A.R.S. § 6-909 — Arizona Code / Title 6 / Chapter 9 / Article 1 / Section 909
6-909 Prohibited acts
Status: in_force

6-909. Prohibited acts

A. Except for employment verifications, verifications of mortgages and loans, and deposit or account verifications, a person, in connection with or incidental to the making of any mortgage loan, shall not induce, require or permit any document to be signed by a party to the transaction if such 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 certain blank spaces.

B. A person is not entitled to receive compensation in connection with arranging for or negotiating a mortgage loan if such person is not licensed pursuant to this article. A mortgage broker 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 person engaged in the mortgage 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 loan. The charges or rates of charge, if stated, shall be set forth in such manner as to prevent misunderstanding by prospective borrowers.

D. A mortgage broker shall not request or require a person seeking a 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 that prohibits the person from seeking the loan from another source.

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

F. A mortgage broker shall not record or cause to be recorded any document that would give rise to liability under section 33-420.

G. A mortgage broker shall not, for compensation, either directly or indirectly make or negotiate or offer to make or negotiate a loan that is either:

1. Less than five thousand dollars.

2. Not secured by a mortgage or deed of trust or other lien interest in real property.

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

I. A mortgage broker 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 broker is licensed pursuant to title 32, chapter 20.

2. The mortgage broker has disclosed to the person from whom the compensation is collected that the mortgage broker is receiving compensation both for mortgage broker 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 broker shall not receive or disburse monies in servicing or arranging a mortgage loan except as provided in section 6-906, subsection C.

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

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

N. A mortgage broker shall not engage in illegal or improper business practices.

O. A mortgage broker 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 broker 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.

P. A mortgage broker 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.

Q. A mortgage broker 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 broker.
A.R.S. § 6-1001 — Arizona Code / Title 6 / Chapter 10 / Article 1 / Section 1001
6-1001 Definitions
Status: in_force

6-1001. Definitions

In this article, unless the context otherwise requires:

1. "Lessee" means a person contracting with a lessor for the use of a safe deposit repository.

2. "Lessor" means a corporation or association authorized under the laws of this state, any other state or the United States to do business as a bank, trust company, credit union or savings and loan association and maintaining safe deposit repositories for public use.

3. "Safe deposit repository" or "repository" means a safe deposit box or any other safe deposit receptacle and includes the lessor's vault space made available for use by the lessee in common with others for the storage of property or documents.
A.R.S. § 6-395.04 — Arizona Code / Title 6 / Chapter 2 / Article 13 / Section 395.04
6-395.04 Right of subrogation of federal deposit insurance corporation
Status: in_force

6-395.04. Right of subrogation of federal deposit insurance corporation

The federal deposit insurance corporation shall be subrogated to the rights of depositors upon payment of their claims to the extent required by the law of the United States as a condition of the authority to insure deposits or make such payment.
A.R.S. § 6-258 — Arizona Code / Title 6 / Chapter 2 / Article 5.1 / Section 258
6-258 Property interest of depositor or beneficiary
Status: in_force

6-258. Property interest of depositor or beneficiary

A. Neither a depositor nor a beneficiary has a property interest in a special deposit.

B. Any property interest with respect to a special deposit is only in the right to receive payment if the bank is obligated to pay a beneficiary and not in the special deposit itself.  Any property interest under this subsection is determined under other law.
A.R.S. § 6-252 — Arizona Code / Title 6 / Chapter 2 / Article 5.1 / Section 252
6-252 Definitions
Status: in_force

6-252. Definitions

In this article, unless the context otherwise requires:

1. "Account agreement" means an agreement that:

(a) Is in a record between a bank and one or more depositors;

(b) May have one or more beneficiaries as additional parties; and

(c) States the intention of the parties to establish a special deposit as governed by this article.

2. "Bank" means a person engaged in the business of banking and includes a savings bank, savings and loan association, credit union, trust company and a bank as defined in section 6-101.  Each branch or separate office of a bank is a separate bank for the purpose of this article.

3. "Beneficiary" means a person that:

(a) Is identified as a beneficiary in an account agreement; or

(b) If not identified as a beneficiary in an account agreement, may be entitled to payment from a special deposit:

(i) Under the account agreement; or

(ii) On termination of the special deposit.

4. "Contingency" means an event or circumstance stated in an account agreement that is not certain to occur but must occur before a bank is obligated to pay a beneficiary.

5. "Creditor process" means attachment, garnishment, levy, notice of lien, sequestration, or similar process issued by or on behalf of a creditor or other claimant.

6. "Depositor" means a person that establishes or funds a special deposit.

7. "Good faith" means honesty in fact and observance of reasonable commercial standards of fair dealing.

8. "Knowledge" of fact means:

(a) With respect to a beneficiary, actual knowledge of the fact; or

(b) With respect to a bank holding a special deposit:

(i) If the bank has established a reasonable routine for communicating material information to an individual to whom the bank has assigned responsibility for the special deposit and maintains reasonable compliance with the routine, actual knowledge of the fact by the individual; or

(ii) If the bank has not established and maintained reasonable compliance with a routine described in item (i) of this subdivision or otherwise exercised due diligence, implied knowledge of the fact that would have come to the attention of an individual to whom the bank has assigned responsibility for the special deposit.

9. "Obligated to pay a beneficiary" or "obligation to pay a beneficiary" means a beneficiary is entitled under the account agreement to receive from the bank a payment when:

(a) A contingency has occurred; and

(b) The bank has knowledge the contingency has occurred.

10. "Permissible purpose" means a governmental, regulatory, commercial, charitable, or testamentary objective of the parties stated in an account agreement.  The terms includes an objective to:

(a) Hold funds:

(i) In escrow, including for a purchase and sale, lease, buyback, or other transaction;

(ii) As a security deposit of a tenant.

(iii) That may be distributed to a person as remuneration, retirement or other benefit, or compensation under a judgment, consent decree, court order, or other decision of a tribunal; or

(iv) For distribution to a defined class of persons after identification of the class members and their interest in the funds;

(b) Provide assurance with respect to an obligation created by a contract, such as earnest money to ensure a transaction closes;

(c) Settle an obligation that arises in the operation of a payment system, securities settlement system, or other financial market infrastructure.

(d) Provide assurance with respect to an obligation that arises in the operation of a payment system, securities settlement system, or other financial market infrastructure; or

(e) Hold margin, other cash collateral, or funds that support the orderly functioning of financial market infrastructure or the performance of an obligation with respect to the infrastructure.

11. "Person" means an individual, estate, business or nonprofit entity, government or governmental subdivision, agency, or instrumentality, or other legal entity.  The term includes a protected series, however denominated, of an entity if the protected series is established under law that limits, or limits if conditions specified under law are satisfied, the ability of a creditor of the entity or of any other protected series of the entity to satisfy a claim from assets of the protected series.

12. "Record" means information:

(a) Inscribed on a tangible medium; or

(b) Stores in an electronic or other medium and retrievable in perceivable form.

13. "Special deposit" means a deposit that satisfies section 6-255.

14. "State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any other territory or possession subject to the jurisdiction of the United States.  The term includes an agency or instrumentality of the state.
A.R.S. § 6-516 — Arizona Code / Title 6 / Chapter 4 / Article 3 / Section 516
6-516 General powers
Status: in_force

6-516. General powers

A. In addition to the powers prescribed elsewhere in this chapter and except as prohibited by law, a credit union may:

1. Enter into contracts of any nature.

2. Sue or be sued.

3. Adopt, use and display a corporate seal.

4. Acquire, lease, hold, assign, pledge, hypothecate, sell, discount or otherwise dispose of property or assets, either in whole or in part, necessary or incidental to its operations.

5. Borrow money from any source, except that a credit union shall obtain the prior written approval of the deputy director to borrow in excess of an aggregate of fifty percent of its capital.

6. Purchase all or a portion of the assets and assume all or a portion of the liabilities of a credit union chartered under the laws of any state, a federal credit union, a bank or an out-of-state bank.

7. Offer financial services incidental to the purposes of a credit union, including electronic fund transfers, safe deposit boxes and leasing and correspondent arrangements with other financial institutions.

8. Hold membership in other credit unions organized under this chapter or other laws or in other associations and organizations.

9. Engage in activities and programs offered by any governmental unit that are incidental or reasonably related to credit union activities.

10. Act as a fiscal agent for and receive payments on share and deposit accounts from a governmental unit.

11. Make contributions to any nonprofit civic, charitable or service organizations.

B. A credit union may exercise all incidental powers that are convenient, suitable or necessary to enable it to promote or carry out its purposes.

C. A credit union shall not delegate the management of a credit union or the exercise of any power set forth in this section to any person who is not an officer, director or employee of the credit union without the prior written approval of the deputy director.  The deputy director may examine the books, records and business affairs of any person or entity to whom the credit union proposes to delegate any such authority.
A.R.S. § 6-395 — Arizona Code / Title 6 / Chapter 2 / Article 13 / Section 395
6-395 Possession by deputy director and receivership
Status: in_force

6-395. Possession by deputy director and receivership

If the status of a bank as an insured bank is terminated by the federal deposit insurance corporation or the deputy director finds that a bank is in such an unsafe or unsound condition that it is or will become unable to meet the anticipated demands of its depositors and that the condition cannot be corrected by the procedures of chapter 1, article 5 of this title or section 6-137, the deputy director may immediately take possession and control of the bank and in such event shall, through the attorney general, apply to the superior court for the appointment of a receiver for the bank. The court may act on the application forthwith and without notice to any person.  If at any time the court finds that no ground for receivership exists, the receivership shall be dissolved and the deputy director's possession terminated.
A.R.S. § 6-484 — Arizona Code / Title 6 / Chapter 3 / Article 8 / Section 484
6-484 Illegal use of name; classification
Status: in_force

6-484. Illegal use of name; classification

No person shall use the name "building and loan company", "building and loan association", "savings and loan company", or "savings and loan association" unless complying with the provisions of this title. A person using a name embodying any combination of the words "building and loan association" or "savings and loan association", or acting as agent for that person, is guilty of a class 2 misdemeanor, unless complying with the provisions of this title.
A.R.S. § 6-1242 — Arizona Code / Title 6 / Chapter 12 / Article 2 / Section 1242
6-1242 Reports to the attorney general; investigation; violation; classification
Status: in_force

6-1242. Reports to the attorney general; investigation; violation; classification

A. Within thirty days after any transaction or series or pattern of transactions that is conducted or attempted by, at or through the business and that involves or aggregates $5,000 or more in funds or other assets, each licensee and authorized delegate of a licensee and each money transmitter shall file with the attorney general's office in a form prescribed by the attorney general a report of the transaction or series or pattern of transactions if the licensee, authorized delegate or money transmitter knows, suspects or has reason to suspect that the activity either:

1. Involves funds that are derived from illegal activities, is intended or conducted in order to hide or disguise funds or other assets that are derived from illegal activities, including the ownership, nature, source, location or control of the funds or other assets, as part of a plan to violate or evade any law or regulation or to avoid any transaction reporting requirement under this chapter or may constitute a possible money laundering violation under section 13-2317 or another racketeering violation as defined in section 13-2301.

2. Has no business or apparent lawful purpose or is not the sort of activity in which the particular customer would normally be expected to engage and the licensee, authorized delegate or money transmitter knows of no reasonable explanation for the activity after examining the available facts, including the background and possible purpose of the activity.

B. A licensee, authorized delegate or money transmitter that is required to file a report regarding business conducted in this state pursuant to the currency and foreign transactions reporting act (31 United States Code sections 5311 through 5326, including any special measures that are established under 31 United States Code section 5318A, and 31 Code of Federal Regulations chapter X or 12 Code of Federal Regulations section 21.11) shall file a duplicate of that report with the attorney general.

C. All persons who are engaged in a trade or business and who receive more than $10,000 in money in one transaction or who receive more than $10,000 in money through two or more related transactions shall complete and file with the attorney general the information required by 31 United States Code section 5331 and the federal regulations relating to this section concerning reports relating to cash received in trade or business.

D. A licensee, authorized delegate or money transmitter that is regulated under the currency and foreign transactions reporting act (31 United States Code section 5325 and 31 Code of Federal Regulations chapter X) and that is required to make available prescribed records to the secretary of the United States department of the treasury on request at any time shall follow the same prescribed procedures and create and maintain the same prescribed records relating to each transaction.

E. Each licensee shall create records that reflect the provision of updated operating policies and procedures pursuant to section 6-1222, subsection A, paragraph 1 and of instruction that promotes compliance with this chapter, title 13, chapter 23 and 31 United States Code section 5318, including the identification of the provider and the material and instruction that were provided.

F. On request of the attorney general, a county attorney or the deputy director, a licensee, authorized delegate or money transmitter shall make any records that are created pursuant to this section available to the attorney general, a county attorney or the deputy director at any time.

G. If the deputy director or the attorney general finds that reasonable grounds exist for requiring additional recordkeeping and reporting in order to carry out the purposes of this chapter and to prevent the evasion of this chapter, the deputy director or the attorney general may issue an order requiring any group of licensees, authorized delegates or money transmitters in a geographic area to do any of the following:

1. Obtain information regarding transactions that involve total dollar amounts or denominations of $500 or more, including the names of any persons participating in those transactions and any persons or entities on whose behalf they are to be effected.

2. Maintain records of that information for at least five years and make those records available to the attorney general and the deputy director.

3. File a report with the attorney general and the deputy director regarding any transaction in the manner prescribed in the order.

H. An order issued pursuant to subsection G of this section is not effective for more than one hundred eighty days unless renewed after finding that reasonable grounds exist for continuing the order.

I. The timely filing of a report required by this section with the appropriate federal agency shall be deemed compliance with the reporting requirements of this section, unless the attorney general has notified the deputy director that reports of that type are not regularly and comprehensively transmitted by that federal agency to the attorney general.

J. This chapter does not preclude a licensee, authorized delegate, money transmitter, financial institution or person engaged in a trade or business from instituting contact with and disclosing customer financial records to appropriate state or local law enforcement agencies if the licensee, authorized delegate, money transmitter, financial institution or person has information that may be relevant to a possible violation of any criminal statute or to the evasion or attempted evasion of any reporting requirement of this chapter.

K. A licensee, authorized delegate, money transmitter, financial institution, person engaged in a trade or business or director, officer, employee, agent or authorized delegate of any of them that keeps or files a record as prescribed by this section, that communicates or discloses information or records under subsection J of this section or that requires another to make any such disclosure is not liable to any person under any law or rule of this state or any political subdivision of this state or under any contract or other legally enforceable agreement, including any arbitration agreement, for the disclosure or for the failure to provide notice of the disclosure to the person who is the subject of the disclosure or to any other person who is identified in the disclosure.  This subsection is consistent with 31 United States Code section 5318(g)(3).

L. The attorney general may report any possible violations indicated by analysis of the reports required by this chapter to any appropriate law enforcement agency for use in the proper discharge of its official duties. If an officer or employee of this state or any political subdivision of this state receives a report pursuant to 31 United States Code section 5318(g), the report shall be disclosed only as provided in 31 United States Code section 5318(g). A person who releases information received pursuant to this subsection except in the proper discharge of official duties is guilty of a class 2 misdemeanor.

M. The requirements of this section are consistent with the requirements of the currency and foreign transactions reporting act (31 United States Code sections 5311 through 5326 and federal regulations prescribed under those sections) unless the context otherwise requires.

N. A person who refuses to allow any lawful investigation by the deputy director, a county attorney or the attorney general or who refuses to make records available to the deputy director, a county attorney or the attorney general pursuant to subsection F of this section is guilty of a class 6 felony.
A.R.S. § 6-327 — Arizona Code / Title 6 / Chapter 2 / Article 7 / Section 327
6-327 Applicable laws and rules; cooperative agreements; contracting exemption
Status: in_force

6-327. Applicable laws and rules; cooperative agreements; contracting exemption

A. Any bank, savings and loan association, out-of-state financial institution or holding company doing business as such in this state is subject to the applicable laws of this state and all the rules adopted pursuant to such laws, including examination and supervision by the deputy director.

B. In the case of an acquisition to create a branch in this state, the acquisition is prohibited unless the home state of the out-of-state financial institution allows reciprocal acquisitions for the same purposes.

C. An out-of-state financial institution that acquires an in-state financial institution or an out-of-state financial institution that is the result of a merger with an in-state financial institution may do either of the following subject to applicable state and federal laws:

1. Continue to operate the in-state financial institution.

2. Convert any existing principal banking office or any or all branches in this state into a branch of the out-of-state financial institution.

D. An in-state branch of an out-of-state financial institution shall comply with the laws of the institution's home state, or shall comply with federal law in the case of a federally chartered institution.  The laws of the institution's home state apply, except as follows:

1. The laws of this state apply if necessary to preserve the safety and sound operation of a branch in this state or to otherwise protect the citizens of this state.

2. Any laws of this state regarding community reinvestment, consumer protection, fair lending and intrastate branching apply to a branch in this state of an out-of-state financial institution to the same extent that those laws apply to an in-state financial institution.

