A.R.S. § 6-1235 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1235
6-1235 Money transmission; transmission of money by wire or electronic transfer; consumer fraud warnings; requirements; applicability
Status: in_force

6-1235. Money transmission; transmission of money by wire or electronic transfer; consumer fraud warnings; requirements; applicability

A. A licensee that engages in the business of receiving money for transmission on behalf of consumers for personal, family or household purposes shall provide consumer fraud warnings in accordance with subsection B of this section that include all of the following:

1. The risks of consumer fraud and how to find additional information about consumer fraud regarding money transmission.

2. Information about the dangers of transmitting money to unknown persons or to persons whom the sender cannot verify.

3. Information about how to stop a money transmission, if that option is available.

4. Information warning the sender that monies may not be returned once the money transmission is complete.

B. The licensee shall provide the information as prescribed in subsection A of this section to a consumer before transmitting any money by either of the following methods:

1. In person, in a document or other materials provided directly to the consumer or displayed prominently in the location in which the licensee or an authorized delegate of the licensee engages in receiving money for transmission. The written warning shall be in a type that contrasts with the background against which the written warning appears.

2. Through electronic transmission. The written warning shall be in a type that contrasts with the background against which the written warning appears.

C. This section does not apply to either of the following:

1. An electronic funds transfer where the monies are not transferred directly to another person and are not available for immediate use.

2. An electronic funds transfer that is made with a gift certificate.

3. A licensee that can demonstrate they provide or require their authorized delegate to provide annual fraud prevention training to employees that covers the indicia of fraud associated with electronic money transfers.
A.R.S. § 6-458 — Arizona Code / Title 6 / Chapter 3 / Article 5 / Section 458
6-458 Acknowledgments
Status: in_force

6-458. Acknowledgments

No acknowledgment of a deed, mortgage, or other instrument shall be invalid because such acknowledgment was taken before an officer authorized by the laws of this state to acknowledge conveyances, who is also a member, director, employee, or officer of an association which is a party to such deed, mortgage, or other instrument.
A.R.S. § 6-467 — Arizona Code / Title 6 / Chapter 3 / Article 7 / Section 467
6-467 Authority to liquidate
Status: in_force

6-467. Authority to liquidate

An association may liquidate voluntarily in accordance with a plan of voluntary liquidation which has been adopted in the manner provided in this article.
A.R.S. § 6-501 — Arizona Code / Title 6 / Chapter 4 / Article 1 / Section 501
6-501 Definitions
Status: in_force

6-501. Definitions

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

1. "Branch office":

(a) Means a place of business of a credit union, other than a principal office, at which deposits are received and checks are paid.

(b) Does not include premises used for computer operations, recordkeeping, accounting, storage, maintenance or other administrative or service functions.

2. "Capital" means share accounts, reserves and undivided earnings.

3. "Corporate credit union" means a credit union whose field of membership consists of other credit unions and organizations or associations owned by or composed of credit unions and corporations or associations that primarily serve credit unions.

4. "Credit union" means a cooperative nonprofit association that is incorporated under this chapter for the purposes of:

(a) Encouraging thrift among its members.

(b) Creating a source of credit and other financial services at a fair and reasonable cost.

(c) Assisting members to manage and control their financial resources to improve their social and economic conditions.

5. "Deposit account" means a balance other than a share account held by a credit union, including balances designated as special investment accounts, deposits, certificates of deposit, certificates of indebtedness, demand deposit accounts or other similar names.

6. "Fixed asset" means land, buildings and major equipment used by a credit union in the provision of services.

7. "Governmental unit" means a board, agency, department, authority, instrumentality or other unit or organization of the federal, state, county, municipal or other level of government.

8. "Immediate family" means persons related by blood or marriage and includes foster and adopted children.

9. "Insolvent" means that the value of a credit union's assets is less than its liabilities.

10. "Insuring organization" means the national credit union administration or successor organization or any other insurer approved by the deputy director.

11. "Membership share" means a balance held by a credit union and established by a member according to the standards prescribed by the credit union.

12. "Organization" means any corporation, association, partnership, society, firm, syndicate, trust or other legal entity.

13. "Reserves":

(a) Means allocations of retained income.

(b) Includes regular and special reserves and any allowances for loan losses and investment losses.

14. "Risk assets" includes all assets of the credit union except the following:

(a) Cash on hand.

(b) Deposits or shares in federally or state insured banks, savings and loan associations and credit unions that have a remaining maturity of five years or less or if the maturity is greater than five years, the asset is being carried on the credit union's records at the lower of cost or market or is being marked to market value monthly.

(c) Assets that have a remaining maturity of five years or less and are insured by, fully guaranteed as to principal and interest by or due from the United States government, its agencies, the federal national mortgage association, the federal home loan mortgage corporation or the government national mortgage association, including collateralized mortgage obligations that are comprised of government guaranteed mortgage loans or if the maturity is greater than five years, the asset is being carried on the credit union's records at the lower of cost or market or is being marked to market value monthly.

(d) Loans to other credit unions that have a remaining maturity of five years or less or if the maturity is greater than five years, the asset is being carried on the credit union's records at the lower of cost or market or is being marked to market value monthly.

(e) Student loans insured under title IV, part B of the higher education act of 1965 (20 United States Code section 1071, et seq.) or similar state insurance programs that have a remaining maturity of five years or less or if the maturity is greater than five years, the asset is being carried on the credit union's records at the lower of cost or market or is being marked to market value monthly.

(f) Loans that have a remaining maturity of five years or less and are fully insured or guaranteed by the federal or state government or an agency of either or if the maturity is greater than five years, the asset is being carried on the credit union's records at the lower of cost or market or is being marked to market value monthly.

(g) Shares or deposits in a central or corporate credit union that have a remaining maturity of five years or less or if the maturity is greater than five years, the asset is being carried on the credit union's records at the lower of cost or market or is being marked to market value monthly.

(h) Common trust investments, including mutual funds, that deal exclusively in investments authorized by the federal credit union act and are either carried at the lower cost or market or are marked to the market value monthly.

(i) Prepaid expenses.

(j) Accrued interest on nonrisk investments.

(k) Loans fully secured by a pledge of shares in the lending federal credit union equal to and maintained to at least the amount of the loan outstanding.

(l) Loans that are purchased from liquidating credit unions and guaranteed by the national credit union administration.

(m) National credit union share insurance fund guaranty accounts established with the authorization of the national credit union administration under the authority of section 208(a)(1) of the federal credit union act.

(n) Investments in shares of the national credit union administration central liquidity facility.

(o) Fixed assets as defined in section 701.36(b) of the federal credit union act.

(p) Deposits in the national credit union share insurance fund representing a federally insured credit union's capitalization account balance of one percent of insured shares.

15. "Share account" means a balance held by a credit union and established by a member according to this chapter, including balances designated as shares, share certificates, share draft accounts and membership shares. Ownership of a share account confers membership and voting rights and represents an interest in the capital of the credit union.

B. For the purposes of subsection A, paragraph 14, subdivision (g) of this section, a "central or corporate credit union" means a credit union whose membership primarily consists of either:

1. Other credit unions organized under state or federal law.

2. Officials, committee members and employees of any credit union organized under state or federal law.

3. Any combination of the categories described in paragraphs 1 and 2 of this subsection.
A.R.S. § 6-1708 — Arizona Code / Title 6 / Chapter 17 / Article 1 / Section 1708
6-1708 Lien priority and validity
Status: in_force

6-1708. Lien priority and validity

The full amount secured by a reverse mortgage security interest has the same priority over any other lien on the property as if the full amount had been disbursed on the date of the loan closing regardless of the actual date of any disbursement. The amount secured by the security interest shall include all direct payments by the borrower to the creditor or the creditor's assignee and all other loan advances permitted by the mortgage for any purpose including loan advances for interest, taxes and special assessments, premiums for hazard or mortgage insurance, servicing charges and costs of collection, regardless of when the payments or loan advances are made.  The priority provided by this section applies notwithstanding any other law.
A.R.S. § 6-609 — Arizona Code / Title 6 / Chapter 5 / Article 1 / Section 609
6-609 Reporting rates; change in rates; quarterly report of deputy director
Status: in_force

6-609. Reporting rates; change in rates; quarterly report of deputy director

A. At the time of making its annual report to the deputy director, each licensee shall report the licensee's standard annual percentage rate or range of annual percentage rates in effect at that time on the following types of loans:

1. A $500 unsecured consumer loan, payable in twelve equal monthly installments.

2. A $2,500 consumer loan secured by a motor vehicle, payable in thirty-six equal monthly installments.

3. A $9,000 consumer loan secured in full by real property, payable in one hundred twenty equal monthly installments.

4. A consumer revolving loan with an agreed on credit limit of $3,000.

5. A home equity revolving loan with an agreed on credit limit of $15,000.

B. The amount of each of the consumer loans described in subsection A of this section refers to the amount financed as computed in accordance with the truth in lending act. The licensee shall also report the range of the percentage amount of any prepaid finance charges charged in connection with a home equity revolving loan described in subsection A, paragraph 5 of this section.

C. Within thirty days after effectuating a change in the standard rate of charge for any of the types of loans described in subsection A of this section, the licensee shall report that change to the deputy director.

D. On at least a quarterly basis the deputy director shall compile a report of the standard annual percentage rate or range of annual percentage rates of each licensee for the types of loans described in subsection A of this section. The deputy director shall disseminate this report in a manner deemed appropriate by the deputy director, and the deputy director shall make the report available to the public for inspection and copying.
A.R.S. § 6-1411 — Arizona Code / Title 6 / Chapter 14 / Article 1 / Section 1411
6-1411 Disclosure requirements
Status: in_force

6-1411. Disclosure requirements

Every licensee shall make available to agents, brokers and managing general agents disclosures as prescribed by title I of the consumer credit protection act (15 United States Code sections 1601 through 1667) in both English and Spanish. All premium finance agreements shall disclose in English and Spanish, in close proximity to the signature lines, that the borrower may request the Spanish language disclosure before signing any documents.
A.R.S. § 6-1208 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1208
6-1208 Consistent licensure
Status: in_force

6-1208. Consistent licensure

A. To establish consistent licensure between this state and other states, the director may do both of the following:

1. Implement all licensing provisions of this article in a manner that is consistent with other states that have adopted laws that are substantively similar to this article or multistate licensing processes.

2. Participate in nationwide protocols for licensing cooperation and coordination among state regulators if the protocols are consistent with this article.

B. The director may establish relationships or contracts with NMLS or other entities designated by NMLS to enable the director to do all of the following:

1. Collect and maintain records.

2. Coordinate multistate licensing processes and supervision processes.

3. Process fees.

4. Facilitate communication between this state and licensees or other persons subject to this article.

C. The director may use NMLS for all aspects of licensure pursuant to this article, including license applications, applications for acquisitions of control, surety bonds, reporting, criminal history background checks, credit checks, fee processing and examinations.

D. The director may use NMLS forms, processes and functionalities pursuant to this article. If NMLS does not provide functionality, forms or processes for a provision of this article, the director may strive to implement the requirements in a manner that facilitates uniformity with respect to licensing, supervision, reporting and regulation of licensees that are licensed in multiple jurisdictions.

E. For the purpose of participating in NMLS, the director may waive or modify, in whole or in part, by rule or order, any or all of the requirements and establish new requirements as reasonably necessary to participate in NMLS.
A.R.S. § 6-841.02 — Arizona Code / Title 6 / Chapter 7 / Article 3 / Section 841.02
6-841.02 Liability of title insurer; closing protection letter; definition
Status: in_force

6-841.02. Liability of title insurer; closing protection letter; definition

A. A real property escrow agent that is a title insurance agent shall disclose to the buyer and seller of a residential dwelling that the title insurer shall offer on request a closing protection letter that provides protection for the loss of escrow monies due to fraud or dishonesty of the escrow agent. This disclosure requirement applies only to transactions involving a buyer and seller of a residential dwelling and shall be made when the buyer or seller employs the escrow agent.

B. If an escrow agent licensed pursuant to this chapter does not make the disclosure prescribed by this section, the title insurer shall reimburse the buyer or seller, as applicable, for any escrow monies that are lost. The title insurer's obligation pursuant to this subsection shall be as set forth in the title insurer's standard closing protection letter.

C. A title insurer may also provide a closing protection letter to any person that is a party to a transaction in which a title insurance policy will be issued.

D. Under the terms and conditions of the closing protection letter as issued by the title insurer, a closing protection letter may indemnify a person insured under a title insurance policy against a loss that results from the following actions of a policy-issuing title insurance agent or other settlement service provider who has been approved by the title insurer for such protection:

1. Theft or misappropriation of settlement monies in connection with a transaction in which a title insurance policy will be issued by or on behalf of the title insurer issuing the closing protection letter, but only to the extent that the theft relates to the status of the title to that interest in land or to the validity, enforceability and priority of the lien of the mortgage on that interest in land.

2. As to a buyer or lender, failure to comply with the written closing instructions when agreed to by the settlement agent, title insurance agent or employee of the title insurer, but only to the extent that the failure to follow the instructions relates to the status of the title to that interest in land or to the validity, enforceability and priority of the lien of the mortgage on that interest in land.

E. A title insurer must charge a party receiving a closing protection letter a fee. The title insurer earns the fee on the closing of the transaction, and the fee is not subject to any agreement requiring a division of fees or premiums collected on behalf of the title insurer. The fee for each closing protection letter shall not exceed twenty-five dollars for the protection of a party receiving the benefit of closing protection, the buyer, borrower or seller and the lender, in connection with the real property transaction giving rise to the issuance of the closing or settlement protection.

F. A title insurer may not provide any other protection that purports to indemnify against improper acts or omissions of a person with regard to settlement or closing services.

G. For the purposes of this section, "residential dwelling" means an owner occupied structure or an investment property that is designed for residential use by four or fewer families.
A.R.S. § 6-146 — Arizona Code / Title 6 / Chapter 1 / Article 4 / Section 146
6-146 Material change of fact; filing amended statements
Status: in_force

6-146. 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 such application, an amendment setting forth such change, together with copies of all documents and other material relevant to such change, shall be filed with the deputy director.
A.R.S. § 6-1702 — Arizona Code / Title 6 / Chapter 17 / Article 1 / Section 1702
6-1702 Financial counseling; counselor requirements
Status: in_force

6-1702. Financial counseling; counselor requirements

A. Adequate counseling under this chapter must be provided by a counselor who is an independent third party.

B. To qualify as an independent third party, the counselor may not be associated with or compensated, directly or indirectly, by a party involved in any of the following:

1. Originating or servicing the reverse mortgage.

2. Funding the loan underlying the reverse mortgage.

3. Selling annuities, investments, long-term care insurance or any other type of financial or insurance product.

C. Counseling services required pursuant to this chapter shall be provided by housing counseling agencies and by counselors who follow uniform counseling protocols approved by the United States department of housing and urban development.
A.R.S. § 6-526 — Arizona Code / Title 6 / Chapter 4 / Article 4 / Section 526
6-526 Calling of special meetings
Status: in_force

6-526. Calling of special meetings

The bylaws shall prescribe the manner in which the members or the board of directors, or both, may call a special meeting of the members.
A.R.S. § 6-531 — Arizona Code / Title 6 / Chapter 4 / Article 5 / Section 531
6-531 Authority and responsibility of directors; voting
Status: in_force

6-531. Authority and responsibility of directors; voting

A. The board of directors has the authority and responsibility for directing the business affairs, monies and records of the credit union.

B. Except as provided in section 6-543, directors may not vote by proxy, absentee ballot or mail ballot but may vote by telephone conference or electronic meeting if all directors participating can speak to and be heard by the other directors during the telephone conference or electronic meeting.

C. The board of directors shall meet at least once every two months. The deputy director may direct a credit union's board of directors to meet more frequently to address specific matters.
A.R.S. § 6-1706 — Arizona Code / Title 6 / Chapter 17 / Article 1 / Section 1706
6-1706 Borrower liability; prohibited practices; investments; annuities
Status: in_force

6-1706. Borrower liability; prohibited practices; investments; annuities

A. The borrower is not liable for any difference between the net amount of the borrower's remaining debt under the reverse mortgage and the amount recovered by the originator from the net sales proceeds from the dwelling that is subject to the reverse mortgage.  This amount is based on the amount of the accumulated equity selected by the borrower to be subject to the reverse mortgage as agreed on by the originator and the borrower.

B. An originator shall not:

1. Enter into any agreement that would obligate the borrower to purchase an annuity, an investment or long-term care insurance before the closing of the reverse mortgage or before the expiration of the borrower's right to rescind the reverse mortgage agreement if a rescission period applies.

2. Refer the borrower to anyone for the purchase of an annuity before the closing of the reverse mortgage or before the expiration of the borrower's right to rescind the reverse mortgage agreement.

