A.R.S. § 6-1230 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1230
6-1230 Types of permissible investments
Status: in_force

6-1230. Types of permissible investments

A. The following investments are permissible under section 6-1229:

1. Cash, including demand deposits, savings deposits and monies in such accounts held for the benefit of the licensee's customers in a federally insured depository financial institution, and cash equivalents, including automated clearinghouse items in transit to the licensee and automated clearinghouse items or international wires in transit to a payee, cash in transit by armored car, cash in smart safes, cash in licensee-owned locations, debit card or credit card-funded transmission receivables owed by any bank or money market mutual funds rated "AAA" by Standard and Poor's or the equivalent from any eligible rating service.

2. Certificates of deposit or senior debt obligations of an insured depository institution as defined in the federal deposit insurance act (12 United States Code section 1813) or as defined in the federal credit union act (12 United States Code section 1752).

3. An obligation of the United States or a commission, agency or instrumentality of the United States.

4. An obligation that is guaranteed fully as to principal and interest by the United States.

5. An obligation of a state or a governmental subdivision, agency or instrumentality of a state.

6. One hundred percent of the surety bond provided for under section 6-1228 that exceeds the average daily money transmission liability in this state.

7. The full drawable amount of an irrevocable standby letter of credit for which the stated beneficiary is the director that stipulates that the beneficiary only needs to draw a sight draft under the letter of credit and present it to obtain money up to the letter of credit amount within seven days after presentation of the items required by subsection C of this section.  The letter of credit must:

(a) Be issued by a federally insured depository financial institution, a foreign bank that is authorized under federal law to maintain a federal agency or federal branch office in a state or a foreign bank that is authorized under state law to maintain a branch in a state that:

(i) Bears an eligible rating or whose parent company bears an eligible rating.

(ii) Is regulated, supervised and examined by United States federal or state authorities that have regulatory authority over banks, credit unions and trust companies.

(b) Be irrevocable and unconditional and indicate that it is not subject to any condition or qualifications outside of the letter of credit.

(c) Not contain reference to any other agreements, documents or entities or otherwise provide for any security interest in the licensee.

(d) Contain an issue date and expiration date and expressly provide for automatic extension, without a written amendment, for an additional period of one year after the present or future expiration date, unless the issuer of the letter of credit notifies the director in writing by certified or registered mail or courier mail or other receipted means, at least sixty days before any expiration date, that the irrevocable letter of credit will not be extended.

B. For a notice of expiration or nonextension of a letter of credit issued under subsection A, paragraph 7, subdivision (d) of this section, at least fifteen days before the expiration of the letter of credit, the licensee shall demonstrate to the satisfaction of the director that the licensee maintains permissible investments pursuant to section 6-1229, subsection A.  If the licensee does not comply with this subsection, the director may draw on the letter of credit in an amount up to the amount necessary to meet the licensee's requirements to maintain permissible investments pursuant to section 6-1229, subsection A.  The draw shall be offset against the licensee's outstanding money transmission obligations.  The drawn money shall be held in trust by the director or the director's designated agent, to the extent authorized by law, as agent for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations.

C. The letter of credit issued under subsection A, paragraph 7, subdivision (d) of this section shall provide that the issuer of the letter of credit will honor a presentation made by the beneficiary to the issuer of the following documents on or before the expiration date of the letter of credit:

1. The original letter of credit, including any amendments.

2. A written statement from the beneficiary stating that any of the following events have occurred:

(a) 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.

(b) The filing of a petition by or against the licensee for receivership or the commencement of any other judicial or administrative proceeding for its dissolution or reorganization.

(c) The seizure of assets of a licensee by the director pursuant to an emergency order issued in accordance with applicable law, on the basis of an action, violation or condition that has caused or is likely to cause the insolvency of the licensee.

(d) The beneficiary has received notice of expiration or nonextension of a letter of credit and the licensee fails to demonstrate to the satisfaction of the beneficiary that the licensee will maintain permissible investments pursuant to section 6-1229, subsection A on the expiration or nonextension of the letter of credit.

D. The director may designate an agent to serve on the director's behalf as beneficiary to a letter of credit if the agent and letter of credit meet requirements established by the director.  The director's agent may serve as agent for multiple licensing authorities for a single irrevocable letter of credit if the proceeds of the drawable amount for the purposes of subsection A, paragraph 7 of this section are assigned to the director.

E. The director may participate in multistate processes designed to facilitate issuing and administering letters of credit, including services provided by the nmls and a state regulatory registry.

F. Unless otherwise allowed by the director, the following investments are permissible under section 6-1229:

1. Receivables that are payable to a licensee from its authorized delegates in the ordinary course of business that are less than seven days old, up to fifty percent of the aggregate value of the licensee's total permissible investments. Of the receivables permissible under this paragraph, receivables that are payable to a licensee from a single authorized delegate in the ordinary course of business may not exceed ten percent of the aggregate value of the licensee's total permissible investments.

2. The following investments, up to twenty percent per category and combined up to fifty percent of the aggregate value of the licensee's total permissible investments:

(a) A short-term investment bearing an eligible rating. For the purposes of this subdivision, "short-term" means up to six months.

(b) Commercial paper bearing an eligible rating.

(c) A bill, note, bond or debenture bearing an eligible rating.

(d) United States tri-party repurchase agreements collateralized at one hundred percent or more with United States Government or agency securities, municipal bonds or other securities bearing an eligible rating.

(e) Money market mutual funds rated less than "aaa" and equal to or higher than "a-" by Standard and Poor's, or the equivalent from any other eligible rating service.

(f) A mutual fund or other investment fund composed solely and exclusively of one or more permissible investments listed in subsection A, paragraph 1, 2, 3, 4 or 5 of this section.

3. Cash, including demand deposits and savings deposits and money in such accounts held for the benefit of the licensee's customers, at foreign depository institutions, up to ten percent of the aggregate value of the licensee's total permissible investments if the licensee has received a satisfactory rating in its most recent examination and the foreign depository institution:

(a) Has an eligible rating.

(b) Is registered under the foreign account tax compliance act.

(c) Is not located in any country subject to sanctions from the office of foreign assets control.

(d) Is not located in a high-risk or noncooperative jurisdiction as determined by the director.

G. For the purposes of this section:

1. Long-term credit ratings are eligible if the rating is equal to or higher than an "A-" by Standard and Poor's or the equivalent from any other eligible rating service. If ratings differ among eligible rating services, the highest rating applies when determining whether a security bears an eligible rating.

2. Short-term credit ratings are eligible if the rating is equal to or higher than a-2 or sp-2 by Standard and Poor's or the equivalent from any other eligible rating service. If ratings differ among eligible rating services, the highest rating applies when determining whether a security bears an eligible rating.
A.R.S. § 6-1112 — Arizona Code / Title 6 / Chapter 11 / Article 1 / Section 1112
6-1112 Acquisition of voting securities in violation of article; limitation on rights as shareholder; injunction
Status: in_force

6-1112. Acquisition of voting securities in violation of article; limitation on rights as shareholder; injunction

A. With respect to any voting security acquired in violation of this article or any rule or order of the deputy director, a person is not entitled to vote or give a written proxy or consent for a period of five years after the acquisition except with the written consent of the deputy director. If a voting security of a financial institution or controlling person is acquired in violation of this article or any rule or order, any shareholder of the financial institution or controlling person or the deputy director may apply to the superior court for injunctive or other equitable relief, including costs and reasonable attorney fees, to enjoin prospectively any person from voting or giving any written proxy or consent with respect to the voting security for a period of five years after the acquisition except with the written consent of the deputy director.  The deputy director may apply to the superior court for injunctive or other relief, including costs, to void any vote or any giving of a written proxy or consent with respect to the security that has occurred since the acquisition, except that the court may not void the vote if the court finds that to void the vote would not be in the interest of the depositors, beneficiaries, creditors or shareholders of the financial institution or controlling person or in the public interest.

B. A person may file an application for consent of the deputy director with the deputy director and the deputy director shall grant or deny the application within thirty days.  In giving consent, the deputy director may require those conditions that the deputy director deems reasonable, necessary or otherwise in the public interest. Except as provided in section 41-1092.08, subsection H, the final action 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.

C. No civil action may be brought to void any vote pursuant to subsection A of this section unless commenced within one year after the transaction that constituted a violation of this article or any rule or order of the deputy director.
A.R.S. § 6-131 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 131
6-131 Right to sue and defend in actions; liability limitation; award of fees and other expenses
Status: in_force

6-131. Right to sue and defend in actions; liability limitation; award of fees and other expenses

A. The director may sue and prosecute or defend in any action or proceeding in any court of this state or any other state or territory and in any court of the United States for the enforcement or protection of any right or pursuit of any remedy necessary or proper in connection with the matters committed to the director for administration or in connection with any financial institution or enterprise under the director's supervision, or the rights, liabilities, property or assets thereof, and may obtain without bond any order necessary to enforce or protect such rights or remedies, including any of the following:

1. An order impounding records, books, documents, accounts, monies, negotiable instruments or papers and placing such articles in the possession of the director until completion of all proceedings undertaken pursuant to this title.

2. An order appointing a receiver.

3. An order restoring to any person in interest any monies or property, real or personal, that may have been acquired or transferred in violation of this title.

B. This section does not render the director as such director or otherwise liable to suit except as any other department or agency of the state may be liable under the general law.

C. In addition to any costs that are awarded as prescribed by statute, a court shall award fees and other expenses to the department if the department prevails by an adjudication on the merits in any action brought by the department to enforce the provisions of this title or any rule adopted under this title. The department may apply pursuant to the applicable procedural rules for an award of attorney fees and other expenses authorized under this section and shall include as part of the application evidence of the department's eligibility for the award and the amount sought, including an itemized statement from the attorneys and experts stating the actual time expended in representing the department and the rate at which the fees were computed. For the purposes of this subsection, "fees and other expenses" includes the reasonable expenses of expert witnesses, the reasonable cost of any study, analysis, report, test or project that is found by the court to be necessary for the preparation of the department's case and reasonable and necessary attorney fees. The department shall deposit any fees or other expenses awarded by a court in the revolving fund established by section 6-135.
A.R.S. § 6-1209 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1209
6-1209 Application for licensure
Status: in_force

6-1209. Application for licensure

A. An applicant for a license shall apply in a form prescribed by the director and pay all applicable nonrefundable fees as prescribed in section 6-126.  The application must contain all of the following:

1. The legal name and residential and business addresses of the applicant and any fictitious or trade name used by the applicant in conducting the applicant's business.

2. A list of any criminal convictions of the applicant and any material litigation in which the applicant has been involved in the ten-year period preceding the submission of the application.

3. A description of any money transmission previously provided by the applicant and the money transmission that the applicant seeks to provide in this state.

4. A list of the applicant's proposed authorized delegates and the locations in this state where the applicant and its authorized delegates propose to engage in money transmission.

5. A list of other states in which the applicant is licensed to engage in money transmission and any license revocations or suspensions or other disciplinary action taken against the applicant in another state.

6. Information concerning any bankruptcy or receivership proceedings affecting the licensee or a person in control of the licensee.

7. A sample form of a contract for authorized delegates, if applicable.

8. A sample form of a payment instrument or stored value, as applicable.

9. The name and address of any federally insured depository financial institution through which the applicant plans to conduct money transmission.

10. Any other information the director reasonably requires with respect to the applicant.

B. In addition to the requirements prescribed in subsection A of this section, if an applicant is a corporation, limited liability company, partnership or other legal entity, the applicant shall also provide all of the following:

1. The date of the applicant's incorporation or formation and the state or country of incorporation or formation.

2. If applicable, a certificate of good standing from the state or country in which the applicant is incorporated or formed.

3. A brief description of the structure or organization of the applicant, including any parents or subsidiaries of the applicant, and whether any parents or subsidiaries are publicly traded.

4. The legal name, any fictitious or trade name, all business and residential addresses and the employment, as applicable, in the ten-year period immediately preceding the submission of the application of each key individual and person in control of the applicant.

5. A list of any criminal convictions and material litigation in which a person in control of the applicant that is not an individual has been involved in the ten-year period immediately preceding the submission of the application.

6. A copy of audited financial statements of the applicant for the most recent fiscal year and for the two-year period immediately preceding the submission of the application or, if determined to be acceptable to the director, unaudited financial statements for the most recent fiscal year or other period acceptable to the director.

7. A copy of unaudited financial statements of the applicant for the most recent fiscal quarter.

8. If the applicant is a publicly traded corporation, a copy of the most recent report filed with the United States securities and exchange commission pursuant to 15 United States Code section 78m.

9. If the applicant is a wholly owned subsidiary of:

(a) A corporation publicly traded in the United States, a copy of audited financial statements for the parent corporation for the most recent fiscal year or a copy of the parent corporation's most recent report filed pursuant to 15 United States Code section 78m.

(b) A corporation publicly traded outside the United States, a copy of similar documentation filed with the regulator of the parent corporation's domicile outside the United States.

10. The name and address of the applicant's registered agent in this state.

11. Any other information the director reasonably requires.

C. The director may waive one or more requirements of subsections A and B of this section or allow an applicant to submit other information in lieu of the required information.
A.R.S. § 6-1219 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1219
6-1219 Reports
Status: in_force

6-1219. Reports

A. A licensee shall file a report with the director within one business day after the licensee has reason to know of the occurrence of any of the following:

1. 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.

2. 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 the making of a general assignment for the benefit of its creditors.

3. The commencement of a proceeding to revoke or suspend the licensee's license in a state or country in which the licensee engages in business or is licensed.

B. A licensee shall file a report with the director within three business days after the licensee has reason to know of the occurrence of either of the following:

1. A felony charge or conviction of the licensee or of a key individual or person in control of the licensee.

2. A felony charge or conviction of an authorized delegate.
A.R.S. § 6-322 — Arizona Code / Title 6 / Chapter 2 / Article 7 / Section 322
6-322 Interstate acquisitions; approval of deputy director; exception
Status: in_force

6-322. Interstate acquisitions; approval of deputy director; exception

A. Except as otherwise expressly allowed by federal law, an out-of-state financial institution shall not acquire an in-state financial institution unless the deputy director has approved the acquisition. The deputy director shall not approve an acquisition unless the deputy director has determined that deposits held in this state will be insured by the federal deposit insurance corporation when business in this state is commenced.

B. For those out-of-state financial institutions required to obtain approval from the deputy director as prescribed by subsection A of this section, the acquiring financial institution shall submit to the deputy director a written application for approval in the form the deputy director prescribes. The acquiring financial institution shall accompany the application with such information, data and records as the deputy director may require in order to make the determination. In an interstate transaction, the deputy director may accept an application that is in the form and manner prescribed by the state or federal agency that is the primary regulator of the applicant and that is supplemented as necessary to allow the deputy director to determine whether to deny or approve the application. The deputy director shall adopt rules prescribing the form and the information, data or records that the deputy director requires. In evaluating applications for acquisition pursuant to subsection F of this section, the deputy director may give consideration to the potential impact of the acquisition on the financial stability of the acquiring institution.

C. A newly established in-state financial institution created for the purpose of acquiring all or substantially all the assets of a former in-state financial institution from an out-of-state financial institution shall not constitute a de novo entry if the acquisition by the newly established in-state financial institution is completed within ninety days after the date on which the out-of-state financial institution acquired all or substantially all of the assets of the former in-state financial institution.

D. In the case of an out-of-state financial institution that is not required to obtain the approval of the deputy director, the out-of-state financial institution shall give written notice of the acquisition to the deputy director ten days before the effective date of the acquisition, unless a shorter time is prescribed by federal law.

E. An out-of-state financial institution may acquire a branch of an in-state financial institution for operation as a branch without acquiring the entire in-state financial institution or its permit. A branch of an in-state financial institution is not eligible to be acquired unless it has been in continuous operation five or more years.

F. Notwithstanding subsection E of this section, an out-of-state financial institution may acquire a branch of an in-state financial institution without acquiring the entire institution if all of the following apply:

1. The financial institution proposed to be acquired is in danger of being placed in receivership.

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

3. The terms of the acquisition are acceptable to the relevant federal agency.

4. The deputy director approves the acquisition pursuant to this section in writing.
A.R.S. § 6-435 — Arizona Code / Title 6 / Chapter 3 / Article 4 / Section 435
6-435 Voluntary withdrawal of accounts
Status: in_force

6-435. Voluntary withdrawal of accounts

A. A holder of an account may make application for withdrawal of, and the association may pay, all or any part of the withdrawal value thereof at any time.

B. If the association has insufficient funds in the treasury and from current receipts to pay all matured accounts and applications for withdrawal within thirty days after such accounts mature or payment is requested, then the board of directors shall provide by resolution:

1. The amount of money available in each calendar month to pay maturities and withdrawals, in accordance with safe and required operating procedure, but after making provision for expenses, debts, obligations, and cash dividends on accounts, due or to become due, not less than fifty percent of the remainder of such treasury funds and current receipts shall be made available for the payment of withdrawals and maturities.

2. For a list of matured accounts in order of maturity, and if in the same series, in order of issuance in such series and also of applications for withdrawals in chronological order of filing. Separate lists may be established for such purposes, in which event the resolution shall provide the proportion of available money that shall be applied to each list.

3. For a maximum sum, that shall not exceed $1,000, that may be paid to any one holder at any one time and if any holder's application for withdrawal or for payment of matured shares exceeds the sum so fixed, then the holder shall be paid in turn the sum so fixed, and the holder's application, reduced by such payment, shall be deemed refiled in its order as if filed on the date of such payment. Such limited payment may be made on a fixed date in each month and such refiling and renumbering, as the case may be, may take place on the same date in each subsequent month as long as any applications remain unpaid.