3. An out-of-state financial institution that is authorized to operate a branch in this state may engage in activity only to the extent the activity is allowed for an in-state financial institution.

E. Subsection D of this section does not limit the jurisdiction or authority of the deputy director to examine, supervise and regulate an out-of-state financial institution that is operating or seeking to operate a branch in this state or to take any action or issue any order with respect to that branch.

F. An out-of-state bank that operates a branch in this state shall do both of the following:

1. Obtain a grant of authority to transact business in this state and comply with all other applicable filing requirements prescribed by title 10 to the same extent as any other entity transacting business in this state.

2. Provide written notice to the deputy director of the out-of-state bank's grant of authority to transact business in this state.

G. The deputy director may adopt rules, including the imposition of reasonable application and examination fees, to implement and administer this article.

H. The deputy director may do any of the following:

1. Examine, supervise and regulate a branch operated in this state by an out-of-state bank and take any action or issue any order with respect to that branch.

2. Examine, supervise and regulate a branch operated in another state by a bank and take any action or issue any order with respect to that branch.

3. Coordinate these activities with any other state or federal agency that shares jurisdiction over that financial institution.

4. Coordinate the examination, supervision and regulation of any in-state financial institution with the examination, supervision and regulation of a branch or affiliated financial institution that is operating in another state by doing any of the following:

(a) Contracting with an agency that shares jurisdiction over the financial institution to retain its examiners at a reasonable rate of compensation.

(b) Offering the services of the department's examiners at a reasonable rate of compensation to an agency that shares jurisdiction over the financial institution.

(c) Collecting fees on behalf of or receiving payment of fees through an agency that has jurisdiction over the financial institution.

5. Enter into cooperative agreements with federal and state regulatory authorities for the examination and supervision of any acquired or de novo entry bank, savings and loan association or holding company and may accept reports of examination and other records from those authorities instead of conducting an examination.

I. The department is exempt from title 41, chapter 23 in contracting for examiners pursuant to subsection H, paragraph 4, subdivision (a) of this section.
A.R.S. § 6-202 — Arizona Code / Title 6 / Chapter 2 / Article 2 / Section 202
6-202 Existing banks
Status: in_force

6-202. Existing banks

The authority under which an existing bank is engaged in the banking business or the banking and trust business under the laws of this state before August 8, 1973 shall continue in full force and effect. The deputy director, may, and shall on request, issue a banking permit to such bank to evidence such authority without any further act on the part of the bank or the payment of any fee.
A.R.S. § 6-137 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 137
6-137 Cease and desist orders; injunctions; public inspection
Status: in_force

6-137. Cease and desist orders; injunctions; public inspection

A. If it appears to the deputy director that any person has engaged, is engaging or is about to engage in any act, practice or transaction that constitutes a violation of this title or any rule or order of the deputy director or a violation of any federal insurance regulation as determined by the appropriate federal regulatory authority in writing, the deputy director may issue an order directing the person and directors, officers, employees and agents of the person to cease and desist from engaging in the act, practice or transaction or doing any act in furtherance of the act, practice or transaction and to take appropriate affirmative action, within a reasonable period of time as prescribed by the deputy director, to correct the conditions resulting from the act, practice or transaction.

B. If it appears to the deputy director that any financial institution or enterprise or any officer, director, employee, agent or other person participating in the conduct of the affairs of the financial institution or enterprise has engaged, is engaging or is about to engage in any act, practice or transaction that constitutes an unsafe or unsound practice or a violation of any order of the deputy director, applicable law or rule, written agreement entered into with the deputy director or condition imposed in writing by the deputy director in connection with the granting of any application or other request by the financial institution or enterprise, the deputy director may issue an order directing the financial institution or enterprise or any director, officer, employee, agent or other person participating in the conduct of the affairs of the financial institution or enterprise to cease and desist from engaging in the act, practice or transaction or doing any act in furtherance of the act, practice or transaction and to take appropriate affirmative action, within a reasonable period of time as prescribed by the deputy director, to correct the conditions resulting from the act, practice or transaction.

C. An order issued by the deputy director under this section becomes effective at the time of service and remains effective and enforceable except to the extent that it is stayed, modified, terminated or set aside by the deputy director or a reviewing court pursuant to this article.

D. A person aggrieved by an order issued by the deputy director under this section may request a hearing pursuant to title 41, chapter 6, article 10. After requesting a hearing, the person may move that the order be stayed or modified pending the hearing.  If the order is not stayed or modified or the motion is not acted on within ten days, the person may apply to the superior court for an order for relief.

E. If it appears to the deputy director that a person has engaged, is engaging or is about to engage in an act, practice or transaction that constitutes a violation of this title or any rule or order of the deputy director or a violation of any federal insurance regulation as determined by the appropriate federal regulatory authority, the deputy director may apply to the superior court in Maricopa county for any of the following:

1. An injunction enjoining the person from engaging in the act, practice or transaction or from doing any act in furtherance of the act, practice or transaction, and on a showing by the deputy director that the person has engaged, is engaging or is about to engage in an act, practice or transaction in violation of this title, any other applicable law or any rule or order of the deputy director the court shall grant without bond a temporary restraining order, preliminary injunction or permanent injunction.

2. An order granting additional relief as may be available under this title.

F. The court shall give an action brought pursuant to this section precedence over all other civil actions.

G. An order that is issued by the deputy director under this section to a person, financial institution or financial enterprise that has engaged or is engaging in a violation that relates to unlicensed activity shall be open to public inspection.
A.R.S. § 6-1225 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1225
6-1225 Refunds; exceptions
Status: in_force

6-1225. Refunds; exceptions

A. Except as provided in subsection B of this section, every licensee shall refund to the sender within ten days after receipt of the sender's written request for a refund of money received for transmission unless any of the following occurs:

1. The money is forwarded within ten days after the date on which the money is received for transmission.

2. Instructions have been given committing an equivalent amount of money to the person designated by the sender within ten days after the date on which the money is received for transmission.

3. The agreement between the licensee and the sender instructs the licensee to forward the money at a time that is more than ten days after the date on which the money is received for transmission.  If monies have not yet been forwarded in accordance with the terms of the agreement between the licensee and the sender, this paragraph does not apply.

4. The refund is requested for a transaction that the licensee has not completed based on a reasonable belief that a crime or violation of law has occurred, is occurring or may occur.

5. The refund request does not enable the licensee to identify either:

(a) The sender's name and address or telephone number.

(b) The particular transaction to be refunded if the sender has multiple transactions outstanding.

B. This section does not apply to:

1. Money received for transmission subject to the federal remittance rule (12 Code of Federal Regulations sections 1005.30 through 1005.36).

2. Money received for transmission pursuant to a written agreement between the licensee and payee to process payments for goods or services provided by the payee.
A.R.S. § 6-1213 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1213
6-1213 License maintenance
Status: in_force

6-1213. License maintenance

A. If a licensee does not continue to meet the qualifications or satisfy the requirements that apply to an applicant for a new money transmission license pursuant to this article, the director may suspend or revoke the licensee's license.

B. An applicant for a money transmission license must demonstrate that the applicant meets or will meet the requirements prescribed in sections 6-1227, 6-1228 and 6-1229.
A.R.S. § 6-943 — Arizona Code / Title 6 / Chapter 9 / Article 2 / Section 943
6-943 Licensing of mortgage bankers required; qualifications; application; bond; fees; renewal
Status: in_force

6-943. Licensing of mortgage bankers required; qualifications; application; bond; fees; renewal

A. A person shall not act as a mortgage banker if the person is not licensed under this article.

B. The deputy director shall not grant a mortgage banker's license to a person, other than a natural person, who is not registered to do business in this state on the date of application for a license. The deputy director shall not issue a mortgage banker's license or a renewal of a license to an applicant unless the applicant meets all of the requirements prescribed in subsection C of this section. The deputy director shall determine whether the applicant meets the requirements based on the application and evidence presented at a hearing, if any, or any other evidence that the deputy director may have regarding qualifications of the applicant.

C. In order to qualify for a mortgage banker license or a renewal of a license, an applicant shall:

1. Have not fewer than three years' experience in the business of making mortgage banking loans or equivalent lending experience in a related business. If the applicant is a person other than a natural person, the responsible individual shall meet this requirement.

2. Have engaged or intend to engage in the business of making mortgage loans or mortgage banking loans.

3. Either:

(a) Be authorized to do business with any of the following:

(i) The federal housing administration.

(ii) The United States department of veterans affairs.

(iii) The federal national mortgage association.

(iv) The federal home loan mortgage corporation.

(b) Notwithstanding paragraph 5 of this subsection, at all times have and maintain a net worth of not less than $100,000.

4. Provide the deputy director with a current audited financial statement, or that of its parent company, that is prepared by an independent certified public accountant in accordance with generally accepted accounting principles and that includes:

(a) The certified public accountant's opinion as to the fairness of the presentation in conformity with generally accepted accounting principles.

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

(c) A statement of operations and retained earnings and a statement of changes in financial position if the applicant has commenced operations.

(d) Notes to the financial statement, if applicable.

5. At all times have and maintain a net worth of not less than $100,000.

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

E. The nonrefundable application fee and annual renewal fee are as prescribed in section 6-126. The nonrefundable application fee shall accompany each application for an original license only.

F. If a licensee is a person other than a natural person, the license issued to it entitles all officers, directors, members, partners, trustees and employees of the licensed corporation, partnership, association or trust to engage in the mortgage banking business if one officer, director, member, partner, employee or trustee of the person is designated in the license as the individual responsible for the person under this article. If a licensee is a natural person, the license entitles all employees of the licensee to engage in the mortgage banking business. If the natural person is not a resident of this state, an employee of the licensee shall be designated in the license as the individual responsible for the licensee under this article. For the purposes of this article, an employee does not include an independent contractor. For the purposes of this article, the responsible individual shall be a resident of this state, shall be in active management of the activities of the licensee governed by this article and shall have not less than three years' experience in the business of making mortgage banking loans or equivalent experience in a related business.

G. A licensee shall notify the deputy director that its responsible individual will cease to be in active management of the licensee within ten days after learning that fact. Not more than ninety days after the deputy director receives the notice, the licensee shall place itself under the active management of a qualified responsible person and notify the deputy director. If the licensee is not placed under active management of a qualified responsible individual and if notice is not received by the deputy director within the ninety-day period, the license of the licensee expires.

H. Every person licensed as a mortgage banker shall deposit with the deputy director, before doing business as a mortgage banker, a bond executed by the licensee as principal and a surety company authorized to do business in this state as surety.  The bond shall be conditioned on the faithful compliance of the licensee, including the licensee's directors, officers, members, partners, trustees and employees, with this article.  Only one bond is required for a person, firm, association or corporation irrespective of the number of officers, directors, members, partners or trustees who are employed by or are members of the firm, association or corporation.  The bond is payable to any person injured by the wrongful act, default, fraud or misrepresentation of the licensee and to this state for the benefit of any injured person.  The coverage shall be maintained in the minimum amount prescribed in this subsection, computed on a base consisting of the total assets of the licensee plus the unpaid balance of loans it has contracted to service for others as of the end of the licensee's fiscal year.

Base    Minimum Bond

Not over $1,000,000     $25,000 for the first $500,000 plus

$5,000 for each $100,000 or fraction

thereof over $500,000

$1,000,001 to $10,000,000     $50,000 plus $5,000 for each $1,800,000

or fraction thereof over $1,000,000

$10,000,001 to $100,000,000   $75,000 plus $5,000 for each $18,000,000

or fraction thereof over $10,000,000

$100,000,001 and over   $100,000

A suit may not be commenced on the bond after the expiration of one year following the commission of the act on which the suit is based, except that claims for fraud or mistake are limited to the limitation period provided in section 12-543, paragraph 3.  If any injured person commences an action for a judgment to collect on the bond, the injured person shall notify the deputy director of the action in writing at the time of the commencement of the action and shall provide copies of all documents relating to the action to the deputy director on request.

I. Notwithstanding subsection H of this section, the bond required is $25,000 for licensees whose investors are limited solely to institutional investors.

J. For the purposes of subsection I of this section:

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

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

K. Notwithstanding section 35-155, in lieu of the bond described in this section, an applicant for a license or a licensee may deposit with the deputy director a deposit in the form of cash or alternatives to cash in the amount prescribed in subsection H or I of this section, as applicable.  The deputy director may accept any of the following as an alternative to cash:

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

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

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

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

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

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

2. The surrender of the license.

3. The revocation of the license.

4. The expiration of the license.

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

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

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

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

P. The licensee is liable for any damage caused by any of the licensee's employees while engaged in the business of making mortgage loans or mortgage banking loans.

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

R. Notwithstanding subsection C, paragraph 4 of this section, licensees and applicants whose own resources are derived exclusively from correspondent contracts between mortgage bankers and banks, savings banks, trust companies, savings and loan associations, credit unions, profit sharing or pension trusts, consumer lenders or insurance companies shall provide the deputy director with a current financial statement, or that of its parent company, that is prepared in accordance with generally accepted accounting principles and that includes:

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

2. A statement of operations and retained earnings and a statement of changes in financial position if the applicant has commenced operations.

3. Notes to the financial statement if applicable.

S. In addition to the grounds specified in section 6-945, subsection A, failure of a licensee to operate the business of making mortgage loans or mortgage banking loans for a continuous period of twelve months or more shall constitute grounds for revocation of such a license.  The deputy director, on good cause shown, may extend the time for operating such a business for a single fixed period, which shall not exceed twelve months.

T. If the applicant for renewal of a mortgage banker license is a natural person, the applicant shall have satisfactorily completed twelve continuing education units by a continuing education provider approved by the deputy director before submitting the renewal application. If the applicant is other than a natural person, the designated responsible individual shall have satisfactorily completed twelve continuing education units by a continuing education provider approved by the deputy director before submitting the renewal application.

U. A licensee who employs a loan originator shall comply with section 6-991.03.
A.R.S. § 6-538 — Arizona Code / Title 6 / Chapter 4 / Article 5 / Section 538
6-538 Credit committee
Status: in_force

6-538. Credit committee

A. The credit committee has the general supervision of all loans to members, unless it is replaced by a credit manager as provided in section 6-539. The credit committee may approve or disapprove loans subject to written policies established by the board of directors.

B. The credit committee shall meet as often as the business of the credit union requires but not less frequently than monthly, to review the lending activities of the credit union and to consider applications for loans. A loan shall not be made unless it is approved by a majority of the members of the committee who are present at the meeting at which the application is considered.

C. The credit committee or the credit manager shall keep a record of all actions taken and shall report on such actions to the board at its next meeting.
A.R.S. § 6-253 — Arizona Code / Title 6 / Chapter 2 / Article 5.1 / Section 253
6-253 Scope; choice of law; forum
Status: in_force

6-253. Scope; choice of law; forum

A. This article applies to a special deposit under an account agreement that states the intention of the parties to establish a special deposit governed by this article, regardless of whether a party to the account agreement or a transaction related to the special deposit, or the special deposit itself, has a reasonable relation to this state.

B. The parties to an account agreement may choose a forum in this state for settling a dispute arising out of the special deposit, regardless of whether a party to the account agreement or a transaction related to the special deposit, or the special deposit itself, has a reasonable relation to this state.

C. This article does not affect:

1. A right or obligation relating to a deposit other than a special deposit under this article; or

2. The voidability of a deposit or transfer that is fraudulent or voidable under other law.
A.R.S. § 6-610 — Arizona Code / Title 6 / Chapter 5 / Article 1 / Section 610
6-610 Effect of revocation, suspension or surrender on preexisting contract; impairment of contracts
Status: repealed

6-610. Effect of revocation, suspension or surrender on preexisting contract; impairment of contracts

A. The revocation, suspension or surrender of a consumer lender license does not impair or affect:

1. The obligation of any preexisting consumer lender loan between the consumer lender and any consumer.

2. The ability or right of the consumer lender to service existing consumer lender loans from outside this state.

B. If this chapter or any part of this chapter is modified, amended or repealed, resulting in a cancellation or alteration of any consumer lender license or right of a licensee under this chapter, that cancellation or alteration does not impair or affect the obligation of any preexisting contract between a consumer lender and any consumer.
A.R.S. § 6-1234 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1234
6-1234 Uniformity
Status: in_force

6-1234. Uniformity

In enforcing this article, the director shall consider the need to promote uniformity of the law with respect to money transmitters among states that enact money transmitter laws that are substantively similar to this article.
A.R.S. § 6-413 — Arizona Code / Title 6 / Chapter 3 / Article 2 / Section 413
6-413 Contents of articles of incorporation
Status: in_force

6-413. Contents of articles of incorporation

A. The articles of incorporation shall set forth:

1. The name of the association.

2. The location of the principal place of business.

3. The general nature of the business to be transacted.

4. The authorization, if any, to issue withdrawable shares, the aggregate amount of which may be unlimited.

5. The authorization, if any, to issue guaranty shares, the aggregate number thereof, and the par value per share, if any.

6. The date of the annual meeting of the members, which shall not be more than one hundred fifty days after the close of the association's fiscal year.