C. This section does not prevent a lender from offering or referring borrowers for title insurance, hazard, flood or other peril insurance or other similar products that are customary and normal under a reverse mortgage loan.
A.R.S. § 6-330 — Arizona Code / Title 6 / Chapter 2 / Article 7 / Section 330
6-330 Rights, powers and privileges of out-of-state banks
Status: in_force

6-330. Rights, powers and privileges of out-of-state banks

Except as prohibited by federal law, an out-of-state bank doing business in this state, including any special purpose depository institution that is chartered as a bank, has all of the rights, powers and privileges and is entitled to the same exemptions and immunities as a comparable in-state financial institution that holds a permit under this title and is subject to all of the provisions of this title to the same extent as a comparable in-state financial institution.
A.R.S. § 6-235 — Arizona Code / Title 6 / Chapter 2 / Article 4 / Section 235
6-235 Bank deposits in two or more names; payment to survivor
Status: in_force

6-235. Bank deposits in two or more names; payment to survivor

Bank deposits may be made in the name of two or more persons, including minors, payable to either or any of them, or payable to either or any of the survivors or the sole survivor, and the deposits or any part thereof and any interest thereon, may be paid to or on order of any of the persons whether the other or others are living or not. The receipt, order or acquittance of the persons so paid is a valid and sufficient release and discharge to the bank for any payments so made.
A.R.S. § 6-541 — Arizona Code / Title 6 / Chapter 4 / Article 5 / Section 541
6-541 Audits
Status: in_force

6-541. Audits

A. The supervisory committee shall make or cause to be made a comprehensive annual audit of the books and affairs of the credit union. The supervisory committee shall also make those supplementary examinations, audits and verifications of members' accounts as it deems necessary or as required by the deputy director or the board of directors. The supervisory committee shall submit a report of each annual audit to the board of directors at its next meeting, and to the deputy director, and shall include a summary of that report to the members at the next annual meeting of the credit union.

B. The audit shall be made using generally accepted accounting procedures and standards. Each audit at a minimum shall test the credit union's assets, liabilities, equity, income, expenses and internal controls.

C. The supervisory committee shall ensure that adequate work papers are prepared and maintained to support each audit. These work papers shall be made available for review during examinations by the deputy director.
A.R.S. § 6-395.03 — Arizona Code / Title 6 / Chapter 2 / Article 13 / Section 395.03
6-395.03 Federal deposit insurance corporation power pending judicial proceedings
Status: in_force

6-395.03. Federal deposit insurance corporation power pending judicial proceedings

The federal deposit insurance corporation may pay out and acquire the insured deposit liabilities of a bank notwithstanding the possession by the deputy director or the pendency of receivership proceedings and for such purposes shall have the use of the facilities and records of the bank. The federal deposit insurance corporation and its directors, officers, agents and employees, the deputy director and the receiver and the respective agents and employees of each, shall be free from liability to the bank, its directors, stockholders and creditors, for or on account of any action authorized by this section.
A.R.S. § 6-496 — Arizona Code / Title 6 / Chapter 3 / Article 10 / Section 496
6-496 Applicability of other statutes
Status: in_force

6-496. Applicability of other statutes

Whenever in any statute the terms "savings and loan", "building and loan", "mutual building and loan", or other similar names are used with reference to associations organized for the purpose of associations incorporated or operating under this chapter, such reference shall be applicable to associations operating under this chapter. Whenever in any statute the terms "members", "shareholders", or "investors" are used in connection with such associations, however named, the same shall refer to members and holders of capital of associations operating under this chapter.
A.R.S. § 6-588 — Arizona Code / Title 6 / Chapter 4 / Article 12 / Section 588
6-588 Conversion of credit union
Status: in_force

6-588. Conversion of credit union

A. A credit union incorporated under the laws of this state may be converted to a credit union organized under the laws of the United States, or it may be converted to a credit union organized under the laws of another state if the principal office has relocated to another state or jurisdiction, in the following manner:

1. On recommendations of the board of directors, the members of a credit union incorporated under the laws of this state, by an affirmative majority vote of all members voting in a meeting called for that purpose or by written ballot filed within fifteen days, may resolve to convert the credit union into a federal credit union or a credit union organized under the laws of another state.

2. Within twenty days after the meeting at which the members determine to so convert, the credit union shall file with the deputy director a certificate verified by the affidavit of the president or the chairman and the secretary of the credit union. The certificate shall contain a copy of the minutes of the meeting and a statement that the members have approved the determination to convert the credit union into a federal credit union or a credit union organized under the laws of another state.

3. The filing of the certificate required in paragraph 2 of this subsection with the deputy director is presumptive proof or evidence of the holding of the meeting and the action taken.

4. After the meeting of the members, the credit union shall take such action as is necessary under the federal law or the state law to which it is converting as a credit union. It shall also liquidate in a manner approved by the deputy director any assets or liabilities that are not by reason of law capable of being transferred to the converted credit union. Within ten days after the receipt of the new charter or certificate of incorporation, the credit union shall file with the deputy director and the corporation commission a copy of the instrument. On this filing, the credit union ceases to be a credit union incorporated under the laws of this state and is converted to one under its new jurisdiction.

5. At the time the conversion becomes effective, the credit union ceases to be supervised by this state and all of the property of the credit union, including all of its right, title and interest in and to all property of every kind and character, immediately by operation of law and without any conveyance or transfer and without any further act or deed is vested in the converted credit union under its new name and structure and under its new jurisdiction.

6. The converted credit union shall have, hold and enjoy the property prescribed in paragraph 5 of this subsection in its own right as fully and to the same extent as the property was possessed, held and enjoyed by it as a credit union under the laws of this state. The converted credit union continues to be responsible for all of the obligations of the former credit union to the same extent as though the conversion had not taken place. The converted credit union is merely a continuation of the former credit union under a new name and new jurisdiction and the revision of its corporate structure as is necessary for its proper operation under the new jurisdiction.

B. A credit union organized under the laws of the United States or of any other state may convert to a credit union incorporated under the laws of this state in the following manner:

1. To effect such a conversion a credit union shall first comply with all of the requirements of the jurisdiction under which it is organized and file proof of the compliance with the deputy director.

2. The converting credit union through its proper officers and officials shall sign and acknowledge in quintuplicate a certificate of organization as required in sections 6-506 and 6-507 in which they bind themselves to comply with the requirements of the certificate and with all the laws and rules applicable to a state credit union. The application for a certificate of organization in quintuplicate, the bylaws in duplicate and the required charter fee and examination assessment shall be submitted to the deputy director who shall make or cause to be made an appropriate investigation for the purpose of determining the advisability of such a conversion. On receipt of the  deputy director's certificate of organization in quadruplicate, with the certificate of approval, the applicants shall file the certificate of approval attached in quadruplicate with the corporation commission and record a certified copy of the filing under the seal of the commission with the county recorder of the county or counties in which the credit union is to do business. On proof of the recording, the corporation commission shall issue a certificate of incorporation to the credit union. The credit union shall forward a certified copy of the certificate of organization showing the filing and recording to the deputy director. The credit union shall also file with the corporation commission the appointment of an agent on whom service of process may be made.

3. Within ten days after the receipt of the certified copy of the certificate of incorporation by the credit union, the credit union shall file two certified copies of the certificate with its present supervisory agency and a copy of the transmittal letter with the deputy director.

4. On filing the certified copy of the certificate of organization with the deputy director, the converting credit union ceases to be a credit union under its former jurisdiction and is a credit union under the laws of this state. All of the property of the credit union, including all of its right, title and interest in and to all property of every kind and character, immediately, by operation of law and without any conveyance or transfer and without any further act or deed, is vested in the credit union under its new name and style as a state credit union and under its new jurisdiction.

5. The converted credit union shall have, hold and enjoy the property prescribed in paragraph 4 of this subsection in its own right as fully and to the same extent as the property was possessed, held and enjoyed by it as a credit union under its former jurisdiction and the converted credit union continues to be responsible for all of the obligations of the former credit union to the same extent as though conversion had not taken place. The converted credit union is merely a continuation of the former credit union under a new name and new jurisdiction and the revision of its corporate structure as is considered necessary for its proper operation under the new jurisdiction.

C. A credit union incorporated under the laws of this state may be converted into an association, as defined in section 6-401, that is incorporated under the laws of this state or of the United States if the credit union complies with both of the following:

1. The provisions established by the national credit union administration as prescribed by 12 Code of Federal Regulations part 708a.

2. Any rules that the deputy director adopts to implement this subsection.
A.R.S. § 6-114 — Arizona Code / Title 6 / Chapter 1 / Article 2 / Section 114
6-114 Balloon payments prohibited; applicability; exemptions
Status: in_force

6-114. Balloon payments prohibited; applicability; exemptions

A. A person engaged in the business of lending money or negotiating a loan between parties shall not make or arrange a loan in violation of this section.

B. On a loan in an amount of ten thousand dollars or less for a term up to three years which is secured by a lien on real property comprising an owner-occupied dwelling, an installment payment, whether providing for payment of principal, interest or principal and interest, shall not be greater than twice the amount of the smallest installment.

C. This section applies only to mortgages, trust deeds or other evidences of indebtedness secured by a lien other than a primary or first lien on real property.

D. This section does not apply to transactions involving the purchase or sale or the proposed purchase or sale of real property or to a financial institution licensed or chartered by this state or the federal government.

E. Pursuant to the provisions of 12 United States Code section 3804, this section shall not be superseded by the provisions of 12 United States Code section 3803.
A.R.S. § 6-972 — Arizona Code / Title 6 / Chapter 9 / Article 3 / Section 972
6-972 Exemptions
Status: in_force

6-972. Exemptions

This article does not apply to:

1. Institutional investors.

2. A person who funds a commercial mortgage loan that was originated and processed by a licensee or by an institutional investor and who meets all of the following conditions:

(a) Does not maintain a place of business in this state in connection with funding commercial mortgage loans.

(b) Does not directly or indirectly solicit borrowers in this state for the purpose of making commercial mortgage loans.

(c) Does not participate in negotiating commercial mortgage loans. For purposes of this subdivision, "negotiating commercial mortgage loans" does not include setting the terms under which a person may buy or make a commercial mortgage loan originated by a licensee, a mortgage banker or a mortgage broker licensed pursuant to article 1 or 2 of this chapter, or an institutional investor.

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

4. A person who is licensed to practice law in this state but is not actively and principally engaged in the business of negotiating commercial mortgage loans, if this person renders services in the course of his practice as an attorney at law.

5. A person who receives a mortgage or deed of trust on commercial property as security for an obligation payable on an installment or deferred payment basis and arising out of materials furnished or services rendered in improving that commercial property or any lien created without the consent of the owner of commercial property.

6. A person who is licensed pursuant to article 1 or 2 of this chapter.

7. An agency of any state or of the United States.

8. A nonprofit federally tax exempt corporation certified by the United States small business administration, organized to promote economic development in this state and whose primary activity consists of providing financing for business expansion.

9. A bank, savings bank, trust company, savings and loan association, profit sharing trust, pension trust, credit union, insurance company, consumer lender or receivership if it is regulated by this state, another state, the United States or a court with respect to its commercial mortgage business.
A.R.S. § 6-383 — Arizona Code / Title 6 / Chapter 2 / Article 11 / Section 383
6-383 Identification and segregation of fiduciary assets
Status: in_force

6-383. Identification and segregation of fiduciary assets

Except as may be otherwise provided by law or by the writing creating the trust, a bank holding any asset as a fiduciary shall segregate all such assets from the general assets of the bank and shall maintain such safekeeping methods and records that the assets of each trust may be readily identified and distinguished from the assets of any other trust. Trust assets may be held in the name of nominees of the bank whether the bank is the sole fiduciary or acting with others, but the bank shall be responsible for the acts of any such nominee.
A.R.S. § 6-474 — Arizona Code / Title 6 / Chapter 3 / Article 8 / Section 474
6-474 Accounting practices and records
Status: in_force

6-474. Accounting practices and records

A. Every association shall maintain in this state a detailed record of all transactions of the association at its home office, or at a branch office or at a central accounting or computer center servicing one or more associations, provided that general accounting records and their maintenance shall not be transferred by an association from its home office to a branch office, or from a branch office to its home office or to another branch office or to a central accounting or computer center, unless and until:

1. The board of directors of the association has by resolution authorized such transfer and maintenance.

2. The association has sent a certified copy of the resolution required by paragraph 1 of this subsection to the deputy director.

B. Each branch office shall keep detailed records of all transactions at such branch office and shall furnish full control records to the home office, or such branch office or central accounting or computer center as has been designated by appropriate resolution of the board of directors adopted and filed as provided in subsection A of this section.

C. Every association shall observe such generally accepted accounting principles and practices as are approved by the deputy director.

D. An association by any system of accounting or any device of bookkeeping, either directly or indirectly, shall not enter any of its assets on its books in the name of any other person, partnership, association or corporation, or under any title or designation that is not truly descriptive of the assets.

E. The deputy director may order that assets in the aggregate, to the extent that the assets have depreciated in value, be charged off or that a special reserve or reserves equal to such depreciation in value be set up by transfers from undivided profits.

F. Except notes secured by first lien mortgages insured or guaranteed, wholly or in part, by an agency of the United States government, all bonds or other interest bearing obligations purchased by the association shall be carried at par with provision for amortization of premiums and discounts.
A.R.S. § 6-391 — Arizona Code / Title 6 / Chapter 2 / Article 12 / Section 391
6-391 Unauthorized conduct of banking business; false representation
Status: in_force

6-391. Unauthorized conduct of banking business; false representation

It is unlawful for any person to engage in this state in the banking business as defined in section 6-201 or to make use of the word "bank" or any other words in a manner reasonably calculated to convey the impression that the person is engaged in the banking business in this state, unless the act is done by or on behalf of a person having authority under section 6-201.
A.R.S. § 6-882 — Arizona Code / Title 6 / Chapter 8 / Article 3 / Section 882
6-882 Savings accounts and time deposits; insurance; withdrawal; notice
Status: in_force

6-882. Savings accounts and time deposits; insurance; withdrawal; notice

A. If authorized by the articles of incorporation and bylaws and if approved by the deputy director, a trust company may receive monies for the purpose of maintaining savings accounts and time deposits. The trust company may pay interest on the savings accounts and time deposits and may prescribe terms and conditions that are consistent with the requirements of the federal deposit insurance corporation.

B. Before offering savings accounts and time deposits the board of directors shall approve the action by a written resolution that specifies the written documents to be issued representing the savings accounts and time deposits. The board shall submit:

1. A certified copy of the approving resolution to the deputy director.

2. Copies of the written documents to the deputy director for approval by the deputy director.

C. The federal deposit insurance corporation or its successor shall insure all savings accounts and time deposits held by a trust company. A trust company shall immediately notify the deputy director when the trust company applies to the federal deposit insurance corporation or its successor for deposit insurance. Until final disposition of the application for deposit insurance, the trust company shall submit monthly reports to the deputy director specifying the status of the application.

D. A trust company may require the holder of a savings account to give the trust company written notice at least seven days before an intended withdrawal that is not payable on a specified date or at the expiration of a specified time after the date of deposit.

E. A trust company may issue a transferable, nontransferable, negotiable or nonnegotiable certificate, instrument, passbook or statement representing a time deposit or savings account.
A.R.S. § 6-612 — Arizona Code / Title 6 / Chapter 5 / Article 1 / Section 612
6-612 Rules
Status: in_force

6-612. Rules

The deputy director may adopt rules that are necessary to regulate the proper conduct of a licensee.
A.R.S. § 6-257 — Arizona Code / Title 6 / Chapter 2 / Article 5.1 / Section 257
6-257 Payment to beneficiary by bank
Status: in_force

6-257. Payment to beneficiary by bank

A. Unless the account agreement states otherwise, the bank is obligated to pay a beneficiary if there are sufficient actually and finally collected funds in the balance of the special deposit.

B. Except as provided in subsection C of this section, the obligation to pay the beneficiary is excused if the funds available in the special deposit are insufficient to cover such payments.

C. Unless the account agreement provides otherwise, if the funds available in the special deposit are insufficient to cover an obligation to pay a beneficiary, a beneficiary may elect to be paid the funds that are available or, if there is more than one beneficiary, a pro rata share of the funds available.  Payment to the beneficiary making the election under this subsection discharges the bank's obligation to pay a beneficiary and does not constitute an accord and satisfaction with respect to another person obligated to the beneficiary.

D. Unless the account agreement provides otherwise, the obligation of the bank obligated to pay a beneficiary is immediately due and payable.

E. The bank may discharge its obligation under this section by:

1. Crediting another transaction account of the beneficiary; or

2. Taking other action that:

(a) Is permitted under the account agreement for the bank to obtain a discharge; or

(b) Otherwise would constitute a discharge under law.

F. If the bank obligated to pay a beneficiary has incurred an obligation to discharge the obligation of another person, the obligation of the other person is discharged if action by the bank under subsection E of this section would constitute a discharge of the obligation of the other person under law that determines whether an obligation is satisfied.
A.R.S. § 6-901 — Arizona Code / Title 6 / Chapter 9 / Article 1 / Section 901
6-901 Definitions
Status: in_force

6-901. Definitions

In this article, unless the context otherwise requires:

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

2. "Commercial mortgage broker" means a person who for compensation or in the expectation of compensation either directly or indirectly makes, negotiates or offers to make or negotiate a commercial mortgage loan.

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 that is created with the consent of the owner of the commercial property.

4. "Commercial property" means real property that is not a residential dwelling of one to four units.

5. "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.

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

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. "Investor" means a person who lends or invests money in mortgage loans.

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

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

11. "Loan originator" has the same meaning prescribed in section 6-991.

12. "Mortgage broker" means a person who is not exempt under section 6-902 and who for compensation or in the expectation of compensation either directly or indirectly makes, negotiates or offers to make or negotiate a mortgage loan.

13. "Mortgage loan" means a loan secured by a mortgage or deed of trust or any lien interest on real estate located in this state created with the consent of the owner of the real estate.

