed and recorded and all monies have been accounted for.

9. "Mortgage loan" means any loan, other than a mortgage banking loan, secured by a mortgage or deed of trust or any lien interest on real estate located in this state and created with the consent of the owner of the real estate.
A.R.S. § 6-211 — Arizona Code / Title 6 / Chapter 2 / Article 3 / Section 211
6-211 Definitions
Status: in_force

6-211. Definitions

In this article, unless the context otherwise requires:

1. "Converting bank" means a bank converting from a national to a state bank, or the reverse.

2. "In-state financial institution" means a state or national bank or savings and loan association with its home office in this state, or holding company with its home office in this state.

3. "Merger" includes consolidation.

4. "National bank" means a national banking association located in this state.

5. "Out-of-state financial institution" means a state or national bank or savings and loan association with its home office in a state other than this state, or holding company with its home office in a state other than this state.

6. "Resulting bank" means the bank resulting from a merger or conversion.

7. "State bank" means a corporation holding a banking permit under the laws of this state.
A.R.S. § 6-423 — Arizona Code / Title 6 / Chapter 3 / Article 4 / Section 423
6-423 Accounts
Status: in_force

6-423. Accounts

A. An association may maintain all types of deposit accounts and prescribe those terms and conditions relating to the accounts as are allowable for the association to maintain the insurance of its deposits by an insurance corporation.

B. Accounts are:

1. Withdrawable and subject to enforced retirement as provided in this article. This chapter does not prevent the withdrawal of funds from an association by negotiable or nonnegotiable order.

2. Entitled to dividends as provided in this article.

3. Nonassessable for either debts or losses of the association.

4. Issued on such plan or plans of payment and in such series or classes as the bylaws may provide, which plan or plans of payment may include:

(a) Regular installment plan with agreed weekly or monthly payments, with dividends credited to or in behalf of the account until the ultimate value agreed on in the subscription is reached.

(b) Full paid plan with one single payment of $100 per unit and dividends payable in cash unless by agreement credited to the account.

(c) Prepaid plan with one single payment in such amount per unit as is set forth in the bylaws and dividends credited to such account until the ultimate value of $100 per unit is reached.

(d) Optional plan with payments in such amount or amounts and at such times as the holder may elect and dividends credited to such account unless by agreement payable in cash.

(e) Any other plan of payment which the deputy director may approve as conforming to sound savings and loan practice.
A.R.S. § 6-1302 — Arizona Code / Title 6 / Chapter 13 / Article 1 / Section 1302
6-1302 Scope of chapter; exemptions
Status: in_force

6-1302. Scope of chapter; exemptions

A. Any person who acts as an advance fee loan broker shall register with the deputy director as provided in this chapter. A person who is not exempt under subsection B of this section and who advertises for, solicits or purports to be willing to make or procure a loan or extension of credit for an advance fee is presumed to be engaged in the business of an advance fee loan broker.

B. This chapter does not apply to:

1. Individuals not regularly engaged in the business of making or procuring loans or extensions of credit for an advance fee.

2. A person doing business as allowed by any law of any state or of the United States relating to banks, savings banks, trust companies, savings and loan associations, credit unions, insurance companies, consumer lenders or profit sharing and pension trusts.

3. A person licensed as a mortgage broker, a mortgage banker or a commercial mortgage banker pursuant to chapter 9 of this title.

4. A person who makes a loan with the person's own money or for the person's own investment.

5. A person licensed as a real estate broker or salesperson pursuant to title 32, chapter 20, article 2.

6. A person who is licensed to practice law in this state but who is not actively and principally engaged in the business of making or procuring loans or extensions of credit, if this person renders services in the course of the person's practice as an attorney.

7. An institutional investor as defined in section 6-971 unless the institutional investor advertises for, solicits or holds himself out as willing to make or procure for an advance fee a loan or extension of credit other than a commercial mortgage loan as defined in section 6-971.

8. This state including any political subdivision of this state.

9. The United States or any department or agency of the United States.
A.R.S. § 6-536 — Arizona Code / Title 6 / Chapter 4 / Article 5 / Section 536
6-536 Executive committee
Status: in_force

6-536. Executive committee

The board of directors may elect from its own number an executive committee, consisting of not fewer than three directors, which may be authorized to act for the board in all respects subject to any conditions or limitations prescribed by the board by law or rule. The executive committee shall report in writing to the board of directors on all of its actions since the previous board meeting and the board shall either ratify or rescind each such action.
A.R.S. § 6-551 — Arizona Code / Title 6 / Chapter 4 / Article 6 / Section 551
6-551 Share accounts
Status: in_force

6-551. Share accounts

A. Share accounts shall be subscribed to and paid for in such manner as the board of directors prescribes. A credit union may require its members to subscribe to and make payments on membership shares. Membership shares may not be pledged as security on any loan.

B. The par value of any membership shares may differ from the par value of other shares.

C. A credit union may limit the amount in share accounts and deposit accounts and any such limit must apply to all account holders.
A.R.S. § 6-437 — Arizona Code / Title 6 / Chapter 3 / Article 4 / Section 437
6-437 Enforced retirement of accounts
Status: in_force

6-437. Enforced retirement of accounts

A. The board of directors, when authorized by the by-laws, and in conformity with the provisions of this section and of the by-laws, may retire on any dividend payment date any accounts, which have not been pledged as security for loans, by enforcing the retirement thereof.