7. The quorum required for action of members if a quorum other than specified in this chapter is desired.

8. The names, residences and post-office addresses of the incorporators, who shall be the individuals who made and filed with the deputy director the application for a permit to organize.

9. The time of commencement and termination of the association, which shall be governed by the general corporation laws of the state, with the right of renewal of existence.

10. By what officers the affairs of the association are to be conducted and the time of their election. The number of directors shall not be less than five nor more than twenty-five.

11. The highest amount of indebtedness or liability, direct or contingent, to which the association may at any time subject itself which shall not exceed one-half of the accounts and paid-in guaranty stock without prior approval of the deputy director.

12. That the private property of the shareholders is exempt from the debts and obligations of the association.

13. Any other provision not inconsistent with law, which the subscribers may desire for the internal regulation of the affairs of the association.

14. The articles need not set forth any of the powers that this chapter confers.

B. The articles of incorporation may:

1. Provide that the guaranty shares be divided into different kinds or classes.

2. Define the designations, preferences, rights and limitations of each kind or class.

3. Define the voting rights of the different types of members.

4. Restrict the power to vote to holders of guaranty shares or to one or more kinds or classes of guaranty shares.
A.R.S. § 6-636 — Arizona Code / Title 6 / Chapter 5 / Article 2 / Section 636
6-636 Insurance securing loan; cancellation; notice
Status: in_force

6-636. Insurance securing loan; cancellation; notice

A. The following types of insurance may be sold to the consumer in connection with a consumer lender loan and the consumer may contract for:

1. Property insurance covering any property securing a consumer lender loan.

2. Life insurance insuring the life of one or more consumers obligated on a consumer lender loan.

3. Credit disability insurance that provides indemnity for payments due on a consumer lender loan while any covered consumer has a disability.

4. Credit involuntary unemployment insurance that provides indemnity for payments due on a consumer lender loan while one or more consumers are involuntarily unemployed.

5. Accidental death and dismemberment insurance providing a benefit if death occurs as a result of an accident or if dismemberment occurs.

6. Disability income protection insurance providing a benefit if a total disability occurs during the term of insurance.

B. Any insurance purchased by a consumer from or through a licensee, except insurance on property securing a consumer lender loan, is optional, and a licensee shall not refuse to make a consumer lender loan based on the consumer's refusal to purchase the insurance. The consumer may cancel any insurance purchased in connection with a consumer lender loan for any reason at any time within thirty days after the consumer lender loan is made and shall mail or deliver a written notice of the cancellation to the licensee's place of business. If the consumer cancels the insurance pursuant to this subsection, the consumer is entitled to a full refund of any premiums paid for the insurance. Before executing the note or agreement evidencing a consumer lender loan that includes a premium for insurance, the licensee shall give the consumer the disclosures required to exclude those insurance premiums from the finance charge in accordance with the truth in lending act.

C. At the time the insurance is sold the licensee shall mail or deliver a written receipt or binder to the consumer. Within thirty days after mailing or delivering the written receipt or binder, the licensee shall deliver to the consumer, or if more than one, to any one of them, a policy or certificate of insurance covering any insurance purchased by or through the licensee or any employee or affiliate of the licensee in connection with the consumer lender loan that sets forth the amount of any premium that the consumer has paid or is obligated to pay, the amount of insurance, the term of insurance and a description of the coverage. The policy or certificate may contain a mortgagee clause or other appropriate provisions to protect the insurable interest of the licensee.

D. All property insurance sold pursuant to this section shall bear a reasonable bona fide relation to the existing hazard or risk of loss and shall be written by an agent licensed in this state and by an insurance company authorized to conduct property insurance business in this state. A licensee shall not require the purchase of property insurance from the licensee or any employee, affiliate or associate of the licensee as a condition precedent to the making of a consumer lender loan. The licensee may otherwise designate the company in which the insurance shall be placed as long as the insurance company is authorized to conduct business in this state.

E. Property insurance, if sold by a licensee in connection with a consumer loan, is at the option of the consumer in an amount not exceeding the greater of the reasonable value of the property insured as designated in writing by the consumer or the approximate amount of the consumer loan and shall be for a term not exceeding the approximate term of the consumer loan. However, the amount of this property insurance may not exceed the designated value of the property insured.

F. If a licensee sells property insurance in connection with a consumer revolving loan or a home equity revolving loan, the amount of the property insurance shall not exceed the greater of the reasonable value of the property insured as designated in writing by the consumer or the agreed on credit limit. However, the amount of property insurance shall not exceed the designated value of the insured property. The licensee may sell property insurance for renewable terms of not more than two years. Alternatively, the amount of property insurance may be equal to the balance outstanding on a consumer revolving loan or a home equity revolving loan from time to time with the premiums calculated on the basis of the actual daily unpaid balance or the average daily balance of the account during each billing cycle period. Premiums for property insurance may be charged as an advance on a consumer revolving loan or a home equity revolving loan.

G. If the licensee sells the consumer property insurance for a renewable term, the licensee shall mail a notice to the consumer at least thirty days before the renewal date that states all of the following:

1. The consumer's property insurance is about to expire.

2. The consumer may obtain property insurance from any source chosen by the consumer subject to the licensee's right to reasonably reject the insurer chosen by the consumer by providing written notice to the consumer of those reasons for rejection.

3. The term, coverage and premium for the renewal of property insurance.

4. The property insurance will be renewed on expiration unless the consumer provides the licensee before the expiration date with evidence that the consumer has obtained other property insurance.

H. Notwithstanding any other provision of this chapter, any advantage, commission, dividend, gain or identifiable charge for insurance authorized by this section, or otherwise, to the licensee or any employee or affiliate of the licensee from that insurance or its sale is not an additional finance charge or other allowed fee in connection with the consumer lender loan. If the licensee provides a new consumer lender loan or renews a contract of a consumer lender loan and the licensee sells the consumer new insurance, the licensee shall apply the insurance provided for in this section to the new loan or renewal, or the licensee shall cancel the prior insurance and provide the consumer with a refund or credit of the unearned premium or identifiable charge before selling the new insurance to the consumer.

I. The licensee shall determine the refund of unearned premiums for credit life insurance and credit disability insurance on prepayment in full according to title 20, chapter 6, article 10.

J. Except as otherwise specifically provided in this chapter, insurance transactions pursuant to this chapter are subject in all respects to the applicable laws pertaining to that insurance pursuant to title 20 and to the applicable rules adopted pursuant to title 20.
A.R.S. § 6-493 — Arizona Code / Title 6 / Chapter 3 / Article 9 / Section 493
6-493 Securities defined; power to issue under plan
Status: in_force

6-493. Securities defined; power to issue under plan

A. The term "securities", as used in this article in respect to any plan, includes not only shares of guaranty capital and evidences of accounts issuable by an association under the laws of this state, but also shares of stock of one or more classes issuable by corporations generally, and bonds, notes, debentures, evidences of indebtedness, certificates of interest or participation and collateral trust certificates.

B. An association may issue, pursuant to a plan approved under this article, any one or more of the above mentioned kinds of securities.
A.R.S. § 6-1404 — Arizona Code / Title 6 / Chapter 14 / Article 1 / Section 1404
6-1404 Denial, suspension or revocation of licenses and branch office permits
Status: in_force

6-1404. Denial, suspension or revocation of licenses and branch office permits

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

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

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

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

4. Has had a final judgment entered against the person 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 that person to be licensed or to control or manage a licensee.

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

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

7. Has failed to pay the license or annual renewal fees.

8. Has failed to file an annual report when due or within any extension of time that the deputy director, for good cause, may have granted.

9. Fails to have or maintain at least $25,000 in liquid assets available for use in conducting the business.

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

C. It is sufficient cause for the suspension or revocation of the license if an owner, officer, director, member, partner, trustee or employee, while acting in the course of the premium finance business, or a person who is entitled to vote more than twenty percent of the outstanding voting shares of the licensed corporation or a person who has a controlling interest in a licensed limited liability company, partnership, association or trust has acted or failed to act in the same manner as would be cause for suspending or revoking a license of the person to whom the license was issued.

D. The deputy director may deny a branch office permit to a person or suspend or revoke a branch office permit for the same reasons sufficient under this section for denial, suspension or revocation of a license.
A.R.S. § 6-395.05 — Arizona Code / Title 6 / Chapter 2 / Article 13 / Section 395.05
6-395.05 Effect of receivership proceedings on liens and limitations
Status: in_force

6-395.05. Effect of receivership proceedings on liens and limitations

A. Every lien against any asset of a bank obtained by attachment, judgment, levy or other legal or equitable process or proceedings after the filing of the application for the appointment of a receiver under this article shall be null and void as to the receiver and to any purchaser from the receiver where the sale is ordered by the court to be free and clear of such liens.

B. A receiver, upon his appointment shall be vested by operation of law with the title to all of the assets of the bank as of the time of filing of the application for the appointment of the receiver; and as to all assets of the bank, whether or not coming into his physical possession, upon which a creditor of the bank could have obtained a lien by legal or equitable proceedings at the time of filing of the application for the appointment of the receiver, the receiver shall be vested as of the time of such filing with all of the rights, remedies and powers of a creditor then holding a lien thereon by such proceedings, whether or not such a creditor actually exists.

C. Upon the filing of the application for the appointment of a receiver under this article there shall be a postponement for a period of six months of the date upon which any period of limitations fixed by statute or agreement would otherwise expire on a claim or right of action of the bank or upon which an appeal must be taken or a pleading or other document must be filed by the bank in any pending action or proceeding.
A.R.S. § 6-1107 — Arizona Code / Title 6 / Chapter 11 / Article 1 / Section 1107
6-1107 Denial of application; grounds
Status: in_force

6-1107. Denial of application; grounds

A. The deputy director may deny an application if the deputy director finds any of the following:

1. The financial condition of the financial institution holding company that would acquire control will jeopardize the financial stability of the financial institution or controlling person or prejudice the interests of the depositors, beneficiaries, creditors and shareholders of the financial institution or controlling person.

2. A plan or proposal to liquidate or consolidate the financial institution or controlling person or to make any other major change in the business, corporate structure or management of the financial institution or controlling person is not fair and reasonable to the depositors, beneficiaries, creditors and shareholders of the financial institution or controlling person.

3. The applicant has neglected, failed or refused to furnish to the deputy director any required information.

4. The proposed acquisition is contrary to law.

5. The acquisition would result in a monopoly or would be in furtherance of any combination or any conspiracy to monopolize or to attempt to monopolize the business of financial institutions and financial institution holding companies.

6. The effect of the proposed acquisition will be to substantially lessen competition, tend to create a monopoly or in any other manner be a restraint of trade, unless the deputy director finds that the effects of the proposed acquisition are clearly outweighed by its probable effect in meeting the convenience and needs of the community to be served and by the public interest.

7. The applicant has made a material false statement on the application.

B. The deputy director shall give the applicant written notification of the granting or denial of an application together with a statement in support of the decision. If the deputy director, based on the information available at the time, plans to deny the application and no hearing has been held in accordance with title 41, chapter 6, article 10, the deputy director shall send the applicant a written statement that specifies the reasons for the tentative denial. The applicant shall have fifteen days following the date of this statement within which to file a written request to amend its application. On the filing of the request, the applicant shall be given thirty days in which to amend its application.

C. The deputy director may approve an application subject to conditions the deputy director considers necessary and appropriate to protect the public interest and carry out the purposes of this title. The deputy director shall give the applicant written notification of the approval of an application that is subject to conditions together with a statement in support of the decision.
A.R.S. § 6-395.13 — Arizona Code / Title 6 / Chapter 2 / Article 13 / Section 395.13
6-395.13 Voluntary liquidation and dissolution
Status: in_force

6-395.13. Voluntary liquidation and dissolution

A bank may voluntarily dissolve and wind up its affairs as any other corporation under the provisions of title 10, but a plan of liquidation or dissolution shall not be submitted to the stockholders until the deputy director on application by the bank finds that the bank has assets of such a form and amount as to allow the satisfaction in full of the claims of all depositors in accordance with their rights and that the plan contains proper provision for the satisfaction.
A.R.S. § 6-488 — Arizona Code / Title 6 / Chapter 3 / Article 9 / Section 488
6-488 Hearing; fairness of plan
Status: in_force

6-488. Hearing; fairness of plan

A. At the time and place fixed for the hearing, or at the time and place to which the hearing may be continued by the court, the court shall hear the parties interested therein and, if it deems it necessary, may take testimony relative thereto and may accept proof in affidavit form as to any fact or circumstance material thereto. The hearing shall be conducted, among other things, on the fairness of the terms and conditions of the issuance of all securities to be issued pursuant to the plan and of the exchange thereof for outstanding shares of guaranty capital, accounts, claims or property interests, or partly in the exchange and partly for cash. All persons to whom it is proposed to issue securities in the exchange shall have the right to appear and be heard at the hearing.

B. The deputy director or the court shall not approve a plan unless the deputy director or the court is satisfied that the plan is feasible, fair and equitable and does not discriminate in favor of any class of holders of accounts or of shares of guaranty capital, creditors or other persons affected thereby.
A.R.S. § 6-352 — Arizona Code / Title 6 / Chapter 2 / Article 9 / Section 352
6-352 Limitations of obligations to a bank; exceptions; definitions
Status: in_force

6-352. Limitations of obligations to a bank; exceptions; definitions

A. A bank may lend to a single borrower an amount equal to not more than twenty percent of its capital, plus an amount equal to an additional ten percent of its capital if the additional amounts are fully secured by readily marketable collateral that has a market value, as determined by reliable and continuously available price quotations, at least equal to the amount of the loan.  The calculation of the total amount of all loans to a person pursuant to this subsection must include any credit exposure to a person arising from a derivative transaction, repurchase agreement, reverse repurchase agreement, securities lending transaction or securities borrowing transaction between the bank and the person.

B. A bank shall notify the department the first time it makes a loan in an amount in excess of fifteen percent of its capital. The notification to the department shall be made in writing and submitted to the department within a reasonable period of time.

C. Each bank shall institute adequate procedures to ensure compliance with subsection A of this section.

D. The limitations of subsection A of this section do not apply to:

1. Obligations incurred by the assignment, endorsement or guarantee of the obligation of a third person, including an agreement to purchase the third person's obligation or the collateral therefor, if the bank has evaluated the financial condition and responsibility of the third person and as a result of such evaluation accepts the obligation in reliance primarily on the third person for payment. In such case the obligations of the third person to the bank shall be the sole applicable limitation.

2. Obligations, whether general obligations or payable from revenues or special assessment, of the United States or any agency or instrumentality of the United States, a federal reserve bank, a state of the United States or a subdivision, instrumentality or public authority organized under the laws of such state.

3. Obligations to the extent they are secured by the guarantee, insurance or other like commitment of the United States, an agency or instrumentality of the United States, a federal reserve bank, a state of the United States or a subdivision, instrumentality or public authority organized under the laws of such state, whether the commitment provides for payment in cash or in obligations described in paragraph 2 of this subsection.

4. Obligations to the extent they are secured by any obligation described in paragraphs 2 and 3 of this subsection at the value thereof, not exceeding face value, at the time the obligation to the bank is created.

5. Obligations to the extent they are secured by deposits in the bank.

6. Obligations that are outstanding in the regular process of bank collection or clearing transactions.

7. Obligations of a qualified reserve depository of the bank, unless the deputy director has by specific order excluded or limited the obligations of such depository from the exemption of this paragraph.

8. Any obligation created in the sale by the bank of any of its property where the bank retains title, lien or security interest in the property sold to secure the obligation.

9. Any obligation under the lease by the bank of any personal property acquired by the bank in collecting an obligation to it or the lease of any of its real property or banking equipment.

10. That portion of the obligations of a person to the bank that exceeds the aggregate funds paid and the value of property delivered by the bank in creating the obligation.

11. Any obligation exempt by rule of the deputy director or arising from the sale of any assets of the bank in a transaction that has been approved by the deputy director.

E. If the bank participates in an obligation with another obligee, the limitations of this section shall be applicable only to the extent of the bank's participation.

F. If the value of collateral for a loan that is required to be fully secured under subsection A of this section falls below one hundred percent of the outstanding loan, the loan must be brought into conformance within five business days, except if judicial proceedings, regulatory actions or other extraordinary occurrences prevent the bank from taking action.

G. A renewal of a loan or a modification and extension of original repayment terms are not deemed to be a new loan or an extension of credit except in instances in which interest on the renewed loan or extension of credit is capitalized or additional money is advanced.

H. Financial instruments may be denominated in foreign currencies that are freely convertible to United States dollars. If denominated and payable in a currency other than that of the loan or extension of credit that it secures, the bank's procedures adopted pursuant to subsection C of this section shall require that the collateral be revalued at least monthly using appropriate foreign exchange rates in addition to being valued at current market value.

I. For the purposes of this section:

1. "Derivative transaction" includes a transaction that is a contract, agreement, swap, warrant, note or option that is based on, in whole or in part, the value of, any interest in or any quantitative measure or the occurrence of any event relating to one or more commodities, securities, currencies, interest or other rates, indices or other assets.