4. For a maximum sum, that shall not exceed $200, which may be paid on any application for withdrawal or to any one holder of matured shares in any calendar month, regardless of the order of application.

C. Accounts pledged as sole security for a loan shall be subject to the withdrawal provisions of this section, but amounts available for payment on the application for withdrawal shall be applied first to the repayment of the loan balance.

D. Accounts may be accepted by the association in payment or part payment for any real estate or other assets owned by the association,  but if the association has a list of withdrawals, or withdrawals and maturities, such sale of assets shall be to the highest bidder, and at least ten days' notice of the proposed sale shall be given by mail to all holders of accounts whose names appear on the withdrawal or maturity list.

E. A holder shall not have more than one application for withdrawal in effect at any one time, but may cancel the application or reduce the amount thereof at any time as to any amount not yet paid.

F. The holder of accounts for which application for withdrawal has been made does not become a creditor by reason of such application.

G. The board of directors of any association operating on the serial plan or with regular installment or prepaid shares on which dividends have not been credited directly to the share accounts, may determine by resolution the portion of profits that may be paid to withdrawing members.

H. Notwithstanding any other provision of this chapter, a savings and loan association may offer payment order accounts, approved for federal associations doing business in this state, and authorizing withdrawals therefrom by written drafts payable to third parties, subject to conditions, limitations and restrictions as the deputy director may by rule prescribe.
A.R.S. § 6-1106 — Arizona Code / Title 6 / Chapter 11 / Article 1 / Section 1106
6-1106 Material change of fact; filing amended statements
Status: in_force

6-1106. Material change of fact; filing amended statements

If any material change occurs in the facts set forth in the application, or if for any other reason the acquiring party desires to amend the application, the person shall file with the deputy director an amendment setting forth the change, together with copies of all documents and other material relevant to the change.
A.R.S. § 6-836 — Arizona Code / Title 6 / Chapter 7 / Article 3 / Section 836
6-836 Commissions; other considerations prohibited
Status: in_force

6-836. Commissions; other considerations prohibited

No escrow agent may pay or give a commission or any part of its fees or charges, including fees for escrow services or other consideration, as an inducement or as compensation for any escrow business.
A.R.S. § 6-851 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 851
6-851 Definitions
Status: in_force

6-851. Definitions

A. In this chapter, unless the context otherwise requires:

1. "Trust business" means the holding out by a person to the public at large by advertising, solicitation or other means that the person is available to act as a fiduciary in this state and accepting and undertaking to perform the duties as such a fiduciary in the regular course of business.

2. "Trust company" means a corporation holding a certificate issued under this article.

B. In this article, unless the context otherwise requires:

1. "Agent" means a person who receives compensation to regularly perform services specifically related to the conduct of the trust business.

2. "Asset" means any property or property right held by a licensee for the benefit of another.

3. "Capital" means the total of outstanding common stock, preferred stock and surplus and undivided profits.

4. "Certificate" means a certificate of authority issued under this chapter to engage in trust business.

5. "Contingency plan" means a document stating a trust company's means of conducting business and preserving records in the event of any power outage, flood or other physical emergency.

6. "Discretionary assets" means those assets in which the trust company has the unilateral authority to determine investment strategies and execute investment transactions without seeking the concurrence, approval or authority from the customer or any other external party.

7. "Fiduciary" means a personal representative, administrator, guardian, conservator, trustee, agent or other person who acts in a fiduciary capacity and who is not exempt by section 6-852.

8. "Impaired" or "insolvent" means the trust company does not possess assets that are at least equal to liabilities, required reserves and total issued and outstanding capital.

9. "Legal tender" means a medium of exchange, including specie, that is authorized by the United States Constitution or Congress for the payment of debts, public charges, taxes and dues.

10. "Liquid capital" means legal tender, capital in the form of certificates of deposit issued by banks, savings banks or savings and loan associations doing business in this state and insured by the federal deposit insurance corporation or any successor institution, including deposits to a single depository where excess deposit insurance is provided through a reciprocal deposit arrangement by participating banks, or direct obligations of the United States government with maturity of not more than five years.

11. "Nondiscretionary assets" means those assets for which the trust company must obtain from the customer, broker or investment advisor specific direction and instructions regarding both investment strategies and investment executions.

12. "Specie" means coins having precious metal content.

13. "Surplus" means the total amount paid by shareholders in excess of the par or stated value of the shares of capital stock of a trust business in consideration for the shares.
A.R.S. § 6-537 — Arizona Code / Title 6 / Chapter 4 / Article 5 / Section 537
6-537 Certain duties of directors; insurance
Status: reserved

6-537. Certain duties of directors; insurance

A. In addition to the duties prescribed in this chapter, the board of directors shall:

1. Purchase adequate fidelity coverage for the credit union covering the president and other officials and employees handling or having custody of monies or property of the credit union.

2. Authorize the employment and compensation of the president, who may hire other persons as are necessary to carry out the business of the credit union.

3. Approve an operating budget for the credit union.

4. Authorize the conveyance of property.

5. Appoint special committees.

B. The board of directors shall perform other duties as the members from time to time may direct and perform or authorize any action not inconsistent with law or not specifically reserved by the bylaws to the members.

C. The board of directors shall purchase and maintain insurance for the credit union on behalf of a person who is or was a director, officer, employee or agent of the credit union, or who is or was serving at the request of the credit union as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against any liability asserted against the person and incurred by the person in any such capacity or arising out of the person's status as such, whether or not the credit union would have the power to indemnify the person against the liability.
A.R.S. § 6-708 — Arizona Code / Title 6 / Chapter 6 / Article 1 / Section 708
6-708 Denial; revocation or suspension of license
Status: in_force

6-708. Denial; revocation or suspension of license

A. If the deputy director finds that the applicant fails to meet any of the conditions set forth in this article, the deputy director shall deny the application for a license. If an application is denied or withdrawn, the deputy director shall retain the investigation fee to cover the costs of investigating the applicant and return the license fee to the applicant.

B. The deputy director may revoke or suspend any license issued under this article for the following causes:

1. Conviction in any state of a felony or any crime involving breach of trust or dishonesty.

2. Violating any of the provisions of this article or rules of the department.

3. Fraud or deceit in procuring the issuance of the license.

4. Insolvency, filing in bankruptcy, receivership, or assigning for the benefit of creditors by any licensee or applicant for a license.

5. Failure to pay the annual license fee.

6. Entry of an order against the licensee by an administrative agency of this state, the federal government or any other state or territory of the United States that involves fraud, deceit or misrepresentation by the licensee and the facts relating to the order indicate that it would be contrary to the interests of the public to allow that person to be licensed or to control or manage a licensee.
A.R.S. § 6-991.14 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991.14
6-991.14 Investigation and discovery
Status: in_force

6-991.14. Investigation and discovery

In considering and investigating an application, the department may use all appropriate means of investigation and discovery that are available pursuant to this article.
A.R.S. § 6-1406 — Arizona Code / Title 6 / Chapter 14 / Article 1 / Section 1406
6-1406 Books and records of premium finance company; access to records
Status: in_force

6-1406. Books and records of premium finance company; access to records

A. A licensee shall maintain books, accounts and records as prescribed by the deputy director that will enable the deputy director to determine whether the licensee is complying with this article.

B. A licensee shall preserve its books, accounts and records of premium finance transactions for at least three years after making the final entry with respect to any premium finance agreement. The preservation of records in any form authorized by the deputy director constitutes compliance with this section.

C. Every licensee shall observe generally accepted accounting principles and practices.

D. A licensee shall make any books, accounts and records that are kept outside of this state available to the deputy director in this state not more than three business days after demand or the deputy director may choose to perform the examination or investigation at the office of the licensee located outside of this state.

E. For purposes of this article, the deputy director or the deputy director's duly authorized representatives shall have access to the offices and places of business, files, safes and vaults of all licensees regarding that business or the subject matter of any examination, investigation or hearing during business hours.
A.R.S. § 6-153 — Arizona Code / Title 6 / Chapter 1 / Article 4 / Section 153
6-153 Acquisition of voting securities in violation of article; limitation on rights as shareholder; injunction
Status: in_force

6-153. Acquisition of voting securities in violation of article; limitation on rights as shareholder; injunction

A. With respect to any voting security acquired in violation of this article or any rule or order of the deputy director, a person shall not be entitled to vote or give a written proxy or consent for a period of five years after such acquisition except with the written consent of the deputy director.  If a voting security of a bank, trust company, savings and loan association or controlling person is acquired in violation of this article or any rule or order, any shareholder of such bank, trust company, savings and loan association, or controlling person or the deputy director may apply to the superior court for injunctive or other equitable relief, including costs and reasonable attorney fees, to enjoin prospectively any person from voting or giving any written proxy or consent with respect to such voting security for a period of five years after such acquisition except with the written consent of the deputy director. The deputy director may apply to the superior court for injunctive or other relief, including costs, to void any vote or any giving of a written proxy or consent with respect to such security that has occurred since such acquisition, except that no vote may be voided if the court finds that to void such vote would not be in the interest of the depositors, beneficiaries, creditors or shareholders of the bank, trust company, savings and loan association or controlling person, or in the public interest.

B. An application for consent of the deputy director may be filed with the deputy director by any person and shall be granted or denied within thirty days. In giving consent, the deputy director may require such conditions as the deputy director deems reasonable, necessary or otherwise in the public interest. Except as provided in section 41-1092.08, subsection H, the action of the deputy director shall be an order 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.

C. A civil action shall not be brought to void any vote pursuant to subsection A of this section unless commenced within one year after the transaction which constituted a violation of this article or any rule or order of the deputy director.
A.R.S. § 6-113 — Arizona Code / Title 6 / Chapter 1 / Article 2 / Section 113
6-113 Acts prohibited; officers; employees
Status: in_force

6-113. Acts prohibited; officers; employees

A. The director, the deputy director, the assistant director and any personnel of the department may not do any of the following with respect to any financial institution or enterprise under the jurisdiction of the department:

1. Be indebted, directly or indirectly, as borrower, accommodation endorser, surety or guarantor, to any financial institution or enterprise unless the indebtedness was contracted before becoming employed by the department and is fully disclosed to the department, except that an employee of the department, other than the director, the deputy director or the assistant director, may become so indebted if the indebtedness is both:

(a) Incurred on terms not more favorable than those available to the general public.

(b) Fully disclosed to and approved by the director before funding, including the following information:

(i) The date of the indebtedness.

(ii) The amount.

(iii) The interest rate.

(iv) Other obligors.

(v) Security.

(vi) The purpose for which the monies are to be used.  The borrower shall not participate in any examination of the lender conducted by the department.

2. Be an officer, director or employee of any financial institution or enterprise.

3. Own or deal in, directly or indirectly, the shares or obligations of any financial institution or enterprise.

4. Be interested in, directly or indirectly, or receive from any financial institution or enterprise, or any officer, director or employee of the financial institution or enterprise, any salary, fee, compensation or other valuable thing by way of gift, credit, compensation for services or otherwise.

5. Be interested in or engage in the negotiation of any loan to, obligation of, or accommodation for another person to or with any financial institution or enterprise.

B. Notwithstanding subsection A of this section, the director, the deputy director, the assistant director and any personnel of the department may:

1. Maintain demand, savings, time, share and trust accounts in any financial institution.

2. Become a beneficiary of any trust or estate administered by any fiduciary under the jurisdiction of the division.

3. Become indebted to and own and deal in shares and obligations of national banks, federal savings and loan associations and federal credit unions.
A.R.S. § 6-1110 — Arizona Code / Title 6 / Chapter 11 / Article 1 / Section 1110
6-1110 Appointment of deputy director as agent for service of process; forwarding of process; consent to jurisdiction
Status: in_force

6-1110. Appointment of deputy director as agent for service of process; forwarding of process; consent to jurisdiction

A person who is not a resident of this state, domiciled in this state or authorized to do business in this state and who files an application is deemed to have:

1. Consented to the jurisdiction of the courts of this state for all actions arising under this article.

2. Appointed the deputy director as the person's lawful agent for the purpose of accepting service of process in any action, suit or proceeding that may arise under this article. The deputy director shall transmit copies of all such lawful process accepted by the deputy director as an agent by certified mail to the person at the person's last known address.
A.R.S. § 6-403 — Arizona Code / Title 6 / Chapter 3 / Article 1 / Section 403
6-403 Prohibitions
Status: in_force

6-403. Prohibitions

Except as authorized under this title:

1. No person or group of persons shall transact business within the scope of this chapter or do any business under any name or title, or circulate or use any advertising or make any representation or give any information to any person, which indicates or reasonably implies the operation of a business which is within the scope of this chapter.

2. No foreign savings and loan association or savings bank shall be admitted or allowed to maintain an office in this state to transact the business of a savings and loan association or savings bank.
A.R.S. § 6-1409 — Arizona Code / Title 6 / Chapter 14 / Article 1 / Section 1409
6-1409 Effect of revocation, suspension or surrender on preexisting contracts; impairment of contracts
Status: repealed

6-1409. Effect of revocation, suspension or surrender on preexisting contracts; impairment of contracts

A. A revocation, suspension or surrender of any license does not impair or affect the obligation of any preexisting premium finance agreement between any licensee and insured.

B. If any provision of this article is amended or repealed in a manner that results in a cancellation of any license or right of a licensee to service premium finance agreements the cancellation does not impair or affect the obligation of any preexisting premium finance agreement between the licensee and the insured.
A.R.S. § 6-868 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 868
6-868 Fidelity bond; requirements
Status: in_force

6-868. Fidelity bond; requirements

A. A trust company doing business under this chapter shall obtain and maintain a fidelity bond, naming the trust company as obligee, in the following amounts:

Trust Assets      Fidelity

(market value)    Bond Amounts

less than $3,000,000    $500,000

$3,000,000 to $4,999,999      $525,000

$5,000,000 to $7,499,999      $550,000

$7,500,000 to $9,999,999      $575,000

$10,000,000 to $14,999,999    $600,000

$15,000,000 to $19,999,999    $650,000

$20,000,000 to $24,999,999    $700,000

$25,000,000 to $34,999,999    $750,000

$35,000,000 to $49,999,999    $850,000

$50,000,000 to $74,999,999    $950,000

$75,000,000 to $99,999,999    $1,000,000

$100,000,000 to $149,999,999  $1,250,000

$150,000,000 to $249,999,999  $1,600,000

$250,000,000 to $499,999,999  $2,100,000

$500,000,000 to $999,999,999  $2,400,000

$1,000,000,000 to $2,000,000,000    $4,400,000

$2,000,000,001 to $3,000,000,000    $6,000,000

for every $1,000,000,000 over $3,000,000,000    $1,000,000

B. The trust company shall file a signed copy of its bond with the deputy director, and the bond remains a part of the department's records. The bond company shall not cancel the bond for failure to pay the premium unless the bond company files a written notice with the department at least thirty days before canceling the bond.  The bond company shall not cancel the bond for any other reason unless the bond company files a written notice with the department at least forty-five days before canceling the bond.

C. The bond may contain a deductible clause not to exceed fifteen percent of the face amount of the bond. If the deductible exceeds fifteen percent of the face amount of the bond, the deductible clause must be approved by the deputy director.
A.R.S. § 6-421 — Arizona Code / Title 6 / Chapter 3 / Article 3 / Section 421
6-421 Access to books and records; communication with members
Status: in_force

6-421. Access to books and records; communication with members

A. Every member or holder of capital shall have the right to inspect such books and records of the association as pertain to the member's or holder's account.  Otherwise, the right of inspection and examination of the books and records shall be limited to the deputy director, as provided in this chapter, and to any federal instrumentality or agency authorized to inspect or examine the books and records of an insured association, and no other person shall have access to the books and records or shall be entitled to a list of the members, except on express authority of the board of directors.

B. If any member desires to communicate with the other members of the association with reference to any question pending or to be presented at a meeting of the members, the association shall give the member, on request, a statement of the approximate number of members entitled to vote at the meeting and an estimate of the cost of preparing and mailing the communication. The requesting member then shall submit the communication to the deputy director who, if the deputy director finds it to be appropriate and truthful, shall direct that it be prepared and mailed to the members, on the requesting member's payment or adequate provision for payment of the expenses of the preparation and mailing.
A.R.S. § 6-273 — Arizona Code / Title 6 / Chapter 2 / Article 6 / Section 273
6-273 Form of reserves; limitations
Status: in_force

6-273. Form of reserves; limitations

Legal reserves shall consist of:

1. Cash.

2. Cash items in the process of collection payable immediately on presentation in the United States.

3. Unpledged obligations of the United States maturing not more than six months after the date the obligation is used for reserve purposes at par.

4. Net deposit balances with each reserve depository in this state, exclusive of deposits not payable on demand unless evidenced by a negotiable certificate of deposit maturing not more than six months from the date the certificate is used for reserve purposes.

5. Net deposit balances with each out-of-state reserve depository, exclusive of deposits not payable on demand unless evidenced by a negotiable certificate of deposit maturing not more than six months after the date the certificate is used for reserve purposes, in an amount either approved by the deputy director in writing or not more than the amount fully insured by the federal deposit insurance corporation or the national credit union administration or any successor agency.
A.R.S. § 6-582 — Arizona Code / Title 6 / Chapter 4 / Article 10 / Section 582
6-582 Use of regular reserve
Status: in_force

6-582. Use of regular reserve

Losses on risk assets, but not operating losses, shall be promptly charged against the regular reserve when those losses occur.  The credit union shall not distribute the regular reserve except on liquidation of the credit union or in accordance with a plan approved by the deputy director.
A.R.S. § 6-846 — Arizona Code / Title 6 / Chapter 7 / Article 4 / Section 846
6-846 Making of escrow rates
Status: in_force

6-846. Making of escrow rates

A. Every escrow agent who is also a title insurer or title insurance agent licensed under title 20 shall make escrow rates that are not excessive or inadequate for the safety and soundness of the escrow agent, that do not unfairly discriminate between risks in this state which involve essentially the same exposure to loss and expense elements and that give due consideration to the following:

1. The desirability for stability of rate structures.

2. The necessity, by encouraging growth in assets of escrow agents in periods of high business activity, of assuring the financial solvency of escrow agents in periods of economic depression.