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

15. "Residential mortgage loan" means a mortgage loan that has security in the form of a residential dwelling of one to four units.
A.R.S. § 6-869 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 869
6-869 Meetings; reports; report of examination; response; penalties
Status: in_force

6-869. Meetings; reports; report of examination; response; penalties

A. The board of directors of a trust company shall meet at least once every three months. The deputy director or any director may call a special meeting. A majority of the board constitutes a quorum. The board shall keep minutes of each meeting, including a record of attendance and a record of all votes pertaining to the trust business, any officer or any shareholder.

B. At least once every three months the board of directors of a trust company shall review written reports prepared by the president, other officers of the trust company or the trust committee as prescribed in section 6-870. The reports shall include the accounts that have been opened or closed during the calendar quarter before the meeting and the trust accounts subject to annual review during the calendar quarter before the meeting.

C. Within thirty days after the trust company receives a report of examination from the deputy director, the directors shall meet to consider the contents of the report. Within ten days after the meeting, the chairman or the president of the board of directors shall notify the deputy director of the meeting and shall acknowledge, on the declaration of each director attending the meeting, that each director reviewed the report and the chairman or the president shall file a response to the report that describes the board's responses to the examiners' recommendations, including any remedies for violations of this title.

D. Unless the deputy director excuses a trust company from filing a response, the trust company shall file a response to the report of examination within forty days after the trust company receives the report. A trust company that fails to file a timely response or that is not excused from filing a timely response shall pay a penalty to the department. The department shall assess a penalty of $100 or less for each day of the delinquency.
A.R.S. § 6-573 — Arizona Code / Title 6 / Chapter 4 / Article 8 / Section 573
6-573 Money type instruments
Status: in_force

6-573. Money type instruments

A credit union may collect, receive and disburse monies in connection with the providing of negotiable instruments, money orders, traveler's checks, credit or debit cards and other money instruments and may charge reasonable fees for these services.
A.R.S. § 6-321 — Arizona Code / Title 6 / Chapter 2 / Article 7 / Section 321
6-321 Definitions
Status: in_force

6-321. Definitions

In this article, unless the context otherwise requires:

1. "Acquire" as applied to an in-state financial institution means any of the following actions or transactions:

(a) The merger or consolidation of an in-state financial institution with an out-of-state financial institution.

(b) The acquisition by an out-of-state financial institution of the direct or indirect ownership or control of voting shares of an in-state financial institution if, after the acquisition, the out-of-state financial institution will directly or indirectly own or control more than twenty-five percent of the outstanding voting shares of the acquired in-state financial institution.

(c) The direct or indirect acquisition of all or substantially all of the assets of an in-state financial institution.

(d) The taking of any other action that would result in the direct or indirect control of an in-state financial institution.

2. "Control" means direct or indirect ownership of or power to vote twenty-five percent or more of the outstanding voting shares of an in-state financial institution or to control in any manner the election of a majority of the directors of an in-state financial institution.

3. "De novo entry" means a newly established bank or savings and loan association which is not created through the acquisition of or merger with an in-state financial institution and control is through an out-of-state financial institution.

4. "Filed with the division" means when the complete application including any amendments or supplements containing all the information in the form required by the division is received by the division.

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

6. "Out-of-state financial institution" means a state or federal bank, savings bank or savings and loan association with its home office in a state other than this state, or holding company with its home office in a state other than this state.
A.R.S. § 6-181 — Arizona Code / Title 6 / Chapter 2 / Article 1 / Section 181
6-181 Declaration of purposes
Status: in_force

6-181. Declaration of purposes

The purposes of this chapter, which shall govern judicial and administrative interpretation and application of the provisions of this chapter, are to provide for:

1. Safe and sound conduct of banks.

2. Conservation of bank assets.

3. Maintenance of public confidence in banks.

4. Protection of the interests of depositors and fiduciary beneficiaries and of the interest of the public in the soundness and preservation of the banking system.

5. Opportunity for banks to remain competitive with each other, with financial institutions existing under other laws of this state and with banking and financial institutions existing under the laws of other states, the United States and foreign countries.

6. Opportunity for banks to serve effectively the convenience and needs of their depositors, borrowers and other customers, to participate in and promote the economic progress of this state and the United States and to improve and expand their services and facilities for those purposes.

7. Opportunity for management of banks to exercise business judgment in conducting banking affairs subject to this chapter.

8. Simplification and modernization of the law governing banking and governing the exercise of fiduciary and other representative powers by banks.

9. Implementation and execution of this chapter by the full utilization of the rulemaking and administrative discretions of the deputy director.
A.R.S. § 6-131.01 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 131.01
6-131.01 Appointment of deputy director as receiver; award of property, fees and costs
Status: in_force

6-131.01. Appointment of deputy director as receiver; award of property, fees and costs

A. The deputy director may be appointed as a receiver of a financial institution or enterprise under the deputy director's supervision. No bond is required of the deputy director for acting as a receiver.

B. All reasonable expenses of the department relating or apportioned to a receivership, including receiver fees and attorney fees, costs of preliminary or other examinations of the person placed into receivership and expenses relating to the management of any office or other asset of the person placed in receivership, shall be awarded by the court for payment to the department out of the assets of the receivership. The department shall assess those expenses against the receivership quarterly and shall deposit those amounts in the department receivership revolving fund, as provided in section 6-135.01. Those assessments have priority over the other creditors of the receivership. Notwithstanding the other provisions of this subsection, on request by the deputy director, the court may award personal property of the receivership to the department as partial compensation for the services rendered during the administration of the receivership.

C. The deputy director shall maintain a complete accounting of each receivership in which the deputy director is appointed as receiver.
A.R.S. § 6-1206 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1206
6-1206 Relationship to federal law
Status: in_force

6-1206. Relationship to federal law

A. If a state money transmission jurisdiction is conditioned on a federal law, any inconsistencies between this article and the federal law relating to money transmission shall be governed by the applicable federal law to the extent of the inconsistency.

B. If there is an inconsistency between this article and a federal law that governs pursuant to subsection A of this section, the director may provide interpretive guidance that identifies both of the following:

1. The inconsistency.

2. The appropriate means of compliance with federal law.
A.R.S. § 6-946 — Arizona Code / Title 6 / Chapter 9 / Article 2 / Section 946
6-946 Required accounting practices and records; refundable deposits; periodic impoundment payments; disclosure
Status: in_force

6-946. Required accounting practices and records; refundable deposits; periodic impoundment payments; disclosure

A. Every mortgage banker shall keep and maintain at all times correct and complete records clearly reflecting the financial condition of the business as prescribed by the deputy director that will enable the deputy director to determine whether the licensee is conducting the licensee's business in accordance with this article. A mortgage banker shall make records available to the deputy director in this state not more than three business days after demand and provide for the acceptance of collect calls or provide a toll-free telephone number to borrowers to obtain information from the records if the licensed places of business in this state cannot readily provide the information requested by the borrowers. Every mortgage banker shall maintain original documents, or clearly legible copies, of all mortgage banking loan transactions and mortgage loan transactions, unless the mortgage banking loan or mortgage loan is paid in full or the mortgage banking loan or mortgage loan and its servicing are sold, for not less than two years after the date of the mortgage banking loan closing or the date of the last disbursement of monies by the licensee, whichever occurs last. A licensee that uses a computer or mechanical recordkeeping system is not required to keep a written copy of the records if the licensee is able to generate all information required by this section in a timely manner for examination or for other purposes.

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

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

D. If periodic payments are to be collected from the mortgagor to provide for payments by the mortgagee of taxes, assessments, insurance premiums, ground rents or other current charges against the real estate security, the estimated payment amount stated to the mortgagor by the mortgage banker shall be such that the total of these payments collected for each category during the tax or other period will approximate the actual tax or other payment when due. All such periodic payments of taxes, assessments, insurance premiums, ground rents and other current charges shall be accounted for annually to the borrower and, to the extent monies have been collected for payment, shall be paid promptly by the mortgage banker.

E. Before a mortgage banking loan closing on residential real property designed principally for the occupancy of from one to four families, a licensee shall fully comply, to the extent they apply, with the real estate lending disclosure requirements of title I of the consumer credit protection act (15 United States Code sections 1601 through 1666j), the real estate settlement procedures act (12 United States Code sections 2601 through 2617) and the regulations promulgated under those acts.
A.R.S. § 6-1006 — Arizona Code / Title 6 / Chapter 10 / Article 1 / Section 1006
6-1006 Adverse claims to repository; definitions
Status: in_force

6-1006. Adverse claims to repository; definitions

A. Notice to the lessor of an adverse claim is not effectual to require the lessor to deny access to any person previously named on its records as lessee or as officer or agent of any lessee, nor is it sufficient to require the lessor to allow access to the repository by any adverse claimant unless the lessor is directed to do so by the order of a court; provided in the absence of such court order the lessor may refuse to allow access to any person.

B. For the purposes of this section:

1. "Adverse claim" means a claim by a person who is not a named lessee to the right of access to a safe deposit repository or to all or part of the contents thereof. "Adverse claim" also includes the conflicting claims of agents or officers of the lessee and the claim of any of several named lessees to the exclusive right of access to the repository contrary to the terms of the lease.

2. "Adverse claimant" means any person asserting an adverse claim.
A.R.S. § 6-121 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 121
6-121 Examination; supervision
Status: in_force

6-121. Examination; supervision

All financial institutions and enterprises shall be subject to examination and supervision by the department.
A.R.S. § 6-834 — Arizona Code / Title 6 / Chapter 7 / Article 3 / Section 834
6-834 Deposit of monies; definitions
Status: in_force

6-834. Deposit of monies; definitions

A. Unless all of the parties to the escrow otherwise instruct the escrow agent in writing, the escrow agent shall deposit and maintain all monies deposited in escrow to be delivered on the close of the escrow or on any other contingency in a bank, savings bank or savings and loan association doing business in this state and the escrow agent shall keep all of the escrow monies separate, distinct and apart from monies belonging to the escrow agent. Notwithstanding the parties' instructions to the escrow agent, the escrow agent shall not deposit the escrow monies in an institution outside the United States. When deposited, the monies shall be designated as "escrow accounts" or given some other appropriate designation indicating that the monies are not the monies of the escrow agent. These monies shall be deposited immediately on receipt or as soon thereafter as is reasonably practicable.

B. A person shall not knowingly keep or cause to be kept any monies in any bank or savings and loan association under the heading of "escrow accounts" or any other name designating the monies as belonging to the clients of any escrow agent, except actual escrow monies deposited with such escrow agent.

C. Escrow property is not subject to execution or attachment on any claim against the escrow agent.

D. Not later than three business days after receipt of any escrow monies, the escrow agent shall provide to each depositing buyer or seller adequate notice of the buyer's or seller's right to earn interest on all deposited monies. The adequate notice shall accurately set forth the following information with respect to this right:

1. A brief description of the depositor's right to earn interest on escrowed monies through an interest-bearing deposit account.

2. The dollar charge that may be imposed by the escrow agent solely to set up the interest-bearing account.

3. A good faith estimate of the amount of interest that may be earned during the life of the escrow account, or an example of a typical transaction calculated on a $1,000 deposit, using the prevailing savings account interest rate for a thirty-day period.

4. A brief description of how the interest-bearing account can be established, including the name, address and telephone number of the escrow agent to be contacted.

E. An escrow agent shall not receive from any depository institution any interest earned or other benefit from monies deposited with an escrow agent in connection with any escrow. This subsection does not prohibit the escrow agent from receiving accounting, data processing or other services directly related to the administration of escrow accounts.

F. An escrow agent may use a system of reciprocal deposits to provide access to additional insurance with the federal deposit insurance corporation for monies deposited with that escrow agent if both of the following occur:

1. The eligible depository arranges for the deposit of the monies in one or more federally insured banks, savings banks or savings and loan associations, regardless of location, for the escrow agent's account.

2. The eligible depository receives an amount of federally insured deposits from customers of other financial institutions equal to or greater than the amount of the monies initially deposited by the escrow agent.

G. For the purposes of this section:

1. "Adequate notice" means a printed notice to the depositing buyer or seller that sets forth the pertinent facts clearly and conspicuously. The notice shall be printed on the escrow instructions or on an independent document and given to the depositing customer in a manner reasonably assuring the customer's receipt of the notice.

2. "Eligible depository" means a bank, a savings bank or a savings and loan association that has a branch or its principal place of business located in this state and that is insured by the federal deposit insurance corporation or its successor.

3. "Reciprocal deposit" means a deposit that an eligible depository institution receives through a deposit placement network on a reciprocal basis such that:

(a) For any deposit received, the insured depository institution places the same amount with other insured depository institutions through the deposit placement network.

(b) Each member of the deposit placement network sets the interest rate to be paid on the entire amount of monies the member places with other deposit placement network members.
A.R.S. § 6-1222 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1222
6-1222 Relationship between licensees and authorized delegates
Status: in_force

6-1222. Relationship between licensees and authorized delegates

A. Before a licensee is authorized to conduct business through an authorized delegate or allows a person to act as the licensee's authorized delegate, the licensee must:

1. Adopt, and update as necessary, written policies and procedures reasonably designed to ensure that the licensee's authorized delegates comply with applicable state and federal law.

2. Enter into a written contract that complies with subsection C of this section.

3. Conduct a reasonable risk-based background investigation sufficient for the licensee to determine whether the authorized delegate complies with applicable state and federal law.

B. An authorized delegate must comply with this article.

C. The written contract required by subsection A of this section must be signed by the licensee and the authorized delegate and must:

1. Appoint the person signing the contract as the licensee's authorized delegate with the authority to conduct money transmission on behalf of the licensee.

2. Describe the nature and scope of the relationship between the licensee and the authorized delegate and the respective rights and responsibilities of the parties.

3. Require the authorized delegate to agree to fully comply with all applicable state and federal laws relating to money transmission.

4. Require the authorized delegate to remit and handle money and monetary value in accordance with the terms of the contract between the licensee and the authorized delegate. For the purposes of this paragraph, "remit" means to make direct payments of money to a licensee or the licensee's representative or to deposit money in a bank in an account specified by the licensee.

5. Impose a trust on money and monetary value net of fees received for money transmission for the benefit of the licensee.

6. Require the authorized delegate to prepare and maintain records as required by this article or as reasonably requested by the director.

7. Acknowledge that the authorized delegate consents to examination or investigation by the director.

8. State that the licensee is subject to regulation by the director and that the director may suspend or revoke an authorized delegate designation.

9. Acknowledge receipt of the written policies and procedures required under subsection A, paragraph 1 of this section.

D. Within five business days after a licensee's license is suspended, revoked, surrendered or expired, the licensee must provide documentation to the director that the licensee has provided notice of the suspension, revocation, surrender or expiration to all applicable authorized delegates of the licensee whose names are in a record filed with the director.  On suspension, revocation, surrender or expiration of a license, applicable authorized delegates shall immediately cease to provide money transmission as an authorized delegate of the licensee.

E. An authorized delegate of a licensee holds in trust for the benefit of the licensee all money net of fees received from money transmission. If any authorized delegate commingles any money received from money transmission with any other money or property owned or controlled by the authorized delegate, all commingled money and other property shall be considered held in trust in favor of the licensee in an amount equal to the amount of money net of fees received from money transmission.

F. An authorized delegate may not use a subdelegate to conduct money transmission on behalf of a licensee.
A.R.S. § 6-511 — Arizona Code / Title 6 / Chapter 4 / Article 2 / Section 511
6-511 Out-of-state credit union
Status: in_force

6-511. Out-of-state credit union

A. A credit union organized under the laws of another state or territory of the United States may conduct business as a credit union in this state, subject to all laws and rules governing the operation of credit unions under this title, with the prior approval of the deputy director if credit unions organized under this chapter are allowed to do business in such other state or territory under conditions substantially similar to the provisions of this section.  Before granting approval, the deputy director must find that the out-of-state credit union:

1. Is organized under laws substantially similar to this chapter.

2. Is financially solvent.

3. Has account insurance equivalent to that required for credit unions organized under this chapter.

4. Is examined and supervised by a regulatory agency of the state in which it is organized.

5. Needs to conduct business in this state to furnish services to its members in this state.

6. Furnishes the deputy director with a copy of the most recent audit or examination conducted by its regulatory agency.

B. In addition to any other powers provided by law, the deputy director may revoke the approval of such a credit union to conduct business in this state if the deputy director finds that the credit union no longer meets the requirements of subsection A of this section or has violated the laws of this state or rules or orders issued by the deputy director.
A.R.S. § 6-1601 — Arizona Code / Title 6 / Chapter 16 / Article 1 / Section 1601
6-1601 Financial institutions data match and data exchange; surrender of assets of delinquent taxpayer; nonliability
Status: in_force

6-1601. Financial institutions data match and data exchange; surrender of assets of delinquent taxpayer; nonliability

A. Financial institutions may enter into agreements with the department of revenue for data match and data exchange as prescribed by section 42-1207.

B. On receipt of a notice of levy, a financial institution shall encumber or surrender, as appropriate, assets held by the financial institution on behalf of a delinquent taxpayer.  If the financial institution receives two notices of levy on the same day for the same person, a levy issued to collect child support pursuant to section 25-521 has priority over a levy issued pursuant to this section.

C. Notwithstanding any other law, a financial institution is not subject to civil liability for either:

1. Disclosing to the department of revenue or its agent a person's financial record pursuant to section 42-1207 or any acts of omission that are inadvertent and made in good faith.

2. Encumbering or surrendering any assets held by the financial institution in response to a notice of levy that is issued by the department of revenue or for any action taken in good faith to comply with this section.