2. "Financial instruments" includes stocks, bonds and debentures traded on a national securities exchange, over-the-counter margin stocks as defined in regulation U of the federal reserve board, commercial paper, notes, negotiable certificates of deposit, banker's acceptance and shares in money market and mutual funds of the type in which banks may perfect a security interest.

3. "Readily marketable collateral" means financial instruments or bullion that are saleable under ordinary circumstances with reasonable promptness at a fair market value determined by quotations based on actual transactions of an auction or a similarly available daily bid and asked price market.
A.R.S. § 6-710 — Arizona Code / Title 6 / Chapter 6 / Article 1 / Section 710
6-710 Prohibitions
Status: in_force

6-710. Prohibitions

It is unlawful for a licensee to:

1. Accept an account unless it appears on the basis of a reasonable budget analysis, reduced to writing, that the debtor can reasonably meet the payments agreed on by the licensee and the debtor and that the agreed on payment is sufficient to pay the service charges to the licensee and the full amount of the proposed payments to creditors as agreed on by the licensee and debtor. The licensee shall retain the written budget analysis for at least three years after the termination of the contract in the files of the licensee. The licensee shall make the analysis available for inspection by the deputy director, except that such a budget analysis is not deemed unreasonable if facts that would prove it to be such were not furnished to the licensee by the debtor on request.

2. Unless agreed on by the debtor, attempt to alter any scheduled payment listed on the original application from the debtor to any figure other than the amount agreed on by the debtor and creditors in those cases when a contractual installment exists.  Acceptance of the proposed payment by the creditor shall not alter any rights the creditor has under the creditor's original contract with the debtor.

3. Purchase from a creditor any obligation of a debtor.

4. Operate as a collection agent and as a licensee as to the same debtor's account.

5. Execute any contract or agreement to be signed by the debtor unless the contract or agreement is fully and completely filled in.

6. Receive or charge any fee in the form of a promissory note or other promise to pay or receive or accept any mortgage or other security for any fee either as to real or personal property.

7. Pay any bonus or other consideration to any person for the referral of a debtor to the person's business, nor accept or receive any bonus, commission or other consideration for referring any debtor to any person for any reason.

8. Advertise the licensee's services, display, distribute, broadcast or televise or allow to be displayed, advertised, distributed, broadcasted or televised the licensee's services in any manner whatsoever in which any false, misleading or deceptive statement or representation is made with regard to the services to be performed by the licensee or the charges to be made for those services.
A.R.S. § 6-409 — Arizona Code / Title 6 / Chapter 3 / Article 2 / Section 409
6-409 Findings and hearings
Status: in_force

6-409. Findings and hearings

If the deputy director does not deny the application on the basis of the data submitted by the applicants and any other information in the deputy director's possession, the applicants shall publish a notice of intention to organize in such form as the deputy director shall prescribe. The deputy director may hear evidence to determine the deputy director's findings at any time prior to the issuance of a permit to organize.
A.R.S. § 6-419 — Arizona Code / Title 6 / Chapter 3 / Article 3 / Section 419
6-419 Officers
Status: in_force

6-419. Officers

A. The officers of an association shall consist of a president, one or more vice presidents, secretary, treasurer, and such other officers as the by-laws shall provide, to be elected by the directors. If the by-laws so provide, any two or more offices may be held by the same person, except that one person shall not hold the offices of president and vice president or president and secretary. The duties and powers of the secretary set forth in this chapter may be exercised by any other officer designated by the board of directors.

B. The existence of an association shall not terminate by reason of the failure to elect officers at the time mentioned in the by-laws, and each officer shall hold his office until his successor is elected and qualified.
A.R.S. § 6-527 — Arizona Code / Title 6 / Chapter 4 / Article 4 / Section 527
6-527 Liability of members
Status: in_force

6-527. Liability of members

The members of the credit union are not personally or individually liable for the payment of its debts solely by virtue of holding membership.
A.R.S. § 6-613 — Arizona Code / Title 6 / Chapter 5 / Article 1 / Section 613
6-613 Restrictions; voidable loans
Status: in_force

6-613. Restrictions; voidable loans

A. Except as the result of an accidental or bona fide error, if the licensee charges, contracts for or receives any amount in excess of the finance charges and other fees permitted by this chapter the following restrictions apply:

1. If the original principal amount of a consumer loan is five thousand dollars or less, that consumer loan is voidable and the licensee has no right to collect or receive any principal, finance charges or other fees in connection with that consumer loan.

2. If the original principal amount of a consumer loan is more than five thousand dollars, the licensee has no right to collect or receive any finance charges in connection with that consumer loan.

3. If the aggregate amount of advances borrowed on a consumer revolving loan or home equity revolving loan is five thousand dollars or less, that consumer revolving loan or home equity revolving loan is voidable and the licensee has no right to collect or receive any principal, finance charges or other fees in connection with that consumer revolving loan or home equity revolving loan.

4. If the aggregate amount of advances borrowed on a consumer revolving loan or home equity revolving loan is more than five thousand dollars, the licensee has no right to collect or receive any finance charges in connection with that consumer revolving loan or home equity revolving loan.

B. Any consumer lender loan that is made by a person who is required to be licensed pursuant to this chapter but who is not licensed is void, and the person making that consumer lender loan has no right to collect, receive or retain any principal, finance charges or other fees in connection with that consumer lender loan.
A.R.S. § 6-1105 — Arizona Code / Title 6 / Chapter 11 / Article 1 / Section 1105
6-1105 Application for approval
Status: in_force

6-1105. Application for approval

A. An application shall be in writing, in such form as the deputy director may prescribe and accompanied by the information, data and records the deputy director requires.  The deputy director shall prescribe by rule or order the form of the application and the information, data or records that may be required.

B. The deputy director shall cause copies of an initial application and any amendment or supplement to the application to be given to the financial institution concerned and the controlling person, if any, within three business days.
A.R.S. § 6-262 — Arizona Code / Title 6 / Chapter 2 / Article 5.1 / Section 262
6-262 Duties and liability of bank
Status: in_force

6-262. Duties and liability of bank

A. A bank does not have a fiduciary duty to any person with respect to a special deposit.

B. When a bank holding a special deposit becomes obligated to pay a beneficiary, a debtor-creditor relationship arises between the bank and beneficiary.

C. A bank holding a special deposit has a duty to a beneficiary to comply with the account agreement and this article.

D. If the bank holding a special deposit does not comply with the account agreement or this article, the bank is liable to a depositor or beneficiary only for damages proximately caused by the noncompliance.  Except as provided by other law of this state, the bank is not liable for consequential, special, or punitive damages.

E. The bank holding a special deposit may rely on records presented in compliance with the account agreement to determine whether the bank is obligated to pay a beneficiary.

F. If the account agreement requires payment on presentation of a record, the bank shall determine within a reasonable time whether the record is sufficient to require payment.  If the agreement requires action by the bank on presentation of a record, the bank is not liable for relying in good faith on the genuineness of the record if the record appears on its face to be genuine.

G. Unless the account agreement provides otherwise, the bank is not required to determine whether a permissible purpose stated in the agreement continues to exist.
A.R.S. § 6-416 — Arizona Code / Title 6 / Chapter 3 / Article 3 / Section 416
6-416 Record date for voting, dividend and other purposes
Status: in_force

6-416. Record date for voting, dividend and other purposes

For the purpose of determining the holders of accounts and of shares of guaranty capital, and membership entitled to notice of or to vote at any meeting of the members, or in order to make a determination of the members, holders, or other persons for any other proper purpose, the by-laws may provide for a record date, not less than ten days nor more than forty days before the meeting, or other event or transaction with regard to which the determination is to be made; and such determination shall be made as of the close of business on such record date. If the by-laws do not provide for a record date, the board of directors may fix such a date for each such determination, within the time stated above; and if the board of directors shall fail to so fix a date, the record date for a meeting shall be the date on which the first notice of meeting is given. Accounts withdrawn or retired after such record date shall not be voted or counted in determining the number of accounts outstanding. This section shall be applicable to the dividend payments on guaranty capital, but dividends on accounts shall be governed by section 6-442.
A.R.S. § 6-510 — Arizona Code / Title 6 / Chapter 4 / Article 2 / Section 510
6-510 Principal place of business; branch office
Status: in_force

6-510. Principal place of business; branch office

A. A credit union may change its principal place of business or branch within this state with the prior approval of the deputy director and the payment of the fee provided in section 6-126.

B. A credit union may establish a branch office with the prior approval of the deputy director.

C. A credit union organized under this chapter may conduct business in other states or territories of the United States where it is allowed to do so on approval of the deputy director, if it is reasonably necessary to service its members.
A.R.S. § 6-112 — Arizona Code / Title 6 / Chapter 1 / Article 2 / Section 112
6-112 Assistant director; examiners; personnel
Status: in_force

6-112. Assistant director; examiners; personnel

Subject to title 41, chapter 4, article 4, the director:

1. Shall appoint an assistant director who shall have the power and perform the duties of the deputy director of the financial institutions division of the department. The assistant director shall hold the appointment at the will and pleasure of the director.

2. May appoint other assistants as the director deems necessary whose powers are limited to the powers, duties or functions set forth in the appointment.

3. Shall appoint examiners and other personnel as necessary.
A.R.S. § 6-912 — Arizona Code / Title 6 / Chapter 9 / Article 1 / Section 912
6-912 Certificate of exemption
Status: in_force

6-912. Certificate of exemption

A. A person who is exempt from licensure pursuant to this article and articles 2 and 3 of this chapter as a federally chartered savings bank that is registered with the nationwide mortgage licensing system and registry may file a written application with the department for a certificate of exemption for the following purposes:

1. Registering with the department except that the registration shall not affect the exempt status of the applicant.

2. Sponsoring one or more mortgage loan originators.

3. Fulfilling any reporting requirements.

4. Reasonably supervising the activities of a mortgage loan originator who is licensed pursuant to article 4 of this chapter and who is employed by or under exclusive contract with the applicant.

B. A person shall apply for a certificate of exemption or renewal of a certificate of exemption in writing on the forms, in the manner and accompanied by the information prescribed by the deputy director. The deputy director may require additional information on the experience, background and competency of the applicant and the responsible individual designated by the applicant.

C. The department may charge a fee for processing the original or renewal application for a certificate of exemption and for other costs incurred by the department.

D. An exempt person shall notify the deputy director that the person has designated a responsible individual to actively manage the activities of the mortgage loan originator licensees. The responsible individual may be located in this state or in the state where the primary business of the bank is conducted and shall have at least three years of experience in the business of making mortgage loans or equivalent experience in a related business. The responsible individual may supervise one or more licensed mortgage loan originators in this state.

E. Within ten days after learning that a responsible individual will cease managing the licensees' activities, an exempt person must notify the deputy director.  Within ninety days after the notification is received by the deputy director, the exempt person must replace the responsible individual with a person who meets the qualifications prescribed by subsection D of this section and must notify the deputy director of the replacement.  A certificate of exemption expires if either of the following occurs:

1. The exempt person is not placed under active management of a qualified responsible individual.

2. The exempt person does not provide notice of replacement of the responsible individual to the deputy director as prescribed by this section.

F. After reviewing the application for a certificate of exemption and after verifying the submitted information, the department shall issue the certificate of exemption.

G. An exempt person who sponsors a loan originator on an exclusive contract shall comply with section 6-991.03.

H. The deputy director may deny a certificate of exemption to a person or suspend or revoke a certificate of exemption if the deputy director finds that an applicant or certificate holder has done any of the following:

1. Violated any applicable law, rule or order.

2. Refused or failed to furnish, within a reasonable time, any information or make any report that may be required by the deputy director.

3. Had a final judgment entered against the applicant or certificate holder 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 applicant or certificate holder to manage a loan originator.

4. Had an order entered against the applicant or certificate holder involving fraud, deceit or misrepresentation by an administrative agency of this state, the federal government or any other state or territory of the United States and the facts relating to the order indicate that it would be contrary to the interest of the public to allow the applicant or certificate holder to manage a loan originator.

5. Made a material misstatement or suppressed or withheld information on the application for a certificate of exemption or any document required to be filed with the deputy director.

I. If a person to whom a certificate of exemption is issued or who has applied for a certificate of exemption under this article is indicted or informed against for forgery, embezzlement, obtaining money under false pretenses, extortion, criminal conspiracy to defraud or a like offense, 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 certificate of exemption issued to the exempt person or refuse to grant a certificate of exemption to an applicant pending trial on the indictment or information.

J. Every person to whom a certification of exemption is issued pursuant to this section shall deposit with the deputy director, before doing business as a registered exempt person, a bond executed by the registered exempt person as principal and a surety company authorized to do business in this state as surety.  The bond shall be conditioned on the faithful compliance of the registered exempt person, including the registered exempt person's directors, officers, members, partners, trustees and employees, with this article. The bond is payable to any person injured by the wrongful act, default, fraud or misrepresentation of the registered exempt person, or the registered exempt person's directors, officers, members, partners, trustees and employees and to this state for the benefit of the person injured. Only one bond is required for any person, firm, association or corporation irrespective of the number of officers, directors, members, partners or trustees who are employed by or are members of such firm, association or corporation. A suit may not be commenced on the bond after the expiration of one year following the commission of the act on which the suit is based, except that claims for fraud or mistake are limited to the limitation provided in section 12-543, paragraph 3. If an injured person commences an action for a judgment to collect from the bond, the injured person shall notify the deputy director of the action in writing at the time of the commencement of the action and shall provide copies of all documents relating to the action to the deputy director on request. The bond required by this section is $200,000.
A.R.S. § 6-1410 — Arizona Code / Title 6 / Chapter 14 / Article 1 / Section 1410
6-1410 Form of premium finance agreement; notice
Status: in_force

6-1410. Form of premium finance agreement; notice

A. A premium finance agreement shall:

1. Be dated and signed by the insured and the printed portion of the agreement shall be in at least eight-point type.

2. Contain the name, place of business and mailing address of the agent or broker who is negotiating the related insurance contract, the name and residence or mailing address of the insured as specified by the insured, the name, place of business or mailing address of the premium finance company, a brief description of the insurance contract involved and the amount of the premium.

3. Set forth the following items if applicable:

(a) The total amount of the premiums.

(b) The amount of the down payment.

(c) The principal balance.

(d) The amount of the interest or discount.

(e) The balance payable by the insured.

(f) The number of installments required, the amount of each installment expressed in dollars and the due date or period of the installments.

(g) The amount of any service charge and if the charge is refundable.

B. Notwithstanding subsection A, paragraph 1 of this section, if a premium finance agreement is for a renewal contract, the agreement may be signed by the insured or by an authorized person on behalf of the insured. The deputy director may adopt rules identifying persons authorized to sign premium finance agreements on behalf of the insured.

C. The licensee may include additional information regarding computations made in determining the amount to be paid by the insured.

D. The agent or broker who submits the premium finance agreement to the licensee shall list any managing general agent to whom the submitting agent or broker is required to pay insurance premiums for the policies listed on the premium finance agreement.

E. If a managing general agent's name and address are listed on a premium finance agreement submitted to a licensee, the licensee shall notify the managing general agent that a premium finance agreement has been executed not later than thirty days after the licensee accepts the premium finance agreement.

F. If an insurer or the managing general agent of an insurer gives notice in writing that an agent or broker is not authorized to receive premiums on behalf of the insurer, the licensee shall pay all future monies advanced on policies purchased from the agent or broker to the insurer or managing general agent of the insurer as directed in the notice.

G. A licensee or an employee of a licensee shall not pay, allow or offer to pay or allow any other person to pay valuable consideration or a rebate of any kind that exceeds a value of $10 to an insurer, agent, broker or managing general agent, or any of its employees, as an inducement to arrange the financing of an insurance policy providing coverage for an individual, family or household purpose directly or indirectly either before or after the issuance of the policy. Office equipment loaned for the purpose of preparing and servicing premium finance agreements or an article of merchandise not exceeding $2 in value that bears the advertisement of the licensee shall not be deemed an inducement or rebate in violation of this subsection. This subsection does not apply to financing of policies providing coverage for any entity involved in transactions solely for business purposes.

H. This section does not prevent a licensee from purchasing or otherwise acquiring a premium finance agreement that otherwise conforms to this article in all respects if the acquisition is from another premium finance company with recourse against the agent, broker or insurer on such terms and conditions as may be mutually agreed on.

I. No premium finance agreement shall contain any provision by which:

1. In the absence of default of the insured or insolvency of the insurer, the licensee holding the agreement may, arbitrarily and without reasonable cause, accelerate the maturing of any part or all of the amount owing under the premium finance agreement.

2. The insured relieves the agent or broker from liability for any legal rights or remedies that the insured may otherwise have against the agent or broker.

J. A licensee shall comply with title I of the consumer credit protection act (15 United States Code sections 1601 through 1667) and the regulations of the act.
A.R.S. § 6-254 — Arizona Code / Title 6 / Chapter 2 / Article 5.1 / Section 254
6-254 Variation by agreement or amendment
Status: in_force

6-254. Variation by agreement or amendment

A. The effect of this section and sections 6-252, 6-253, 6-255, 6-256, 6-258, 6-259, 6-260, 6-261 and 6-264 may not be varied by agreement, except as provided in those sections.  Subject to subsection B of this section, the effect of sections 6-257, 6-262 and 6-263 may be varied by agreement.