3. The necessity for paying dividends on the capital stock of escrow agents sufficient to induce capital to be invested in the capital stock.

B. Every escrow agent who is required to make escrow rates under subsection A shall adopt basic classifications of escrow services that will be used as the basis for its escrow rates.

C. Rates for escrow services and title insurance policies that are issued in connection with escrow services shall not be combined.
A.R.S. § 6-201 — Arizona Code / Title 6 / Chapter 2 / Article 2 / Section 201
6-201 Authority to engage in banking business; exception
Status: in_force

6-201. Authority to engage in banking business; exception

A. No person, except a national banking association with its home office in this state or bank authorized to do business in this state pursuant to section 6-217 or section 6-322, subsection A, shall engage in the banking business in this state without a banking permit.

B. For the purposes of this section, a person engaged in the business of receiving money on deposit subject to payment by check or any other form of order or request or on presentation of a certificate of deposit or any other evidence of debt is engaged in the banking business.

C. Nothing in this section shall prohibit a savings and loan association qualified to do business in this state from performing any acts authorized by chapter 3 of this title, a credit union qualified to do business in this state from performing any act authorized by chapter 4 of this title, a licensee or authorized delegate under chapter 12 of this title from performing any act regulated by that chapter or a trust company qualified to do business in this state that maintains savings accounts or time deposits pursuant to section 6-882 from performing any act authorized by chapter 8 of this title.
A.R.S. § 6-977 — Arizona Code / Title 6 / Chapter 9 / Article 3 / Section 977
6-977 Displaying and using license number
Status: in_force

6-977. Displaying and using license number

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

B. A licensee or an employee of the licensee shall not advertise for or solicit commercial mortgage loans 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 unless those items contain rates or terms on which a commercial mortgage loan may be obtained.
A.R.S. § 6-873 — Arizona Code / Title 6 / Chapter 8 / Article 2 / Section 873
6-873 Uniformity of interpretation
Status: in_force

6-873. Uniformity of interpretation

This article shall be so construed as to make uniform the law of those states which enact it.
A.R.S. § 6-460 — Arizona Code / Title 6 / Chapter 3 / Article 6 / Section 460
6-460 Procedure to amend articles of incorporation
Status: in_force

6-460. Procedure to amend articles of incorporation

The procedure to effect an amendment of articles of incorporation shall be as follows:

1. The board of directors shall adopt a resolution setting forth the proposed amendment and directing that it be submitted to a vote at a meeting of the members, which may be an annual or a special meeting.

2. The proposed amendment, or a summary of the changes to be effected thereby, shall be set forth in the notice of meeting as prescribed in section 6-415.

3. The proposed amendment will be adopted on receiving, in the affirmative, a majority or more of the total number of votes that all members of the association are entitled to cast, except that an amendment effecting a retirement of all shares of guaranty capital must receive the vote specified in section 6-428. A report of proceedings, verified by the president or a vice president and attested by the secretary and setting forth the notice given, the amendment adopted, the vote thereon, and the total number of votes that all members of the association were entitled to cast thereon, shall be filed promptly with the deputy director.

4. Each adopted amendment shall be subject to the same inquiry by the deputy director as the corresponding provision in the original articles of incorporation, including the availability of a proposed new name of the association. If the deputy director approves an amendment, the deputy director shall issue to the association a certificate setting forth the amendment and the deputy director's approval thereof, which shall then be filed with the corporation commission and a certified copy thereof recorded in the office of the county recorder of the county where the principal office of the association is located. When so filed and recorded the amendment shall become effective.

5. No amendment of articles of incorporation shall affect any existing cause of action either in favor of or against the association, or any pending action in which the association shall be a party, or the existing rights of persons other than members of the association. If the amendment has changed the name of the association, no action brought by or against the association under its former name shall be abated for that reason.
A.R.S. § 6-395.02 — Arizona Code / Title 6 / Chapter 2 / Article 13 / Section 395.02
6-395.02 Federal deposit insurance corporation as receiver
Status: in_force

6-395.02. Federal deposit insurance corporation as receiver

If the court grants the application for receivership of a bank it shall first tender the appointment as receiver to the federal deposit insurance corporation, which is authorized to qualify and act without bond.  If the corporation accepts the appointment it shall have all of the powers, privileges and duties as such receiver provided by the laws of this state except insofar as such powers, privileges and duties are in conflict with the provisions of the federal deposit insurance act as amended, which act shall control. If the corporation does not accept the appointment, the deputy director shall be appointed receiver.
A.R.S. § 6-1310 — Arizona Code / Title 6 / Chapter 13 / Article 1 / Section 1310
6-1310 Noncompliance not to affect validity of loan
Status: in_force

6-1310. Noncompliance not to affect validity of loan

Failure to comply with the provisions of this chapter does not affect the validity or enforceability of any loan or extension of credit.
A.R.S. § 6-151 — Arizona Code / Title 6 / Chapter 1 / Article 4 / Section 151
6-151 Injunctions
Status: in_force

6-151. Injunctions

If it appears to the deputy director that any person has committed or is about to commit a violation of any provision of this article or of any rule or order of the deputy director, the deputy director may apply to the superior court for an order enjoining such person from violating or continuing to violate this article or any regulation or order and for injunctive or other relief as the nature of the case or the interests of the bank, trust company or savings and loan association, the depositors, beneficiaries, creditors or shareholders of such bank, trust company or savings and loan association may require.
A.R.S. § 6-812 — Arizona Code / Title 6 / Chapter 7 / Article 2 / Section 812
6-812 Foreign corporations
Status: in_force

6-812. Foreign corporations

No foreign corporation without a valid grant of authority to do business under title 10, chapter 15, article 1 shall transact any escrow business in this state.
A.R.S. § 6-395.08 — Arizona Code / Title 6 / Chapter 2 / Article 13 / Section 395.08
6-395.08 Rejection of contracts and leases on liquidation
Status: reserved

6-395.08. Rejection of contracts and leases on liquidation

The receiver may at his election reject any executory contract to which the bank is a party or any obligation of the bank as a lessee of real or personal property. The claim of a lessor for damages for injury resulting from the rejection of an unexpired lease of real property or for damages or indemnity under a covenant in such lease shall in no event be allowed in any amount exceeding the rent reserved by the lease, without acceleration, for six months after the date of surrender or reentry, plus the amount of the unpaid rent accrued to such date.
A.R.S. § 6-469 — Arizona Code / Title 6 / Chapter 3 / Article 7 / Section 469
6-469 Election of liquidators; report; supervision
Status: in_force

6-469. Election of liquidators; report; supervision

A. On adoption of a plan of voluntary liquidation, the members shall proceed to elect, with cumulative voting allowed as in elections of directors, not more than three liquidators, who shall have full power to execute the plan. The procedure thereafter shall be as follows:

1. A report of proceedings at the meeting of members, certified by the presiding officer of the meeting and attested by the secretary of the meeting, and setting forth the notice given and time of mailing thereof, the vote on the plan of voluntary liquidation, the total number of votes that all members of the association were entitled to cast thereon, and the names of the liquidators elected, shall be filed in triplicate with the deputy director, together with the plan.

2. If the deputy director finds that the plan and proceedings are in accordance with this article, that the bonds of the liquidators are sufficient, and that the plan is not unfair to any person affected, the deputy director shall attach the deputy director's certificate of approval to the plan and shall forward one copy to the liquidators, and in the case of an insured association, one copy to the insurance corporation.

3. The expenses of any examination made by or at the direction of the deputy director in connection with any voluntary dissolution shall be paid as a claim by the liquidators in accordance with the fees fixed for special examinations by section 6-125.

4. The plan shall become effective on filing with the corporation commission of the deputy director's certificate of approval.

B. The liquidation of the association shall be subject to the supervision and examination of the deputy director.
A.R.S. § 6-991.07 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991.07
6-991.07 Examination; fee; definition
Status: in_force

6-991.07. Examination; fee; definition

A. Each applicant for an original loan originator license, before issuance of the license, shall take and pass an examination that is developed or otherwise deemed acceptable by the nationwide mortgage licensing system and registry established by the secure and fair enforcement for mortgage licensing act of 2008 (P.L. 110-289; 122 Stat. 2810; 12 United States Code sections 5101 through 5116) or its successor and that is given under the supervision of the department or its designee. The examination must reasonably examine the applicant's knowledge of all of the following:

1. The obligations between principal and agent.

2. The applicable canons of business ethics.

3. The arithmetical computations common to mortgage brokerage.

4. The principles of real estate lending.

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

6. The terms and conditions of conforming and nonconforming residential mortgage products.

B. The examination is subject to the deputy director's approval.

C. An applicant may take the examination three consecutive times with each consecutive taking occurring at least thirty days after the preceding examination. An applicant who fails the examination on three consecutive occasions must wait at least six months before taking the examination again.

D. All examinations shall be given, conducted and graded in a fair and impartial manner and without unfair discrimination between individuals examined.  The department's designee shall inform the applicant of the result of the examination within thirty days after the examination.

E. The deputy director shall set the fee for each examination that is consistent with the requirements established by the nationwide mortgage licensing system and registry established by the secure and fair enforcement for mortgage licensing act of 2008 (P.L. 110-289; 122 Stat. 2810; 12 United States Code sections 5101 through 5116) or its successor. The deputy director may contract for the examination for the licensing of applicants. If the deputy director contracts for the examination, the fee for examination for licenses pursuant to this section is payable directly to the contractor by the applicant for examination.

F. For the purposes of this section, "applicant" means a person who has submitted a completed application in the form prescribed by the deputy director.
A.R.S. § 6-576 — Arizona Code / Title 6 / Chapter 4 / Article 9 / Section 576
6-576 Investment authority
Status: in_force

6-576. Investment authority

A. The board of directors has charge of the investment of credit union monies, except that the board may designate an investment committee or investment officer to make investments on its behalf, under written policies established by the board.

B. The board of directors shall designate a depository or depositories for the monies of the credit union.
A.R.S. § 6-542 — Arizona Code / Title 6 / Chapter 4 / Article 5 / Section 542
6-542 Suspension and removal of officials
Status: in_force

6-542. Suspension and removal of officials

Unless the bylaws provide otherwise, a director, officer or member of a committee may be removed as follows:

1. Either the supervisory committee or the board may suspend for cause by a majority vote of their entire membership any director, officer or member of a committee and shall immediately notify such person in writing of the suspension and the reasons for the suspension.

2. A suspended director, officer or committee member may request a special meeting of the members to consider that suspension within ten days after the date the director, officer or committee member was notified of the suspension. The board shall call a special meeting for that purpose not fewer than seven days or more than thirty days after receiving the request for a meeting, and that suspension shall be upheld or overturned by a majority of the members present. The suspended person is entitled to appear and be heard at the special meeting.

3. In the absence of a request for a hearing within ten days after the date the director, officer or committee member was notified of the suspension, the suspension is deemed a removal from office. If a hearing is requested, approval of the suspension by the membership constitutes removal from office.

4. Notwithstanding any other provision of this section, the members of a credit union may suspend or remove any director or committee member at any annual or special meeting of the members.
A.R.S. § 6-556 — Arizona Code / Title 6 / Chapter 4 / Article 6 / Section 556
6-556 Multiple party accounts
Status: in_force

6-556. Multiple party accounts

A. A credit union may enter into multiple party accounts, which are subject to title 14, chapter 6. A multiple party owner, unless the multiple party owner is a member of the credit union in the owner's own right, may not vote at member meetings, obtain loans from the credit union or hold office in the credit union and is not required to pay a membership fee.

B. Payment of part or all of a multiple party account to any of the multiple party owners shall discharge, to the extent of the payment, the liability of the credit union to all such parties unless the account agreement contains a prohibition or limitation on the payment.

C. A member may designate any person to own a share or deposit account with the member under any form of joint ownership allowed by law.

D. A member may own a share or deposit account in trust for a beneficiary, or a nonmember may own a share or deposit account in trust for a beneficiary who is a member. A beneficiary may be a minor.

E. A member may designate any person or persons as payees on a payable-on-death account.
A.R.S. § 6-506 — Arizona Code / Title 6 / Chapter 4 / Article 2 / Section 506
6-506 Organization procedure
Status: in_force

6-506. Organization procedure

A. Any seven or more residents of this state who are of legal age and who have a common bond of interest or association may apply to the deputy director for permission to organize a credit union under this chapter.

B. The incorporators shall prepare, adopt and execute a certificate of organization and shall agree to comply with the requirements of the certificate and with all of the laws and rules applicable to credit unions. The certificate shall state:

1. The credit union's name and the location of the proposed principal place of business.

2. That the existence of the credit union is perpetual.

3. The names and addresses of the incorporators and the number of shares subscribed to by each.

4. The purpose for which the credit union is formed.

C. The incorporators shall prepare, adopt and execute bylaws consistent with this chapter for the general governance of the credit union.  The bylaws, among other things, shall provide:

1. The proposed field of membership that shall consist of one or more groups having a common bond of interest, occupation or association or to groups within a well-defined neighborhood, community or rural district consistent with the purposes of the credit union.

2. The par value of shares.

3. The number of directors of the credit union, which shall not be fewer than five, all of whom shall be members, together with the titles of the officers and the number of members of the supervisory committee, which shall not be fewer than three.

4. The conditions under which shares may be issued, transferred or withdrawn, loans may be made and repaid and monies may be otherwise invested.

5. The number of members of the credit committee, which shall not be fewer than three, or the authorization of a credit manager.

D. The incorporators shall select at least five persons who are eligible for membership and who agree to become members and serve on the board of directors, and at least three persons who are eligible for membership and who agree to become members and serve on the supervisory committee.  The persons selected to serve on the board of directors and the supervisory committee shall execute an agreement to serve in those capacities until the first annual meeting or until the election of their respective successors, whichever is later.

E. The incorporators shall forward to the deputy director such application as is required by the deputy director, along with the application fee provided for in section 6-126, the certificate of organization, the bylaws and the agreements to serve and any additional information that the deputy director may request.

F. The incorporators shall not transact any business in the name of the credit union until the certificate of incorporation has been issued by the corporation commission and the application and the bylaws have been approved by the deputy director.
A.R.S. § 6-837 — Arizona Code / Title 6 / Chapter 7 / Article 3 / Section 837
6-837 Duty of escrow agent to produce escrow records for inspection; violation; classification
Status: in_force

6-837. Duty of escrow agent to produce escrow records for inspection; violation; classification

A. Any escrow agent shall produce for inspection any escrow records concerning the assets, existence, condition, management and administration and the names of the parties, including any or all beneficiaries, of any escrow of which the person is the escrow agent to any peace officer or local, state or federal law enforcement agency, provided such person requesting information signs and submits a sworn statement to the escrow agent that the request is made in the lawful performance of such person's duties. The peace officer or local, state or federal law enforcement agency shall be prohibited from using or releasing said information except in the proper performance of the person's duties.

B. Any escrow agent shall produce for inspection required by law any escrow records of any escrow of which he or she is the escrow agent to the deputy director or to any state or federal administrative agency lawfully requiring such disclosure. The deputy director or any state or federal administrative agency shall be prohibited from using or releasing said information except in the proper performance of the deputy director's or agency's duties.

C. Any person who knowingly fails to produce records pursuant to this section or who obtains information under subsection A or B of this section and is prohibited from releasing such information but does release such information is guilty of a class 2 misdemeanor.
A.R.S. § 6-354 — Arizona Code / Title 6 / Chapter 2 / Article 9 / Section 354
6-354 Loans on capital stock or capital obligations of a bank
Status: in_force

6-354. Loans on capital stock or capital obligations of a bank

No bank shall take or hold its capital stock or its capital obligations as security for an obligation to the bank unless such security is necessary to prevent loss on an obligation previously contracted.
A.R.S. § 6-412 — Arizona Code / Title 6 / Chapter 3 / Article 2 / Section 412
6-412 Completion of organization
Status: in_force

6-412. Completion of organization

A. If the board of directors has organized as provided in this chapter and the report of such organization has been filed with the deputy director, the deputy director shall make a thorough examination into the affairs of the proposed association, and if the deputy director approves the articles of incorporation and is satisfied that all the requirements of this chapter have been complied with, and that no intervening circumstance has occurred to change the deputy director's findings made pursuant to this chapter, on payment into the deputy director's office of the fees for such examination, the deputy director shall issue a certificate authorizing the filing of the articles of incorporation with the corporation commission and the taking of the other steps required by title 10, to complete the formation of a corporation.  On the appointment of a statutory agent and the issuance of a certificate of incorporation by the corporation commission and the payment into escrow with a responsible corporate escrow agent approved by the deputy director of the amount of the initial capital required by this chapter, the deputy director shall issue a permit conditioned on the association securing within twelve months after the date of the permit insurance of its insurable accounts by an insurance corporation and the rules and regulations of the corporation.