D. The remedy under subsection B of this section is limited to collection of delinquent taxes, penalties and interest.
A.R.S. § 6-1705 — Arizona Code / Title 6 / Chapter 17 / Article 1 / Section 1705
6-1705 Prepayment; repayment conditions
Status: in_force

6-1705. Prepayment; repayment conditions

A. Prepayment, in whole or in part, shall be permitted without penalty at any time during the term of a reverse mortgage.

B. For the purposes of this section, penalty does not include:

1. Any fees, payments or other charges that would otherwise be due when the reverse mortgage becomes due and payable.

2. Any closing costs that the agreement states are owed by the borrower if the borrower repays the reverse mortgage in whole before the date in the agreement, if the repayment occurs within five years after the date on which the agreement was made.

C. A reverse mortgage becomes due and payable if any of the following applies:

1. The property is not the principal residence of at least one borrower.

2. A borrower conveys all of the borrower's title in the property and no other borrower retains title.

3. For a period of longer than twelve consecutive months, a borrower fails to occupy the property because of physical or mental illness and the property is not the principal residence of at least one other borrower.

4. A borrower does not perform an obligation under the mortgage.

D. A reverse mortgage does not become due and payable if the legal title to the property is held in the name of a trust and the occupant of the property uses the property as a principal residence and is a beneficiary of that trust.

E. The creditor's or the creditor's assignee's right to collect the outstanding balance of the reverse mortgage under the loan is subject to the applicable statute of limitations for written loan contracts.  Notwithstanding any other law, the statute of limitations begins on either of the following:

1. The date that the reverse mortgage becomes due and payable as specified in the agreement.

2. The date the creditor or the creditor's assignee accelerates the loan due to the borrower's default on a provision in the agreement.
A.R.S. § 6-148 — Arizona Code / Title 6 / Chapter 1 / Article 4 / Section 148
6-148 Failure to act on application as approval
Status: in_force

6-148. Failure to act on application as approval

A. Notwithstanding any other provision of this article, any application for approval to acquire control of a bank, trust company, savings and loan association or controlling person that is not denied or approved by the deputy director within a period of sixty days after such application is filed with the deputy director or if the applicant consents to an extension of the period within which the deputy director may act, within such extended period, shall be deemed to be approved by the deputy director as of the first day after such period of sixty days or such extended period. If the deputy director gives notice of a hearing, the sixty-day period shall be extended to such date as may be fixed by order of the deputy director.

B. For purposes of this section, an application for approval is deemed to be filed with the deputy director at the time when the complete application, including any amendments or supplements, containing all the information in the form required by the deputy director, is received by the deputy director.
A.R.S. § 6-1103 — Arizona Code / Title 6 / Chapter 11 / Article 1 / Section 1103
6-1103 Exempt persons and transactions
Status: in_force

6-1103. Exempt persons and transactions

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

1. A registered dealer who acts as an underwriter or member of a selling group in a public offering of the voting securities of a financial institution or controlling person.

2. A person who acts as proxy for the sole purpose of voting at a designated meeting of the security holders of a financial institution or controlling person.

3. A person who acquires control of a financial institution or controlling person by devise or descent, except that the person shall divest himself of such control not more than two years after the date of the acquisition unless the acquisition of control is approved by the deputy director pursuant to this article.

4. A person who acquires control of a financial institution or controlling person as a personal representative, custodian, guardian or conservator appointed by a court or as a trustee, a receiver or other officer appointed by a court.

5. A pledgee of a voting security of a financial institution or controlling person who does not have the right, as pledgee, to vote the voting security.

6. A person who acquires control of a financial institution or controlling person through the collection of a debt previously contracted in good faith, except that the person shall divest himself of such control not more than two years after the date of the acquisition unless the acquisition of control is approved by the deputy director pursuant to this article.

B. A person or transaction that the deputy director by rule or order exempts as not being necessary or appropriate in the public interest or for the protection of a financial institution or the depositors, beneficiaries, creditors or shareholders of the financial institution is exempt from this article.

C. A person, before filing an application for approval pursuant to this article, may request in writing a determination from the deputy director as to whether the person, on consummation of a proposed transaction, will be in control. On such a request, the deputy director may enter an order that the person will not be in control, in which event the proposed transaction is an exempt transaction under this article.

D. This article does not supersede, rescind or modify any provision, requirement or condition of this title that would otherwise be applicable to any acquisition of a financial institution by a financial institution holding company. This article does not supersede, rescind or modify any provision, requirement or condition that would otherwise be applicable to any merger of financial institutions or the acquisition or sale of all or substantially all of the assets of the financial institution, except that an approval obtained pursuant to this article satisfies the requirements of chapter 1, article 4 of this title.
A.R.S. § 6-466 — Arizona Code / Title 6 / Chapter 3 / Article 6 / Section 466
6-466 Effect of merger
Status: in_force

6-466. Effect of merger

A. The continuing association or corporation shall be considered the same business and corporate entity as each merging association or corporation, with all of the property, rights, powers, duties, and obligations of each merging association or corporation, except as otherwise provided by the articles of incorporation of the continuing association or corporation.

B. All liabilities of each of the merging associations or corporations are liabilities of the continuing association or corporation. All of the rights, franchises, and interests of each of the merging associations or corporations in and to every kind of property, real, personal or mixed, shall vest automatically in the continuing association or corporation, without any deed or other transfer.

C. Any reference to a merging association or corporation in any writing, whether executed or effective before or after the merger, shall be deemed a reference to the continuing association or corporation, if not inconsistent with the other provisions of such writing.

D. No pending action or other judicial proceeding to which any merging association or corporation is a party shall be abated or discontinued by reason of the merger, but may be prosecuted to final judgment, order or decree in the same manner as if the merger had not occurred.
A.R.S. § 6-984 — Arizona Code / Title 6 / Chapter 9 / Article 3 / Section 984
6-984 Prohibited acts
Status: in_force

6-984. Prohibited acts

A. Except for employment verifications and deposit or account verifications, a person shall not induce, require or permit any document in connection with making a commercial mortgage loan to be signed by a party to the transaction if the document contains any blank spaces to be filled in after it has been signed unless the party has specifically authorized the licensee or the escrow agent in writing to complete those blank spaces.

B. A person is not entitled to receive compensation in connection with arranging for or negotiating a commercial mortgage loan if the person is not licensed pursuant to or is not exempt from this article, except that a commercial mortgage banker, mortgage banker or mortgage broker licensed pursuant to this article or article 1 or 2 of this chapter may compensate a person who is a resident of another state and who meets the licensing requirements, if any, of the other state in connection with arranging for or negotiating a commercial mortgage loan.

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

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

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

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

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

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

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

2. The commercial mortgage banker has disclosed to the person from whom the compensation is collected that the commercial mortgage banker is receiving compensation both for commercial mortgage banking and for services as a real estate broker or salesperson.

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

J. A commercial mortgage banker shall not make or negotiate or offer to make or negotiate, for compensation, either directly or indirectly, a loan of money that is not secured by a mortgage or deed of trust or any other lien interest in real property or if the real estate security is a one to four family residence.

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

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

M. A commercial mortgage banker shall not record a mortgage or deed of trust if monies are not available for the immediate disbursal to the mortgagor unless, before that recording, the commercial mortgage banker informs the mortgagor in writing of a definite date by which payment shall be made and obtains the mortgagor's written permission for the delay.
A.R.S. § 6-216 — Arizona Code / Title 6 / Chapter 2 / Article 3 / Section 216
6-216 Continuation of business and corporate entity
Status: in_force

6-216. Continuation of business and corporate entity

A resulting state bank shall be considered the same business and corporate entity as each merging bank or converting bank. All rights of property, franchises and interests of each merging bank or the converting bank shall be transferred to and vested in the resulting state bank by virtue of such merger or conversion without any deed or other transfer. The resulting state bank, without any order or other action on the part of any court, shall hold and enjoy all rights of property, franchises and interests, including appointments, designations and nominations, and all other rights and interests as trustee, executor, administrator, conservator, guardian, registrar of stocks and bonds, assignee, receiver and in every other fiduciary capacity, in the same manner and to the same extent as such rights, franchises and interests were held or enjoyed by any one of the merging banks or the converting bank at the time of the merger or conversion. Any reference to the merging bank or converting bank in any contract, will or other document, whether executed or effective before or after the merger or conversion, shall be a reference to the resulting bank.
A.R.S. § 6-562 — Arizona Code / Title 6 / Chapter 4 / Article 7 / Section 562
6-562 Interest rates and other charges
Status: in_force

6-562. Interest rates and other charges

A. The board of directors shall determine the interest rates on loans. The board may also authorize any refund of interest on loans under the conditions it may prescribe.

B. In addition to interest charged on loans, a credit union may charge all reasonable fees and expenses in connection with the making, closing, disbursing, extending, modifying, collecting or renewing of loans.

C. A credit union may assess charges to members, in accordance with board policy, for failure to meet their obligations to the credit union in a timely manner.
A.R.S. § 6-395.09 — Arizona Code / Title 6 / Chapter 2 / Article 13 / Section 395.09
6-395.09 Notice to claimants on liquidation
Status: in_force

6-395.09. Notice to claimants on liquidation

As soon after the commencement of liquidation as practicable the receiver shall cause notice of the liquidation to be published in a newspaper of general circulation in each county in which the bank has an office, once a week for eight successive weeks. The notice shall demand that all persons who have claims against the bank present them to the receiver and make legal proof thereof, in accordance with the procedure prescribed in the notice. The receiver shall mail a copy of the notice at the address shown on the records of the bank, to each person who appears from the records to be a creditor of the bank, with the advice of the nature and amount of the purported indebtedness, provided that the notice in respect to any indebtedness to which the federal deposit insurance corporation claims complete subrogation need be made only to the corporation. The receiver's advice of a purported indebtedness shall not bind the receiver on the validity or the amount of any claim based thereon.
A.R.S. § 6-110 — Arizona Code / Title 6 / Chapter 1 / Article 2 / Section 110
6-110 Financial institutions division; deputy director
Status: in_force

6-110. Financial institutions division; deputy director

The financial institutions division is established in the department.  The director shall appoint a deputy director of the financial institutions division of the department to assist the director with the execution of the laws of this state relating to financial institutions and enterprises.  The deputy director serves at the pleasure of the director and reports directly to the director.
A.R.S. § 6-267 — Arizona Code / Title 6 / Chapter 2 / Article 5.1 / Section 267
6-267 Severability
Status: in_force

6-267. Severability

If a provision of this article or its application to a person or circumstance is held invalid, the invalidity does not affect another provision or application that can be given effect without the invalid provision.
A.R.S. § 6-584 — Arizona Code / Title 6 / Chapter 4 / Article 11 / Section 584
6-584 Voluntary dissolution
Status: in_force

6-584. Voluntary dissolution

A. A credit union may elect to dissolve voluntarily and terminate its affairs in the following manner:

1. The board of directors shall adopt a resolution recommending that the credit union be dissolved voluntarily, naming a liquidating agent adequately bondable, and directing that the question of a dissolution be submitted to a regular or special meeting of the members.

2. At a regular or special meeting called for such purpose where the notice of such purpose is contained in the call, the affirmative vote of a majority of the members of the credit union present shall be required to dissolve the credit union.

3. On the adoption of a resolution to dissolve, a statement of intent to dissolve shall be executed in triplicate by the president or vice president, and attested by its secretary, which shall set forth:

(a) The name of the corporation.

(b) Names and addresses of the officers and directors of the corporation.

(c) A copy of the resolution authorizing the voluntary dissolution and the name and address of the liquidating agent.

(d) Names and addresses of the members and the amount of the shares and loan balances of members outstanding.

(e) A financial and statistical report as of the date the resolution to dissolve is adopted.

B. Immediately on the adoption of the resolution to dissolve, the credit union shall furnish to the deputy director duplicate copies of the statement of intent to dissolve and the deputy director shall then determine whether or not the credit union is solvent. If it is solvent, the deputy director shall issue to the credit union in quadruplicate a certificate to the effect that this section has been complied with. The certificate shall be filed by the credit union with the corporation commission and a duplicate copy recorded in the office of the county recorder of the county in which the credit union is located, whereupon the credit union shall be deemed dissolved and shall cease carrying on business except for the purpose of liquidation.

C. The credit union shall continue in existence for the purpose of discharging its debts, collecting and distributing its assets and doing all other acts required to completely dissolve the credit union, and may sue and be sued for the purpose of enforcing such debts and obligations until its affairs are fully terminated, but an action may not be filed by or against such credit union more than two years after this certificate of dissolution is recorded.

D. The credit union shall during the dissolution period furnish to the deputy director regular monthly progress reports of the affairs of the credit union until the final dissolution of the credit union.

E. After the expiration of two years after the date of final dissolution, the deputy director may destroy all books and records of such credit union in the deputy director's possession.
A.R.S. § 6-182 — Arizona Code / Title 6 / Chapter 2 / Article 1 / Section 182
6-182 Transition
Status: repealed

6-182. Transition

All banks shall be operated in accordance with the provisions of this chapter, except that transactions validly entered into before the effective date of this chapter and the rights, duties and interests flowing from them remain valid thereafter and may be terminated, completed, consummated or enforced as required or permitted by any statute amended or repealed by the law by which this chapter was enacted as though such amendment or repeal had not occurred.
A.R.S. § 6-136 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 136
6-136 Violation of order or injunction; penalty
Status: in_force

6-136. Violation of order or injunction; penalty

Any person who violates any order or injunction issued by a court of competent jurisdiction pursuant to this title shall, in addition to any other penalty or remedy for contempt of court, forfeit and pay to this state a civil penalty of not more than ten thousand dollars for each violation as such court may deem just and proper. For the purpose of this section, the superior court issuing any order or injunction shall retain jurisdiction and the cause shall be continued. The attorney general acting in the name of this state may petition for recovery of civil penalties pursuant to this section.
A.R.S. § 6-871 — Arizona Code / Title 6 / Chapter 8 / Article 2 / Section 871
6-871 Establishment of common trust funds
Status: in_force

6-871. Establishment of common trust funds

A. Any bank, savings and loan association or trust company qualified to act as a fiduciary in this state may establish and administer common trust funds composed of property permitted by law for the investment of trust funds for the purpose of furnishing investments to any one or more of the following:

1. Itself as fiduciary.

2. Itself and others, as cofiduciaries.

3. Any affiliated bank, savings and loan association or trust company, including any foreign affiliated bank, savings and loan association or trust company, as fiduciary.

4. Any affiliated bank, savings and loan association or trust company, including any foreign affiliated bank, savings and loan association or trust company, and others, as cofiduciaries. Any bank, savings and loan association or trust company may as such fiduciary or cofiduciary invest funds which it lawfully holds for investment in interests in such common trust funds administered by itself or by any affiliated bank, savings and loan association or trust company, including any foreign affiliated bank, savings and loan association or trust company, if such investment is not prohibited by the instrument, judgment, decree, order or statute creating and governing such fiduciary relationship, and if, in the case of cofiduciaries, the bank, savings and loan association or trust company procures the consent of its cofiduciaries for such investment.

B. Each common trust fund established under this section is a separate and distinct entity from the fiduciary relationships participating in the fund. A fiduciary in administering a participating fiduciary relationship is not required to make any apportionment or allocation between the principal and income of the relationship different from that made for the common trust fund. A participating fiduciary relationship, or person having an interest in the relationship, is not deemed to have any ownership in particular property of the common trust fund, but each participating fiduciary relationship has a proportionate undivided interest in the fund and its income and the ownership of all property of the common trust fund is in the trustee of the fund.

C. This section applies to all fiduciary relationships, including those established prior to April 21, 1980, whether the relationships are revocable or irrevocable. This section and section 6-872 apply to common trust funds established under this section and the banks, savings and loan associations and trust companies operating these common trust funds.

D. For purposes of this section, two or more banks, savings and loan associations or trust companies are affiliated if they are members of the same affiliated group, within the meaning of section 1504 of the United States internal revenue code.

E. Nothing in this article shall exempt a common trust fund or any fiduciary thereof from the requirements of title 20, if such common trust fund or fiduciary is used for insurance purposes.
A.R.S. § 6-714 — Arizona Code / Title 6 / Chapter 6 / Article 1 / Section 714
6-714 Advertising
Status: in_force

6-714. Advertising

The rules and regulations of the deputy director shall include standards and criteria for proper advertising and may include specific prohibitions as to improper advertising by a licensee.  A debt management company's advertising, communication and sales materials shall contain the license name or other assumed name or trade name that is submitted to the department pursuant to section 6-117.
A.R.S. § 6-242 — Arizona Code / Title 6 / Chapter 2 / Article 5 / Section 242
6-242 Preservation of bank records; regulations; disposal
Status: in_force

6-242. Preservation of bank records; regulations; disposal

A. Every bank shall retain its corporate and business records in accordance with regulations of the deputy director. The regulations shall classify the records, establish allowable methods for effective and economical preservation of information contained in the records if the originals are destroyed pursuant to regulation, and prescribe the minimum periods of time each record or allowed substitute shall be preserved.

B. In issuing the regulations under subsection A of this section, the deputy director shall consider:

1. Actions at law and administrative proceedings in which the production of bank records might be necessary or desirable.

2. Statutes of limitation applicable to such action or proceedings.

3. The availability of information contained in bank records from other sources.

4. Such other matters as the deputy director deems pertinent in order that the deputy director's regulations will require banks to retain records for as short a period of time as is commensurate with the interests of bank customers and shareholders and of the people of this state in having bank records available.