B. A provision in an account agreement or other record that substantially excuses liability or substantially limits remedies for failure to perform an obligation under this article is not sufficient to vary the effect of this article.

C. If a beneficiary is a party to an account agreement, the bank and the depositor may amend the agreement without the consent of the beneficiary only if the agreement expressly permits the amendment.

D. If a beneficiary is not a party to an account agreement and the bank and the depositor know the beneficiary has knowledge of the agreement's terms, the bank and the depositor may amend the agreement without the consent of the beneficiary only if the amendment does not adversely and materially affect a payment right of the beneficiary.

E. If a beneficiary is not a party to an account agreement and the bank and the depositor do not know whether the beneficiary has knowledge of the agreement's terms, the bank and the depositor may amend the agreement without the consent of the beneficiary only if the amendment is made in good faith.
A.R.S. § 6-1405 — Arizona Code / Title 6 / Chapter 14 / Article 1 / Section 1405
6-1405 Issuance of license or branch office permit; license year; renewal; expiration; requirements
Status: in_force

6-1405. Issuance of license or branch office permit; license year; renewal; expiration; requirements

A. If no grounds for denial of a license or branch office permit are found to exist, the deputy director, within one hundred twenty days after receiving a complete application, shall grant the application and issue a license or branch office permit to the applicant.

B. The license or branch office permit year for a licensee begins January 1 and ends December 31 of each year. A license or permit that is issued pursuant to this chapter remains active until the license or permit expires or the director suspends, revokes or terminates the license or permit.

C. A licensee or permit holder shall apply 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 a $25 late fee in addition to the fee prescribed in section 6-126.  If the deputy director does not receive the licensee's or permit holder's renewal application and fee on or before December 31, the licensee or permit holder may not act as a premium finance company or branch office until the license or permit is renewed or a new license or permit is issued pursuant to this chapter.  If the deputy director does not receive the licensee's or permit holder's renewal application and fee on or before January 31, the license or permit automatically expires.  The holder of an expired license or permit may not be issued a renewal license or permit but may be issued a new license or permit as provided in this chapter.

D. A license or branch office permit remains the property of this state. On termination, at the request of the licensee or revocation by the deputy director, the licensee shall immediately deliver the license or branch office permit to the deputy director.
A.R.S. § 6-472 — Arizona Code / Title 6 / Chapter 3 / Article 7 / Section 472
6-472 Final distribution and dissolution
Status: in_force

6-472. Final distribution and dissolution

When all assets have been liquidated and all expenses, claims and holders of withdrawable capital have been paid, dissolution of the association shall be accomplished in the following manner:

1. The liquidators shall file with the deputy director the duly verified final report of their acts and proposed final distribution.

2. On the deputy director's approval of the final report, the liquidators shall publish notice of the proposed final distribution and shall allow any holder of shares of guaranty capital to examine the records of the association to ascertain the holder's proper share of such distribution. Any such shareholder who fails to commence, before the date fixed for final distribution, appropriate judicial proceedings to contest such distribution, shall be barred from contesting the same thereafter. The liquidators shall proceed to make final distribution on the date fixed therefor, except that such distribution shall be deferred until final disposition of any pending judicial action affecting the distribution, and payment, of any judgment entered therein.

3. When final distribution has been made, except as to any money due to, but unclaimed by, any creditor, member, or other person, the liquidators shall deposit such unclaimed money with the deputy director, for payment to the person or persons entitled thereto on application and proof of right as provided by law.

4. The liquidators also shall deliver to the deputy director all books of account and other records of the association, for preservation for at least two years and destruction thereafter as provided by law.

5. On completion of the foregoing procedure, the liquidators shall be discharged. The deputy director thereupon shall issue a certificate of dissolution of the association and shall file a copy thereof with the corporation commission and record a copy in the office of the county recorder of each county in which the original articles of incorporation were recorded. On such filing and recording, the dissolution shall be effective. No fees shall be required for such filing and recording.
A.R.S. § 6-577 — Arizona Code / Title 6 / Chapter 4 / Article 9 / Section 577
6-577 Authorized investments
Status: in_force

6-577. Authorized investments

A. Monies not used in loans to members may be invested in:

1. Securities, obligations or other instruments of or issued by or fully guaranteed as to principal and interest by the United States or any agency or instrumentality of the United States or in any trust or mutual fund established for investing directly or collectively in the same.

2. Securities, obligations or other instruments, whose payment is guaranteed by the general taxing authority of the issuer, of any state of the United States or any political subdivision of a state of the United States, and on approval of the deputy director, the District of Columbia, the Commonwealth of Puerto Rico and the several territories organized by Congress or any political subdivision thereof.

3. Deposits of federally insured financial institutions organized under state or federal law.

4. Loans to or share accounts or deposit accounts of other credit unions or corporate credit unions organized under state or federal law.

5. Deposits in, loans to or shares of any federal reserve bank, federal home loan bank or central liquidity facility established under state or federal law.

6. Shares, obligations or preferred stock issues of any agency or association organized either as a stock company, mutual association or membership corporation, if the membership or stock holdings of such agency or association are primarily confined or restricted to credit unions or organizations of credit unions and the purpose for which such agency or association is organized is to service or otherwise assist credit union operations.

7. Stocks, bonds or other obligations of corporations organized in any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the several territories organized by Congress and in securities, obligations or other instruments of any state of the United States or any political subdivision thereof, the District of Columbia, the Commonwealth of Puerto Rico and the several territories organized by congress, but not in the aggregate to exceed three percent of the credit union's capital and not to exceed one percent of the credit union's capital in any one corporation's stock, bonds and obligations. These investments are limited to the three highest ratings established by one or more national rating services of corporate securities designated by the deputy director.

8. Pools of participation loans with other credit unions, credit union organizations or other financial institutions, not to exceed five percent of the credit union's capital.

9. Other investments as approved by the deputy director.

10. Fixed assets.

B. Investments authorized under subsection A, paragraph 6 of this section shall not exceed five percent of the credit union's capital, without the prior written approval of the deputy director.  The action of a credit union in investing monies in accordance with subsection A, paragraph 6 of this section shall not be deemed a violation of this section if the aggregate investments exceed the limitation of subsection A, paragraph 6 of this section because of a subsequent reduction in the amount of the credit union's capital.
A.R.S. § 6-635 — Arizona Code / Title 6 / Chapter 5 / Article 2 / Section 635
6-635 Other allowable fees; annual reporting
Status: in_force

6-635. Other allowable fees; annual reporting

A. In addition to the finance charges authorized by section 6-632, a licensee may contract for and receive, and collect finance charges on, the following fees:

1. A delinquency charge in an amount equal to five percent of the amount of any installment not paid in full within seven days after its due date.

2. The actual costs of charges that are paid to a third party who is not an employee of the licensee and that are incurred in making consumer lender loans secured in whole or in part by real property, including the charges for a preliminary title search, title examination and report, title insurance premiums, property survey and appraisal fees.

3. Lawful fees for the acknowledging, filing and recording, continuing or releasing in any public office of any instrument or financing statement evidencing or perfecting a lien or security interest in real or personal property securing a consumer lender loan or the premiums paid for insurance in lieu of filing or recording that shall not exceed the filing or recording fee.

4. A loan origination fee of not more than five percent of a closed end consumer loan or the agreed credit limit of a consumer revolving loan but in no event in an amount that is more than $150. A licensee shall not charge a loan origination fee:

(a) For the refinancing of a closed end consumer loan or the renegotiating of an agreed credit limit of a consumer revolving loan if the refinancing or renegotiating occurs within one year of the collection of a prior loan origination fee.

(b) If the licensee charges prepaid finance charges pursuant to section 6-632, subsection E, paragraph 1.

5. Deferral fees authorized in section 6-634 for precomputed consumer loans.

6. Insurance premiums as provided in section 6-636.

7. Court costs.

8. Reasonable attorney fees if the consumer lender loan is referred for collection to an attorney other than a salaried employee of the licensee.

9. Costs, expenses and fees authorized in section 33-813, subsection B for reinstatement of a deed of trust encumbering real property that secures a consumer lender loan.

10. Costs and expenses of exercising the power of sale in a deed of trust encumbering real property that secures a consumer lender loan and costs and expenses of a sale that are included in a credit bid or that are applied from the proceeds of a trustee's sale pursuant to section 33-812, including the payment of trustee fees and reasonable attorney fees actually incurred.

11. Costs and expenses of retaking, holding, preparing for sale and selling any personal property in accordance with title 47, chapter 9, article 6.

B. If a licensee receives a check, draft, negotiable order of withdrawal or similar instrument drawn on a depository institution that is offered by a consumer in full or partial payment on a consumer lender loan and the instrument is not paid or is dishonored by the depository institution, the licensee may charge and collect from the consumer a dishonored check service fee pursuant to section 44-6852.

C. In addition to the finance charges and fees provided in this article, the licensee shall not directly or indirectly charge, contract for or receive any further or other amount in connection with a consumer lender loan.

D. In conjunction with the reporting requirements prescribed in section 6-609, on or before October 1 each year, a licensee shall report to the deputy director the number of closed end consumer loans and consumer revolving loans under $1,000 made in the prior two years.
A.R.S. § 6-1418 — Arizona Code / Title 6 / Chapter 14 / Article 1 / Section 1418
6-1418 Exemption from any filing requirements
Status: in_force

6-1418. Exemption from any filing requirements

No filing is necessary to perfect the validity of the premium finance agreement as a secured transaction as against creditors, subsequent purchasers, pledgees, encumbrancers, trustees in bankruptcy or their successors or assigns or any other insolvency proceeding under any law.
A.R.S. § 6-405.01 — Arizona Code / Title 6 / Chapter 3 / Article 1 / Section 405.01
6-405.01 Capital notes and debentures
Status: in_force

6-405.01. Capital notes and debentures

A. With prior approval of the deputy director, an association may issue and sell its capital notes or debentures.

B. Capital notes and debentures legally issued by an association may be converted into shares of guaranty capital in accordance with such provision therefor as may be made in such capital notes and debentures with prior approval of the deputy director.

C. Capital notes and debentures shall be an unsecured indebtedness of the association and shall be subordinate to the claims of depositors, account holders and all other creditors of the association, regardless of whether the claims of depositors, account holders or other creditors arose before or after the issuance of such debentures or capital notes. In the event of liquidation, all depositors, account holders and other creditors of the association shall be entitled to be paid in full before any payment shall be made on account of principal or interest on such capital notes or debentures. No payment shall at any time be made on account of the principal thereof if the payment is prohibited by regulation of the insurance corporation.

D. Subject to a requirement in the articles of incorporation of the association, or an amendment thereto, and if authorized by the deputy director, convertible capital notes and debentures may be issued without offer thereof to existing stockholders.

E. The amounts of outstanding capital notes and debentures legally issued by any association shall be treated as if guaranty capital.
A.R.S. § 6-614 — Arizona Code / Title 6 / Chapter 5 / Article 1 / Section 614
6-614 Noncompliance
Status: in_force

6-614. Noncompliance

Except as provided in section 6-613, a failure to comply with this chapter does not affect the validity or enforceability of any consumer lender loan or any security interest or lien on personal or real property.
A.R.S. § 6-1221 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1221
6-1221 Records
Status: in_force

6-1221. Records

A. To help the director determine the licensee's compliance with this article, a licensee shall maintain the following records for at least five years:

1. A record of each outstanding money transmission obligation sold.

2. A general ledger posted at least monthly that contains all asset, liability, capital, income and expense accounts.

3. Bank statements and bank reconciliation records.

4. Records of outstanding money transmission obligations.

5. Records of each outstanding money transmission obligation paid during the five-year period.

6. A list of the last known names and addresses of all of the licensee's authorized delegates.

7. Any other records the director reasonably requires by rule.

B. The items specified in subsection A of this section may be maintained in any form of record.

C. Records specified in subsection A of this section may be maintained outside of this state if they are made accessible to the director with seven business days' notice that is sent in a record.
A.R.S. § 6-505 — Arizona Code / Title 6 / Chapter 4 / Article 1 / Section 505
6-505 Declaration of purpose
Status: in_force

6-505. Declaration of purpose

The purpose of this chapter, which governs judicial and administrative interpretation and application of this chapter, is to provide opportunity for credit unions to remain competitive with each other, with financial institutions existing under other laws of this state and with banking and financial institutions existing under the laws of other states, the United States and foreign countries.
A.R.S. § 6-814 — Arizona Code / Title 6 / Chapter 7 / Article 2 / Section 814
6-814 Procedure for licensing; surety bond
Status: in_force

6-814. Procedure for licensing; surety bond

A. Every escrow agent before engaging in the escrow business shall file with the deputy director an application for a license, in writing, verified by oath and in the form prescribed by the deputy director. It shall state the location of the principal office and all branch offices in this state, the name or style of doing business, the names and residence and business addresses of all persons holding an interest in the business as principals, partners, officers, trustees and directors, specifying as to each his capacity and title, the general plan and character of operation and the length of time they have been engaged in the escrow business.

B. The deputy director may require additional information the deputy director considers necessary in connection with any application for a license under this article.

C. At the time of filing an application for a license and at all times while holding the license, the applicant shall deposit and maintain with the deputy director a corporate surety bond in the amount of $100,000 payable to any person injured by the failure of the licensee to comply with the requirements of this chapter or for the wrongful act, default, fraud or misrepresentation of the licensee or the licensee's employees and to this state for the benefit of the person injured and executed by a surety company qualified to do business in this state.

D. Notwithstanding section 35-155, in lieu of the total corporate surety bond required by this section, an applicant or licensee may deposit with the deputy director a deposit in the form of cash or alternatives to cash in the amount of $100,000. The deputy director may accept as an alternative to cash any of the following:

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

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

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

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

F. A deposit of cash or an assignment of an alternative to cash shall contain an affirmative statement by the assignor that the monies assigned are not derived from any escrow deposit. In addition to such other terms and conditions as the deputy director prescribes by rule, the principal amount of the deposit shall be released only on written authorization of the deputy director or on the order of a court of competent jurisdiction, but in any event the principal amount of the deposit shall not be released before the expiration of three years after the date of substitution of a bond for a cash alternative, the surrender of the license pursuant to section 6-838 or the revocation or expiration of the license, whichever occurs first.

G. No suit may be commenced on a bond or cash or alternative to cash after the expiration of three years after the act or acts on which the suit is based, except that time for purposes of claims for fraud shall be measured as provided in section 12-543, paragraph 3. If an injured person commences an action for a judgement to collect from the bond or cash alternative deposited in lieu of a bond, the injured person shall notify the deputy director of the action in writing at the time of commencement of the action and shall provide copies of all documents relating to the action to the deputy director on request.

H. The deputy director shall examine the application for a license and if the deputy director is satisfied that the applicant should not be refused a license under section 6-817, the deputy director shall issue the license.
A.R.S. § 6-143 — Arizona Code / Title 6 / Chapter 1 / Article 4 / Section 143
6-143 Exempt persons and transactions
Status: in_force

6-143. Exempt persons and transactions

A. This article shall not apply to the following persons or transactions of the type specified:

1. A person who controls a bank, trust company or savings and loan association or controlling person on the date this article becomes law and who continues to control such bank, trust company, or savings and loan association.

2. A registered dealer who acts as an underwriter or member of a selling group in a public offering of the voting securities of a bank, trust company, savings and loan association or controlling person.

3. A person who acts as proxy for the sole purpose of voting at a designated meeting of the security holders of a bank, trust company, savings and loan association or controlling person.

4. A person who acquires control of a bank, trust company, savings and loan association or controlling person by devise or descent.

5. A person who acquires control of a bank, trust company, savings and loan association or controlling person as a personal representative, custodian, guardian or conservator appointed by a court or as a trustee, receiver or other officer appointed by a court.

6. A pledgee of a voting security of a bank, trust company, savings and loan association or controlling person who does not have the right, as pledgee, to vote such voting security.

7. A transaction approved pursuant to chapter 2, article 7 of this title.

B. There shall be exempted from the provisions of this article any person or transaction that the deputy director by rule or order exempts as not being necessary or appropriate in the public interest or for the protection of a bank, trust company, savings bank or savings and loan association, or the depositors, beneficiaries, creditors or shareholders of such bank, trust company, savings bank or savings and loan association.

C. A person, prior to filing an application for approval, may request in writing a determination from the deputy director as to whether the person, on consummation of a proposed transaction, will be in control. On such a request, the deputy director may enter an order that the person will not be in control, in which event the proposed transaction will be an exempt transaction under this article.
A.R.S. § 6-1202 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1202
6-1202 Exemptions
Status: in_force

6-1202. Exemptions

A. This article does not apply to any of the following:

1. An operator of a payment system that provides processing, clearing or settlement services between or among persons exempted by this section or licensees in connection with wire transfers, credit card transactions, debit card transactions, stored value transactions, automated clearinghouse transfers or similar transfers of money.