B. Unless such insurance is secured within the period the permit shall be deemed revoked unless the deputy director, on good cause shown, shall extend the time for securing such insurance for a single fixed period that shall not exceed six months. The association shall not operate as a savings and loan association under the laws of this state or transact any other business than that necessary to secure such insurance until it has secured such insurance. If such insurance is not secured within the time provided by this chapter or as extended by the deputy director, all amounts collected as subscriptions to the required capital shall be returned to the subscribers without reduction.
A.R.S. § 6-482 — Arizona Code / Title 6 / Chapter 3 / Article 8 / Section 482
6-482 Receiver; appointment; transfer of assets; powers; liability
Status: in_force

6-482. Receiver; appointment; transfer of assets; powers; liability

A. If the court grants a petition for receivership filed by the deputy director, the deputy director shall be appointed as receiver and may forthwith take possession of the property and business of the association and retain possession until the association resumes business or its affairs are finally liquidated, but if the association has the insurance protection provided by title IV of the national housing act, as now or hereinafter amended, the court may tender to the federal deposit insurance corporation the appointment as receiver, or as co-receiver with the deputy director.

B. On the acceptance by the insurance corporation of the appointment as receiver or co-receiver, possession of and title to all the assets, property and business of the insured association shall automatically pass to and be vested in the insurance corporation as receiver, or in the insurance corporation and the deputy director jointly as co-receivers, as the case may be.  The insurance corporation, if it is receiver, or the insurance corporation and the deputy director equally and jointly, if the insurance corporation is co-receiver, shall have and possess, and may exercise:

1. All the powers and privileges provided by the laws of this state or otherwise with respect to the deputy director as receiver of a savings and loan association.

2. Accumulatively and additionally to each of the foregoing, all of the rights, powers, privileges and authority that were held or possessed by the association and its officers, directors, members and creditors.

3. All the rights, privileges, powers and authority conferred on or vested in it, or intended so to be, by federal statutes.

C. The receiver or receivers may also make loans on the security of, or may purchase at public or private sale or otherwise, bid at any receiver's or liquidator's sale, and liquidate or sell, all or any part of the assets of the insured association, and, in the event of the purchase of any assets of an association of which it is receiver or co-receiver, it shall bid for and pay a fair and reasonable price.

D. Except as otherwise in writing specifically agreed by the receiver or receivers, no transaction, contract, undertaking or agreement, and no exercise by the receiver or receivers, or either of them, of any of the rights, powers, privileges or authority by this article or otherwise vested in them as receivers, or with respect to any receivership or liquidation, shall constitute a personal debt, obligation or liability of or on the part of the receiver or receivers or either of them.
A.R.S. § 6-433 — Arizona Code / Title 6 / Chapter 3 / Article 4 / Section 433
6-433 Payment on disability or death of holder in his own right of account
Status: in_force

6-433. Payment on disability or death of holder in his own right of account

A. If the holder in his own right of an account becomes a person with a disability and a conservator has been appointed, by a court of competent jurisdiction, and has qualified then the association may pay the value of such account and dividends thereon to the conservator. Until the association has actual knowledge that a conservator has been appointed, it may pay to the protected person personally and his receipt or acquittance therefor shall be a complete discharge of the association as to the amount so paid.

B. Upon the death of a holder in his own right of an account, the association, upon receipt of proper estate tax waivers, may pay the value thereof and dividends thereon:

1. To the personal representative of such deceased holder, if and when qualified, in the manner provided in this chapter for the voluntary withdrawal of account generally.

2. To the successor of such deceased holder upon presentation of an affidavit pursuant to section 14-3971.
A.R.S. § 6-991.01 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991.01
6-991.01 Exemptions
Status: in_force

6-991.01. Exemptions

This article does not apply to:

1. Registered loan originators.

2. An individual who offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as the individual's residence.

3. A person who is a responsible individual as described in section 6-903, 6-943 or 6-973 and who does not act as a loan originator pursuant to article 1, 2 or 3 of this chapter.

4. An employee of a commercial mortgage banker licensed pursuant to article 3 of this chapter.

5. An employee of a person licensed pursuant to this chapter if the licensee affirms in writing to the deputy director that the licensee will not originate or negotiate a mortgage loan that has security in the form of a residential dwelling of one to four units.

6. A person who, as seller of real property, receives one or more mortgages or deeds of trust as security for a purchase money obligation.

7. A licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client, unless the attorney is compensated by a lender, a mortgage broker or any other loan originator or by any agent of the lender, mortgage broker or other loan originator.

8. An individual who offers to negotiate terms of a residential mortgage loan with or on behalf of the individual's immediate family member and who does not otherwise engage in the business of a loan originator.

9. A manufactured home retailer and its employees if performing only clerical or support duties in connection with the sale or lease of a manufactured home and the manufactured home retailer and its employees receive no compensation or other gain from a mortgage banker or a mortgage broker for the performance of the clerical or support duties.

10. An individual who is employed by a residential mortgage loan servicer if the individual is involved solely in loss mitigation efforts, unless the United States department of housing and urban development determines that the secure and fair enforcement for mortgage licensing act of 2008 (P.L. 110-289; 122 Stat. 2810; 12 United States Code sections 5101 through 5116) requires the individual to be licensed as a mortgage loan originator.  For the purposes of this paragraph, "loss mitigation efforts" means a residential mortgage loan borrower is in default or default is reasonably foreseeable and an individual works with the borrower on behalf of the residential mortgage loan servicer to modify either temporarily or permanently the obligation or to otherwise mitigate loss on an existing residential mortgage loan.

11. An employee or the person who is the responsible individual of a financial institution who is licensed pursuant to article 1, 2 or 3 of this chapter if the responsible individual certifies in writing to the deputy director that the employee or the responsible individual, or both the employee and the responsible individual, will only originate commercial mortgage loans as defined in section 6-901.
A.R.S. § 6-1227 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1227
6-1227 Net worth requirements; exemption
Status: in_force

6-1227. Net worth requirements; exemption

A. A licensee shall maintain at all times a tangible net worth as follows:

1. The greater of $100,000 or three percent of total assets for the first $100,000,000.

2. Two percent of additional assets for $100,000,000 to $1,000,000,000.

3. One-half percent of additional assets for over $1,000,000,000.

B. Tangible net worth must be demonstrated at initial application by the applicant's most recent audited or unaudited financial statements pursuant to section 6-1209, subsection B, paragraph 6.

C. The director may exempt, in part or in whole, an applicant or licensee from this section.
A.R.S. § 6-991.02 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991.02
6-991.02 Prohibited acts
Status: in_force

6-991.02. Prohibited acts

A. A loan originator acting on the loan originator's own behalf shall not accept any monies or documents in connection with an application for a mortgage loan.

B. An individual is not entitled to receive compensation in connection with arranging for or negotiating a mortgage loan if the individual is not licensed pursuant to this chapter.  An individual who is not specifically exempted from licensure pursuant to this article shall not engage in the business of a loan originator with respect to any dwelling in this state without first obtaining and maintaining annually a license pursuant to this article. Each licensed loan originator must register with and maintain a valid unique identifier issued by the nationwide mortgage licensing system and registry established by the secure and fair enforcement for mortgage licensing act of 2008 (P.L. 110-289; 122 Stat. 2810; 12 United States Code sections 5101 through 5116) or its successor.

C. A loan originator acting on the loan originator's own behalf shall not advertise, display, distribute, broadcast or televise, or cause or allow to be advertised, displayed, distributed, broadcast or televised, in any manner, any solicitation of mortgage business.

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

1. Less than the minimum amount that the loan originator's employer is allowed to make.

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

E. A loan originator who is employed by a mortgage broker or mortgage banker to act in the capacity of the mortgage broker or mortgage banker shall not be employed concurrently by any other mortgage broker or mortgage banker.

F. A loan originator shall not collect compensation for rendering services as a real estate broker or real estate salesperson licensed pursuant to title 32, chapter 20 unless both of the following apply:

1. The loan originator is licensed pursuant to title 32, chapter 20.

2. The employing mortgage broker or mortgage banker has disclosed to the person from whom the compensation is collected at the time a mortgage loan application is received that the loan originator is receiving compensation both for mortgage broker or mortgage banker services, if applicable, and for real estate broker or real estate salesperson services.

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

H. A loan originator shall not receive or disburse monies in servicing or arranging a mortgage loan.

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

J. A loan originator 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 the employing mortgage broker or mortgage banker agreements.

K. A loan originator shall not engage in illegal or improper business practices.

L. A loan originator 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.

M. A loan originator shall not originate a mortgage loan unless employed by a mortgage broker, mortgage banker or consumer lender or under an exclusive contract with an exempt person who is registered pursuant to section 6-912.

N. A loan originator shall not advertise for or solicit mortgage business in any manner without all of the following:

1. The employer's name, or other assumed name or trade name that is submitted to the department pursuant to section 6-117, and the employer's license number.

2. Approval of the employing mortgage broker, mortgage banker, consumer lender or registered exempt person.

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

O. On request, a loan originator shall make available to the deputy director the books and records relating to the loan originator's operations. The deputy director may have access to the books and records and interview the officers, principals, employees, independent contractors, agents and customers of the loan originator concerning their business. In connection with a request pursuant to this subsection, a person may not knowingly withhold, abstract, remove, mutilate, destroy or secrete any books, records or other information.

P. A loan processor or underwriter who is an independent contractor may not engage in the activities of a loan processor or underwriter unless the loan processor or underwriter obtains and maintains a license pursuant to section 6-991.03. Each independent contractor loan processor or underwriter licensed as a loan originator must have and maintain a valid unique identifier.

Q. An individual engaging solely in loan processor or underwriter activities shall not represent to the public through advertising or other means of communicating that the individual can or will perform any of the activities of a loan originator.
A.R.S. § 6-116 — Arizona Code / Title 6 / Chapter 1 / Article 2 / Section 116
6-116 Sale of securities; disclosure
Status: in_force

6-116. Sale of securities; disclosure

A. A financial institution doing business in this state or any other person shall not sell or offer to sell equity securities or debt instruments to the public in a financial institution's retail office where deposits are accepted without the prior written approval of the deputy director.

B. A financial institution or any other person that receives written approval as prescribed by subsection A of this section and that sells or offers to sell equity securities or debt instruments of the financial institution or the holding company of a financial institution shall disclose to the purchaser prior to any sale that the equity security or debt instrument is not a federally insured deposit and shall provide to the purchaser a disclosure form that is approved by the deputy director. The deputy director may by rule prescribe requirements for the disclosure form.

C. A financial institution's or a holding company of the financial institution's application for approval of the disclosure form required by subsection B of this section shall include information describing the policies and procedures that the financial institution or any other person authorized to offer or sell the securities has adopted to ensure that it is marketing the securities with appropriate disclosures regarding the nature of the investment.
A.R.S. § 6-592 — Arizona Code / Title 6 / Chapter 4 / Article 13 / Section 592
6-592 Purposes; membership
Status: in_force

6-592. Purposes; membership

A. The purposes of a corporate credit union are to:

1. Accumulate and prudently manage the liquidity of its member credit unions through inter-lending and investment services.

2. Act as an intermediary for credit union monies between members and other corporate credit unions.

3. Obtain liquid monies from other credit union organizations, financial intermediaries and other sources.

4. Foster and promote in cooperation with other corporate credit unions and credit union organizations or associations the economic security, growth and development of member credit unions.

5. Provide payment systems and correspondent services to its members.

6. Perform other services and provide other benefits for its members as required.

B. Membership in the corporate credit union consists of and is limited to credit unions incorporated under this chapter, the federal credit union act or any other credit union law, organizations or associations owned by or composed of credit unions and corporations or associations which primarily serve credit unions.
A.R.S. § 6-395.11 — Arizona Code / Title 6 / Chapter 2 / Article 13 / Section 395.11
6-395.11 Priority of claims; interest
Status: in_force

6-395.11. Priority of claims; interest

A. Claims allowed in a proceeding under this article shall be paid in the following order:

1. Costs and expenses of the administration of the receivership and liquidation.

2. Taxes due to this state.

3. Claims with priority under the laws of this state and under federal law.

4. Claims of creditors that are fully secured including contract claims for interest to the date of payment.

5. Claims of depositors.

6. Claims of general creditors.

7. Claims on obligations that are subordinated to the claims of general creditors.

B. Claims that are approved shall bear interest calculated as provided by law or by judgment from the date that the court grants the  deputy director's application for the appointment of a receiver for that bank to the extent that monies are available to pay that interest. If monies are not available to pay interest, the interest shall be prorated. Interest owed shall receive the same priority as the claim on which it accrues, but interest on a claim shall not be paid until all claims within that same class have received payment of the full principal amount of the claim.

C. Any monies remaining after the payment of claims as provided in this section shall be returned to the stockholders of the bank as prescribed by this article.
A.R.S. § 6-260 — Arizona Code / Title 6 / Chapter 2 / Article 5.1 / Section 260
6-260 Injunction or similar relief
Status: in_force

6-260. Injunction or similar relief

A court may enjoin, or grant similar relief that would have the effect of enjoining, a bank from paying a depositor or beneficiary only if payment would constitute a material fraud or facilitate a material fraud with respect to a special deposit.
A.R.S. § 6-1419 — Arizona Code / Title 6 / Chapter 14 / Article 1 / Section 1419
6-1419 Rules
Status: in_force

6-1419. Rules

The deputy director may adopt rules necessary for the proper conduct of a premium finance company.
A.R.S. § 6-705 — Arizona Code / Title 6 / Chapter 6 / Article 1 / Section 705
6-705 Branch offices and agencies
Status: in_force

6-705. Branch offices and agencies

A licensee may establish branch offices or agencies only if it expressly assumes responsibility for the acts of any person accepting money in its name or on its behalf at such places of business. An application for a branch office or agency license shall be in writing, under oath, in a form prescribed by the deputy director, and shall contain the name and address of the principal place of business of the licensee and a statement that it is a branch office.
A.R.S. § 6-1231 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1231
6-1231 License suspension and revocation
Status: in_force

6-1231. License suspension and revocation

A. The director may suspend or revoke a license if:

1. The licensee violates this article.

2. The licensee does not cooperate with an examination or investigation by the director.

3. The licensee engages in fraud, intentional misrepresentation or gross negligence.

4. An authorized delegate is convicted of a violation of a state or federal anti-money laundering statute or violates this article as a result of the licensee's wilful misconduct.

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

6. The licensee engages in an unsafe or unsound practice.

7. The licensee is insolvent, suspends payment of its obligations or makes a general assignment for the benefit of its creditors.

8. The licensee does not remove an authorized delegate after the director issues and serves on the licensee a final order that includes a finding that the authorized delegate has violated this article.

9. The licensee has made a material misstatement or suppressed or withheld information on an application for a license or any document required to be filed with the director.

B. In determining whether a licensee is engaging in an unsafe or unsound practice, the director may consider the size and condition of the licensee's money transmission, the magnitude of the loss, the gravity of the violation of this article and the previous conduct of the licensee.

C. A licensee may appeal any suspension or revocation pursuant to title 41, chapter 6, article 10.
A.R.S. § 6-328 — Arizona Code / Title 6 / Chapter 2 / Article 7 / Section 328
6-328 Deposit concentration limits
Status: in_force

6-328. Deposit concentration limits

A. Neither an out-of-state financial institution nor an in-state financial institution shall acquire another out-of-state financial institution or in-state financial institution if either of the following conditions exist:

1. The resulting out-of-state financial institution, in-state financial institution or affiliation would control thirty percent or more of the bank deposits held in this state.

2. One of the out-of-state financial institutions or in-state financial institutions in the acquisition already controls thirty percent or more of the bank deposits held in this state.

B. Subsection A of this section does not apply to any interstate acquisition involving only already affiliated entities.

C. The deputy director, by order and on findings of fact and conclusions of law, may waive the deposit concentration limit prescribed by subsection A of this section. In determining whether to waive the deposit concentration limit, the deputy director shall not discriminate against out-of-state financial institutions and shall not grant a waiver unless the deputy director finds that the waiver will promote any of the following:

1. The availability of financial services.

2. The marketability of in-state financial institutions.

3. Another public interest.
A.R.S. § 6-816 — Arizona Code / Title 6 / Chapter 7 / Article 2 / Section 816
6-816 Fees
Status: in_force

6-816. Fees

A. Each application for a new license or a renewal license shall be accompanied by the fee prescribed in section 6-126.

B. For each day a report required by section 6-832 is not received by the department, a licensee shall pay a fee of $25.  The deputy director may excuse the fee for good cause if the cause is presented before the due date of the report.
A.R.S. § 6-442 — Arizona Code / Title 6 / Chapter 3 / Article 4 / Section 442
6-442 Dividends and interest
Status: in_force

6-442. Dividends and interest

A. Subject to the restrictions set forth in this section and the association's bylaws, an association from time to time may determine the term, rate and amount of interest to be paid on accounts, and for that purpose may establish reasonable classifications of accounts, based on any of the following:

1. The types or classes of such accounts.

2. The length of time accounts are continued in effect.

3. The size of initial payments on accounts.

4. The minimum balances of accounts during apportionment periods.

5. The frequency and extent of the activity of accounts.

6. Such other classifications as the deputy director may approve, and the deputy director is authorized to prepare model plans of classifications for adoption by associations.

B. An association shall determine the method of calculating the amount of interest on accounts, and the date on which the interest is to be declared or credited, but a payment or credit shall not be made more than ten days before the end of any apportionment period, except on a matured bonus plan account or as approved by rules of the deputy director.

C. Dividends may be declared and paid on shares of guaranty capital as allowed from time to time by the laws governing corporations organized in this state, except that dividends payable other than in the association's own stock may be paid out as a distribution, as defined in section 10-140, only with the approval of the deputy director or as approved by rules of the deputy director.
A.R.S. § 6-539 — Arizona Code / Title 6 / Chapter 4 / Article 5 / Section 539
6-539 Credit manager
Status: in_force

6-539. Credit manager

If the bylaws so provide, the board may elect a credit manager to serve in place of a credit committee. The credit manager may approve or disapprove loans subject to the written policies prescribed by the board of directors. The president may serve as the credit manager.
A.R.S. § 6-1309 — Arizona Code / Title 6 / Chapter 13 / Article 1 / Section 1309
6-1309 Prohibited acts
Status: in_force

6-1309. Prohibited acts

A. An advance fee loan broker shall not advertise, display, distribute, broadcast or televise or cause or permit to be advertised, displayed, distributed, broadcast or televised any false, misleading or deceptive statement or representation with regard to the rates, terms or conditions for loans or the likelihood of the loan or extension of credit being granted.