C. A bank may dispose of any record or allowed substitute that has been retained for the applicable record prescribed in accordance with the terms of this section, and shall thereafter be under no duty to produce such a record in any action or proceeding.
A.R.S. § 6-236 — Arizona Code / Title 6 / Chapter 2 / Article 4 / Section 236
6-236 Payment of deposits in trust
Status: in_force

6-236. Payment of deposits in trust

Bank deposits may be made in the name of one or more persons as trustees for one or more persons designated as beneficiaries. The account and any balance thereof which exists from time to time shall be held as a trust account and unless otherwise agreed between the trustees and the bank:

1. Any such trustee during the trustee's lifetime may change any of the designated beneficiaries by a written direction accepted by the bank.

2. The deposit or any part thereof with interest may be paid to or on the order of any trustee whether any other trustee or beneficiary is living or not. Any such payment shall constitute a lawful revocation of the trust as to the amount withdrawn and the receipt order or acquittance of the person so paid is a valid and sufficient release and discharge of the bank as to the amount so paid.

3. Upon the death of the last surviving trustee the deposit or any part thereof with interest may be paid to or on order of any of the persons designated as beneficiaries who are living at the death of the last surviving trustee and the receipt order or acquittance of the person so paid is a valid and sufficient release and discharge of the bank as to the amount so paid.
A.R.S. § 6-486 — Arizona Code / Title 6 / Chapter 3 / Article 9 / Section 486
6-486 Rehabilitation of associations; definition
Status: in_force

6-486. Rehabilitation of associations; definition

A. If the business, property and affairs of any association are in the possession of the deputy director for liquidation, or if an association is in an unsafe or unsound condition, the association may be rehabilitated, readjusted or reorganized in accordance with any plan proposed and approved as provided in this article.

B. Without limiting the generality of the foregoing provisions of this article, a plan may provide in respect to all or any part of the business, property or affairs of the association for any one or more of the following:

1. The retention thereof by the deputy director as a conservator, if the business, property or affairs are in the deputy director's possession for liquidation.

2. The delivery thereof to the deputy director as a conservator, or for liquidation.

3. The transfer thereof to any person or to a trustee.

C. For the purposes of this article, "plan" means a plan for the rehabilitation, readjustment or reorganization of an association or for the readjustment, modification or reorganization of the rights or interests of any or all of the investors and creditors of, or other persons, interested in the association.
A.R.S. § 6-468 — Arizona Code / Title 6 / Chapter 3 / Article 7 / Section 468
6-468 Decision to liquidate; adoption of plan
Status: in_force

6-468. Decision to liquidate; adoption of plan

A. At any annual or special meeting of the members, the members may vote to liquidate the association, and may adopt a plan of liquidation that has been approved by the board of directors, or proposed by one or more shareholders, or submitted by the deputy director or may elect a committee of three persons to prepare and submit a plan, and thereafter may adopt such plan. No plan except one submitted by the deputy director shall be adopted unless it has been filed with the deputy director at least ten days before the vote of the members is taken thereon.

B. A plan will be adopted on receiving in the affirmative two-thirds or more of the total number of votes that all members of the association are entitled to cast.

C. The plan of voluntary liquidation shall provide for the full liquidation of the association, setting forth the powers, duties, manner of filling vacancies, and succession of the liquidators and authorizing them to:

1. Advance funds of the association to preserve, protect, or purchase at any sale any asset in which the association has an interest.

2. Sell, convey, lease, mortgage, or exchange any assets for other assets.

3. Sell and dispose of any assets at public sale to the highest and best bidder or at private sale for the highest price obtainable.

4. Accept withdrawable capital of the association to apply on the purchase price of any assets, but only for such relative values as may be approved by the deputy director from time to time.  Notice by single publication or by mailing, stating the time, place and terms of the sale, shall be given to all holders of withdrawable capital prior to the sale.

5. Pay out of the proceeds of liquidation all expenses and services necessary to the liquidation, and also compensation of the liquidators. Compensation of the liquidators, exclusive of compensation for legal services and other specialized employment, shall not exceed in the aggregate three percent of the proceeds of liquidation.
A.R.S. § 6-608 — Arizona Code / Title 6 / Chapter 5 / Article 1 / Section 608
6-608 Annual report of licensee; civil penalty for failure to file
Status: in_force

6-608. Annual report of licensee; civil penalty for failure to file

A. On or before October 1 of each year, the licensee shall file a report under oath and in the form prescribed by the deputy director concerning the business and operations during the twelve-month period ending the preceding June 30. On good cause shown by a licensee, the deputy director may extend the time for filing the report for a period of not more than 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, prepare the annual report and charge the licensee 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 the annual report unless an extension of time is granted by the deputy director in writing before the due date of the annual report. The deputy director shall not assess a penalty of more than $5 per day.  The licensee shall pay the penalty to the deputy director within thirty days of the assessment.
A.R.S. § 6-603 — Arizona Code / Title 6 / Chapter 5 / Article 1 / Section 603
6-603 License; contents of application; fees; nontransferability
Status: in_force

6-603. License; contents of application; fees; nontransferability

A. Unless exempt under section 6-602, a person, whether located in this state or in another state, shall not engage in the business of a consumer lender without first being licensed as a consumer lender by the deputy director.

B. This chapter applies to any person who seeks to avoid its application by any device, subterfuge or pretense.

C. Each applicant for a license shall submit an application in writing, under oath and in the form prescribed by the deputy director.  The deputy director may require as part of an application any other information that the deputy director deems necessary.

D. At the time of filing an application for a license, an applicant shall pay to the deputy director the fee prescribed in section 6-126.

E. Before June 30 of each year, each licensee may obtain a renewal of a license by filing an application in the form prescribed by the deputy director and paying the fee prescribed in section 6-126.

F. The deputy director may deny a license to a person if the deputy director finds that an applicant:

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

2. Has failed to demonstrate the financial responsibility and experience to command the confidence of the public and to warrant the belief that the business will be operated lawfully, honestly, fairly and efficiently within the purposes of this chapter.

3. Has failed to pay the license fee.

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

G. A consumer lender license is not transferable or assignable, and a person may not acquire control of a licensee through stock purchase or other device without the prior written consent of the deputy director.  The deputy director may refuse consent if the deputy director finds that any of the grounds for denial of renewal, revocation or suspension of a license prescribed in section 6-605 are applicable to the acquiring person.  For purposes of this subsection, "control" means the power to vote more than twenty percent of the outstanding voting shares of a licensed corporation, limited liability company, partnership, association or trust.
A.R.S. § 6-1207 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1207
6-1207 Licensure; prohibition; applicability
Status: in_force

6-1207. Licensure; prohibition; applicability

A. A person may not engage in the business of money transmission or advertise, solicit or hold itself out as providing money transmission unless the person is licensed under this article.

B. Subsection A of this section does not apply to either of the following:

1. A person that is an authorized delegate of a person licensed under this article that is acting within the scope of authority conferred by a written contract with the licensee.

2. A person that is exempt pursuant to section 6-1202 and does not engage in money transmission outside the scope of the exemption.

C. A license issued under section 6-1211 is not transferable or assignable.
A.R.S. § 6-189 — Arizona Code / Title 6 / Chapter 2 / Article 1 / Section 189
6-189 Capital obligations; approval; convertibility
Status: reserved

6-189. Capital obligations; approval; convertibility

A. A capital obligation is an unsecured indebtedness of the bank subordinate to the claims of depositors and all other creditors of the bank regardless of whether the claims arose before or after the issuance of the note or debenture representing the capital obligation. In the event of liquidation all depositors and other creditors of the bank are to be paid in full before any payment of principal or interest is made on capital obligations.

B. No capital obligations shall be incurred without the prior order of approval of the deputy director. Capital obligations authorized by such order may be retired in accordance with the mandatory payment provisions of the obligation without further authorization. No payment shall be made under an optional right of payment reserved to the bank without the separate authorization of the deputy director, which may be granted in the deputy director's initial order of approval or by subsequent order.

C. Capital obligations may be convertible into shares of any class of stock in accordance with their terms approved by the deputy director. No shareholder has any preemptive right to purchase capital obligations or to purchase stock issued upon conversion of capital obligations unless provided by the articles of incorporation or specified in the corporate authority to incur the obligation.
A.R.S. § 6-432 — Arizona Code / Title 6 / Chapter 3 / Article 4 / Section 432
6-432 Effect of payment to minor or fiduciary
Status: in_force

6-432. Effect of payment to minor or fiduciary

A. Unless the written agreement provides otherwise, or unless the association has had written notice of the terms under which a fiduciary holds an account, the association may pay the value thereof and dividends thereon:

1. To any minor who is the holder of such account.

2. To such fiduciary who is the holder of such account without becoming liable to any beneficiary for such payment.

B. In each of the foregoing instances the receipt or acquittance of the person or persons to whom payment is made in accordance with the provisions of this section shall be a complete discharge of the association's obligation as to the amount so paid.
A.R.S. § 6-386 — Arizona Code / Title 6 / Chapter 2 / Article 11 / Section 386
6-386 Investment by fiduciaries; governmental obligations
Status: in_force

6-386. Investment by fiduciaries; governmental obligations

In the absence of an express provision to the contrary, if an indenture or other governing instrument directs, requires, authorizes or permits investment in United States government obligations, a bank, trust company, trust department or other fiduciary may invest in the obligations, either directly or in the form of securities or other interests in any open end or closed end management type investment company or investment trust registered under the investment company act of 1940 (54 Stat. 789; 15 United States Code sections 80a-1 through 80a-64) if the portfolio of the investment company or investment trust is limited to United States government obligations and repurchase agreements fully collateralized by United States government obligations and the investment company or investment trust takes delivery of the collateral for any repurchase agreement either directly or through an authorized custodian.
A.R.S. § 6-540 — Arizona Code / Title 6 / Chapter 4 / Article 5 / Section 540
6-540 Loan officers
Status: in_force

6-540. Loan officers

A. The president may appoint one or more loan officers and delegate the power to approve or disapprove loans, subject to those limitations or conditions as the credit committee or board of directors prescribes.

B. A member whose application is disapproved by a loan officer may appeal the action to the credit committee or credit manager as appropriate under the bylaws.
A.R.S. § 6-863 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 863
6-863 Suspension or revocation of certificate
Status: in_force

6-863. Suspension or revocation of certificate

A. The deputy director may suspend or revoke the certificate of a trust company pursuant to title 41, chapter 6, article 10 if the deputy director determines that:

1. The trust company has failed or refused to comply with any order issued pursuant to section 6-137.

2. The application for a certificate or for renewal of a certificate or any report submitted to the deputy director contained a false representation or omission of a material fact.

3. Any officer or agent of the trust company, in connection with the submission of any report or information to the deputy director or an application for a certificate or for renewal of a certificate, knowingly made a false representation of a material fact or failed to disclose a material fact to the deputy director or the duly authorized agent of the deputy director.

4. The trust company has violated any applicable law, rule or order.

5. The trust company is impaired or insolvent and the trust company is unable to pay debts as they become due in the regular course of its business.

6. The trust company refuses to allow an examination or investigation by the deputy director of its books and affairs or has failed or refused to furnish within thirty days any information or to make any report that may be required by the deputy director.

7. The trust company is unable to maintain the amount of capital required by law.

8. The trust company failed to conduct business in a safe, sound and lawful manner.

9. Any officer, director, employee or agent of the trust company has been convicted in any state of a felony or a crime of moral turpitude, breach of trust, fraud, theft or dishonesty.

10. The trust company's certificate or authorization to engage in trust business in any state or country has been revoked, suspended or denied.

11. A final judgment has been entered in a civil action against any officer, director, employee or agent of the trust company involving fraud, deceit or misrepresentation and the conduct is contrary to the interest of the public to allow the person to engage in a trust business, to control or manage a trust company or to work for a trust company handling trust funds.

12. An order by an administrative agency of this state, another state, the federal government, a territory of the United States or another country has been entered against any officer, director, employee or agent of the trust company involving fraud, deceit or misrepresentation and the conduct is contrary to the interest of the public to allow the person to engage in a trust business, to control or manage a trust company or to work for a trust company handling trust funds.

B. The deputy director may suspend the certificate if an indictment or information is issued against any officer, director, employee or agent of the trust company for forgery, embezzlement, retaining monies under false pretenses, extortion, criminal conspiracy to defraud or a like offense and a certified copy of the indictment or information or other proper evidence of the indictment or information is filed with the deputy director.

C. Pursuant to subsection A of this section, the deputy director may suspend or revoke the certificate for the acts and omissions of:

1. Any officer, director, employee or agent of the trust company while acting in the course of the trust business.

2. A person entitled to vote more than fifteen percent of the outstanding voting shares of the trust company.
A.R.S. § 6-184 — Arizona Code / Title 6 / Chapter 2 / Article 1 / Section 184
6-184 General corporate and banking powers; incidental powers; deposit insurance; federal reserve and home loan bank membership; agency relationship
Status: in_force

6-184. General corporate and banking powers; incidental powers; deposit insurance; federal reserve and home loan bank membership; agency relationship

A. A corporation holding a banking permit under this chapter may:

1. Except as prohibited by law, exercise the powers derived from its existence as an Arizona corporation.

2. Except as prohibited by law, exercise any power and engage in any activity which it could exercise or engage in if it were a national banking association with a banking office in this state.

3. Directly or through a bank subsidiary engage in any lawful activity that is reasonably related or incidental to banking. All activities in which any bank was lawfully engaged directly or through a subsidiary on December 31, 1971 are declared to be incidental and related to banking for the purposes of this paragraph.

4. Do the acts necessary to obtain and maintain insurance of its deposits by the federal deposit insurance corporation.

5. Do the acts necessary to acquire and hold membership in the federal reserve system or the federal home loan bank.

6. Except as prohibited by law, directly or through a bank subsidiary, make any loan or investment, offer accounts or engage in any business activity authorized for national banking associations, federal savings banks, or state or federally chartered or licensed savings and loan associations doing business in this state. This paragraph is subject to section 33-1571.

7. Except as prohibited by law and subject to such rules as the deputy director may adopt, through a bank subsidiary, invest in real estate in the state or interests therein, including corporations, partnerships, and joint ventures that acquire, develop, improve, hold, lease, operate and sell real estate. This paragraph is subject to section 33-1571.

B. An in-state financial institution or an out-of-state financial institution may act as an agent of any other in-state financial institution or out-of-state financial institution that is a subsidiary of the same holding company for purposes of conducting the activities authorized by this subsection. This subsection applies regardless of whether the affiliated entities share the same home state. An in-state financial institution or an out-of-state financial institution entering into an agency relationship shall notify the deputy director of that agency relationship at least ten days before the effective date of that agency relationship. Agency relationships among affiliates shall be consistent with safe and sound business practices and shall comply with all applicable laws and rules. An in-state financial institution or an out-of-state financial institution acting as an agent is not deemed to be a branch of the affiliate solely because of activities lawfully conducted pursuant to this subsection. An in-state financial institution or an out-of-state financial institution that is acting as an agent for an affiliated entity may do any of the following:

1. Receive deposits.

2. Renew time deposits.

3. Service loans.

4. Receive payments on loans and other obligations.

5. Perform other customary banking services with the prior approval of the deputy director.

C. An in-state financial institution or an out-of-state financial institution acting as an agent as prescribed by subsection B of this section on behalf of an affiliated financial institution may not do any of the following:

1. Open demand, savings or time accounts.

2. Evaluate or approve loans.

3. Disburse loan monies.

4. Conduct any activity as an agent that it is prohibited from conducting as a principal under any applicable law or rule.

D. An in-state financial institution or an out-of-state financial institution that is acting as a principal as prescribed by subsection B of this section may not have its affiliated entity act as an agent on its behalf in conducting any of the following:

1. Any activity that is prohibited to the principal.

2. Any activity that is prohibited to the agent.
A.R.S. § 6-190 — Arizona Code / Title 6 / Chapter 2 / Article 1 / Section 190
6-190 Bank offices; standards and term of approval; closing; automated teller machines
Status: in_force

6-190. Bank offices; standards and term of approval; closing; automated teller machines

A. A bank may establish banking offices anywhere in the world with the authorization of the deputy director and on such conditions as the deputy director may prescribe. An application for a banking office shall be in writing in such form as the deputy director prescribes supported by such information, data and records as the deputy director may require to make the findings necessary for approval.

B. In granting the application for a banking office, the deputy director shall be guided by the standards prescribed for the issuance of a banking permit insofar as such standards are reasonably applicable.

C. The failure of a bank to open and operate a banking office within one year after the deputy director approves the application shall automatically terminate the approval, except that the deputy director, for good cause shown in writing made before the expiration of the one-year period, may extend for additional periods not in excess of six months each the time in which the banking office may be opened.

D. A bank may permanently close less than all of its banking offices on compliance with such requirements of notice as have been prescribed by the deputy director and such closing shall terminate the authority to maintain the office which is closed.

E. A bank may establish or maintain an automated teller machine at locations other than its places of business. The bank must send a notification letter to the deputy director at least thirty days before the automated teller machine is established pursuant to this subsection.