2. A person appointed as an agent of a payee to collect and process a payment from a payor to the payee for goods or services, other than money transmission, provided to the payor by the payee, if all of the following apply:

(a) A written agreement exists between the payee and the agent directing the agent to collect and process payments from payors on the payee's behalf.

(b) The payee holds the agent out to the public as accepting payments for goods or services on the payee's behalf.

(c) Payment for the goods and services is treated as received by the payee on receipt by the agent so that the payor's obligation is extinguished and there is no risk of loss to the payor if the agent fails to remit the money to the payee.

3. A person that acts as an intermediary by processing payments between an entity that has directly incurred an outstanding money transmission obligation to a sender and the sender's designated recipient, if the entity meets all of the following criteria:

(a) Is properly licensed or exempt from the licensing requirements under this article.

(b) Provides a receipt, electronic record or other written confirmation to the sender identifying the entity as the provider of money transmission in the transaction.

(c) Bears sole responsibility to satisfy the outstanding money transmission obligation to the sender, including the obligation to make the sender whole in connection with any failure to transmit the money to the sender's designated recipient.

4. The United States or a department, an agency or an instrumentality of the United States or its agent.

5. Money transmission by the United States postal service or by an agent of the United States postal service.

6. A state, county, city or town or any other governmental agency or governmental subdivision or instrumentality of a state or its agent.

7. A federally insured depository financial institution, bank holding company, office of an international banking corporation, foreign bank that establishes a federal branch pursuant to 12 United States Code section 3102, a corporation organized as a bank service company pursuant to 12 United States Code sections 1861 through 1867 or a corporation organized pursuant to 12 United States Code sections 611 through 633.

8. Electronic funds transfer of governmental benefits for a federal, state, county or governmental agency by a contractor on behalf of the United States or a department, agency or instrumentality of the United States or on behalf of a state or governmental subdivision, agency or instrumentality of a state.

9. A board of trade designated as a contract market under the commodity exchange act (7 United States Code sections 1 through 26) or a person that, in the ordinary course of business, provides clearance and settlement services for a board of trade to the extent of its operation as or for the board of trade.

10. A registered futures commission merchant under the federal commodities laws to the extent of its operation as a merchant.

11. A person registered as a securities broker or dealer under federal or state securities laws to the extent of the person's operation.

12. An individual employed by a licensee, an authorized delegate or any person exempt from the licensing requirements of this article when acting within the scope of employment and under the supervision of the licensee, authorized delegate or exempt person as an employee and not as an independent contractor.

13. A person expressly appointed as a third-party service provider to or agent of an entity exempt under paragraph 7 of this subsection solely to the extent that both:

(a) The service provider or agent is engaging in money transmission on behalf of and pursuant to a written agreement with the exempt entity that sets forth the specific functions that the service provider or agent is to perform.

(b) The exempt entity assumes all risk of loss and all legal responsibility for satisfying the outstanding money transmission obligations owed to purchasers and holders of the outstanding money transmission obligations on receipt of the purchaser's or holder's money or monetary value by the service provider or agent.

14. A person exempt by regulation or order if the director finds such exemption to be in the public interest and that regulating the person is not necessary for the purposes of this article.

B. The director may require that any person claiming to be exempt from licensing pursuant to this section provide information and documentation to the director demonstrating that the person qualifies for any claimed exemption.
A.R.S. § 6-854.01 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 854.01
6-854.01 Articles of incorporation; approval; changes
Status: in_force

6-854.01. Articles of incorporation; approval; changes

A. Notwithstanding title 10, chapter 2, the articles of incorporation shall include:

1. The name of the proposed trust company.

2. A description of the general nature of the business to be transacted and a statement authorizing the company to engage in any activity or business allowed by law.

3. The amount of authorized capital stock, the maximum number of shares of par value common stock and preferred stock, and the kind, class, series, distinguishing characteristics and par value of all shares.

4. The amount of capital, which is at least the amount required by section 6-856, the applicant will use to begin the trust company.

5. A statement that the company will have perpetual existence unless the company is terminated pursuant to this article.

6. The initial street address of the main office of the trust company.

7. The number of directors and the directors' names and addresses.

8. If applicable, a statement allowing preemptive rights.

9. A statement authorizing the board of directors to appoint additional directors when necessary.

B. Within thirty days after receiving the executed articles of incorporation, the deputy director shall approve or disapprove the articles. If the deputy director disapproves the articles, the deputy director shall notify the applicant of the articles' deficiencies. After approval or after addressing the deficiencies, the applicant shall file the approved or revised articles of incorporation with the corporation commission.

C. The corporate existence of a trust company begins on the date the trust company files the approved or revised articles of incorporation with the corporation commission. After the trust company files the articles with the corporation commission, the company may perform all acts necessary to perfect the organization and obtain and equip a place of business.

D. Within seven days after proposing a change to the articles of incorporation at a meeting of the board of directors, a trust company shall report the proposed changes to the deputy director for approval. The deputy director shall approve the proposed changes as long as the proposed changes are consistent with this chapter. The deputy director shall notify the trust company of any inconsistencies within thirty days after receiving the proposed changes. The trust company shall have thirty days, after receiving the deputy director's notice, to correct any inconsistencies and submit revised proposed changes to the deputy director.
A.R.S. § 6-1229 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1229
6-1229 Maintenance of permissible investments
Status: in_force

6-1229. Maintenance of permissible investments

A. A licensee shall maintain at all times permissible investments that have a market value computed in accordance with United States generally accepted accounting principles of not less than the aggregate amount of all of its outstanding money transmission obligations.

B. Except for permissible investments enumerated in section 6-1230, subsection A, the director may limit the extent to which a specific investment maintained by a licensee within a class of permissible investments may be considered a permissible investment if the specific investment represents undue risk to customers not reflected in the market value of investments.

C. Permissible investments, even if commingled with other assets of the licensee, are held in trust for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations in the event of insolvency, the filing of a petition by or against the licensee under the United States bankruptcy code (11 United States Code sections 101 through 112) for bankruptcy or reorganization, the filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization or in an action by a creditor against the licensee that is not a beneficiary of this statutory trust. A permissible investment impressed with a trust pursuant to this subsection is not subject to attachment, levy of execution or sequestration by order of any court, except for a beneficiary of this statutory trust.

D. On the establishment of a statutory trust pursuant to subsection C of this section or when any money is drawn on a letter of credit pursuant to section 6-1230, subsection A, paragraph 7, the director shall notify the applicable regulator of each state in which the licensee is licensed to engage in money transmission of the establishment of the trust or the money drawn on the letter of credit.  Notice is satisfied if performed pursuant to a multistate agreement or through NMLS. Money drawn on a letter of credit and any other permissible investments held in trust for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations are deemed held in trust for the benefit of such purchasers and holders on a pro rata and equitable basis in accordance with statutes pursuant to which permissible investments are required to be held in this state and other states, as applicable.  A statutory trust is terminated on extinguishment of all of the licensee's outstanding money transmission obligations.

E. The director may allow other types of investments that the director determines are of sufficient liquidity and quality to be a permissible investment.  The director may participate in efforts with other state regulators to determine that other types of investments are of sufficient liquidity and quality to be a permissible investment.
A.R.S. § 6-1008 — Arizona Code / Title 6 / Chapter 10 / Article 1 / Section 1008
6-1008 Procedure on death of lessee
Status: in_force

6-1008. Procedure on death of lessee

In the event only one lessee is named in the lease of a repository and the lessee dies, or on the death of last surviving lessee under a tenancy in two or more names, the repository may be opened by two employees of the lessor in the presence of any person who presents himself and claims to be interested in the contents. The employees may remove any document which appears to be of a testamentary nature and deliver it to any person named in the document as executor or to a clerk of the superior court. The employees may also remove any policies insuring the life of the deceased lessee and deliver them to the beneficiaries named in the policies. All other contents of the repository shall be retained by the lessor and shall be delivered only to the person legally entitled to them.
A.R.S. § 6-487 — Arizona Code / Title 6 / Chapter 3 / Article 9 / Section 487
6-487 Proposal of plan; petition; notice of hearing
Status: in_force

6-487. Proposal of plan; petition; notice of hearing

A. A plan may be proposed by the deputy director or by an association subject to the approval of the deputy director. If proposed by an association, the proposal shall be through its board of directors, or by the holders of accounts equal in amount to not less than fifty percent of the total accounts of the association, or by the holders of not less than a majority of the outstanding shares of guaranty capital of the association, if any.

B. The plan shall be presented by the proponents to the superior court of the county in which the principal place of business of the association is located, with a petition that the court determine the fairness of the plan and the conditions requisite to the plan becoming operative. The petition shall set forth the plan and the fact that it has been proposed or approved by the deputy director and any other facts that are deemed material to a consideration of the fairness of the plan.

C. On filing the petition, the court shall fix the time and place for hearing it, and shall direct the association to deliver to the proponents, or, in the discretion of the court, to the deputy director, a list of the names and addresses of the holders of accounts, holders of shares of guaranty capital, if any, creditors of the association, and of all other persons affected by the plan, and the association shall comply with the direction.

D. Thereafter the proponents of the plan, not less than twenty days before the date fixed for the hearing, shall mail or cause to be mailed to each of the persons shown on the list furnished pursuant to direction of the court and to all other persons affected by the plan notice of the time and place fixed by the court for the hearing and either a copy of the plan or a summary thereof. Any summary shall be prepared or approved by the deputy director. The notices shall be mailed, postage prepaid, to the respective addresses as shown on the list, or if no address is there shown, to the last known available address. The proponents of the plan shall also post notice of the time and place fixed for the hearing in three public places in the county not less than twenty days before the day fixed for the hearing and shall publish the notice at least once in a newspaper of general circulation published in the county not less than twenty nor more than thirty days prior to the day fixed for the hearing.

E. A copy of the plan shall be kept by the deputy director available for public inspection, and the deputy director shall take other steps as the deputy director deems necessary for making the plan and all notices and facts in connection therewith available to the interested parties.
A.R.S. § 6-266 — Arizona Code / Title 6 / Chapter 2 / Article 5.1 / Section 266
6-266 Transitional provision
Status: in_force

6-266. Transitional provision

This article applies to:

1. A special deposit made under an account agreement executed on or after September 26, 2025; and

2. A deposit made under an agreement executed before September 26, 2025, if:

(a) All parties entitled to amend the agreement agree to make the deposit a special deposit governed by this article; and

(b) The special deposit referenced in the amended agreement satisfies section 6-255.
A.R.S. § 6-395.15 — Arizona Code / Title 6 / Chapter 2 / Article 13 / Section 395.15
6-395.15 Notice of taking; effect
Status: in_force

6-395.15. Notice of taking; effect

On taking possession of the property and business of a bank, the receiver shall give notice of the taking to all persons who hold any assets of that bank. The notice required by this section is not a prerequisite to taking possession. A person who knows of the taking may not claim a lien or charge against any assets of the bank for any subsequent payment, advance or clearance or for any other subsequent liability.
A.R.S. § 6-1412 — Arizona Code / Title 6 / Chapter 14 / Article 1 / Section 1412
6-1412 Limitation on interest and other charges
Status: in_force

6-1412. Limitation on interest and other charges

A. It is unlawful for a licensee to charge, contract for, receive or collect an interest charge other than as permitted by this article.

B. The interest is to be computed on the balance of the premiums due, after subtracting the down payment made by the insured in accordance with the premium finance agreement, from the effective date of the earliest insurance contract for which the premiums are being advanced to and including the date when the final installment of the premium finance agreement is payable.

C. On any premium finance agreement in any original principal amount not exceeding one thousand dollars, a licensee may contract for and receive an interest charge at a rate not exceeding three per cent per month or thirty-six per cent per annum.

D. On any premium finance agreement in which the original principal amount exceeds one thousand dollars, a licensee may contract for and receive an interest charge at a rate not exceeding three per cent per month on that part of the original principal amount not exceeding one thousand dollars, and two per cent per month on that part of the principal exceeding one thousand dollars.

E. A licensee may contract for and receive an interest charge on the entire amount of the unpaid principal balance of the premium finance agreement at the single annual percentage rate which would earn not more than the total amount of interest charges at the scheduled maturity of the premium finance agreement as would the several different rates that otherwise would be applicable under subsection D, to different portions of the unpaid principal balance, if the premium finance agreement is paid according to the agreed terms.

F. For the purposes of computing an interest charge, it is permissible to calculate the interest charges on an annual basis of twelve months of thirty days each or on a daily basis if a day is counted either as 1/360th, 1/365th, or 1/366th of a year, as the licensee and insured may agree in writing.

G. If the premium finance agreement requires repayment in substantially equal and consecutive monthly installments of principal and interest charges combined and the first installment falls due no less than fifteen nor more than forty-five days after the effective date of the policy, the interest charges may be precomputed at the agreed rate on scheduled unpaid principal balances and added to the principal amount advanced under the premium finance agreement, subject to the following requirements:

1. Any insured may prepay the obligation in full at any time. If prepayment in full occurs by a new premium finance agreement, renewal or refinancing, or by cash, the insured shall be refunded or credited with the precomputed charges which are applicable to all fully unexpired months of the premium finance agreement as originally scheduled. For this purpose the applicable interest charge is the total of those charges which would have been made for each such unexpired month by applying scheduled payments to unpaid balances of principal according to the actuarial method at that single annual interest rate which would earn the original amount of precomputed interest charges on the premium finance agreement, assuming interest charges had not been precomputed at the contract rate but had been computed by actuarial method at that single annual interest rate from the inception of the premium finance agreement. All computations shall be based on the assumption that all payments are made as scheduled. The licensee may round the annual interest rate to the nearest one-quarter of one per cent. In this paragraph, "actuarial method" means the method of allocating each payment between interest charges and principal pursuant to which the payment is applied first to interest charges computed on the unpaid balance of principal for the time the balance is outstanding, and the remainder of the payment is subtracted from the unpaid principal amount.

2. If the maturity of the premium finance agreement is accelerated, the contract balance shall be reduced by the refund or credits of precomputed interest charges which would be required for prepayment in full on the date of acceleration, and thereafter the licensee may receive the interest charges authorized in this section computed on unpaid balances of the premium finance agreement for the time actually outstanding from the installment date nearest the date of acceleration until paid. The premium finance agreement may provide that the premium finance company, with or without accelerating maturity, may recompute the entire amount due under the premium finance agreement on a per cent per month basis or reduce the premium finance agreement balance as of any installment date by the refund or credit of precomputed interest charges which would be required for prepayment in full on such installment date and receive the interest charges authorized by this section computed on unpaid balances of the premium finance agreement for the time actually outstanding from such installment date until the premium finance agreement is fully paid.
A.R.S. § 6-535 — Arizona Code / Title 6 / Chapter 4 / Article 5 / Section 535
6-535 Officers
Status: in_force

6-535. Officers

A. At the organization meeting held within thirty days after each annual election, the board of directors shall elect from its own number a chairman of the board, a vice-chairman, a secretary and a treasurer. They shall also elect any other officers that are provided for in the bylaws.

B. The terms of the officers are one year, or until their successors are chosen and have been duly qualified. The duties of the officers shall be prescribed in the bylaws.

C. The board of directors shall appoint a president to act as the chief executive officer of the credit union and to be in charge of its operations. The president may be a director.

D. Notwithstanding any other provision of this chapter, a credit union may use any title it provides in its bylaws for the officials holding the positions described in this article as long as the titles are not misleading.
A.R.S. § 6-870.02 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 870.02
6-870.02 Prohibited acts
Status: in_force

6-870.02. Prohibited acts

A. A trust company shall not allow a person, other than a director, officer, agent or employee of the trust company or the legal or beneficial owner of the trust funds or the authorized representative of the owner, to access, examine or inspect the fiduciary records of the trust company.

B. A trust company shall not make a loan to or make other use of monies from a fiduciary account to or for the benefit of another fiduciary account unless the transaction is authorized by a court order or a governing instrument of the fiduciary account or its amendments from which the loan or use of monies is made.

C. A director, officer, agent or employee of a trust company shall not:

1. Knowingly make or publish, or concur in making or publishing, a written report, exhibit or statement of the trust company's affairs or financial condition containing any material statement that is false.

2. Wilfully refuse or neglect to make a proper entry in the trust company's books, wilfully refuse or neglect to exhibit the trust company's books to the department or allow the department to inspect or extract the trust company's books.

3. Knowingly make a material false promise or statement or a material misrepresentation to the department or to a legal or beneficial owner of trust funds or an authorized representative of the owner in the course of the trust business.

4. Knowingly conceal an essential or material fact from the department or a legal or beneficial owner of the trust funds or an authorized representative of the owner in the course of the trust business.

D. A trust company shall not directly or indirectly use funds from a fiduciary account for the benefit of any officer, director or employee of the trust company or any individual with whom there exists a connection, or organization in which there exists an interest, as might affect the exercise of the best judgment of the trust company in performing its fiduciary duties, unless the transaction is authorized by a court order or a governing instrument of the fiduciary account.