B. Thirty days' prior written notice of such enforced retirement shall be given to the holder of an account to be retired and the holder shall not be entitled to further dividends after the dividend payment date on which such account is to be retired, but such holder shall be paid the full withdrawal value of his account plus the dividend apportioned thereto as of the date fixed for retirement. All accounts upon which applications for voluntary withdrawal have been received, and all shares which have matured, shall be paid first in accordance with the provisions of this article.
A.R.S. § 6-436 — Arizona Code / Title 6 / Chapter 3 / Article 4 / Section 436
6-436 Maturity of shares
Status: in_force

6-436. Maturity of shares

A. When a regular installment or prepaid share reaches maturity value by reason of payments or dividend credits, or both, all payments thereon by the holder shall cease. The association either shall pay to the holder the maturity value of such share, in accordance with the provisions of this article, or shall mail a notice to the holder at his last known address as it appears on the association's records, to the effect that he is entitled to receive payment for such share or to transfer the same or such portion thereof, as the directors may specify, into other accounts, and that if he takes neither action within sixty days after the date on which such notice is mailed, the value of such share may be held in a creditor account without interest or dividends, available for the holder upon his application, or the board of directors may transfer such share to another account of equivalent value on which dividends shall accrue as on a new account opened on the transfer date.

B. If the association has insufficient funds to make immediate payment upon the date of maturity of any shares, such shares shall be listed in the order of their respective dates of maturity, and shall be paid in the manner provided in section 6-435. Shares in the same series maturing on the same date shall be listed, as of such date, in the order in which they were issued in that series. From the date of maturity until payment, dividends shall be apportioned to such matured shares at a rate to be determined by resolution of the board of directors. Dividends so apportioned shall be accumulated to the credit of such shares and shall be paid to the holder at the time when the shares are paid, but the rate of such dividends shall not exceed the highest rate being currently apportioned to any other shares.
A.R.S. § 6-439 — Arizona Code / Title 6 / Chapter 3 / Article 4 / Section 439
6-439 Accounts subject to liens
Status: in_force

6-439. Accounts subject to liens

Every account shall be subject to a lien for the payment of such charges as lawfully may accrue thereon under the provisions of this chapter, and the by-laws may prescribe the manner of enforcing such lien, but no member shall be responsible for any losses which the then existing assets of the association shall not be sufficient to satisfy, or for any unpaid installment upon his account which is not yet due under the terms of his subscription.
A.R.S. § 6-255 — Arizona Code / Title 6 / Chapter 2 / Article 5.1 / Section 255
6-255 Requirements for special deposits
Status: in_force

6-255. Requirements for special deposits

A deposit is a special deposit if it is:

1. A deposit of funds in a bank under an account agreement.

2. For the benefit of at least two beneficiaries, one or more of which may be a depositor.

3. Denominated in a medium of exchange that is currently authorized or adopted by a domestic or foreign government.

4. For a permissible purpose as stated in the account agreement; and

5. Subject to a contingency.
A.R.S. § 6-418 — Arizona Code / Title 6 / Chapter 3 / Article 3 / Section 418
6-418 Waiver of notice
Status: in_force

6-418. Waiver of notice

Whenever notice is required to be given under this chapter, a waiver thereof in writing signed by the person or persons entitled to said notice shall be deemed equivalent thereto.
A.R.S. § 6-1003 — Arizona Code / Title 6 / Chapter 10 / Article 1 / Section 1003
6-1003 Change of location of repositories
Status: in_force

6-1003. Change of location of repositories

A lessor may, during the term of any lease, move its repositories and the contents to another location on giving notice to the lessees in the manner and time required by such regulations as the deputy director may adopt.
A.R.S. § 6-217 — Arizona Code / Title 6 / Chapter 2 / Article 3 / Section 217
6-217 Emergency acquisition of in-state financial institution
Status: in_force

6-217. Emergency acquisition of in-state financial institution

A. Notwithstanding any other provisions of law, an in-state financial institution or out-of-state financial institution may acquire an in-state financial institution if the deputy director determines that both of the following exist:

1. The in-state financial institution proposed to be acquired is in danger of being placed in receivership by the deputy director or the relevant federal agency.

2. The acquisition is necessary to protect the financial interests of the in-state financial institution's depositors and creditors.

B. The deputy director shall make the deputy director's final determination under this section in writing.
A.R.S. § 6-1417 — Arizona Code / Title 6 / Chapter 14 / Article 1 / Section 1417
6-1417 Servicing of premium finance agreements
Status: in_force

6-1417. Servicing of premium finance agreements

A. A licensee may receive and disburse monies in the servicing of premium finance agreements. All monies received in the process of servicing these agreements shall be kept separate, distinct and apart from funds belonging to the licensee and shall be deposited with a financial institution located in this state or a financial institution in another state that maintains insurance on its deposits by the federal deposit insurance corporation. All funds collected shall remain in the financial institution until remitted to the person entitled to the funds.

B. The licensee shall keep a record of all monies collected and the remittance of the monies.
A.R.S. § 6-615 — Arizona Code / Title 6 / Chapter 5 / Article 1 / Section 615
6-615 Foreign loans; reciprocity
Status: in_force

6-615. Foreign loans; reciprocity

If a consumer lender loan subject to this chapter is made at a location outside this state to a consumer who is a resident of this state at the time that the consumer lender loan is made and the annual percentage rate of finance charges and other fees charged, contracted for or received are greater than permitted by this chapter, that consumer lender loan is enforceable in this state only to the extent of the finance charges and other fees permitted by this chapter. This section does not apply to consumer lender loans that are solicited in this state from outside this state and that are subject to this chapter.