F. A bank may, without the approval of the deputy director and through contractual agreement with one or more other banks or automated teller machine providers, join in the operation of automated teller machine networks.
A.R.S. § 6-831 — Arizona Code / Title 6 / Chapter 7 / Article 3 / Section 831
6-831 Records
Status: in_force

6-831. Records

All escrow agents shall keep and maintain at all times in their principal places of business complete and suitable records of all escrow transactions made by them, together with books, papers and data clearly reflecting the financial condition of the business of such agents.
A.R.S. § 6-231 — Arizona Code / Title 6 / Chapter 2 / Article 4 / Section 231
6-231 Deposit accounts
Status: in_force

6-231. Deposit accounts

A bank may maintain all types of deposit accounts and prescribe such terms and conditions relating to the accounts as are permissible for the bank to maintain the insurance on its deposits by the federal deposit insurance corporation.
A.R.S. § 6-715 — Arizona Code / Title 6 / Chapter 6 / Article 1 / Section 715
6-715 Prohibitions
Status: in_force

6-715. Prohibitions

No person may engage in the business of a debt management company without the license required by this article.
A.R.S. § 6-902 — Arizona Code / Title 6 / Chapter 9 / Article 1 / Section 902
6-902 Exemptions
Status: in_force

6-902. Exemptions

A. This article does not apply to:

1. A person who does business under any other law of this state, or law of any other state while regulated by a state agency of such other state or the United States, relating to banks, savings banks, trust companies, savings and loan associations, profit sharing and pension trusts, credit unions, insurance companies or consumer lenders, or receivership, including directly or indirectly making, negotiating or offering to make or negotiate a mortgage loan if the mortgage transactions are regulated by the other law or are under the jurisdiction of a court. Subsidiaries and service corporations of these institutions shall not be exempt and shall be subject to the provisions of this article unless preempted by federal law.

2. A person who makes a mortgage loan:

(a) With his own monies.

(b) For his own investment.

(c) Without intent to resell.

(d) And is not engaged in the business of making mortgage loans.

3. A person who funds a mortgage loan which has been originated and processed by a licensee, by a mortgage banker licensed in this state or by a person exempt under paragraph 1 of this subsection and who meets all of the following:

(a) Does not maintain a place of business in this state in connection with funding mortgage loans.

(b) Does not directly or indirectly solicit borrowers in this state for the purpose of making mortgage loans.

(c) Does not participate in the negotiation of mortgage loans.

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

5. A person who is licensed to practice law in this state, but is not actively and principally engaged in the business of negotiating mortgage loans, if this person renders services in the course of his practice as an attorney at law.

6. A person who receives a mortgage or deed of trust on real property as security for an obligation payable on an installment or deferred payment basis and arising out of materials furnished or services rendered in the improvement of that real property or any lien created without the consent of the owner of the real property.

7. A person who is licensed pursuant to article 2 or 3 of this chapter.

8. An agency of any state or of the United States.

9. A nonprofit federally tax exempt corporation certified by the United States small business administration and organized to promote economic development within this state whose primary activity consists of providing financing for business expansion.

10. An institutional investor as defined in section 6-971 unless the institutional investor makes a mortgage loan other than a commercial mortgage loan as defined in section 6-971.

B. For the purposes of:

1. Subsection A, paragraph 3 of this section, "originate" includes loans closed in a name other than that of the licensee, a mortgage banker licensed in this state or exempt person only if the person in whose name the loan is closed meets the other requirements of subsection A, paragraph 3 of this section.

2. Subsection A, paragraph 3, subdivision (c) of this section, "negotiation of mortgage loans" does not include setting the terms under which a person may buy a mortgage loan originated by a licensee or a person exempt under subsection A, paragraph 1 of this section.
A.R.S. § 6-604 — Arizona Code / Title 6 / Chapter 5 / Article 1 / Section 604
6-604 Issuance of license; license year; renewal; expiration; requirements
Status: in_force

6-604. Issuance of license; license year; renewal; expiration; requirements

A. If the deputy director finds no grounds for denial of a license, within one hundred twenty days after receiving a complete application, the deputy director shall grant the application and issue a license to the applicant.

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

C. A licensee shall apply for renewal as prescribed by the deputy director and pay the renewal fee prescribed in section 6-126 not later than December 31 of each year.  For each day after December 31 that the renewal application is not received by the deputy director, the applicant shall pay a $25 late fee in addition to the fee prescribed in section 6-126.  If the deputy director does not receive the licensee's renewal application and fee on or before December 31, the licensee may not act as a consumer lender until the license is renewed or a new license is issued pursuant to this article. If the deputy director does not receive the licensee's renewal application and fee on or before January 31, the license automatically expires.  The holder of an expired license may not be issued a renewal license but may be issued a new license as provided in this article.

D. A license remains the property of this state.  On termination at the request of the licensee or revocation by the deputy director, the licensee shall immediately deliver the license to the deputy director.  Termination of the license does not affect any other liability of the licensee.

E. The licensee shall designate the principal location of the licensed office within or outside this state. If a licensee wishes to maintain more than one office location the licensee shall first obtain a branch office license for each branch office from the deputy director.  The licensee shall submit an application in the form prescribed by the deputy director and pay the fee prescribed in section 6-126 for each branch office license. If the deputy director determines that the applicant is qualified, the deputy director shall issue a branch office license indicating the address of the branch office.

F. A licensee shall prominently display the consumer lender license in the office of the consumer lender and any branch office license in that branch office.
A.R.S. § 6-524 — Arizona Code / Title 6 / Chapter 4 / Article 4 / Section 524
6-524 Termination of membership
Status: in_force

6-524. Termination of membership

A. A member may withdraw from a credit union at any time on giving notice of withdrawal as required in the bylaws. The credit union may require up to sixty days' notice of the intention to withdraw shares or deposits, but the notice does not entitle the member to any preferred or prior claim in the event of liquidation.

B. A member may be expelled by a two-thirds vote of the members present at any regular meeting or a special meeting of the membership, but only after the member has had an opportunity to be heard at the meeting, or the board of directors or the management, if the board delegated such authority, may expel a member pursuant to a written policy adopted by the board. The board shall give all members written notice of the terms of any such policy.  A person who has been expelled must be informed of the reasons for the expulsion and may seek reconsideration by submitting a written request for reconsideration to the board within thirty days after the notice of expulsion is issued.

C. As monies become available and after deducting all amounts due from the member to the credit union, the credit union shall pay to the withdrawing or expelled member the amounts paid on shares and deposits by the withdrawing or expelled member, with any dividends or earnings accredited. Withdrawing or expelled members have no further rights in the credit union but are not released, by the withdrawal or expulsion, from any remaining liability to the credit union.
A.R.S. § 6-1005 — Arizona Code / Title 6 / Chapter 10 / Article 1 / Section 1005
6-1005 Lease to a minor
Status: in_force

6-1005. Lease to a minor

A lease of a repository shall not be invalid or voidable by reason of the minority of the lessee or lessees and all rights and liabilities of the lessor and any lessee arising out of such transaction and any act of the parties in relation thereto shall be of the same legal effect as if the minor were of full legal age.
A.R.S. § 6-429 — Arizona Code / Title 6 / Chapter 3 / Article 4 / Section 429
6-429 Issuance, delivery, and transfer of certificates and account books
Status: in_force

6-429. Issuance, delivery, and transfer of certificates and account books

A. An association may evidence an account by one or more appropriate certificates.

B. The holder of an account may transfer his rights in the account absolutely or conditionally to any other person eligible to hold the same by written assignment. Notwithstanding the effectiveness of such a transfer between the parties to the transfer, the association may treat the holder of record as the owner of the account for payment, voting and all other purposes until the assignment and any accompanying certificate or account books have been received by the association with a request for the transfer on the association's records.

C. Account certificates, account books and any other evidences of membership are negotiable or nonnegotiable and not subject to, but shares of guaranty capital certificates are subject to, the provisions of title 47, chapter 8.

D. All certificates and account books delivered to the holders as prescribed by this article are subject to garnishment, attachment and execution as provided by the laws of this state.

E. If the holder of an account, or the personal representative of any such person, files with the association an affidavit to the effect that his account book or certificate has been lost or destroyed, and that the account book or certificate has not been pledged or assigned either in whole or in part, then the association may issue a substitute account book or certificate in the name of the holder, with a statement that the account book or certificate is issued in lieu of the one lost or destroyed. The association is not liable thereafter with respect to the original account book or certificate, but the board of directors may require a bond in sufficient amount to indemnify the association against any loss which might result from the issuance of the substitute account book or certificate.
A.R.S. § 6-133 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 133
6-133 Violations; classification
Status: in_force

6-133. Violations; classification

A. Any person who knowingly violates any provision of this title for which a different penalty is not specifically provided or knowingly violates any rule, regulation or order issued or promulgated pursuant to this title is guilty of a class 6 felony. Each day of violation shall constitute a separate offense.

B. Any person who knowingly makes any false statement, misrepresentation or false certification in any application, record, report, plan or other document filed or required to be maintained pursuant to this title or under any license, certificate, rule, regulation or order issued pursuant to this title with intent to deceive the deputy director is guilty of a class 3 felony.

C. Any person who knowingly makes any false entry or omits a material entry in any record, report or statement of a financial institution with intent to injure or defraud the financial institution or to deceive the deputy director or any agent or examiner appointed by the deputy director to examine the affairs of the financial institution is guilty of a class 3 felony.
A.R.S. § 6-1226 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1226
6-1226 Receipts; requirements; exceptions; definition
Status: in_force

6-1226. Receipts; requirements; exceptions; definition

A. Except as provided in subsection C of this section, every licensee or its authorized delegate shall provide the sender a receipt for money received for transmission. For a transaction conducted in person, the receipt may be provided electronically if the sender requests or agrees to receive an electronic receipt. For a transaction conducted electronically or by telephone, a receipt may be provided electronically.  All electronic receipts shall be provided in a retainable form. The receipt shall be in english and in the language principally used by the licensee or authorized delegate to advertise, solicit or negotiate, either orally or in writing, for a transaction conducted in person, electronically or by telephone, if other than english. The receipt shall contain the following information, as applicable:

1. The name of the sender to the extent the licensee or its authorized delegate is required to capture this information prior to transmission.

2. The name of the designated recipient unless the licensee can determine the recipient via the unique transaction or identification number as prescribed in paragraph 4 of this subsection, in which case the name of the recipient is not required.

3. The date of the transaction.

4. The unique transaction or identification number.

5. The name of the licensee or its authorized delegate, the NMLS unique identifier, the licensee's or its authorized delegate's business address and the licensee's or its authorized delegate's customer service telephone number.

6. The amount of the transaction in United States dollars.

7. Any fee charged by the licensee to the sender for the transaction.

8. Any taxes collected by the licensee from the sender for the transaction.

B. Every licensee or authorized delegate shall include on a receipt or disclose on the licensee's website or mobile application the name and telephone number of the department and a statement that the licensee's customers can contact the department with questions or complaints about the licensee's money transmission services.

C. This section does not apply to:

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

2. Money received for transmission that is not primarily for personal, family or household purposes.

3. Money received for transmission pursuant to a written agreement between the licensee and payee to process payments for goods or services provided by the payee.

D. For the purposes of this section, "receipt" means a paper receipt, electronic record or other written confirmation.
A.R.S. § 6-1704 — Arizona Code / Title 6 / Chapter 17 / Article 1 / Section 1704
6-1704 Reverse mortgage; provisions
Status: in_force

6-1704. Reverse mortgage; provisions

A. A reverse mortgage may provide for a fixed or variable interest rate or future sharing between the originator and the borrower of the appreciation in the value of the property, as agreed on by the originator and the borrower.

B. The reverse mortgage agreement shall prominently disclose any interest rate or other fees to be charged during the period that begins on the date that the reverse mortgage becomes due and payable and that ends when repayment in full is made.

C. The reverse mortgage may provide for a single lump sum disbursal of monies out of home purchase proceeds and shall provide for future payments to the borrower based on accumulated equity minus any applicable fees and charges according to the method that the borrower selects from among the following:

1. Based on a line of credit.

2. On a monthly basis over a term specified by the borrower.

3. On a monthly basis over a term specified by the borrower and based on a line of credit.

4. On a monthly basis over the tenure of the loan.

5. On a monthly basis over the tenure of the loan and based on a line of credit.

D. Except in the case of a fixed rate reverse mortgage, the proceeds of which are fully disbursed at closing, the reverse mortgage shall provide that the borrower may convert the method of payment under this section to any other method offered by the lender during the term of the reverse mortgage.

E. The reverse mortgage shall contain restrictions that ensure the borrower does not fund any unnecessary costs for obtaining the reverse mortgage, including any costs of estate planning, financial advice or other related services.  This subsection does not apply to counseling fees paid to a counselor who is qualified under section 6-1702.

F. A borrower's principal dwelling securing a reverse mortgage may be held in trust or may be an interest under a life estate or a long-term lease.

G. The originator shall make available to the borrower on an annual basis not later than January 31 a statement summarizing the total principal amount paid to the borrower under the loan secured by the reverse mortgage, the total amount of deferred interest added to the principal and the outstanding loan balance at the end of the preceding year.
A.R.S. § 6-973 — Arizona Code / Title 6 / Chapter 9 / Article 3 / Section 973
6-973 Licensing commercial mortgage bankers required; qualifications
Status: in_force

6-973. Licensing commercial mortgage bankers required; qualifications

A. A person shall not act as a commercial mortgage banker without a license issued under this article.

B. A person who engages in commercial mortgage banking need not be licensed under article 1 or 2 of this chapter or chapter 7 of this title if the person is licensed under this article.

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

D. In order to qualify for a commercial mortgage banker's license or a renewal of such a license an applicant shall:

1. Have at least three years' experience in the commercial mortgage business or equivalent experience in a related business. If the applicant is not a natural person, the responsible individual as prescribed by section 6-976 shall meet this requirement.

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

3. Provide the deputy director with a current audited financial statement or that of its parent company prepared by an independent certified public accountant according to generally accepted accounting principles including:

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

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

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

(d) Notes to the financial statement if applicable.

4. Have and maintain at all times a net worth of at least $100,000.

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

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

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

3. Notes to the financial statement if applicable.
A.R.S. § 6-483 — Arizona Code / Title 6 / Chapter 3 / Article 8 / Section 483
6-483 Procedure for liquidation; rights of share transferor
Status: in_force

6-483. Procedure for liquidation; rights of share transferor

A. The liquidation under this article of an association, and a receivership thereof, may, at the discretion of the receiver or receivers, be conducted and carried out in full or in part in the same manner as provided in this title for the liquidation of or receivership for an insolvent bank.

B. Regardless of whether the federal deposit insurance corporation serves as receiver or co-receiver of any insured association, when it pays or makes available for payment the liabilities of the insured association in receivership which are insured by it, it shall, upon the surrender and transfer to it of any account or investment certificate insured by it, be subrogated with respect to the account or investment certificate. The surrender and transfer of the account or investment certificate, however, shall not affect any right which the transferor thereof may have in any portion of the account or investment certificate which is uninsured, or any right to participate in the distribution of the net proceeds remaining from the disposition of the assets of the insured association, but if different provisions from the foregoing provisions of this and the preceding sentence would be applicable if the association were a federal savings and loan association, then the provisions shall be applicable under the laws of this state to the extent that they can validly be made so applicable. In any event the rights of the holders of accounts or investment certificates of the insured association shall be determined in accordance with the applicable provisions of the laws of this state.

C. The procedure provided for in this article for the liquidation of savings and loan associations shall be exclusive, and no receiver shall be appointed by any court of this state to take charge of the affairs of an association except as provided in this article.
A.R.S. § 6-817 — Arizona Code / Title 6 / Chapter 7 / Article 2 / Section 817
6-817 Refusal to license; suspension; revocation
Status: in_force

6-817. Refusal to license; suspension; revocation

A. The deputy director on investigation may refuse to license any applicant or may suspend or revoke any license pursuant to title 41, chapter 6, article 10 by entering an order to that effect, together with findings in respect to the order and by notifying the applicant or escrow agent either personally or by certified mail, return receipt requested, sent to the agent's stated address, on the determination by the deputy director that the applicant or escrow agent:

1. Is unable to pay debts as they fall due in the regular course of business.

2. Has not conducted the applicant's or agent's business in accordance with law or has violated this chapter or the rules relating to this chapter.

3. Is in such a financial condition that the applicant or agent cannot continue in business with safety to the applicant's or agent's customers or the public.

4. Has been found guilty of fraud in a legal or administrative proceeding in this jurisdiction or any other jurisdiction.

5. Has made any material misrepresentations or false statements to, or concealed any essential or material fact from, any person in the course of the escrow business.

6. Has knowingly made or caused to be made to the deputy director any false representation of a material fact, or has suppressed or withheld from the deputy director any information that the applicant or agent possesses, and that if submitted by the applicant or agent would have caused the issuance of a license to be withheld or be grounds for the suspension or revocation of a license.

7. Has failed to account properly for escrow property as required by the terms of the escrow.

8. Refuses to allow an examination or investigation by the deputy director of the applicant's or agent's books and affairs or has refused or failed within a reasonable time to furnish any information or make any report required by the deputy director under this chapter or rules relating to this chapter.

9. Has been convicted of any criminal offense involving moral turpitude within the last fifteen years.

10. Does not have the financial resources, experience or competence to adequately serve the public or to warrant the belief that the business will be operated lawfully, honestly, fairly and efficiently pursuant to this chapter.

11. Has disbursed monies in violation of escrow instructions.

12. Has failed to maintain an adequate internal control structure as prescribed by section 6-841.

13. Has caused or allowed any overdraft or returned check for insufficient funds on any of the escrow agent's trust or fiduciary accounts.

14. Has failed to authorize each financial institution with which it has deposited trust or fiduciary funds to notify the deputy director of any overdraft or check returned for insufficient funds on any trust or fiduciary accounts of the escrow agent.