E. A trust company shall not charge a fee except in accordance with a governing instrument or its amendments, a court order or a written communication.

F. A trust company shall not refuse to disclose to the public a general statement of the trust company's financial condition and its assets and liabilities or the last report of financial condition submitted to the deputy director pursuant to section 6-861.

G. A person shall not receive compensation for engaging in the trust business if the person is not licensed or exempt from licensing pursuant to this article.

H. A director, officer, agent or employee of the trust company who knowingly violates this article is liable for the damages the trust company or the legal or beneficial owners of the trust funds sustain because of the violation. A director, officer, agent or employee is individually liable for the amount of a loss of trust funds if the director, officer, agent or employee knowingly participates in an illegal activity that results in a loss of trust funds. A director or officer of a trust company who meets the standards of conduct prescribed by section 10-830 or 10-842 shall not be liable for any loss to the company or to the legal or beneficial owners of the trust funds and shall be entitled to indemnification to the extent allowed by title 10, chapter 8, article 5.
A.R.S. § 6-406 — Arizona Code / Title 6 / Chapter 3 / Article 1 / Section 406
6-406 Incidental powers
Status: in_force

6-406. Incidental powers

An association also shall have any power conferred on a corporation by the general corporation laws of the state, and any power not prohibited by law, which is reasonably incident to the accomplishment of the express powers conferred upon the association by this chapter.
A.R.S. § 6-561 — Arizona Code / Title 6 / Chapter 4 / Article 7 / Section 561
6-561 Purpose and conditions of loans; prepayment penalties
Status: in_force

6-561. Purpose and conditions of loans; prepayment penalties

A. A credit union may make loans, including lines of credit, to members for the purposes and on the conditions as prescribed by the board of directors. The board of directors shall establish written policies with respect to granting loans, including the terms, conditions and acceptable forms of security.

B. A person, except another credit union, may not become indebted, directly or indirectly, to the credit union for more than ten percent of the credit union's capital or $200, whichever is greater. This limit does not apply to loans that are fully secured by assignment of share or deposit accounts in the credit union.

C. An application for a loan shall state the security and other information required by the credit committee or credit manager. Each loan shall be evidenced by a written document.

D. A member may repay a loan or outstanding balance on a line of credit before maturity in whole or in part on any business day without penalty. Except as provided in this subsection, prepayment penalties may be charged on loans that are not made for personal, family or household purposes.
A.R.S. § 6-581 — Arizona Code / Title 6 / Chapter 4 / Article 10 / Section 581
6-581 Transfers to regular reserve
Status: in_force

6-581. Transfers to regular reserve

A. At the end of each accounting period, but not less frequently than quarterly, the credit union shall set aside, as a regular reserve against losses, amounts in accordance with the schedule set by the share insuring organization. The credit union shall set aside the amounts before the declaration or payment of any dividends.

B. The board of directors may increase, or if the reserve equals or exceeds the requirement prescribed in subsection A, decrease, the amount to be set aside.
A.R.S. § 6-1113 — Arizona Code / Title 6 / Chapter 11 / Article 1 / Section 1113
6-1113 Reports; examination; costs
Status: in_force

6-1113. Reports; examination; costs

A. The deputy director may require reports from and examine financial institution holding companies and each subsidiary of the holding companies. The deputy director shall accept the examination and financial reports of the appropriate federal or state holding company regulatory authority in lieu of any examination or financial report authorized or required by this chapter. The reports so accepted are considered for all purposes as official reports of the department.

B. Notwithstanding subsection A of this section, the deputy director may require reports from and examine financial institution holding companies and their subsidiaries if it appears to the deputy director that any of these entities has engaged, is engaging or is about to engage in any act, practice or transaction that constitutes an unsafe or unsound practice or a violation of this title or any rule or order of the deputy director. This section does not prohibit the department from participating with federal regulators in the examinations to aid in enforcing this title.

C. The cost of any examination shall be assessed against and paid by each financial institution holding company pursuant to section 6-125.
A.R.S. § 6-1210 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1210
6-1210 Information requirements for certain individuals
Status: in_force

6-1210. Information requirements for certain individuals

A. Any individual in control of a licensee or applicant, any individual who seeks to acquire control of a licensee and each key individual shall submit both:

1. A full set of fingerprints pursuant to section 6-123.01.

2. The individual's personal history and experience to the director in a form prescribed by the director so the director may obtain the following:

(a) An independent credit report from a consumer reporting agency if the individual has a social security number.

(b) Information related to any criminal convictions or pending charges.

(c) Information related to any regulatory or administrative action and any civil litigation involving claims of fraud, misrepresentation, conversion, mismanagement of funds, breach of fiduciary duty or breach of contract.

B. A person is presumed to exercise a controlling influence when the person holds the power to vote, directly or indirectly, at least ten percent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee.  A person presumed to exercise a controlling influence may rebut the presumption of control if the person is a passive investor.

C. If the individual has resided outside of the United States at any time in the last ten years, the individual shall also provide an investigative background report prepared by an independent search firm that meets the following requirements:

1. At a minimum, the search firm shall do both of the following:

(a) Demonstrate that it has sufficient knowledge, resources and employs accepted and reasonable methodologies to conduct the research of the background report.

(b) Not be affiliated with or have an interest in the individual it is researching.

2. At a minimum, the investigative background report shall be written in English and shall contain the following:

(a) If available in the individual's current jurisdiction of residency, a comprehensive credit report or any equivalent information obtained or generated by the independent search firm to accomplish the report, including a search of the court data in the countries, provinces, states, cities, towns and contiguous areas where the individual resided and worked.

(b) Criminal records information for the past ten years, including felonies, misdemeanors or similar convictions for violations of law in the countries, provinces, states, cities, towns and contiguous areas where the individual resided and worked.

(c) Employment history.

(d) Media history, including an electronic search of national and local publications, wire services and business applications.

(e) Financial services-related regulatory history, including money transmission, securities, banking, insurance and mortgage-related industries.
A.R.S. § 6-395.06 — Arizona Code / Title 6 / Chapter 2 / Article 13 / Section 395.06
6-395.06 Rights, powers and duties of a receiver
Status: in_force

6-395.06. Rights, powers and duties of a receiver

A. After taking possession of the bank, the receiver may do any of the following in its own name, in the name of the bank, in the name of both or otherwise:

1. Collect all obligations and money due the bank.

2. Exercise and possess all the rights, powers and privileges of the bank and its officers and directors.

3. Institute or otherwise participate in any legal proceeding by or against the receiver or the bank, or in which the bank or its creditors have an interest, and in every way represent the bank and its creditors.

4. Be the custodian of all monies coming into the receiver's possession, but it may deposit any part of those monies in a bank instituted by the federal deposit insurance corporation.

5. Invest or reinvest those portions of the monies and assets of the bank as the receiver deems appropriate.

6. Revise or settle any obligation on those terms and conditions that the receiver deems appropriate.

7. Sell, compound, compromise or assign debts due the bank on those terms and conditions that the receiver deems appropriate.

8. Negotiate settlements of claims against the bank on those terms and conditions that the receiver deems appropriate.

9. Settle, compromise or obtain the release of claims against the bank for cash or other consideration.

10. Sell, exchange, encumber or otherwise deal with any real or personal property that has come into the bank's possession by any means on the basis of reasonable market value without notice for cash or on those terms and conditions that the receiver deems appropriate.

11. Execute, acknowledge and deliver any deed or other instrument necessary or proper for any purpose.

B. Any deed or other instrument executed pursuant to subsection A, paragraph 11 is valid for all purposes as if it had been executed as the act and deed of the bank.

C. The receiver may disburse monies for any of the following:

1. The discharge of any taxes, assessments or charges of any nature against the bank or the receiver or on any asset or other property in which the bank or the receiver has an interest.

2. The protection or improvement of any asset or other property of the bank.

3. The costs and expenses of the liquidation and for exercising the receiver's rights, powers, privileges and duties.

4. Debts and interest owed by the bank that arise out of the liquidation or otherwise.

5. The costs and expenses of the operation of the bank.

D. Notwithstanding the grant or denial of any power or duty prescribed in this chapter, the receiver has those rights, powers, privileges, immunities and duties authorized or imposed from time to time in specific cases by order of the court.
A.R.S. § 6-1201 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1201
6-1201 Definitions
Status: in_force

6-1201. Definitions

In this article, unless the context otherwise requires:

1. "Acting in concert" means persons knowingly acting together with a common goal of jointly acquiring control of a licensee whether or not pursuant to an express agreement.

2. "Authorized delegate" means a person that a licensee designates to engage in money transmission on behalf of the licensee.

3. "Average daily money transmission liability" means the amount of the licensee's outstanding money transmission obligations at the end of each day in quarters ending March 31, June 30, September 30 and December 31, added together and divided by the total number of days in each quarter.

4. "Closed loop stored value" means stored value that is redeemable by the issuer only for goods or services provided by the issuer or its affiliate or franchisees of the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value.

5. "Control" means:

(a) The power to vote, directly or indirectly, at least twenty-five percent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee.

(b) The power to elect or appoint a majority of key individuals or executive officers, managers, directors, trustees or other persons exercising managerial authority of a person in control of a licensee.

(c) The power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee.

6. "Eligible rating" means a credit rating of any of the three highest rating categories provided by an eligible rating service and each category may include rating category modifiers such as "plus" or "minus" for Standard and Poor's or the equivalent for any other eligible rating service.

7. "Eligible rating service" means any nationally recognized statistical rating organization as defined by the United States securities and exchange commission and any other organization designated by the director.

8. "Federally insured depository financial institution" means a bank, credit union, savings and loan association, trust company, savings association, savings bank, industrial bank or industrial loan company organized under the laws of the United States or any state of the United States, when the bank, credit union, savings and loan association, trust company, savings association, savings bank, industrial bank or industrial loan company has federally insured deposits.

9. "Individual" means a natural person.

10. "In this state":

(a) Means at a physical location within this state if a transaction is requested in person.

(b) Includes any of the following if a person requests a transaction electronically or by telephone:

(i) The location of the person's residential address if the person is an individual.

(ii) A person's principal place of business or other physical address location within this state if the person is a business entity.

(iii) Any address within this state that is associated with an account based on records that the money transmission provider has or information that the person provides.

11. "Key individual" means any individual ultimately responsible for establishing or directing policies and procedures of the licensee, such as an executive officer, manager, director or trustee.

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

13. "Material litigation" means litigation that, according to United States generally accepted accounting principles, is significant to a person's financial health and would be required to be disclosed in the person's annual audited financial statements, report to shareholders or similar records.

14. "Monetary value" means a medium of exchange, whether or not redeemable in money.

15. "Money":

(a) Means a medium of exchange that is authorized or adopted by the United States or a foreign government.

(b) Includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more governments.

16. "Money services business accredited state" means a state agency that is accredited by a conference of state bank supervisors and money transmitter regulators association for money transmission licensing and supervision.

17. "Money transmission":

(a) Means any of the following:

(i) Selling or issuing payment instruments to a person located in this state.

(ii) Selling or issuing stored value to a person located in this state.

(iii) Receiving money for transmission from a person located in this state.

(b) Does not include providing solely online telecommunications services or network access.

18. "Multistate licensing process" means a procedure among state regulators relating to the coordinated processing of applications for money transmission licenses, applications for the acquisition of control of a licensee, control determinations or notice and information requirements for a change of key individuals.

19. "NMLS" means the nationwide multistate licensing system and registry that is developed by a conference of state bank supervisors and the American association of residential mortgage regulators and that is owned and operated by a state regulatory registry for the licensing and registration of persons in financial services industries.

20. "Outstanding money transmission obligation" means either of the following:

(a) Any payment instrument or stored value issued or sold by the licensee to a person located in the United States or reported as sold by an authorized delegate of the licensee to a person that is located in the United States that has not yet been paid or refunded by or for the licensee or escheated in accordance with applicable abandoned property laws.

(b) Any money received for transmission by the licensee or an authorized delegate in the United States from a person located in the United States that has not been received by the payee or refunded to the sender or escheated in accordance with applicable abandoned property laws.

21. "Passive investor" means a person that:

(a) Does not have the power to elect a majority of key individuals or executive officers, managers, directors, trustees or other persons exercising managerial authority of a person in control of a licensee.

(b) Is not employed by and does not have any managerial duties of the licensee or person in control of a licensee.

(c) Does not have the power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee.

(d) Does either of the following:

(i) Attests to subdivisions (a), (b) and (c) of this paragraph in a form and in a medium prescribed by the director.

(ii) Commits to the passivity characteristics of subdivisions (a), (b) and (c) of this paragraph in a written document.

22. "Payment instrument":

(a) Means a written or electronic check, draft, money order, traveler's check or other written or electronic instrument for the transmission or payment of money or monetary value, whether or not negotiable.

(b) Does not include stored value or any instrument that is either:

(i) Redeemable by the issuer only for goods or services provided by the issuer or its affiliate or franchisees of the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value.

(ii) Not sold to the public but issued and distributed as part of a loyalty, rewards or promotional program.

23. "Person" means any individual, general partnership, limited partnership, limited liability company, corporation, trust, association, joint stock corporation or other corporate entity identified by the director.

24. "Receiving money for transmission" or "money received for transmission" means receiving money or monetary value in the United States for transmission within or outside the United States by electronic or other means.

25. "Stored value":

(a) Means monetary value representing a claim against the issuer that is evidenced by an electronic or digital record and that is intended and accepted for use as a means of redemption for money or monetary value or payment for goods or services.

(b) Includes prepaid access as defined in 31 Code of Federal Regulations section 1010.100.

(c) Does not include a payment instrument or closed loop stored value or stored value not sold to the public but issued and distributed as part of a loyalty, rewards or promotional program.

26. "Tangible net worth" means the aggregate assets of a licensee excluding all intangible assets, minus liabilities, as determined in accordance with United States generally accepted accounting principles.
A.R.S. § 6-593 — Arizona Code / Title 6 / Chapter 4 / Article 13 / Section 593
6-593 Powers of corporate credit union; federal parity
Status: in_force

6-593. Powers of corporate credit union; federal parity

A. A corporate credit union shall enjoy the powers and privileges of any other credit union incorporated under this chapter and in addition may:

1. Accept share accounts or deposit accounts from its members, state or federal credit unions, other corporate credit unions and credit union organizations or associations.

2. Make loans to, deposit in or invest in its members, state or federal credit unions and other corporate credit unions.

3. Participate with any state or federal credit union in making loans to members of the corporate credit union or to members of any participating credit union.

4. Act as intermediary for the monies of members, credit unions and other corporate credit unions.

5. Act as agent for members, other credit unions and credit union organizations in paying, receiving and transferring the assets and liabilities received and invested as permitted in this article.

6. Receive and hold in safekeeping the securities and other assets of its members and, in that connection, make such disposition of the assets as may be agreed to or directed by the member.

7. Provide payment systems and correspondent services to its members, nonmember state or federal credit unions, other corporate credit unions and credit union organizations or associations.

B. In addition to all other rights, powers and privileges granted a credit union by section 6-516, a corporate credit union organized under the laws of this state has all of the rights, powers and privileges and is entitled to the same exemptions and immunities as any corporate credit union chartered under the laws of the United States.

C. Except for the provisions of section 6-581, and except as specifically permitted in this article, all provisions of this chapter relating to credit unions shall apply to corporate credit unions.
A.R.S. § 6-637 — Arizona Code / Title 6 / Chapter 5 / Article 2 / Section 637
6-637 Term; payments
Status: in_force

6-637. Term; payments

A. The scheduled term of a consumer loan shall not be longer than the following:

1. Twenty-four months and fifteen days from the date of making a consumer loan of one thousand dollars or less.

2. Thirty-six months and fifteen days from the date of making a consumer loan of more than one thousand dollars but not more than two thousand five hundred dollars.

3. Forty-eight months and fifteen days from the date of making a consumer loan of more than two thousand five hundred dollars but not more than four thousand dollars.

4. Sixty months and fifteen days from the date of making a consumer loan of more than four thousand dollars but not more than six thousand dollars.

5. Any agreed on time period for a consumer loan of more than six thousand dollars.

B. The note evidencing a consumer loan shall provide for the scheduled repayment of principal and finance charges in approximately equal periodic installments.

C. Pursuant to the provisions of 12 United States Code section 3804, subsections A and B of this section shall not be superseded by the provisions of 12 United States Code section 3803.

D. Balloon payments, prepayment penalties, call options and other contract provisions that permit a consumer lender to accelerate payment of a consumer revolving loan or home equity revolving loan for any reason other than the consumer's default as provided in the agreement evidencing the consumer revolving loan or home equity revolving loan are prohibited, except that a licensee may include a call option to be exercised at least fifteen years after the date of the agreement. If the licensee exercises this call option and the consumer revolving loan or home equity revolving loan is not in default, the licensee shall amortize the amount due on the account over at least sixty monthly installments.