B. An advance fee loan broker shall not take any note, promise to pay or instrument of security that does not disclose the amount of the loan, a schedule of payment or description of the payment schedule and the agreed rate of charge or any instruments in which blanks are left to be filled in after the loan is made.

C. An advance fee loan broker shall not make a false promise or misrepresentation or conceal an essential or material fact in the course of the advance fee loan broker business.

D. An advance fee loan broker shall not engage in illegal business practices.

E. An advance fee loan broker may not pay any fees, commissions or bonuses or a gift of anything of value to any merchant, dealer, borrower, or other person for the purpose of attracting applications for loans or as consideration for referring loan business.

F. A person is not entitled to receive any advance fees in connection with arranging for or negotiating a loan if such person is not registered pursuant to this chapter or is exempt under section 6-1302.
A.R.S. § 6-872 — Arizona Code / Title 6 / Chapter 8 / Article 2 / Section 872
6-872 Court accountings
Status: in_force

6-872. Court accountings

A. Unless ordered by a court of competent jurisdiction, a bank, savings and loan association or trust company operating a common trust fund pursuant to section 6-871 is not required to render a court accounting with regard to such funds. It may, by application to the superior court, secure approval of such an accounting on conditions as the court may establish.

B. When an accounting of a common trust fund is presented to a court for approval, the court shall assign a time and place for hearing and order notice thereof by:

1. Publication once a week for three weeks, the first publication to be not less than twenty days prior to the date of hearing, of a notice in a newspaper having a circulation in the county in which the home office of the bank, savings and loan association or trust company operating the common trust fund is located.

2. Mailing not less than fourteen days prior to the date of the hearing a copy of the notice to all beneficiaries of the trusts participating in the common trust fund whose names are known to the bank, savings and loan association or trust company from the records kept by it in the regular course of business in the administration of such trusts, directed to them at the addresses shown by the records.

3. Such further notice, if any, as the court may order.
A.R.S. § 6-145 — Arizona Code / Title 6 / Chapter 1 / Article 4 / Section 145
6-145 Application for approval
Status: in_force

6-145. Application for approval

A. An application for approval of the deputy director shall be in writing in such form as the deputy director may prescribe and shall be accompanied by such information, data and records as the deputy director may require. For such purpose the deputy director shall adopt rules prescribing the form and the information, data or records that may be required.

B. On receipt of any initial application for approval or any amendment or supplement to the application, the deputy director shall cause copies of the application, amendment or supplement to be given to the bank, trust company or savings and loan association concerned within three business days.
A.R.S. § 6-405 — Arizona Code / Title 6 / Chapter 3 / Article 1 / Section 405
6-405 Power to borrow
Status: in_force

6-405. Power to borrow

A. No insured institution shall borrow an aggregate amount exceeding one-half the amount paid in and credited on accounts, except that with prior approval of the deputy director, any such association may borrow without limitation on such terms and conditions as may be required by the lender. No action of an insured institution in obtaining funds through borrowing, in accordance with this section, shall be deemed a violation hereof if its aggregate borrowings exceed the limitation of this section because of a subsequent reduction in the amounts paid in and credited on accounts.

B. A debt incurred by the association in violation of this section is not invalid or illegal as to the rights of the lender.
A.R.S. § 6-205 — Arizona Code / Title 6 / Chapter 2 / Article 2 / Section 205
6-205 Term of permit; surrender; revocation
Status: in_force

6-205. Term of permit; surrender; revocation

A. A banking permit shall be valid until surrendered to the deputy director or revoked by the deputy director.

B. A banking permit may not be surrendered to the deputy director until such time as the deputy director finds that all of the deposit liabilities of the bank have been satisfied in full or assumed by another bank.

C. A banking permit expires automatically when a bank is placed in receivership.
A.R.S. § 6-150 — Arizona Code / Title 6 / Chapter 1 / Article 4 / Section 150
6-150 Appointment of deputy director as agent for service of process; forwarding of process; consent to jurisdiction
Status: in_force

6-150. Appointment of deputy director as agent for service of process; forwarding of process; consent to jurisdiction

Any person who is not a resident of this state, domiciled in this state or authorized to do business in this state and who files an application is deemed to have:

1. Consented to the jurisdiction of the courts of this state for all actions arising under the provisions of this article.

2. Appointed the deputy director as the person's lawful agent for the purpose of accepting service of process in any action, suit or proceeding that may arise under this article. Copies of all such lawful process accepted by the deputy director as an agent shall be transmitted by the deputy director by registered mail to the person's last known address.
A.R.S. § 6-457 — Arizona Code / Title 6 / Chapter 3 / Article 5 / Section 457
6-457 Appraisals
Status: in_force

6-457. Appraisals

Every appraisal or reappraisal of property that an association is required to make shall be made as follows:

1. In accordance with the deputy director's rules and regulations on appraisals. Each appraisal shall be filed and preserved by the association during the life of the loan.

2. In the case of an insured or guaranteed loan, by any appraiser appointed by any lending, insuring or guaranteeing agency of the United States or of this state that shall insure or guarantee such loan, wholly or in part. A copy of any appraisal or of the commitment or certificate of the insuring or guaranteeing agency shall be filed and preserved by the association during the life of the loan.

3. The deputy director, when good cause exists, may cause an independent appraisal to be made of any property on which a loan has been made. The reasonable travel and subsistence expenses and compensation to such appraisers not in excess of comparable fees paid for the same or similar appraisals in the same area shall be paid by the association owning or holding such property as mortgagee.
A.R.S. § 6-1205 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1205
6-1205 Multistate supervision
Status: in_force

6-1205. Multistate supervision

A. The director may participate in multistate supervisory processes established between states for all licensees that hold licenses in this state and other states.  As a participant in multistate supervision, the director shall:

1. Cooperate, coordinate and share information with other state and federal regulators in accordance with this title.

2. Enter into written cooperation, coordination or information-sharing contracts or agreements with organizations that have state or federal governmental agencies as members.

3. Cooperate, coordinate and share information with organizations that have state or federal governmental agencies as members if the organizations agree in writing to maintain the confidentiality and security of the shared information pursuant to section 6-129.

B. The director may not waive and this section does not constitute a waiver of the director's authority to conduct an examination or investigation or otherwise take action authorized by this title or a rule adopted or order issued under this title to enforce compliance with an applicable state or federal law.

C. A joint examination or investigation or acceptance of an examination or investigation report does not waive an examination assessment provided for in this title.
A.R.S. § 6-382 — Arizona Code / Title 6 / Chapter 2 / Article 11 / Section 382
6-382 Powers of bank as fiduciary
Status: in_force

6-382. Powers of bank as fiduciary

The prohibitions, limitations and restrictions on the transactions of a bank in dealing with its general assets shall not be applicable to a bank in the exercise of its powers as a fiduciary over assets held in such capacity or with respect to obligations incurred in such capacity against the credit of the trust.
A.R.S. § 6-1307 — Arizona Code / Title 6 / Chapter 13 / Article 1 / Section 1307
6-1307 Records
Status: in_force

6-1307. Records

Advance fee loan brokers shall maintain books, records and accounts in connection with transactions involving the receipt and disbursement of funds received by the advance fee loan broker. The books, records and accounts shall be maintained in accordance with generally accepted accounting practices and shall be subject to inspection at all times by authorized representatives of the deputy director.
A.R.S. § 6-839 — Arizona Code / Title 6 / Chapter 7 / Article 3 / Section 839
6-839 Continuing jurisdiction
Status: in_force

6-839. Continuing jurisdiction

If the license of an escrow agent is surrendered, suspended or revoked, the agent nevertheless continues to be subject to the provisions of this chapter and to the duties previously undertaken for so long as it acts as a fiduciary with respect to any escrow business previously undertaken.
A.R.S. § 6-572 — Arizona Code / Title 6 / Chapter 4 / Article 8 / Section 572
6-572 Group purchasing
Status: in_force

6-572. Group purchasing

A credit union may enter into marketing arrangements and joint ventures with other credit unions, credit union organizations or other organizations to facilitate its members' voluntary purchase of goods and services from third parties, consistent with the purposes of the credit union. A credit union may be compensated for services so provided and may establish reasonable fees to members.
A.R.S. § 6-591 — Arizona Code / Title 6 / Chapter 4 / Article 13 / Section 591
6-591 Organization
Status: in_force

6-591. Organization

A corporate credit union shall be organized in the manner provided for the organization of a credit union in section 6-506.
A.R.S. § 6-101 — Arizona Code / Title 6 / Chapter 1 / Article 1 / Section 101
6-101 Definitions
Status: in_force

6-101. Definitions

In this title, unless the context otherwise requires:

1. "Automated teller machine" means an automated device that is established by a bank, savings and loan association or credit union and that facilitates customer-bank communications activities, including taking deposits and disbursing cash drawn against a customer's deposit account or a customer's preapproved loan account, at a location separate from the home office or a branch.

2. "Bank" means a corporation that holds a banking permit issued pursuant to chapter 2 of this title.

3. "Banking office" means any place of business of the bank at which deposits are received, checks are paid or money is loaned but does not include the premises used for computer operations, proofing, record keeping, accounting, storage, maintenance or other administrative or service functions.

4. "Branch" means any banking office other than the principal banking office.

5. "Department" means the department of insurance and financial institutions.

6. "Deputy director" means the deputy director of the financial institutions division of the department.

7. "Director" has the same meaning prescribed in section 20-102.

8. "Division" means the financial institutions division within the department.

9. "Enterprise" means any person under the jurisdiction of the department other than a financial institution.

10. "Federal deposit insurance corporation" includes any successor to the corporation or other agency or instrumentality of the United States that undertakes to discharge the purposes of the corporation.

11. "Financial institution" means banks, trust companies, savings and loan associations, credit unions, consumer lenders, international banking facilities and financial institution holding companies under the jurisdiction of the department.

12. "Home state" means the state that has granted the bank its charter, permit or license to operate.

13. "Host state" means the state in which a financial institution is doing business and not the state that has granted the bank its charter, permit or license to operate.

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

15. "International banking facility" means a facility that is represented by a set of asset and liability accounts segregated on the books and records of a commercial bank, the principal office of which is located in this state, and that is incorporated and doing business under the laws of the United States or of this state, a United States branch or agency of a foreign bank, an edge corporation organized under section 25(a) of the federal reserve act (12 United States Code sections 611 through 631) or an agreement corporation having an agreement or undertaking with the board of governors of the federal reserve system under section 25 of the federal reserve act (12 United States Code sections 601 through 604(a)) that includes only international banking facility time deposits and international banking facility extensions of credit as defined in 12 Code of Federal Regulations part 204.

16. "National credit union administration" includes any successor to the organization or other agency or instrumentality of the United States that undertakes to discharge the purposes of the organization.

17. "Out-of-state bank" means a bank, savings bank or savings and loan association that is approved by the deputy director pursuant to section 6-322 and that has a charter, a permit or any other license to operate that is issued by a state other than this state.

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

19. "Title" includes this title, title 32, chapters 9 and 36 and title 44, chapter 2.1.
A.R.S. § 6-183 — Arizona Code / Title 6 / Chapter 2 / Article 1 / Section 183
6-183 Rights, powers and privileges of national banks
Status: in_force

6-183. Rights, powers and privileges of national banks

Except as prohibited by federal law, a national bank with a banking office in this state shall have all the rights, powers and privileges and shall be entitled to the same exemptions and immunities as banks holding banking permits under this chapter.
A.R.S. § 6-193 — Arizona Code / Title 6 / Chapter 2 / Article 1 / Section 193
6-193 Bank and holding company subsidiaries; powers
Status: in_force

6-193. Bank and holding company subsidiaries; powers

A subsidiary of a bank or a nonbank subsidiary of a holding company may:

1. Deal in and underwrite all obligations issued or guaranteed by or on behalf of a state or a political subdivision of a state or an agency or instrumentality of either a state or political subdivision.

2. Organize, sponsor, operate and control an investment company, as defined in section 3 of the investment company act of 1940 (15 United States Code section 80a-3), and underwrite, deal in, sell and distribute, as principal or agent, or both, the securities of such an investment company.

3. Deal in and underwrite:

(a) Promissory notes secured by real estate mortgages.

(b) Credit obligations secured by real or personal property or manufactured housing.

(c) Participation interests in such notes and credit obligations.

(d) Mortgage related payment bonds secured by such notes or participation interests.

4. Underwrite, deal in, sell and distribute, as principal or agent, or both, commercial paper issued by any entity.
A.R.S. § 6-326 — Arizona Code / Title 6 / Chapter 2 / Article 7 / Section 326
6-326 Denial of application; grounds
Status: in_force

6-326. Denial of application; grounds

The deputy director shall deny an application for acquisition of an in-state financial institution if the deputy director finds any of the following:

1. The financial condition of the acquiring out-of-state financial institution is such that it may jeopardize the financial stability of the in-state financial institution or prejudice the interests of the depositors, beneficiaries, creditors or shareholders of the in-state financial institution.

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

3. The applicant neglects, fails or refuses to furnish to the deputy director any information requested by the deputy director.

4. The applicant fails to obtain any required approval from a federal or state agency with authority over any of the financial institutions that are participating in the transaction.

5. The acquisition is contrary to law.
A.R.S. § 6-132 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 132
6-132 Violation of title; civil penalty
Status: in_force

6-132. Violation of title; civil penalty

The deputy director may assess a civil penalty in an amount of not more than $5,000 against a person, including any officer, director, employee, agent or other person who participates in the conduct of the affairs of the person, for any knowing violation of any provision of this title or of any rule or order adopted or issued pursuant to this title. If the assessment is not paid in full within thirty days after the service of the notice of the assessment on the person, the attorney general, on request of the deputy director, shall bring an action in the superior court in the county in which a violation of this section is alleged to have occurred in the same manner as the filing of other actions. On the finding of a knowing violation of this section by the defendant in any such action, the court may enforce the civil penalty imposed by the deputy director or may impose a different civil penalty in an amount as it deems appropriate for each violation. Each day of violation constitutes a separate offense.
A.R.S. § 6-911 — Arizona Code / Title 6 / Chapter 9 / Article 1 / Section 911
6-911 Active military duty; compensation
Status: in_force

6-911. Active military duty; compensation

Notwithstanding any other law, a mortgage broker who is a member of the Arizona national guard, the United States armed forces reserves or the regular component of the United States armed forces and who is serving on federal active duty when the mortgage broker's license expires may receive compensation for transactions under this article.
A.R.S. § 6-585 — Arizona Code / Title 6 / Chapter 4 / Article 11 / Section 585
6-585 Involuntary dissolution
Status: in_force

6-585. Involuntary dissolution

A. The deputy director may forthwith take possession and control of the business and property of any credit union to which this chapter is applicable whenever the deputy director finds on examination or investigation that such credit union has committed one or more of the following violations:

1. Is in violation of an order issued pursuant to section 6-137.

2. Is conducting its business in an unauthorized or unsafe manner or in violation of the bylaws of the credit union.

3. Is insolvent.

4. Has an impairment of its capital.

5. Cannot with safety and expediency continue business.

6. Has suspended payment of its obligations.

7. Is, through its officers, refusing to submit its books, papers and records of affairs for inspection to any examiner.

8. Is, through its officers, refusing to be examined regarding its affairs.

9. Has been examined by its own supervisory committee and the majority of the committee requested in writing that the deputy director take possession and control.

10. In a proceeding for voluntary dissolution has, through its liquidating agent, failed to make reasonable progress in the liquidation of its affairs and distribution of its assets.

B. The deputy director on taking possession and control of the credit union, its business and operation, together with the furniture, fixtures, books, records and assets of every description, shall determine whether it is practicable and feasible to reorganize the credit union to continue in business or merge the credit union with another operating credit union. If the deputy director determines that the credit union cannot be reorganized or merged with another operating credit union, the deputy director may allow the credit union to operate under the deputy director's direction and control, or if the deputy director determines that the credit union should be liquidated through receivership, the deputy director shall petition the superior court for authority to liquidate such credit union, and the superior court shall immediately appoint the deputy director as the receiver of the credit union without bond, and shall make such other orders, judgments and decrees as are necessary to liquidate such credit union. The receiver shall take possession of and, for the purpose of receivership, title to the books, records and assets of every description of such credit union, shall proceed to collect all debts, dues and claims belonging to it, may sell or compound all bad or doubtful debts and may sell the real and personal property of such credit union, on such terms as the court may direct.

C. Such receiver may sue and defend in the receiver's own name with respect to the affairs, assets, claims, debts, and choses in action of such credit union.

D. The receiver shall hold all records of such receivership for a period of two years after the close of the receivership, and at the termination of the two years, the records may then be destroyed.

E. All expenses of such receivership, including reasonable receiver and attorney fees, shall be paid out of the assets of such credit union, and all expenses of any preliminary or other examinations into the condition of any such credit union or receivership, and all expenses incident to and in connection with the possession and control of any credit union office, furniture and fixtures, books, records and assets of every description of such credit union by the receiver for the purpose of reorganization or liquidation through receivership, shall be paid out of the assets of such credit union.