B. It is sufficient cause for refusal, suspension or revocation of a license, in case of a partnership, a corporation or any other group or association, if any member of such persons, or officer or director thereof, has been guilty of any act or omission that would be cause for refusing a license or suspending or revoking the license of an individual agent.
A.R.S. § 6-1403 — Arizona Code / Title 6 / Chapter 14 / Article 1 / Section 1403
6-1403 Exemptions
Status: in_force

6-1403. Exemptions

A. The licensing requirements of this article do not apply to:

1. Any savings and loan association, bank, savings bank, trust company, consumer lender or credit union authorized to do business in this state.

2. Any agent or broker who is licensed by the department and who allows an insured to pay premiums on policies written by the agent or broker in installments if the agent or broker receives no interest or other fee, except that an agent or broker may collect a service charge of not more than five percent of the total premium amount and a delinquency charge as provided in section 6-1413.

3. Any person who purchases or otherwise acquires premium finance agreements from a licensee if the licensee retains the right to service the agreements and to collect payments due under the agreements and remains responsible for the premium finance agreement being handled in compliance with this article.

4. Any insurer authorized to transact insurance in this state in connection with the issuance of premium finance agreements relating to commercial insurance policies issued by the insurer.

B. The exemption from licensing as provided in subsection A of this section does not authorize the financing of insurance premiums without compliance with the other requirements of this article.
A.R.S. § 6-1223 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1223
6-1223 Unauthorized activities
Status: in_force

6-1223. Unauthorized activities

A person may not engage in the business of money transmission on behalf of a person that is not licensed under this article or that is not exempt pursuant to section 6-1202.  A person that engages in the activity in violation of this section is jointly and severally liable with the unlicensed or nonexempt person.
A.R.S. § 6-534 — Arizona Code / Title 6 / Chapter 4 / Article 5 / Section 534
6-534 Conflicts of interest
Status: in_force

6-534. Conflicts of interest

A director, committee member, officer, agent or employee of the credit union shall not in any manner participate, directly or indirectly, in the deliberation or the determination of any question affecting that person's pecuniary or other personal interest or the pecuniary interest of any organization, other than the credit union, in which the person is directly or indirectly interested.
A.R.S. § 6-1241 — Arizona Code / Title 6 / Chapter 12 / Article 2 / Section 1241
6-1241 Definitions
Status: in_force

6-1241. Definitions

In this article, unless the context otherwise requires:

1. "Authorized delegate" means a person that a licensee designates to engage in money transmission on behalf of the licensee pursuant to article 1 of this chapter.

2. "Licensee" means a person that is licensed under article 1 of this chapter.

3. "Money transmitter" means a person that meets the definition of a bank, financial agency or financial institution as prescribed by 31 United States Code section 5312 or 31 Code of Federal Regulations section 1010.100.

4. "Trade or business" has the same meaning prescribed in section 162 of the internal revenue code and includes the money accumulation business.
A.R.S. § 6-554 — Arizona Code / Title 6 / Chapter 4 / Article 6 / Section 554
6-554 Withdrawals
Status: in_force

6-554. Withdrawals

A. A person may withdraw monies in share and deposit accounts for payment to the account holder or to third parties in the manner and in accordance with the procedures established by the board of directors.

B. Share and deposit accounts are subject to any withdrawal notice requirements imposed pursuant to the bylaws.

C. A person may not redeem or withdraw a membership share except on termination of membership in the credit union.
A.R.S. § 6-1233 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1233
6-1233 Cease and desist order
Status: in_force

6-1233. Cease and desist order

In addition to the authority under section 6-137, the director may issue an order against the licensee to cease and desist from providing money transmission through an authorized delegate that violated, is violating or is about to violate this title.
A.R.S. § 6-325 — Arizona Code / Title 6 / Chapter 2 / Article 7 / Section 325
6-325 Failure to act on application as approval
Status: in_force

6-325. Failure to act on application as approval

The deputy director shall rule on any application submitted under section 6-322 not later than sixty days following the date the application is filed with the division. If the deputy director fails to rule on the application within the required sixty-day period, the failure to rule shall be deemed a final decision of the deputy director approving the application.
A.R.S. § 6-1007 — Arizona Code / Title 6 / Chapter 10 / Article 1 / Section 1007
6-1007 Lessee's death or incompetency; revocation of power of attorney
Status: in_force

6-1007. Lessee's death or incompetency; revocation of power of attorney

Neither the death nor incompetency of a lessee revokes the authority of a lessor to deal with an agent who has been authorized in writing by such lessee until the lessor has actual knowledge of the fact of death or of an adjudication of incompetency of the lessee, nor is the revocation of authority of such agent effective as to the lessor until the lessor receives written notice of the revocation signed by the individual lessee who granted the authority or, in the case of a corporation, partnership or association, evidence satisfactory to the lessor of such revocation.
A.R.S. § 6-606 — Arizona Code / Title 6 / Chapter 5 / Article 1 / Section 606
6-606 Business limited to licensed locations; restrictions
Status: in_force

6-606. Business limited to licensed locations; restrictions

A. Except as provided in subsection B of this section, a licensee may not conduct the business of making consumer lender loans pursuant to this chapter under any name or at any place of business in this state other than the name and place stated in the licensee's consumer lender license or branch office license.

B. Subsection A of this section does not prohibit a licensee from:

1. Making consumer lender loans by mail or electronic means.

2. On request, making accommodations to consumers at any location requested by the consumer.

3. Conducting any administrative, loan servicing or recordkeeping activity at any other location not open to the public, if the deputy director is notified in advance of that activity.

4. Closing a consumer lender loan secured by real property at an office of a financial institution, title company, licensed escrow agent, licensed mortgage broker or licensed mortgage banker.

5. Giving a consumer an advance on a consumer revolving loan or home equity revolving loan from any location.

6. Conducting business pursuant to this chapter under an assumed name or a trade name that is submitted to the department pursuant to section 6-117.

C. On approval by the deputy director, the licensee may conduct any of the activities listed in subsection B of this section outside of this state.

D. A licensee may change the location of its licensed office or licensed branch office by giving written notice to the deputy director, who shall amend the license accordingly.

E. All consumer lender loans that are made at the location of a licensed office or branch office are subject to the requirements of article 2 of this chapter, whether made by a licensee, any person otherwise exempt from this chapter pursuant to section 6-602 or any other person.

F. A licensee may not conduct the business of making consumer lender loans pursuant to this chapter from within any licensed office or branch office in which any other business not licensed pursuant to this title is solicited or engaged in, or in association or conjunction with any other business not licensed pursuant to this title, without giving prior notice to the deputy director. If it appears to the deputy director that the other business is of such a nature or is being conducted in such a manner as to conceal an evasion of this chapter or is contrary to the public interest or otherwise being conducted in an unlawful manner, the deputy director may act pursuant to section 6-137 to restrict the licensee from conducting its business in conjunction with that other business. For the purposes of this subsection, "public interest" means the laws of this state or of the United States or rules adopted by the deputy director.
A.R.S. § 6-331 — Arizona Code / Title 6 / Chapter 2 / Article 7 / Section 331
6-331 Enforcement
Status: in_force

6-331. Enforcement

A. If the deputy director determines that a branch that is maintained in this state by an out-of-state bank is being operated in violation of any law of this state or any rule adopted by this state or that the branch is being operated in an unsafe or unsound manner, the deputy director has authority to take all enforcement actions against that branch as if the branch were regulated pursuant to section 6-201.

B. The deputy director shall promptly notify the regulatory agency of the out-of-state bank's home state of each enforcement action taken against the out-of-state bank and to the extent practicable shall consult and cooperate with the regulatory agencies of the out-of-state bank in pursuing and resolving any enforcement actions.
A.R.S. § 6-355 — Arizona Code / Title 6 / Chapter 2 / Article 9 / Section 355
6-355 Change loans
Status: in_force

6-355. Change loans

A bona fide change loan of ten thousand dollars or less, for a term not to exceed four days, which entails the services of furnishing coins or currency in specific amounts required by the borrower, may be compensated for, at the option of the bank, in lieu of interest, by a service charge of not more than fifteen dollars.
A.R.S. § 6-532 — Arizona Code / Title 6 / Chapter 4 / Article 5 / Section 532
6-532 Election of board
Status: in_force

6-532. Election of board

A. The board shall consist of at least five directors, to be elected by and from the members. Elections shall be held at the annual meeting or in such other manner as the bylaws provide. All members of the board are entitled to hold office for the terms the bylaws provide, except that terms shall be staggered so that an approximately equal number expire each year, over a three-year period.

B. At a meeting held within thirty days after each annual election, the board of directors shall appoint a supervisory committee of not fewer than three persons for such terms as the bylaws provide. At the same meeting, the board of directors shall appoint a credit committee, unless the bylaws provide for a credit manager in place of a credit committee. The credit committee shall consist of not fewer than three persons whose terms shall be as the bylaws provide. Within twenty days after the meeting, the credit union shall file with the deputy director a record of the names and addresses of the members of the board and such other committees and officials as required by the deputy director. Within sixty days after any vacancies occurring in the board or supervisory or credit committee, the board shall fill the vacancies in accordance with the bylaws.  A record of the names and addresses of members filling any vacancies on the board or the supervisory or credit committee shall be filed with the deputy director within twenty days after their appointment.
A.R.S. § 6-404 — Arizona Code / Title 6 / Chapter 3 / Article 1 / Section 404
6-404 General corporate powers
Status: in_force

6-404. General corporate powers

An association operating under this chapter shall be a body corporate and politic and shall have all of the specific powers conferred by this chapter and as provided for under the general laws of this state and, in addition to these powers, the following powers:

1. To obtain and maintain insurance of the association's accounts by an insurance corporation, as defined in this chapter, and to comply with all the regulations and requirements of such insurance corporation.

2. Notwithstanding the provisions of article 4 of this chapter, to designate part or all of the guaranty capital of the association as part of its federal insurance reserve established for the sole purpose of absorbing losses which the insurance corporation may require.

3. To become a member of a federal home loan bank and to have all powers of such a member which are not inconsistent with the provisions of this chapter.

4. To act as a fiscal agent for the United States when duly designated for that purpose, and as such agent to perform such reasonable functions as may be required of it.

5. To become a member of or deal with any corporation or agency of the United States to the extent that such agency assists in furthering or facilitating the association's purposes or powers, and to that end to purchase stock or securities thereof or deposit money therewith and to comply with any other conditions of membership or credit.

6. To make donations in reasonable amounts for the public welfare or for charitable, scientific, religious or educational purposes.

7. To adopt and operate reasonable insurance, bonus, profit sharing and retirement plans for officers and employees.

8. To reject any application for membership, to retire accounts by enforced retirement as provided in this chapter and the bylaws and to limit the issuance of or payments on accounts, subject however to contractual obligations.
A.R.S. § 6-991.10 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991.10
6-991.10 Payments to the mortgage recovery fund
Status: in_force

6-991.10. Payments to the mortgage recovery fund

A. In addition to any other fees, applicants shall pay an amount to be determined by the deputy director to the mortgage recovery fund on application for an original loan originator license.

B. If, on June 30 of any year, the balance remaining in the mortgage recovery fund is less than $2,000,000, every licensee when renewing a loan originator license during the following license year shall pay, in addition to the license renewal fee, a fee to be determined by the deputy director for deposit in the mortgage recovery fund.
A.R.S. § 6-704 — Arizona Code / Title 6 / Chapter 6 / Article 1 / Section 704
6-704 Application for license; bonds; contract
Status: in_force

6-704. Application for license; bonds; contract

A. An application for a license shall be in writing, under oath and in a form prescribed by the deputy director, and shall contain the name and address, both of the residence and place of business, of the applicant and if the applicant is an association or society, of every member thereof, and if a corporation or partnership, of every officer and director thereof and a copy of the articles of incorporation, and the specific address or addresses at which the business is to be conducted. The deputy director may require as part of the application a credit report and such other information as the deputy director deems necessary.

B. At the time of filing the application the applicant shall furnish a cash or surety bond payable to the people of the state in the sum of not less than $5,000 for licensees disbursing less than $100,000 each year and for the following amounts based on the amounts disbursed by the licensee in the previous license year:

Yearly disbursements      Amount of bond

$100,000 - $250,000     $10,000.00

$250,001 - $500,000     $15,000.00

$500,001 - $1,000,000   $20,000.00

More than $1,000,000    $25,000.00

C. Each bond prescribed in subsection B of this section shall be conditioned on the faithful accounting of all monies collected on accounts entrusted to such person engaged in debt management, and their employees and agents, and on the faithful observance of the provisions of this article and the contract between the licensee and the debtor. The bond shall be approved by the deputy director and filed in the office of the deputy director. The bond shall remain in force and effect until the surety is released from liability by the deputy director, or until the surety bond is canceled by the surety. The surety may cancel the surety bond and be relieved of further liability by delivering thirty days' written notice to the deputy director. The cancellation does not affect any liability incurred or accrued prior to the termination of the thirty-day period. Any person who suffers any loss or damage by reason of the neglect or default of a licensee or his employees or agents or by the licensee's violation of any of the provisions of this article or of the contract between the licensee and the debtor shall have a right of action against the licensee and the sureties on his bond.  An action may not be brought on the bond by any person after the expiration of two years after the time when the act or default occurred. When an action is commenced on the bond of a licensee, the deputy director may require the filing of a new bond, and immediately on the recovery of any action on the bond the licensee shall file a new bond.  Failure to file a new bond within ten days after the recovery on a bond, or within ten days after notification that a bond is required, constitutes sufficient grounds for the suspension or revocation of a license.

D. In addition to the bond provided in subsection B of this section, the deputy director may require an applicant to obtain an adequate fidelity bond for each officer, employee, or agent having access to funds collected by or for the licensee or having authority to draw against such funds. The fidelity bond required to be filed in accordance with this section shall remain in force and effect until the surety is released from liability by the deputy director, or until the bond is canceled by the surety. The surety may cancel the bond and be relieved of further liability by delivering thirty days' written notice to the deputy director. The cancellation shall not affect any liability incurred or accrued prior to the termination of the thirty-day period.

E. Each applicant for a license shall file with his application a blank copy of the contract intended to be used between the licensee and the debtor and shall file with the deputy director a copy of all changes and amendments thereto.
A.R.S. § 6-232 — Arizona Code / Title 6 / Chapter 2 / Article 4 / Section 232
6-232 Powers of attorney; notice of revocation; payment after notice
Status: in_force

6-232. Powers of attorney; notice of revocation; payment after notice

A. A bank may continue to recognize any act of a depositor's agent as authorized by the depositor in writing to the bank until the bank receives a written notice of revocation signed by the individual depositor who granted the authority or, in the case of a corporation, partnership or association, evidence satisfactory to the bank of such revocation.

B. Notwithstanding that a bank has received written notice of revocation of the authority of such agent, it may, until ten days after receipt of such notice, pay any item made, drawn, accepted or indorsed by such agent prior to such revocation, provided that such item is otherwise properly payable.
A.R.S. § 6-470 — Arizona Code / Title 6 / Chapter 3 / Article 7 / Section 470
6-470 Protection and liquidation of assets
Status: in_force

6-470. Protection and liquidation of assets

The liquidators are authorized to advance funds of the association and to take such other action as is advisable to preserve, protect, or purchase at any sale any real estate or other asset upon which the association may hold any lien or encumbrance or in which it may have an interest. The liquidators may sell, convey, lease, mortgage or exchange any assets so purchased or other assets; and in furtherance of the liquidation of the association, may sell and dispose of any of its assets at public sale to the highest and best bidder; or may sell any such assets at private sale for the highest price obtainable. No purchaser shall be required to ascertain the application of the purchase price.
A.R.S. § 6-840 — Arizona Code / Title 6 / Chapter 7 / Article 3 / Section 840
6-840 Prohibitions; definitions
Status: in_force

6-840. Prohibitions; definitions

A. An escrow agent shall not accept any escrow in which a participant in the escrow is an affiliate of the escrow agent unless:

1. The affiliation is disclosed to all nonaffiliated participants in writing by the escrow agent.

2. Use of the affiliated escrow agent is not required by the affiliate as a condition of making a loan or entering into any other agreement with the nonaffiliated participants.

B. For the purpose of this section:

1. "Controlled escrow business" means the handling of an escrow by an escrow agent where an affiliate of the escrow agent is a participant in the escrow transaction.

2. "Participant" means the buyer, seller, lender, mortgage broker, mortgage banker, real estate broker or real estate salesman or any person who is a party to the escrow transaction.
A.R.S. § 6-607 — Arizona Code / Title 6 / Chapter 5 / Article 1 / Section 607
6-607 Books; accounts; records; access
Status: in_force

6-607. Books; accounts; records; access

A. A licensee shall maintain books, accounts and records that enable the deputy director to determine whether the licensee is in compliance with this chapter.

B. A licensee shall preserve its books, accounts and records of consumer lender loans for at least two years after making the final entry for any consumer lender loan. A licensee that uses an electronic record keeping system is not required to keep a written copy of the accounts and records if the licensee is able to generate all of the information required by this section in a timely manner for examination or other purposes.

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 is made by the deputy director, or the deputy director may choose to perform the examination or investigation at the office of the licensee located outside this state.