E. Except as provided in subsection D of this section, an agreement evidencing a consumer revolving loan or home equity revolving loan shall provide that on termination of the right to obtain advances the outstanding principal balance and finance charges at the time of termination of the right to obtain advances are repayable in installments if a consumer is not in default as provided in the agreement. These installments shall provide for the scheduled repayment of principal and finance charges in approximately equal periodic installments except as a result of an adjustment in the index on which a variable rate of periodic finance charges is based. These installments are payable within the following time limits:

1. Twenty-four months and fifteen days from the date of termination of the right to obtain advances for an outstanding principal balance on that date of one thousand dollars or less.

2. Thirty-six months and fifteen days from the date of termination of the right to obtain advances for an outstanding principal balance on that date that is more than one thousand dollars but not more than two thousand five hundred dollars.

3. Forty-eight months and fifteen days from the date of termination of the right to obtain advances for an outstanding principal balance on that date that is more than two thousand five hundred dollars but not more than four thousand dollars.

4. Sixty months and fifteen days from the date of termination of the right to obtain advances for an outstanding principal balance on that date that is more than four thousand dollars but not more than six thousand dollars.

5. Any agreed on time period for an outstanding principal balance that is more than six thousand dollars on the date of termination of the right to obtain advances.

F. A licensee shall permit a consumer to prepay any scheduled installment or additional amount due on any consumer lender loan in advance at any time during the licensee's regular business hours, but the licensee may apply that prepayment first to all finance charges accrued through the date of that prepayment.

G. On payment in full or renewal of a consumer lender loan, the licensee shall provide written notice of payment and release to the consumer, or if more than one consumer is obligated on the consumer lender loan, to any one of the consumers. The notice of payment and release shall include the date of the original note or agreement evidencing the consumer lender loan and the date of payment in full. In lieu of the notice of payment and release, the licensee may return the original note or agreement evidencing the consumer lender loan marked paid or renewed, as applicable. The licensee shall release any lien or security interest on property securing a consumer lender loan that is paid in full as provided in section 33-707 for real property and section 47-9513 for personal property. This subsection does not apply to a consumer revolving loan or home equity revolving loan on which there is no unpaid balance if the consumer's right to receive advances on the account continues in effect.
A.R.S. § 6-1009 — Arizona Code / Title 6 / Chapter 10 / Article 1 / Section 1009
6-1009 Lessor's lien; default of lessee; or failure to surrender
Status: in_force

6-1009. Lessor's lien; default of lessee; or failure to surrender

A. The lessor shall have a landlord's lien upon the contents of a repository for the rent.

B. If the lessee does not pay the rent within six months after it is due, or fails to surrender possession of the repository within six months from the date of termination of the lease, then the lessor, after giving not less than sixty days' written notice to the lessee personally or by registered mail addressed to the latest address shown upon the safe deposit records of the lessor of its intention to sell the contents of the repository for the payment of rent and expenses, may forcibly open the repository and in the presence of two of its employees remove and inventory the contents and seal them in a package which shall be placed in the general vaults of lessor at a rental not exceeding the rental previously charged for the repository; provided, the employees may deliver to a clerk of the superior court any document which appears to be of a testamentary nature. The lessor shall retain the contents for at least ninety days thereafter and may then foreclose its lien under section 33-1023 but the unclaimed surplus funds or property shall be disposed of under title 44, chapter 3.
A.R.S. § 6-407 — Arizona Code / Title 6 / Chapter 3 / Article 2 / Section 407
6-407 Applicants and initial capital
Status: in_force

6-407. Applicants and initial capital

A. Any five or more adult individuals, residents of this state, may apply for a permit to organize an association under this article. The minimum initial capital which an association must have shall be determined by the deputy director, but in no event shall it be less than the amount determined by the following table, based on the population of the community in which the association's business office is to be located:

Population    Minimum

More than   Not more than     capital

00    10,000      $ 50,000.00

10,000      50,000      100,000.00

50,000      ------      200,000.00

B. If the association's business office is to be located in an unincorporated area more than five miles from the limits of any community, then the required minimum capital shall be that for a community of ten thousand population or less; otherwise, the required capital shall be that of the community to which it is adjacent, or if near several communities, that of the community with the highest population classification in the above schedule. Minimum capital to be paid in may consist of withdrawable capital and guaranty capital as provided in this chapter. If the capital of the association to be organized includes guaranty capital, the amount of minimum initial guaranty capital shall not be less than $50,000, and not less than $100,000 if the association is to be located in a county with more than seventy-five thousand population.
A.R.S. § 6-1228 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1228
6-1228 Surety bond
Status: in_force

6-1228. Surety bond

A. An applicant for a money transmission license must provide and a licensee at all times must maintain a surety bond in a form satisfactory to the director.

B. Except as provided in subsection C of this section, the amount of the required security shall be the greater of $25,000 or an amount equal to one hundred percent of the licensee's average daily money transmission liability in this state calculated for the most recently completed three-month period, up to a maximum of $500,000.

C. If a licensee's tangible net worth exceeds ten percent of total assets, the licensee may maintain a surety bond of $25,000.

D. A licensee that maintains a bond in the maximum amount provided for in subsection B of this section is not required to calculate the licensee's average daily money transmission liability in this state for purposes of this section.

E. A licensee may exceed the maximum required bond amount pursuant to section 6-1230, subsection A, paragraph 6.
A.R.S. § 6-203 — Arizona Code / Title 6 / Chapter 2 / Article 2 / Section 203
6-203 Application for banking permit; organizational application; final application
Status: in_force

6-203. Application for banking permit; organizational application; final application

A. Except as otherwise provided in this section, an application for a banking permit or amendment to a banking permit shall be in writing, in such form as the deputy director may prescribe, and shall be supported by such information, data and records as the deputy director may require to make the findings necessary for the issuance or amendment of the permit.

B. The deputy director shall establish an organizational application process and a final application process for new banking permit applications. The organizational application must include:

1. The historical description of the organizing group.

2. The proposed type of regulatory filing for the bank.

3. The proposed committee structure and its membership.

4. The completed biographical and financial report for each organizer.

5. The completed background permission form for each organizer.

6. The business plan summary.

7. The financial plan reflecting both the objectives of the strategic plan and the bank's capital adequacy under the current capital guidelines.

8. The projected organizational budget for the project.

9. The articles of incorporation and the bylaws of the organizing corporation.

10. The proposed offering circular, escrow account information and stock certificate.

C. The department may accept an organizational application for a new banking permit without simultaneously filing with the federal deposit insurance corporation.

D. The final application for a new banking permit may begin at any time during the organizational phase. The required capital must be raised during the final application process.
A.R.S. § 6-215 — Arizona Code / Title 6 / Chapter 2 / Article 3 / Section 215
6-215 Retention of nonconforming assets; permission; maximum value
Status: in_force

6-215. Retention of nonconforming assets; permission; maximum value

If a merging or converting bank has assets that do not conform to the requirements of law for a state bank or if assets acquired by a state bank in the transaction of its assuming deposit liabilities of another bank do not conform to such legal requirements, the deputy director may allow the resulting bank to retain such assets for a reasonable time, but shall fix the maximum value at which the assets may be carried by the resulting or assuming bank.
A.R.S. § 6-913 — Arizona Code / Title 6 / Chapter 9 / Article 1 / Section 913
6-913 Conversion to commercial mortgage broker license
Status: in_force

6-913. Conversion to commercial mortgage broker license

Notwithstanding section 6-903, a person who holds a mortgage broker license may convert it to a commercial mortgage broker license by applying in a manner prescribed by the deputy director by rule. The approval of the conversion is at the discretion of the deputy director.
A.R.S. § 6-452 — Arizona Code / Title 6 / Chapter 3 / Article 5 / Section 452
6-452 Purchase of real or personal property at forced sale
Status: in_force

6-452. Purchase of real or personal property at forced sale

An association may purchase, at any sheriff's or other judicial sale, either public or private, any real or personal property upon which the association has any mortgage, lien, or other encumbrance or in which the association has any other interest or accept a deed in lieu of such foreclosure. The association thereafter may repair, improve, sell, convey, lease, mortgage, exchange, or otherwise dispose of real or personal property so acquired, in the best interests of the association, without limitation.
A.R.S. § 6-395.10 — Arizona Code / Title 6 / Chapter 2 / Article 13 / Section 395.10
6-395.10 Disposition of unclaimed property
Status: in_force

6-395.10. Disposition of unclaimed property

A. As soon after the commencement of liquidation as practicable the receiver shall cause notice to be given by mail to each person at the address shown on the records of the bank who appears from the records to be a bailor of property held by the bank or a lessee of a safety deposit repository. The notice shall demand that the property held by the bank as bailee or located in its safe deposit repositories be withdrawn by a date certain and, if appropriate, the notice shall designate the name of the bank that has assumed the obligations of the closed bank as bailee or repository lessor and the place where the repository or property will be located after a specified date.

B. If the obligations of the closed bank as repository lessor have not been assumed by another bank, the safety deposit repository, the contents of which have not been removed before the date specified in the notice under subsection A of this section, shall be opened by the receiver in the manner provided for repositories upon which the payment of rental is in default. The unclaimed contents of the repositories together with all unclaimed property held by the bank as bailee shall be delivered by the receiver to the clerk of the court having jurisdiction of the receivership to be disposed of pursuant to section  44-302, subsection A, paragraph 11 if not thereafter claimed.
A.R.S. § 6-141 — Arizona Code / Title 6 / Chapter 1 / Article 4 / Section 141
6-141 Definitions
Status: in_force

6-141. Definitions

In this article, unless the context otherwise requires:

1. "Acquisition of control" means any transaction whereby a person obtains, directly or indirectly, control of a bank, trust company, savings and loan association or controlling person.

2. "Control" means direct or indirect ownership of or power to vote twenty-five percent or more of the outstanding voting securities of a bank, trust company, savings and loan association or controlling person or to control in any manner the election of a majority of the directors of a bank, trust company, savings and loan association 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 such person the voting securities of any other person directly or indirectly controlling, controlled by or under common control with such other person or by any officer, partner, employee or agent of such person, or by any spouse, parent or child of such person.

3. "Controlling person" means any person directly or indirectly in control of a bank, trust company or savings and loan association.

4. "Person" means an individual, corporation, partnership, association, trust or agency or any similar entity.

5. "Voting security" means any security presently entitling the owner or holder of such security to vote for the election of directors of a bank, trust company, savings and loan association 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 means such amount of the outstanding voting securities as entitles the holder or holders of such securities to cast that specified percentage of the aggregate votes that the holders of all the outstanding voting securities are entitled to cast.
A.R.S. § 6-521 — Arizona Code / Title 6 / Chapter 4 / Article 4 / Section 521
6-521 Membership
Status: in_force

6-521. Membership

A. The membership of a credit union consists of the incorporators and other persons who are within the field of membership as prescribed in the bylaws, who have been duly accepted as members, who have paid any required one-time or periodic membership fee, or both, in accordance with any requirements in the bylaws, and who have complied with the other requirements the certificate of organization and bylaws provide.

B. Each member may own only one membership share.
A.R.S. § 6-904 — Arizona Code / Title 6 / Chapter 9 / Article 1 / Section 904
6-904 Issuance of license; renewal; inactive status; branch office license; application; fee
Status: in_force

6-904. Issuance of license; renewal; inactive status; branch office license; application; fee

A. The deputy director, on determining that the applicant is qualified and has paid the fees, shall issue a mortgage broker's license or a commercial mortgage broker's license to the applicant which is evidenced by a continuous certificate. The deputy director shall grant or deny a license within one hundred twenty days after receipt of the completed application and fees. 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.

B. For licenses approved on or before September 30, 2008, a licensee shall pay the renewal fee on or before September 30, 2008 and on or before December 31 for subsequent years beginning on or before December 31, 2009. Licenses not renewed by September 30, 2008 are suspended, and the licensee shall not act as a mortgage broker or a commercial mortgage broker 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 September 30, 2008 that a license renewal fee is not received by the deputy director and making application for renewal as prescribed by the deputy director.  Licenses which are not renewed by October 31, 2008 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 on or before September 30, 2008, a licensee may request inactive status on or before September 30, 2008 for the following license year, and the license shall be placed on inactive status after payment to the deputy director of the inactive status renewal fee prescribed in section 6-126 and the surrender of the license to the deputy director. During inactive status, an inactive licensee is not required to maintain a bond and shall not act as a mortgage broker or a commercial mortgage broker. A licensee may not be on inactive status for more than two consecutive years, nor for more than four years in any ten-year period. The license is deemed expired on violation of any of the limitations of this subsection.

D. For licenses approved after or renewed on September 30, 2008, a licensee shall pay the renewal fee on or before December 31, 2009 and on or before December 31 of each subsequent year.  Licenses not renewed by December 31 are suspended, and the licensee shall not act as a mortgage broker or a commercial mortgage broker 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.  A license that is not renewed 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.

E. For licenses approved after or renewed on September 30, 2008, beginning in 2009 and each subsequent year, a licensee may request inactive status for the following license year if the licensee makes the request on or before December 31.  The license shall be placed on inactive status after the licensee pays to the deputy director the inactive status renewal fee prescribed in section 6-126 and surrenders the license to the deputy director.  During inactive status, an inactive licensee is not required to maintain a bond and shall not act as a mortgage broker or a commercial mortgage broker.  A licensee may not be on inactive status for more than two consecutive years or for more than four years in any ten-year period. The license expires on violation of this subsection.

F. An inactive licensee may return to active status notwithstanding the requirements of section 6-903, subsections C and D by making a written request to the deputy director for reactivation and paying the prorated portion of the annual assessment that would have been charged to the licensee. The licensee shall also provide the deputy director with proof that the licensee meets all of the other requirements for acting as a mortgage broker or a commercial mortgage broker, including required bond coverage or the deposit of a cash alternative.

G. A licensee shall prominently display the mortgage broker license or commercial mortgage broker license in the office of the mortgage broker or commercial mortgage broker.

H. Every licensed mortgage broker and licensed commercial mortgage broker 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 licensee's 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 set forth 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 immediately notify the deputy director of 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. § 6-497 — Arizona Code / Title 6 / Chapter 3 / Article 10 / Section 497
6-497 Effect on existing associations
Status: in_force

6-497. Effect on existing associations

With respect to any existing association:

1. The valid articles of incorporation, bylaws, shares, contracts and obligations of such association shall continue in full force and effect; but the association shall be operated and regulated in accordance with the provisions of this chapter.

2. If the association accepts the benefits of, or avails itself of the powers given by, this chapter, the association shall be subject to the provisions and requirements of this chapter in every particular, as if the association had been organized under this chapter.
A.R.S. § 6-991.21 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991.21
6-991.21 Financial services fund; use of fund
Status: in_force

6-991.21. Financial services fund; use of fund

A. The financial services fund is established consisting of loan originator fees collected pursuant to this article. The deputy director shall administer the fund for the purpose of discharging the duties imposed by law on the division.

B. Monies deposited in the financial services fund are subject to section 35-143.01.
A.R.S. § 6-948 — Arizona Code / Title 6 / Chapter 9 / Article 2 / Section 948
6-948 Noncompliance not to affect validity of loan
Status: in_force

6-948. Noncompliance not to affect validity of loan

A failure to comply with the provisions 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 acquiring a mortgage banking loan or mortgage loan or any interest in a mortgage banking loan or 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. § 6-263 — Arizona Code / Title 6 / Chapter 2 / Article 5.1 / Section 263
6-263 Term and termination
Status: in_force

6-263. Term and termination

A. Unless otherwise provided in an account agreement, a special deposit terminates five years after the date the special deposit was first funded.

B. Unless otherwise provided in the account agreement, if the bank cannot identify or locate a beneficiary entitled to payment when the special deposit is terminated, and a balance remains in the special deposit, the bank shall pay the balance to the depositor or depositors as a beneficiary or beneficiaries.

C. A bank that pays the remaining balance as provided under subsection B of this section has no further obligation to the special deposit.
A.R.S. § 6-841.01 — Arizona Code / Title 6 / Chapter 7 / Article 3 / Section 841.01
6-841.01 Fiduciary duty; notice of returned check
Status: in_force

6-841.01. Fiduciary duty; notice of returned check

A. An escrow agent is the trustee of all monies received or collected and held in escrow. An agent shall not knowingly or negligently commingle trust monies with the escrow agent's own monies or with monies held in any other capacity. Every escrow agent and every officer, director and employee of an escrow agent who has actual knowledge of fraud or dishonesty in the application of escrow monies, owes a fiduciary duty as trustee to the owner of the monies held in escrow.

B. An escrow agent shall notify the deputy director of any returned check for insufficient funds or overdraft on any of the escrow agent's trust or fiduciary accounts. The deputy director may revoke, suspend or refuse to renew the escrow agent's license for failure to comply with this subsection.
A.R.S. § 6-139 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 139
6-139 Judicial review
Status: in_force

6-139. Judicial review

Except as provided in section 41-1092.08, subsection H, a final decision of the deputy director is subject to judicial review pursuant to title 12, chapter 7, article 6 if the complaint seeking review is filed with the superior court in Maricopa county and served on the deputy director.