F. Notwithstanding the provisions of subsections A, B, C and D of this section, if such credit union is a federally insured state credit union, the court shall first tender the appointment as receiver to the national credit union administration, or any succeeding organization, which is authorized to qualify and act without bond. If the national credit union administration or succeeding organization accepts the appointment, it shall have all of the powers, privileges and duties as such receiver provided by the laws of this state.
A.R.S. § 6-502 — Arizona Code / Title 6 / Chapter 4 / Article 1 / Section 502
6-502 Reports and examinations
Status: in_force

6-502. Reports and examinations

A. The deputy director shall examine or cause to be examined each credit union at periodic intervals as provided by section 6-122. The deputy director shall forward a report of the examination to the board of directors of the credit union examined within thirty days after completion of the report. Within thirty days after the receipt of the report the directors shall meet to consider matters contained in the report.

B. In lieu of the examination required by subsection A of this section, the deputy director may accept an examination or audit report of the condition of a credit union made by the national credit union administration or by a certified public accountant who is licensed in this state or who has a limited reciprocity privilege pursuant to section 32-725 or other qualified person or organization approved by the deputy director. The credit union shall bear the cost of any such examination or audit. A certified public accountant or other qualified person or organization making an audit to be submitted in lieu of an examination by the deputy director shall obtain prior approval from the deputy director before conducting such an audit. In approving such an audit the deputy director may prescribe minimum requirements for the audit, including the date by which the audit must be completed and a copy filed with the deputy director.

C. Within thirty days after the end of each calendar quarter a credit union shall report to the deputy director, on forms supplied by the deputy director for that purpose, its financial condition and the results of its operation for the quarter.

D. Unless excused for cause before or after the due date, a credit union that fails to file a report when due shall pay the department, as assessed, up to $100 for each day of delinquency.
A.R.S. § 6-1203 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1203
6-1203 Implementation; fees
Status: in_force

6-1203. Implementation; fees

A. To implement this article, the director may:

1. Enter into agreements or relationships with other government officials or federal and state regulatory agencies and regulatory associations in order to improve efficiencies and reduce regulatory burden by standardizing methods or procedures, providing for licensure by reciprocity and sharing resources, records or related information obtained under this article.

2. Use, hire, contract for or employ analytical systems, methods or software to examine or investigate any person subject to this article.

3. Accept the following from other state or federal government agencies or officials:

(a) Licensing, examination or investigation reports made by other state or federal government agencies or officials.

(b) Audit reports made by an independent certified public accountant or other qualified third-party auditor for an applicant or licensee and incorporate the audit report in any report of examination or investigation.

B. The director shall administer, interpret and enforce this article and may adopt rules to implement this article. The director may impose fees to administer and enforce this article.
A.R.S. § 6-843 — Arizona Code / Title 6 / Chapter 7 / Article 3 / Section 843
6-843 Disbursements; applicability
Status: in_force

6-843. Disbursements; applicability

A. Except as provided by subsection B of this section, an escrow agent may only disburse money out of an escrow account if deposits are previously made that are at least equal to the disbursements and the deposits relate directly to the transaction for which the money is being disbursed.  The deposits shall be in at least one of the following forms:

1. Wire transfers so that the monies are received by the escrow agent or the agent's depository.

2. Except as provided in paragraphs 1, 4 and 5 of this subsection, checks, drafts, negotiable orders of withdrawal, money orders or any other item that has become available for withdrawal in accordance with the federal expedited funds availability act (P.L. 100-86; 101 Stat. 635; 12 United States Code section 4001).

3. Credit transfers through the automated clearing house that are deemed available by the depository institution receiving the credits.  The credits must conform to the operating rules set forth by a national automated clearing house association.

4. Cashier's checks, certified checks or teller's checks that have been deposited in the escrow agent's depository account.

5. Checks made by an affiliate of a state or federally regulated depository institution where the check is drawn on the affiliated depository institution so that the monies are deposited in the escrow agent's depository account.

6. Distributed ledger technology transfers within or among a secure network of federally insured depository institutions where disbursements are recorded on a ledger and securely deposited in an escrow agent's depository account. A depository institution shall settle transfers by using an established national clearing house network, except that transfers may not be settled or backed by a central bank digital currency. Distributed ledger technology transfers shall be fully settled, irrevocably credited and transferred in United States dollars. For the purposes of this paragraph, "distributed ledger technology" means a decentralized, shared and immutable ledger, which may be public or private, permissioned or permissionless, or driven by tokenized crypto economics or tokenless. The ledger must be tamper resistant and protected with cryptography to preserve the data. For the purposes of this paragraph, a transfer, whether tokenized or tokenless, must maintain price stability by backing the value of the transferred digital asset to United States dollars that is redeemable on a one-to-one basis.

B. An escrow agent may disburse up to $500 per transaction or any funds that are available as cash without complying with subsection A of this section.

C. Subsection A of this section does not apply to account servicing.
A.R.S. § 6-1408 — Arizona Code / Title 6 / Chapter 14 / Article 1 / Section 1408
6-1408 Annual report of licensee; civil penalty for failure to file
Status: in_force

6-1408. Annual report of licensee; civil penalty for failure to file

A. On or before February 1, the licensee shall annually file a report under oath and in the form prescribed by the deputy director concerning the business and operations during the preceding calendar year. On good cause shown by a licensee, the deputy director may extend the time for filing the report for a period not to exceed sixty days.

B. If a licensee fails to file the annual report, the deputy director or any person designated by the deputy director may examine the books, accounts and records of the licensee and prepare the annual report and the licensee shall be assessed an examination fee as prescribed in section 6-125.

C. If a licensee fails to file the annual report within the specified time, the deputy director may assess a civil penalty for the failure to file unless an extension of time is granted by the deputy director in writing prior to the due date of the annual report. The penalty shall not be more than $25 per day. The licensee shall pay the penalty to the deputy director within thirty days after the assessment.
A.R.S. § 6-602 — Arizona Code / Title 6 / Chapter 5 / Article 1 / Section 602
6-602 Exemptions
Status: in_force

6-602. Exemptions

A. This chapter does not apply to:

1. A person who does business under any other law of this state, or any other state while regulated by a state agency of that other state, or of the United States, relating to banks, savings banks, trust companies, savings and loan associations, profit sharing and pension trusts, credit unions, insurance companies or receiverships if the consumer lender loan transactions are regulated by the other law or are under the jurisdiction of a court.

2. A person who is licensed as a pawnbroker pursuant to title 44, chapter 11, article 3 to the extent that the person's activities are governed by that article.

3. A person who is not regularly engaged in the business of making consumer lender loans.

4. A person who is licensed pursuant to chapter 9 of this title to the extent that the person's activities are governed by that chapter.

B. The requirements of this chapter do not apply to:

1. Closed end loans of more than $10,000.

2. Advances on open end revolving loans that are not secured by the consumer's principal residence with an agreed on credit limit of more than $10,000, regardless of the amount of any advances on these revolving loans.

3. Advances on open end revolving loans that are secured by the consumer's principal residence with an agreed on credit limit of more than $10,000, regardless of the amount of any advances on these revolving loans.

4. Consumer lender loans that are lawfully made to nonresidents of the state in any other state under and in accordance with a regulatory consumer lender law similar in principle to this chapter.

5. Educational loans that are either:

(a) Made, insured or guaranteed pursuant to a program authorized by the United States, this state or any other state.

(b) Made by a nonprofit organization that is exempt from taxation under section 501(c)(3) of the internal revenue code to students who attend postsecondary educational institutions in this state.

C. A consumer loan made pursuant to a consumer lender license is not a secondary motor vehicle finance transaction as defined in section 44-281.
A.R.S. § 6-414 — Arizona Code / Title 6 / Chapter 3 / Article 3 / Section 414
6-414 Members
Status: in_force

6-414. Members

A. The membership of an association shall consist of:

1. Every holder of an account or one or more shares of guaranty capital issued by the association.

2. Every borrower from the association, as long as his loan remains unpaid and he remains liable to the association for the payment thereof, and every obligor of an investment made by the association. Each of such members shall be known as a borrowing member.

B. Each joint ownership and each joint obligation shall constitute one membership.
A.R.S. § 6-135 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 135
6-135 Department revolving fund; use of fund
Status: in_force

6-135. Department revolving fund; use of fund

A. The department revolving fund is established to be administered by the deputy director under the conditions and for the purposes provided by this section. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

B. Any investigative costs, attorney fees or civil penalties recovered for the state by the attorney general or the deputy director as a result of actions brought pursuant to this title, whether by final judgment, settlement or otherwise, shall be deposited in the department revolving fund. If the unencumbered portion of the fund exceeds $700,000 at the end of the fiscal year, all unencumbered monies in excess of $700,000 shall be deposited in the department receivership revolving fund pursuant to section 6-135.01.

C. The monies in the fund shall be used by the deputy director and the attorney general for investigative proceedings or for purposes of instituting and prosecuting civil actions pursuant to this title.

D. On or before the fifteenth day of February, May, August and November each year, the deputy director shall file with the governor, with copies to the director of the department of administration, the president of the senate and the speaker of the house of representatives, a full and complete account of the receipts and disbursements from the fund in the previous calendar quarter.
A.R.S. § 6-1415 — Arizona Code / Title 6 / Chapter 14 / Article 1 / Section 1415
6-1415 Cancellation of insurance contract upon default
Status: in_force

6-1415. Cancellation of insurance contract upon default

A. If a premium finance agreement contains a power of attorney enabling the licensee to cancel any insurance contract or contracts listed in the agreement, the insurance contract or contracts shall not be cancelled by the licensee unless the cancellation is in accordance with this section.

B. The licensee shall mail written notice to the insured at his last known address as shown on the records of the licensee not less than ten days in advance to notify the insured of its intent to cancel the insurance contract unless the default is cured within the ten day period.

C. After expiration of the ten day period, the licensee may cancel the insurance contract or contracts by mailing a notice of cancellation to the insurer. The insurance contract shall be cancelled as if the notice of cancellation had been submitted by the insured himself but without requiring the return of the insurance contract. The licensee shall also mail a notice of cancellation to the insured at his last known address as shown on the records of the licensee. If the provisions of subsection D do not apply to the cancellation of coverage, the effective date of cancellation under this subsection is the date on which the licensee mails a notice of cancellation to the insurer and the insured. The licensee shall maintain a log or any other record that documents compliance with this section.

D. If statutory, regulatory and contractual restrictions provide that the insurance contract may not be cancelled unless notice is given to a governmental agency, mortgagee or other third party, the insurer shall give the prescribed notice on behalf of itself or the insured to any governmental agency, mortgagee or other third party on or before the fifth business day after the day it receives the notice of cancellation from the licensee. The effective date of cancellation under this subsection shall be as stated in the insurance policy. The insurer shall maintain a log or any other record that documents its receipt of any notice from a licensee as provided by this section.
A.R.S. § 6-420 — Arizona Code / Title 6 / Chapter 3 / Article 3 / Section 420
6-420 Bonds of officers and employees
Status: in_force

6-420. Bonds of officers and employees

A. Every person appointed or elected to any position requiring the receipt, payment, management or use of money belonging to an association, or whose duties allow the person to have access to or custody of any of the association's money or securities or whose duties allow the person regularly to make entries in the books or other records of the association, before assuming the person's duties, shall become bonded in some fidelity insurance company licensed to do business in this state and approved by the deputy director. Each such bond shall be on a form or forms as the deputy director shall require and in such amount as the board of directors shall fix and approve.

B. Nothing contained herein shall preclude the deputy director from proceeding against an association as provided in this chapter should the deputy director believe that the association is being conducted in an unsafe manner in that the form or amount of bonds so fixed and approved by the board of directors is inadequate to give reasonable protection to the association.
A.R.S. § 6-846.02 — Arizona Code / Title 6 / Chapter 7 / Article 4 / Section 846.02
6-846.02 Justification for escrow rates
Status: in_force

6-846.02. Justification for escrow rates

A. An escrow agent shall accompany a rate filing with a statement setting forth the basis on which the rate was fixed and the manner in which the fees are to be computed. A filing may be justified by:

1. The experience or judgment of the escrow agent making the filing.

2. The escrow agent's interpretation of any statistical data on which the agent relied.

3. The experience of other escrow agents.

4. Any other factors that the escrow agent deems relevant.

B. The statement and justification shall be open to public inspection after the rate to which the statement and justification apply becomes effective.
A.R.S. § 6-866 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 866
6-866 Limit of legal action
Status: in_force

6-866. Limit of legal action

This article does not limit any statutory or common law right of a person to bring an action in a court for any act involved in the transaction of the trust business or the right of the state to bring an action against any person for a violation of law based on such act.
A.R.S. § 6-244 — Arizona Code / Title 6 / Chapter 2 / Article 5 / Section 244
6-244 Borrowing by bank; treatment as capital
Status: in_force

6-244. Borrowing by bank; treatment as capital

A bank may borrow money and issue evidence of indebtedness, but no borrowings shall be treated as capital except in compliance with section 6-189.
A.R.S. § 6-905 — Arizona Code / Title 6 / Chapter 9 / Article 1 / Section 905
6-905 Denial, suspension or revocation of licenses
Status: in_force

6-905. Denial, suspension or revocation of licenses

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

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

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

3. 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.

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

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

6. Has had an order entered against the applicant or licensee 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 that the facts relating to the order indicate that it would be contrary to the interest of the public to allow such a person to be licensed or to control or manage a licensee.

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

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

C. If a licensee is other than a natural person, it is sufficient cause for the suspension or revocation of the license if an officer, director, member, partner, trustee, employee, while acting in the course of the mortgage broker business, or person entitled to vote more than twenty percent of the outstanding voting shares of the licensed corporation, partnership, association or trust has acted or failed to act in the same manner as would be cause for suspending or revoking a license of the party as an individual. If a licensee is a natural person, it is sufficient cause for the suspension or revocation of the license if an employee of the person, while acting as an employee, has acted or failed to act in the course of the mortgage broker business of the licensee in the same manner as would be cause for suspending or revoking a license of the party as an owner.
A.R.S. § 6-241 — Arizona Code / Title 6 / Chapter 2 / Article 5 / Section 241
6-241 Banking days; notice; closing
Status: in_force

6-241. Banking days; notice; closing

A. A bank is authorized to fix from time to time the days and hours when each of its banking offices that are located in this state will be open to the public for its banking business. The days and hours need not be the same for each office. The bank shall notify the deputy director of the days and hours of each banking office and of any change in the scheduled days and hours of each office. The bank shall give further notice by whatever means it selects as best calculated to advise the public of any change.

B. In an emergency or threat of an emergency or other circumstances beyond the control of the bank that would imperil persons or property or impede normal operations, all or any of its banking offices that are located in this state may be or remain closed. Notice of the closing shall be given to the deputy director as promptly as conditions will allow. The deputy director may order the reopening of any office on the deputy director's finding that conditions justifying the closing under this subsection do not then exist.

C. Any day on which a bank shall pursuant to this section be or remain closed shall with respect to the bank be deemed a legal holiday.

D. Any office of a bank may be closed under subsection A or B of this section, even though other offices of the bank are open, but any day of such closing shall not be a legal holiday in respect to any acts to be performed by or at the bank on such day unless the act is to be performed only by or at the office which is closed.

E. Where pursuant to agreement or law any act is to be performed by or at a bank on any day when such bank shall pursuant to this section be or remain closed, the act may be performed on the next succeeding banking day with the effect as though performed on the appointed day.

F. Nothing in any law of this state shall in any manner whatsoever affect the validity of or render void or voidable the payment, satisfaction or acceptance of any check or other negotiable instrument or any other transaction by a bank because done or performed on any holiday or partial holiday or during any time other than regular banking hours, but this subsection does not compel a bank to perform any of the acts or transactions aforesaid except at its own option.

G. This section applies to out-of-state banks.
A.R.S. § 6-162 — Arizona Code / Title 6 / Chapter 1 / Article 5 / Section 162
6-162 Temporary prohibition; injunction
Status: in_force

6-162. Temporary prohibition; injunction

A. If the deputy director determines from the available facts that the conduct of the respondent is likely to cause the financial institution or enterprise to suffer substantial financial loss before an order can be issued under section 6-161, the deputy director may issue a temporary order prohibiting the respondent from further participation in any manner in the conduct of the affairs of the financial institution or enterprise. The order shall contain a statement of the alleged facts which form the basis of the order and becomes effective on service on the respondent. A copy of the order shall also be served on the financial institution or enterprise. The order expires by its terms within such time after entry, not to exceed twenty days, as the deputy director fixes, unless the respondent consents to a longer period or within the time fixed in the order it is extended by supplemental order issued by the deputy director and served on the respondent and the financial institution or enterprise. On two days' notice to the financial institution or enterprise the respondent may move that the deputy director stay, dissolve or modify the order, and the deputy director shall proceed to hear and determine such motion as expeditiously as justice requires.

B. The respondent served with a temporary order may apply to the superior court for a stay of the order pending the completion of the administrative proceedings under section 6-161, and the court has jurisdiction to stay the order if the deputy director has refused to stay the order or to promptly consider the respondent's request for a stay.
A.R.S. § 6-991.13 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991.13
6-991.13 Correction of deficiencies in the application
Status: in_force

6-991.13. Correction of deficiencies in the application

A. If the deputy director determines that a claimant's application fails to comply substantially with the requirements of section 6-991.11 or rules adopted pursuant to this article, the deputy director, within thirty calendar days after receiving the application, shall mail an itemized list of deficiencies to the claimant.  For the purposes of this subsection, "comply substantially" means filing with the department the documents that are minimally necessary to process a claim, including at least a certified copy of the judgment, legible copies of documents establishing the underlying transaction and amounts of losses suffered and a statement concerning amounts recovered from or on behalf of the judgment debtor.

B. The claimant must respond within sixty calendar days after receiving the list of deficiencies by providing the information identified by the deputy director.  If the claimant fails to correct the deficiencies within sixty calendar days, the department shall close the file unless the claimant requests an extension in writing.  A claimant whose file has been closed may submit a new application as provided by section 6-991.11.