E. For the purposes of this chapter, the deputy director or the deputy director's duly authorized representatives shall have access during normal business hours 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.
A.R.S. § 6-265 — Arizona Code / Title 6 / Chapter 2 / Article 5.1 / Section 265
6-265 Uniformity of application and construction
Status: in_force

6-265. Uniformity of application and construction

In applying and construing this article, a court shall consider the promotion of uniformity of the law among jurisdictions that enact it.
A.R.S. § 6-395.01 — Arizona Code / Title 6 / Chapter 2 / Article 13 / Section 395.01
6-395.01 Powers of deputy director in possession
Status: in_force

6-395.01. Powers of deputy director in possession

When the deputy director has taken possession of a bank and until the appointment and qualification of the receiver, or the adjudication that no ground for the receivership exists, the deputy director shall be vested with the full and exclusive power of management and control. The deputy director shall immediately close the bank for the acceptance and withdrawal of deposits, but shall otherwise have the power to continue or to discontinue the business, to stop or to limit the payment of its obligations, to employ any necessary assistants, to execute any instrument in the name of the bank, to commence, defend and conduct in its name any action or proceeding in which the bank may be a party.
A.R.S. § 6-1305 — Arizona Code / Title 6 / Chapter 13 / Article 1 / Section 1305
6-1305 Registration; renewal; reporting requirements
Status: in_force

6-1305. Registration; renewal; reporting requirements

A. The deputy director shall register the applicant as an advance fee loan broker when an applicant has fully complied with this chapter and the rules prescribed by the deputy director.

B. The deputy director shall immediately notify the applicant on registering the applicant as an advance fee loan broker.

C. A registered advance fee loan broker shall apply for renewal as prescribed by the deputy director not later than December 31 of each year. A registration for which a renewal application is not received by the deputy director by December 31 is suspended and the registered advance fee loan broker may not act as an advance fee loan broker until the registration is renewed or a new registration is issued pursuant to this article. The registration of an advance fee loan broker that has not filed a renewal application and paid the renewal fee by January 31 expires.  A registration may not be granted to the holder of an expired registration except as provided in this article for the issuance of an original registration.

D. An advance fee loan broker may annually renew the broker's registration by filing a supplemental statement showing any changes in the facts set forth in the original application for registration or any previously filed supplemental statement made at the time of annual renewal.

E. An advance fee loan broker shall file a supplemental statement showing any changes in the facts set forth in the original application or in any supplemental statement made at the time of annual renewal within thirty days after a change in any material fact.
A.R.S. § 6-991.16 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991.16
6-991.16 Claimant's right to appeal denial of claim; service of notice of appeal; response; failure to file response
Status: in_force

6-991.16. Claimant's right to appeal denial of claim; service of notice of appeal; response; failure to file response

A. A claimant whose application is denied pursuant to section 6-991.15 may file within six months after receiving notice of a denial of the claim a verified application in the court in which judgment was entered in the claimant's favor for an order directing payment out of the mortgage recovery fund based on the grounds set forth in the claimant's application to the deputy director.

B. The claimant must serve a copy of the verified application on the deputy director and on the judgment debtor and file a certificate or affidavit of service with the court. Service on the deputy director shall be made by certified mail addressed to the deputy director.  Service on a judgment debtor shall be made pursuant to section 6-991.12 and shall include the following notice:

NOTICE

An application has been filed with the court for a payment from the mortgage recovery fund that was previously denied by the deputy director of the financial institutions division of the department of insurance and financial institutions. If you wish to defend in court against this claim, you must file a written response with the court within thirty calendar days after you are served with a copy of the application. If you fail to file a written response, you waive your right to defend against the claim.

C. The deputy director and the judgment debtor each must file a written response within thirty calendar days after being served with the application under subsection B of this section.  The court shall set the matter for hearing on the petition of the claimant.  The court shall grant a request of the deputy director for a continuance of as much as thirty calendar days and, on a showing of good cause by any party, may continue the hearing for a time that the court considers to be appropriate.

D. At the hearing, the claimant must establish compliance with the requirements of section 6-991.11.

E. If the judgment debtor fails to file a written response to the application, the deputy director may compromise or settle the claim at any time during the court proceedings and, on joint petition of the applicant and the deputy director, the court shall issue an order directing payment out of the mortgage recovery fund.
A.R.S. § 6-991.20 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991.20
6-991.20 Effect of article on disciplinary action
Status: in_force

6-991.20. Effect of article on disciplinary action

This article does not limit the authority of the deputy director to take disciplinary action against any licensee for a violation of this chapter or of the rules adopted pursuant to this chapter. The repayment in full of all obligations to the fund by any licensee does not nullify or modify the effect of any other disciplinary proceeding brought pursuant to this chapter or the rules adopted pursuant to this chapter.
A.R.S. § 6-991.19 — Arizona Code / Title 6 / Chapter 9 / Article 4 / Section 991.19
6-991.19 Waiver of rights
Status: in_force

6-991.19. Waiver of rights

The failure of an aggrieved person to comply with all of the provisions of this article constitutes a waiver of any rights.
A.R.S. § 6-981 — Arizona Code / Title 6 / Chapter 9 / Article 3 / Section 981
6-981 Inactive status
Status: in_force

6-981. Inactive status

A. For licenses approved on or before March 31, 2009, a licensee may request inactive status for the following license year, and the license shall be placed on inactive status after surrendering the license to the deputy director.

B. For licenses approved after or renewed on March 31, 2009, a licensee may request inactive status on or before December 31 of each year for the following license year, and the license shall be placed on inactive status after surrendering the license to the deputy director.

C. During inactive status, an inactive licensee is not required to maintain a bond and shall not act as a commercial mortgage banker.

D. A licensee may not be on inactive status for more than two consecutive years or for more than four years in any ten-year period. The license is deemed expired on violation of any of the limitations of this subsection.

E. An inactive licensee may return to active status notwithstanding section 6-973, subsection D by making a written request to the deputy director for reactivation. The licensee shall also provide the deputy director with proof that the licensee meets all of the other requirements for acting as a commercial mortgage banker, including required bond coverage or the deposit of a cash alternative.
A.R.S. § 6-438 — Arizona Code / Title 6 / Chapter 3 / Article 4 / Section 438
6-438 Authorized charges applicable to members
Status: in_force

6-438. Authorized charges applicable to members

An association may charge initial membership fee and a fee for transfer of membership or capital, as may be authorized by the by-laws, but no such fee shall exceed twenty-five cents per share or per one hundred dollars of the account.
A.R.S. § 6-124 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 124
6-124 Investigations; compelling testimony and the production of documents; self-incrimination
Status: in_force

6-124. Investigations; compelling testimony and the production of documents; self-incrimination

A. The deputy director may conduct examinations and investigations within or outside this state to determine whether any person has engaged, is engaging or is about to engage in any act, practice or transaction which constitutes an unsafe or unsound practice or a violation of any law or rule applicable to persons subject to the jurisdiction of the deputy director or any order of the deputy director or to aid in the enforcement of this title or to aid in adopting rules.

B. The deputy director and any examiner or administrative law judge, in the performance of the deputy director's, examiner's or administrative law judge's duties, may take evidence, examine on oath any person and compel the attendance of witnesses and the production of documents, books and papers. On refusal to appear or produce, the deputy director may apply to the superior court in Maricopa county to compel appearance or production.

C. All financial institutions and enterprises shall, on request of the deputy director, make their books and records available for inspection and examination by the deputy director or the deputy director's examiners.
A.R.S. § 6-639 — Arizona Code / Title 6 / Chapter 5 / Article 2 / Section 639
6-639 Loans from theft or fraud; consumer not responsible; correction of credit information
Status: in_force

6-639. Loans from theft or fraud; consumer not responsible; correction of credit information

A licensee may not hold a person responsible for any loan amount that is incurred as a result of a violation of section 13-2008, 13-2009, 13-2010 or 13-2310.  Within thirty days after a licensee is aware that a loan is a result of a violation of section 13-2008, 13-2009, 13-2010 or 13-2310, the licensee shall immediately correct any derogatory credit information that is reported to a consumer reporting agency as defined in section 44-1691 and that is the result of the violation.
A.R.S. § 6-324 — Arizona Code / Title 6 / Chapter 2 / Article 7 / Section 324
6-324 De novo entry by certain financial institutions
Status: in_force

6-324. De novo entry by certain financial institutions

An out-of-state financial institution may establish a bank, savings and loan association or holding company in this state through de novo entry subject to the applicable laws of this state. An in-state financial institution may not be acquired for operation as a branch by an out-of-state financial institution until it has been in continuous operation for five or more years on the date of the proposed acquisition.
A.R.S. § 6-142 — Arizona Code / Title 6 / Chapter 1 / Article 4 / Section 142
6-142 Unlawful control
Status: in_force

6-142. Unlawful control

A person shall not directly or indirectly acquire control of a bank, trust company, savings bank, savings and loan association or controlling person, except with the approval of the deputy director or as otherwise allowed by this article.
A.R.S. § 6-134 — Arizona Code / Title 6 / Chapter 1 / Article 3 / Section 134
6-134 False statements as to financial condition; classification
Status: in_force

6-134. False statements as to financial condition; classification

Any person who knowingly makes, circulates or transmits to another a false statement or rumor, written, printed or by word of mouth, which is, directly or by inference, derogatory of the financial condition or solvency of any bank, savings and loan association or credit union is guilty of a class 2 misdemeanor.
A.R.S. § 6-256 — Arizona Code / Title 6 / Chapter 2 / Article 5.1 / Section 256
6-256 Permissible purpose
Status: in_force

6-256. Permissible purpose

A. A special deposit must serve at least one permissible purpose stated in the account agreement from the time the special deposit is created in the account agreement until termination of the special deposit.

B. If, before termination of the special deposit, the bank or a court determines the special deposit no longer satisfies subsection A of this section, sections 6-258, 6-259, 6-260 and 6-261 cease to apply to any funds deposited in the special deposit after the special deposit ceases to satisfy subsection A of this section.

C. If, before termination of a special deposit, a bank determines the special deposit no longer satisfies subsection A of this section, the bank may take action it believes is necessary under the circumstances, including terminating the special deposit.
A.R.S. § 6-523 — Arizona Code / Title 6 / Chapter 4 / Article 4 / Section 523
6-523 Membership applications
Status: in_force

6-523. Membership applications

A. The board of directors shall act on applications for membership or appoint one or more membership officers to approve applications for membership. A credit union may deny membership based on policies established by the board of directors. A person denied membership by a membership officer may appeal the denial to the board of directors within thirty days after the denial.

B. A credit union may impose onetime or periodic membership fees under the conditions the bylaws provide.
A.R.S. § 6-942 — Arizona Code / Title 6 / Chapter 9 / Article 2 / Section 942
6-942 Exemptions
Status: in_force

6-942. Exemptions

A. This article 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 such 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 consumer lenders, or receiverships, including directly or indirectly making, negotiating or offering to make or negotiate a mortgage banking loan or a mortgage loan if the mortgage transactions are regulated by the other law or are under the jurisdiction of a court.

2. A person who makes a mortgage banking loan or a mortgage loan:

(a) With his own monies.

(b) For his own investment.

(c) Without intent to resell.

(d) And is not engaged in the business of making mortgage loans or mortgage banking loans.

3. A person who funds a mortgage loan or mortgage banking loan which has been originated and processed by a licensee, by a mortgage broker licensed in this state or by a person exempt under paragraph 1 of this subsection and who meets all of the following:

(a) Does not maintain a place of business in this state in connection with funding mortgage loans or mortgage banking loans.

(b) Does not directly or indirectly solicit borrowers in this state for the purpose of making mortgage loans.

(c) Does not participate in the negotiation of mortgage loans.

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

5. A person who is licensed to practice law in this state, but is not actively and principally engaged in the business of negotiating mortgage banking loans or mortgage loans, if this person renders services in the course of his practice as an attorney at law.

6. A person who receives a mortgage or deed of trust on real property as security for an obligation payable on an installment or deferred payment basis and arising out of materials furnished or services rendered in the improvement of that real property or any lien created without the consent of the owner of such real property.

7. A person who is licensed pursuant to article 1 or 3 of this chapter.

8. An agency of any state or of the United States.

9. A nonprofit federally tax exempt corporation certified by the United States small business administration and organized to promote economic development within this state whose primary activity consists of providing financing for business expansion.

10. An institutional investor as defined in section 6-971 unless the institutional investor makes either:

(a) A mortgage loan other than a commercial mortgage loan as defined in section 6-971.

(b) A mortgage banking loan other than a commercial mortgage loan as defined in section 6-971.

B. Subsidiaries and service corporations of institutions exempt under subsection A, paragraph 1 of this section shall not be exempt and shall be subject to the provisions of this article unless preempted by federal law.

C. For the purposes of:

1. Subsection A, paragraph 3 of this section, "originate" includes loans closed in a name other than that of the licensee, a mortgage broker licensed in this state or exempt person only if the person in whose name the loan is closed meets the other requirements of subsection A, paragraph 3 of this section.

2. Subsection A, paragraph 3, subdivision (c) of this section, negotiation of mortgage loans does not include setting the terms under which a person may buy a mortgage loan originated by a licensee or a person exempt under subsection A, paragraph 1 of this section.
A.R.S. § 6-212 — Arizona Code / Title 6 / Chapter 2 / Article 3 / Section 212
6-212 Resulting national bank
Status: in_force

6-212. Resulting national bank

Nothing in the law of this state shall restrict the right of a state bank to merge with or convert into a national bank. The action to be taken by such merging or converting state bank and its rights and liabilities and those of its stockholders shall be as prescribed at the time of the action by the law of the United States, but the state bank shall give notice to the deputy director of the adoption by its board of directors of any plan of merger or conversion.
A.R.S. § 6-237 — Arizona Code / Title 6 / Chapter 2 / Article 4 / Section 237
6-237 Payment of deposit to foreign personal representative
Status: in_force

6-237. Payment of deposit to foreign personal representative

If the deposit account is with one person and if within sixty days from the date of death of such depositor, no personal representative of such decedent, qualified in this state, has delivered a certified copy of letters testamentary or letters of administration to the bank, the bank may pay the balance of the account of the deceased depositor to the depositor's domiciliary personal representative qualified in another state upon the presentation of letters testamentary or letters of administration certified by the appointing court.
A.R.S. § 6-1216 — Arizona Code / Title 6 / Chapter 12 / Article 1 / Section 1216
6-1216 Report of condition
Status: in_force

6-1216. Report of condition

A. Each licensee shall submit a report of condition within forty-five days after the end of the calendar quarter or within any extended time as the director prescribes.

B. The report of condition shall include:

1. A consolidated financial statement, including a balance sheet and income and expense statements at the licensee level.

2. Nationwide and state-specific money transmission transaction information in every jurisdiction in the United States where the licensee is licensed to engage in money transmission.

3. A permissible investments report.

4. Transaction destination country reporting for money received for transmission. This paragraph applies only to a report of condition submitted within forty-five days after the end of the fourth calendar quarter.

5. Any other information the director reasonably requires with respect to the licensee.

C. The director may use NMLS for the submission of the report required by this section and is authorized to change or update as necessary the requirements of this section to carry out the purposes of this article and maintain consistency with NMLS reporting.
A.R.S. § 6-456 — Arizona Code / Title 6 / Chapter 3 / Article 5 / Section 456
6-456 Effect of unauthorized investments and loans; liability of officers
Status: in_force

6-456. Effect of unauthorized investments and loans; liability of officers

A. Every loan or other investment made in violation of this chapter shall be due and payable according to its terms, and the obligation thereof shall not be impaired.

B. Every director or officer of an association who knowingly shall violate, participate in, or assent to, or who knowingly shall permit any of the officers or agents of the association to make investments not authorized by this chapter, shall be liable individually for all damage which the association or its members sustain in consequence of such violation.
A.R.S. § 6-949 — Arizona Code / Title 6 / Chapter 9 / Article 2 / Section 949
6-949 Conversion to mortgage broker license
Status: in_force

6-949. Conversion to mortgage broker license

Notwithstanding any other law, a licensee who funds in the aggregate one hundred fifty or fewer loans in the immediately preceding calendar year may apply at the time of license renewal to the department for a conversion to a mortgage broker license issued pursuant to article 1 of this chapter.  The conversion application shall be in a manner prescribed by the deputy director by rule. The approval of the conversion is at the discretion of the deputy director.
A.R.S. § 6-861 — Arizona Code / Title 6 / Chapter 8 / Article 1 / Section 861
6-861 Reports
Status: in_force

6-861. Reports

A. The deputy director may require reports of financial condition and relevant information concerning the business operations of each trust company, shall fix and extend the time for the filing of such reports and shall assess a penalty of $50 for each day the trust company is delinquent.

B. The president, chief executive officer or chief operating officer shall examine the books and accounts of the trust company for the purpose of making the report and shall verify the report by providing an affidavit stating that the information contained in the report is accurate to the best of the president's or officer's knowledge or belief.

C. The report shall contain statements and information regarding the affairs, business conditions, resources and implementation of internal controls as safeguards for the protection of fiduciary beneficiaries, creditors, shareholders and the public.

D. Excluding weekends and holidays, within forty-eight hours after the date of discovery, a trust company that is the victim of a robbery, the shortage of funds of more than $5,000 or the apparent misapplication of trust funds by an officer, director, agent or employee shall issue a written report to the deputy director explaining the loss.

E. Within thirty days after the service of the complaint, the trust company shall issue a written report to the deputy director stating any adverse legal actions involving allegations of fraud, breach of fiduciary duty, breach of contract or misapplication or commingling of trust funds, including complaints that are dismissed within thirty days after service.