C. The deadline prescribed by section 6-991.15 for the deputy director to make a decision on the application is suspended from the date the deputy director mails the list of deficiencies to the applicant until the date the department receives the requested information.
A.R.S. § 6-417 — Arizona Code / Title 6 / Chapter 3 / Article 3 / Section 417
6-417 Directors
Status: in_force

6-417. Directors

The business affairs of the association shall be exercised by its board of directors, which shall be elected, and shall exercise its powers, as follows:

1. The board of directors shall consist of the number of directors fixed by the articles of incorporation but shall be not less than five nor more than twenty-five.  All directors shall be bona fide members of the association, and at all times at least two-thirds of the directors shall be residents of this state.

2. Directors shall be elected as provided in the bylaws of the association and shall serve until their successors are elected and qualified. In all elections of directors cumulative voting shall be allowed as provided in the Constitution of Arizona.

3. In the event of a vacancy on the board of directors from any cause, the remaining directors shall have full power and authority to continue the management of the association, and to fill any such vacancy.

4. The board of directors shall hold regular meetings as provided in the bylaws. Special meetings may be held as provided in the bylaws, and also on call by the deputy director after not less than twelve hours' notice by personal or mail service to each director.

5. A majority of the board of directors shall constitute a quorum for the transaction of business unless a greater number is required in the bylaws. The act of the majority of the directors present at a meeting at which a quorum is present shall be the act of the board of directors, unless the act of a greater number is required by law, the articles of incorporation, or the bylaws.

6. The board of directors shall have all powers that are necessary and proper to enable the association to accomplish its purpose.

7. The board of directors may adopt or amend bylaws, but bylaws shall not be effective until they have been submitted to and approved by the deputy director as being in conformity with this chapter. Each adopted amendment shall be subject to the same inquiry by the deputy director as the corresponding provision in the original bylaws of the association. The deputy director may require approval by a majority vote of the members for an amendment changing the location of the business office of the association.
A.R.S. § 6-601 — Arizona Code / Title 6 / Chapter 5 / Article 1 / Section 601
6-601 Definitions
Status: in_force

6-601. Definitions

In this chapter, unless the context otherwise requires:

1. "Actuarial method" means the method of allocating each payment between finance charges and principal pursuant to which the payment is applied first to finance 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. "Amount financed" means the amount of credit extended to a consumer on a consumer loan determined in accordance with the truth in lending act.

3. "Annual percentage rate" means the measure of the cost of credit, expressed as a yearly rate, that relates the amount and timing of value received by the consumer to the amount and timing of payments made, determined in accordance with the truth in lending act.

4. "Consumer" means an individual who obtains a consumer lender loan for personal, family or household purposes.

5. "Consumer lender" means a person that advertises to make or procure, solicits or holds itself out to make or procure, or makes or procures consumer lender loans to consumers in this state.

6. "Consumer lender loans" means consumer loans, consumer revolving loans and home equity revolving loans.

7. "Consumer loan" means the direct closed end loan of money, whether unsecured or secured by personal or real property, in an amount of $10,000 or less that is subject to a finance charge in which only the principal amount of the loan is considered, and not any finance charges or other fees allowed pursuant to section 6-635, for the purpose of determining whether the consumer loan is $10,000 or less.

8. "Consumer loan rate" means the periodic rate of finance charges that applies to the outstanding principal balance of a consumer loan and that remains unpaid. Consumer loan rate does not include any prepaid finance charges pursuant to section 6-632, subsection E or any fees pursuant to section 6-635.

9. "Consumer revolving loan" means an open end revolving loan that is established pursuant to an agreement with an agreed on credit limit that does not exceed $10,000, that the consumer may pay in full at any time but has the privilege of paying in installments and that contemplates or provides that advances may be obtained from time to time by the consumer, through checks, drafts, items, credit access devices, orders for the payment of money, evidences of debt or similar means, whether or not negotiable.

10. "Educational loan" means any loan or other aid or assistance for the purpose of furthering the education of a consumer or a relative of a consumer at an accredited or approved university, college, community college, junior college, technical, vocational or professional school, or similar institution.

11. "Finance charge" means the amount payable by a consumer incident to or as a condition of the extension of a consumer lender loan but does not include other fees allowed pursuant to section 6-635.

12. "Home equity revolving loan" means an open end revolving loan that is made pursuant to an agreement with an agreed on credit limit that is not more than $10,000, that is secured by the consumer's principal residence and that provides that advances may be obtained from time to time by the consumer through checks, drafts, items, credit access devices, orders for the payment of money, evidences of debt or similar means, whether or not negotiable.

13. "License" means a license issued under the authority of this chapter to make consumer lender loans in accordance with this chapter.

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

15. "Precomputed consumer loan" means a consumer loan that is payable in substantially equal, consecutive monthly installments that are applied to the unpaid balance of the principal and precomputed finance charges combined, subject to provisions for refund or credit in the event of prepayment and for deferral or default charges in the event of deferral or default.

16. "Regularly engaged in the business" means either:

(a) Advertising to or any other solicitation of a resident of this state that offers a consumer loan and that occurs within this state.

(b) Making three or more consumer loans within a calendar year to residents of this state.

17. "Truth in lending act" means title I of the consumer credit protection act (15 United States Code sections 1601 through 1666j), as amended, and the regulations promulgated under that act (12 Code of Federal Regulations part 226), as amended.
A.R.S. § 6-495 — Arizona Code / Title 6 / Chapter 3 / Article 10 / Section 495
6-495 Reservation of powers to legislature
Status: in_force

6-495. Reservation of powers to legislature

The legislature shall have power to amend, repeal, or modify this chapter, and such amendments or modifications shall be binding upon any and all associations operating under this chapter.
A.R.S. § 6-138 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 138
6-138 Hearings
Status: in_force

6-138. Hearings

The deputy director or an administrative law judge shall conduct hearings, including hearings relating to orders of the deputy director granting, denying, revoking or suspending a permit, certificate or license provided for under this title, in accordance with title 41, chapter 6, article 10.
A.R.S. § 6-451 — Arizona Code / Title 6 / Chapter 3 / Article 5 / Section 451
6-451 Servicing of loans
Status: in_force

6-451. Servicing of loans

An association may contract to service a loan in any manner unless restricted by regulations prescribed by the deputy director and shall require sufficient compensation to reimburse the association for all expenses incurred under such contract.
A.R.S. § 6-440 — Arizona Code / Title 6 / Chapter 3 / Article 4 / Section 440
6-440 Apportionment of profits
Status: in_force

6-440. Apportionment of profits

The board of directors may apportion the profits of the association as the bylaws may prescribe, and each apportionment shall be made in accordance with the following procedure:

1. Proper allocation first shall be made to accrued interest on accounts.

2. Proper allocation then shall be made to any reserves required by law or the deputy director.

3. Additional allocations then may be made to such special reserves as the board of directors may have established.

4. Dividends then may be declared if the bylaws so provide on shares of guaranty capital, in accordance with this chapter.

5. The residue of such profits may be held as undivided profits.
A.R.S. § 6-870 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 870
6-870 Trust committee
Status: in_force

6-870. Trust committee

A. The board of directors may appoint a trust committee. The trust committee shall be comprised solely of directors, officers, employees or any combination thereof. The committee may be authorized to act for the company in matters dealing with the initial and annual reviews of accounts, account acceptance and investment strategies. The trust committee shall keep a record of its actions and shall report in writing to the board on all actions since the previous board meeting. The board shall ratify or rescind each action.

B. The trust committee shall meet at least once a month to review existing accounts and to consider acceptance of new accounts. The trust committee shall not accept a new account unless it is approved by a majority of the members of the trust committee present at the meeting in which the new account is considered.
A.R.S. § 6-852 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 852
6-852 Exemptions and allowed activities
Status: in_force

6-852. Exemptions and allowed activities

A. For the purposes of this article, a person does not engage in the trust business by:

1. Rendering services as an attorney-at-law in the performance of the person's duties as such.

2. Acting as trustee under a deed of trust made only as security for the payment of money or for the performance of another act.

3. Acting as a trustee in bankruptcy or as a receiver.

4. Holding trusts of real estate for the primary purpose of subdivision, development or sale, or to facilitate any business transaction with respect to such real estate, provided such person is not regularly engaged in the business of acting as a trustee for such trusts.

5. Engaging in the business of a debt management company to the extent of the activities for which it is licensed under chapter 6 of this title.

6. Engaging in the business of an escrow agent to the extent of the activities for which it is licensed under chapter 7 of this title.

7. Holding assets as trustee of trusts created for charitable purposes.

8. Receiving rents and proceeds of sale as a licensed real estate broker on behalf of a principal.

9. Engaging in securities transactions as a dealer or salesman registered under title 44, chapter 12.

10. Acting as a guardian, conservator, special conservator, trustee or personal representative pursuant to a court order under title 14 or 36.

B. Insurance companies licensed to write life insurance policies and annuity or endowment contracts in this state and subject to regulation and control of the director are excluded from the provisions of this chapter, except the provisions of section 6-860.

C. A bank, savings and loan association or credit union not exercising trust powers may act as a trustee or custodian of individual retirement accounts established pursuant to the employees retirement income security act of 1974 or self-employed retirement plans established pursuant to the self-employed individuals tax retirement act of 1962 without the prior written consent of the deputy director if both:

1. The duties of the bank, savings and loan association or credit union as trustee or custodian are essentially custodial or ministerial in nature.

2. The bank, savings and loan association or credit union is required to invest the funds from such plans only in its own time or savings deposits or shares.
A.R.S. § 6-384 — Arizona Code / Title 6 / Chapter 2 / Article 11 / Section 384
6-384 Deposit of fiduciary funds
Status: in_force

6-384. Deposit of fiduciary funds

Cash held by a bank as fiduciary may be deposited to the credit of the bank as such fiduciary on time or demand account with itself or with any other bank the deposits of which are insured by the federal deposit insurance corporation. Unless otherwise provided by the writing creating the trust, if such funds are deposited with itself the bank shall secure such deposits with securities described in section 6-352, subsection D, paragraph 2, or other security approved by the deputy director for the purpose, in the amount of the deposit, subject to section 6-245, subsection C.
A.R.S. § 6-164 — Arizona Code / Title 6 / Chapter 1 / Article 5 / Section 164
6-164 Attorney fees and expenses
Status: in_force

6-164. Attorney fees and expenses

In any proceeding instituted under this article in which a director or officer is a party, and if the deputy director or court allows such party reasonable expenses and attorney fees, the deputy director or the court may provide that such expenses and fees shall be paid by the financial institution or enterprise from its assets with priority as an expense of administration in receivership.
A.R.S. § 6-1109 — Arizona Code / Title 6 / Chapter 11 / Article 1 / Section 1109
6-1109 Determination of control of one person by another; hearing; notice
Status: in_force

6-1109. Determination of control of one person by another; hearing; notice

Before determining whether a person controls another person or before denying or approving an application for approval to become a financial institution holding company the deputy director may hold a hearing. The deputy director shall give notice of the hearing to the applicant, the financial institution or controlling person concerned and to such other persons as the deputy director determines appropriate. The date for commencement of the hearing shall be not later than thirty days after the date of the notice, unless the applicant consents to an extension of the period.
A.R.S. § 6-632 — Arizona Code / Title 6 / Chapter 5 / Article 2 / Section 632
6-632 Finance charges
Status: in_force

6-632. Finance charges

A. A licensee may contract for and receive finance charges on consumer loans that are not more than the following amounts:

1. On a consumer loan in an original principal amount of three thousand dollars or less, a consumer loan rate of thirty-six per cent.

2. On a consumer loan in an original principal amount of more than three thousand dollars, either:

(a) A consumer loan rate of thirty-six per cent on the initial three thousand dollars of the original principal amount, and a consumer loan rate of twenty-four per cent on that part of the principal amount greater than three thousand dollars.

(b) The single blended consumer loan rate that results from the total amount of finance charges that the licensee would receive through the scheduled maturity of the consumer loan at the consumer loan rates that otherwise would be applicable pursuant to subdivision (a) of this paragraph to the different portions of the unpaid principal balance, assuming that the consumer loan will be paid according to its agreed terms.

B. A licensee may contract for and receive periodic finance charges on consumer revolving loans and home equity revolving loans that are not more than the following amounts:

1. On consumer revolving loans with credit limits of three thousand dollars or less, a periodic rate corresponding to an annual percentage rate of thirty-six per cent on the outstanding balance each monthly billing cycle.

2. On consumer revolving loans with credit limits of more than three thousand dollars and home equity revolving loans, either:

(a) A periodic rate corresponding to an annual percentage rate of thirty-six per cent on that portion of the outstanding balance each monthly billing cycle that is not more than three thousand dollars and a periodic rate corresponding to an annual percentage rate of twenty-four per cent on that portion of the outstanding balance each monthly billing cycle that is more than three thousand dollars.

(b) A periodic rate corresponding to the single blended annual percentage rate that would result in a periodic finance charge during a monthly billing cycle that is not more than the finance charges that result from the application of the multiple periodic rates authorized by subdivision (a) of this paragraph.

C. A licensee may charge a fixed or variable rate of periodic finance charges on a consumer revolving loan or a home equity revolving loan, as provided by the agreement that establishes the consumer revolving loan or home equity revolving loan. The licensee shall not base a variable rate of periodic finance charges on an index that is under the control of the licensee. Unless the consumer can readily verify the index on which an adjustment in the rate of periodic finance charges is based, the licensee shall provide conspicuous notice of the rate adjustment at least one monthly billing cycle before the effective date of the rate adjustment. The licensee may include a rate adjustment notice on or with a periodic statement to the consumer. The corresponding annual percentage rate of periodic finance charges may not increase or decrease more than three percentage points in any period of twelve consecutive months, and the corresponding annual percentage rate of periodic finance charges may not increase or decrease more than seven percentage points above or below the initial annual percentage rate of periodic finance charges at the time the consumer revolving loan or home equity revolving loan is established.

D. Except as permitted by subsection E of this section, prepaid finance charges commonly referred to as points are prohibited.

E. In addition to the finance charges authorized in subsections A, B and C of this section, a licensee may contract for and receive, and collect finance charges on, nonrefundable prepaid finance charges or fees commonly referred to as points in an amount of not more than:

1. Four per cent of the original principal amount of a consumer loan of at least five thousand dollars secured by the consumer's principal residence.

2. Four per cent of the agreed on credit limit of a home equity revolving loan.

F. If a consumer loan, consumer revolving loan or home equity revolving loan is in existence before the effective date of this amendment to this section and is modified or restructured after the effective date of this amendment to this section and the total new cash advances do not exceed one hundred dollars, a licensee may not contract for and receive periodic finance charges at an annual percentage rate that is higher than the annual percentage rate that existed before the effective date of this amendment to this section.
A.R.S. § 6-1102 — Arizona Code / Title 6 / Chapter 11 / Article 1 / Section 1102
6-1102 Prohibitions
Status: in_force

6-1102. Prohibitions

A person shall not directly or indirectly take any action that causes or results in a company becoming a financial institution holding company, except with the approval of the deputy director pursuant to this article or as otherwise allowed by this article.
A.R.S. § 6-571 — Arizona Code / Title 6 / Chapter 4 / Article 8 / Section 571
6-571 Insurance for members
Status: in_force

6-571. Insurance for members

A credit union may purchase or provide insurance on the lives or credit disability of its members in an amount equal to their respective share and loan balances or either or both of them and purchase or provide vendor's single interest property insurance coverages on property which is pledged as security if the borrower fails to provide evidence of adequate coverages placed with an insurance carrier selected by the borrower. Nothing in this section shall prohibit the lender from specifying reasonable requirements for coverages and the financial condition of the insurance carrier.
A.R.S. § 6-128 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 128
6-128 Joint examinations; acceptance of federal regulatory and other authorized examinations
Status: in_force

6-128. Joint examinations; acceptance of federal regulatory and other authorized examinations

A. The examination of a financial institution or enterprise may be made in coordination with any authorized federal examination or an examination by another state. The deputy director in the deputy director's discretion may accept the examination report or other information compiled or generated by a federal regulatory authority or by another state regulatory authority that has jurisdiction over the financial institution or enterprise in lieu of any examination authorized or required by the laws of this state. Acceptance of the examination reports shall not be a waiver of the examination assessments provided by law, and reports so accepted are considered for all purposes as an official report of the department.

B. The deputy director may take any reasonable and lawful action to coordinate the examination of financial institutions or enterprises, including:

1. Negotiating and entering into cooperative agreements with an agency of another state or of the federal government.

2. Sharing information and reports with persons as prescribed by section 6-129.
A.R.S. § 6-129.02 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 129.02
6-129.02 Records destruction; personal information
Status: in_force

6-129.02. Records destruction; personal information

Notwithstanding any other law and except as provided by an applicable law that requires a retention period that exceeds ten years, a bank or financial institution shall destroy, in a manner prescribed by law, all personal information belonging to a former customer or client not later than ten years after the business relationship ends.
A.R.S. § 6-991.22 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991.22
6-991.22 Noncompliance not to affect validity of loan
Status: in_force

6-991.22. Noncompliance not to affect validity of loan

Failure to comply with this article does not affect the validity or enforceability of any debt, mortgage, deed of trust or any other lien interest on real estate.  A person acquiring a mortgage loan or any interest in a mortgage loan as mortgagee or beneficiary or as an assignee, holder or transferee or as a pledgee or the holder of a security interest is not required to ascertain whether a violation of this article has occurred.
A.R.S. § 6-471 — Arizona Code / Title 6 / Chapter 3 / Article 7 / Section 471
6-471 Filing and payment of claims
Status: in_force

6-471. Filing and payment of claims

A. The liquidators shall fix a time for all persons having claims against the association, other than as members thereof, to present such claims, and shall cause notice to be published, requiring all persons to present the claims on or before such date, and within five days after the first publication shall mail a copy of such notice to each person whose name appears on the association's records as having a claim. Each claim shall be in writing and verified by the claimant or a duly authorized agent. A claim may be presented at any time on or before the date fixed in the published notice, but any claim not so presented shall be barred. Upon the disallowance of any claim, the liquidators immediately shall notify the claimant of such fact, and the claimant may institute suit to establish such claim at any time before the final distribution.

B. Whether a member files or does not file a claim with respect to an interest which he has as such member, the liquidators shall determine from the records of the association the amount of such member's claim. Any such member may examine the association's records pertaining to his own claim. The records of the association shall be prima facie evidence of each such claim or interest, and no member shall be entitled to a greater claim or proportionate interest in the association unless and until the liquidators shall have agreed to a correction of the records pertaining to such claim or interest, or shall be ordered to correct such records by a court of competent jurisdiction. The liquidators shall require all members to present their certificates or account books for verification and endorsement upon payment of any liquidating dividend or distribution; and upon final distribution, such certificates or account books shall be surrendered to the liquidators.

C. Claims having a preference in law shall be given preference in payment; except that no payment of less than ten dollars need be made until final distribution. No distribution shall be made on claims for withdrawable capital until such preferred claims have been paid or provided for in full, or during the pendency of any suit unless sufficient funds are segregated to pay any judgment which may be rendered in such suit. Ratable payments and distributions on withdrawable capital may be made at any time after the time fixed for the presentment and allowance of claims has elapsed. Holders of guaranty capital, if any, shall participate in the liquidation of the remaining assets after payment or provision for payment has been made in full to all creditors, holders of withdrawable capital, and any claims which the holders may have in the balance of any segregated reserves. Final distribution shall be made in accordance with section 6-472.
A.R.S. § 6-395.14 — Arizona Code / Title 6 / Chapter 2 / Article 13 / Section 395.14
6-395.14 Voidable transactions
Status: in_force

6-395.14. Voidable transactions

A transaction that occurs within six months after the date on which the deputy director takes possession of a bank is voidable by the receiver if the transaction has the effect of enabling a creditor, affiliate, officer, director, stockholder or employee, or a relative of any of those persons, to obtain a preference over any other creditor of the bank.
A.R.S. § 6-509 — Arizona Code / Title 6 / Chapter 4 / Article 2 / Section 509
6-509 Exclusive use of name; exception
Status: in_force

6-509. Exclusive use of name; exception

A. The name of every credit union organized under this chapter shall include the words "credit union". A credit union shall not adopt a name either identical to the name of any other credit union doing business in this state or so similar as to be misleading or cause confusion.

B. It is unlawful for any person to engage in this state in the business of a credit union or to make use of the words "credit union" or any other words in a manner reasonably calculated to convey the impression that the person is engaged in the business of a credit union in this state, unless the act is done by or on behalf of a person having authority under this chapter, except an association of credit unions, or an organization, corporation or association whose membership or ownership consists primarily of credit unions or credit union organizations, may use a name or title containing the words "credit union".

C. A credit union may change its name only on the written authorization of the deputy director.
A.R.S. § 6-353 — Arizona Code / Title 6 / Chapter 2 / Article 9 / Section 353
6-353 Obligations of directors, officers and employees; reports
Status: in_force

6-353. Obligations of directors, officers and employees; reports

A. No bank shall make any loan to any of its own directors, officers or employees that shall cause the outstanding loans of the bank to such person to exceed one percent of the capital account of the bank unless the loan is expressly authorized by the board of directors with any interested director taking no part in such vote. Any loan in violation of this subsection shall be payable on demand to the extent required to bring the loan into compliance with this subsection.

B. Each bank shall include with but not as a part of each report of condition to the deputy director a report of the obligations to the bank of each director and officer outstanding at the date of the report of condition, if the aggregate obligations of such person, exclusive of obligations outstanding in the regular process of bank collection transactions, exceeds the lesser of $50,000 or one percent of the capital account of the bank.
A.R.S. § 6-832 — Arizona Code / Title 6 / Chapter 7 / Article 3 / Section 832
6-832 Annual audit; report
Status: in_force

6-832. Annual audit; report

A. The records of each escrow agent shall be audited at least once each fiscal year by a certified public accountant. The audit shall include an audit of the escrow, account servicing and subdivision trust activities of the escrow agent and shall follow generally accepted accounting principles. A copy of the audit report shall be filed with the deputy director not more than one hundred twenty days after the end of the escrow agent's fiscal year. The audit requirement may be satisfied by filing a copy of the audit report, which is prepared by a certified public accountant, of the parent of the escrow agent including an audit of the escrow, account servicing and subdivision trust activities of the escrow agent within the prescribed time period. The deputy director may extend the time period in this subsection up to ninety days for good cause shown.

B. At the time required by the deputy director, every escrow agent shall make and file in the office of the deputy director a true and correct report, in the form and containing the data the deputy director may require, of the business of the agent, including the agent's escrow, account servicing and subdivision trust activities. Every agent shall reply promptly in writing to an inquiry from the deputy director concerning the escrow agent's business.

C. The scope of the audit shall include consideration of the escrow agent's internal control structure as defined in section 6-841 in accordance with generally accepted auditing standards. A separate report shall be submitted to the deputy director if reportable conditions are identified that indicate significant deficiencies in the design or operation of the internal control structure of the escrow agent that would adversely affect the agent's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. If reportable conditions are identified, the report on reportable conditions shall recommend specific measures to improve the escrow agent's internal control structure.
A.R.S. § 6-522 — Arizona Code / Title 6 / Chapter 4 / Article 4 / Section 522
6-522 Organization members
Status: in_force

6-522. Organization members

A. The following may be included in the field of membership of a credit union:

1. An organization comprised primarily of individuals who are eligible for membership in the credit union.

2. An organization for which a majority of owners, by number, are individuals who are eligible for membership in the credit union.

3. If applicable, an organization that is located within the credit union's membership area.

B. An organization, one of whose principal functions is to provide services to persons who are eligible for membership in the credit union, may be admitted to membership.

C. A credit union or corporate credit union may accept as a member any other credit union organized under this chapter or any other credit union law.
A.R.S. § 6-991.17 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991.17
6-991.17 Deputy director's standing in court
Status: in_force

6-991.17. Deputy director's standing in court

The deputy director may enter an appearance, file an answer, appear at the court hearing, defend the action or take whatever other action the deputy director considers appropriate on behalf and in the name of the mortgage recovery fund and take recourse through any appropriate method of review on behalf of, and in the name of, the mortgage recovery fund.
A.R.S. § 6-860 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 860
6-860 Duty of trustee, escrow officer or agent to produce trust or escrow records for inspection; violation; classification
Status: in_force

6-860. Duty of trustee, escrow officer or agent to produce trust or escrow records for inspection; violation; classification

A. Any trustee, escrow officer or agent shall produce for inspection any trust or escrow records concerning the assets, existence, condition, management and administration and the names of the parties, including any or all beneficiaries, of any trust or escrow of which the person is the trustee, escrow officer or agent, to any peace officer or local, state or federal law enforcement agency, provided such person requesting information signs and submits a sworn statement to the trustee, escrow officer or agent that the request is made in the lawful performance of such person's duties. The peace officer or local, state or federal law enforcement agency shall be prohibited from using or releasing said information except in the proper performance of the person's duties.

B. Any trustee, escrow officer or agent shall produce for inspection required by law any trust or escrow records of any trust or escrow of which the person is the trustee, escrow officer or agent to the deputy director or to any state or federal administrative agency lawfully requiring such disclosure. The deputy director or any state or federal administrative agency shall be prohibited from using or releasing said information except in the proper performance of the deputy director's or agency's duties.

C. Any person who knowingly fails to produce records pursuant to this section or who obtains information under subsection A or B of this section and is prohibited from releasing such information but does release such information is guilty of a class 2 misdemeanor.
A.R.S. § 6-127 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 127
6-127 Disposition of revenue
Status: in_force

6-127. Disposition of revenue

All fees, charges, fines and assessments received by the department shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund except as provided in sections 6-135 and 6-135.01.
A.R.S. § 6-558 — Arizona Code / Title 6 / Chapter 4 / Article 6 / Section 558
6-558 Member account insurance
Status: in_force

6-558. Member account insurance

A. Before the incorporators of a credit union forward the organization documents to the deputy director, as required by section 6-506, they shall apply for insurance on share and deposit accounts from an insuring organization.

B. The deputy director shall not grant a certificate of approval to form a credit union unless the proposed credit union has obtained a commitment for insurance on member accounts.

C. A credit union may not begin operations as a credit union or continue operations without share and deposit account insurance acceptable to the deputy director.
A.R.S. § 6-261 — Arizona Code / Title 6 / Chapter 2 / Article 5.1 / Section 261
6-261 Recoupment or setoff
Status: in_force

6-261. Recoupment or setoff

A. Except as provided in subsection B or C of this section, a bank may not exercise a right of recoupment or setoff against a special deposit.

B. An account agreement may authorize a bank to debit the special deposit:

1. When the bank becomes obligated to pay a beneficiary, in an amount that does not exceed the amount necessary to discharge the obligation;

2. For a fee assessed by the bank that relates to an overdraft in the special deposit account;

3. For costs incurred by the bank that relate directly to the special deposit; or

4. To reverse an earlier credit posted by the bank to the balance of the special deposit account, if the reversal occurs under an event or circumstance warranted under other law of this state governing mistake and restitution.

C. The bank holding a special deposit may exercise a right of recoupment or setoff against an obligation to pay a beneficiary, even if the bank funds payment from the special deposit.
A.R.S. § 6-971 — Arizona Code / Title 6 / Chapter 9 / Article 3 / Section 971
6-971 Definitions
Status: in_force

6-971. Definitions

In this article, unless the context otherwise requires:

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

2. "Commercial mortgage banker" means a person who engages in the following:

(a) Originating commercial mortgage loans.

(b) Servicing commercial mortgage loans.

(c) Either directly or indirectly making, negotiating or offering to make or negotiate commercial mortgage loans.

3. "Commercial mortgage loan" means a loan that is directly or indirectly secured by a mortgage or deed of trust or any lien interest on commercial property and created with the consent of the owner of the commercial property.

4. "Commercial mortgage loan closing" means the day by which all documents relating to the commercial mortgage loan have been executed and recorded and all monies have been accounted for under the terms of the escrow instructions.

5. "Commercial property" means real estate that is located in this state and that is not used for a one to four family residence.

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

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

8. "Institutional investor" means a person who in the regular course of business makes commercial mortgage loans of more than two hundred fifty thousand dollars that are funded exclusively from the institutional investor's own resources.

9. "Investor" means a person who directly or indirectly provides monies to a commercial mortgage banker that are, or are intended to be, used to make a loan, and any person who purchases a loan, or any interest in a loan, from a commercial mortgage banker or in a transaction that has been directly or indirectly arranged or negotiated by a commercial mortgage banker.

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

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

12. "Own resources" means any of the following:

(a) Cash, corporate capital, warehouse credit lines at commercial banks, savings banks or savings and loan associations or other sources that are liability items on the person's financial statements.

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

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

13. "Servicing commercial mortgage loans" means collecting payments at a location in this state on commercial mortgage loans, including:

(a) Principal.

(b) Interest.

(c) Trust items such as hazard insurance premiums, taxes and various reserves on an obligation under the terms of the obligation.

(d) Operational procedures covering accounting, bookkeeping, insurance, tax records, loan payment follow-up, delinquency loan follow-up, loan analysis and property valuation.
A.R.S. § 6-123.01 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 123.01
6-123.01 Fingerprint requirements; fees
Status: in_force

6-123.01. Fingerprint requirements; fees

A. Before receiving and holding a license, permit, certificate or permission to organize a bank, savings and loan association or credit union, the deputy director may require an applicant, licensee, active manager or responsible individual, an organizer, director or officer of any corporate applicant or licensee, any individual in control of a licensee or applicant, any individual who seeks to acquire control of a licensee or each key individual to submit a full set of fingerprints and fees to the department. The department of insurance and financial institutions shall submit the fingerprints and fees to the department of public safety, or the nationwide mortgage licensing system and registry established by the secure and fair enforcement for mortgage licensing act of 2008 (P.L. 110-289; 122 Stat. 2810; 12 United States Code sections 5101 through 5116) or its successor, for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.

B. The fees that the department collects under subsection A of this section shall be credited pursuant to section 35-148.

C. The applicant is responsible for providing the department with readable fingerprints. The applicant shall pay any costs that are attributable to refingerprinting due to the unreadability of any fingerprints and any fees that are required for the resubmission of fingerprints.

D. The department may issue a temporary license or certificate or grant temporary permission to organize to an original applicant before the department receives the results of a criminal records check if there is not evidence or reasonable suspicion that the applicant has a criminal history background that would be cause for denial of a license, certificate or permission to organize. The department may terminate the temporary license or certificate or permission to organize if a fingerprint card is returned as unreadable and the applicant fails to submit new fingerprints within ten days after being notified by the department that the original card was unreadable or if the results of the criminal records check reveal grounds for the denial of the license or certificate or permission to organize. The temporary license or certificate or permission to organize shall not be effective longer than one hundred eighty days.

E. The deputy director may require a current licensee, organizer, director, active manager, responsible individual or officer of any corporate licensee to submit a full set of fingerprints to the department. The department of insurance and financial institutions shall submit the fingerprints and fees to the department of public safety for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.

F. This section does not affect the department's authority to otherwise issue, deny, cancel, terminate, suspend or revoke a license.
A.R.S. § 6-123 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 123
6-123 Deputy director; powers
Status: in_force

6-123. Deputy director; powers

In addition to the other powers, express or implied, the deputy director may:

1. Exercise all powers that are necessary for the administration and enforcement of the laws and rules relating to financial institutions and enterprises.

2. In accordance with title 41, chapter 6, adopt rules that are necessary or appropriate to administer, enforce and accomplish the purposes of this title and adopt rules and issue orders that limit transactions between financial institutions or enterprises and the directors, officers or employees of the financial institutions or enterprises.

3. Require appropriate records, documents, information and reports from any financial institution or enterprise.

4. Submit to the department of public safety, or the nationwide mortgage licensing system and registry established by the secure and fair enforcement for mortgage licensing act of 2008 (P.L. 110-289; 122 Stat. 2810; 12 United States Code sections 5101 through 5116) or its successor, the name and fingerprints of any applicant, licensee, active manager or responsible individual or the name and fingerprints of any organizer, director or officer of any corporate applicant or licensee for:

(a) A banking permit.

(b) Permission to organize a savings and loan association or credit union.

(c) Any license.

(d) Any certificate.

(e) Authority to engage in interstate banking and branching in this state.

The department of public safety shall report the criminal record, if any, of such applicant, licensee or organizer, director or officer of such corporate applicant or licensee within ninety days after receiving the deputy director's request.

5. Employ appraisers to appraise any property that is owned or held as security by any financial institution or enterprise. The reasonable expenses and compensation of such appraisers shall be paid by the financial institution or enterprise.

6. Hold membership in, pay dues to and attend the convention of the national and regional organizations of state officials occupying like offices or performing similar functions.

7. Cooperate with other regulatory agencies and professional associations to promote the efficient, safe and sound operation and regulation of interstate banking and branching activities, including the formulation of interstate examination policies and procedures and the drafting of model rules and agreements.

8. Participate in the nationwide mortgage licensing system and registry established by the secure and fair enforcement for mortgage licensing act of 2008 (P.L. 110-289; 122 Stat. 2810; 12 United States Code sections 5101 through 5116), or its successor, and use the system for all aspects of licensure pursuant to this title, title 32, chapter 9 and title 44, chapter 2.1. The deputy director may allow the system to collect licensing fees on behalf of the deputy director, to collect a processing fee for the services of the system directly from each applicant for a license or licensee and to process and maintain records on behalf of the deputy director, including information collected pursuant to this section and section 6-123.01. This paragraph does not affect the records disclosure requirements and limitations prescribed in section 6-129.01.
A.R.S. § 6-272 — Arizona Code / Title 6 / Chapter 2 / Article 6 / Section 272
6-272 Deposits exempt from reserve requirement
Status: in_force

6-272. Deposits exempt from reserve requirement

In determining the legal reserves required by this article a bank may deduct from its gross deposits such deposits as are lawfully secured and each deposit balance due to another bank to the extent of a reciprocal deposit due from such other bank.
A.R.S. § 6-147 — Arizona Code / Title 6 / Chapter 1 / Article 4 / Section 147
6-147 Denial of application; grounds
Status: in_force

6-147. Denial of application; grounds

A. With respect to the proposed acquisition of control of a bank, trust company, savings and loan association or controlling person, an application shall be denied if the deputy director finds any of the following:

1. That the financial condition of any person who would acquire control is such as may jeopardize the financial stability of the bank, trust company or savings and loan association, or prejudice the interests of the depositors, beneficiaries, creditors and shareholders of the bank, trust company or savings and loan association.

2. That a plan or proposal to liquidate the bank, trust company or savings and loan association, to merge or consolidate the bank, trust company or savings and loan association or to make any other major change in the business, corporate structure or management of the bank, trust company or savings and loan association is not fair and reasonable to the depositors, beneficiaries, creditors or shareholders of the bank, trust company or savings and loan association.

3. That the applicant neglects, fails or refuses to furnish to the deputy director any information required by the deputy director.

4. That the proposed acquisition is contrary to law.

B. The deputy director, in approving a proposal to acquire control of a bank, trust company or savings and loan association, may impose such conditions as the deputy director deems reasonable, necessary or advisable in the public interest.