reglab/statecodes huggingface dataset:
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1103 - Exempt persons and transactions

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.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1104 - Acquisition of control; approval by deputy director

6-1104.
Acquisition of control;  approval by deputy director
A. A person shall not,  directly or indirectly,  make a tender offer for,  request or invite a tender offer for,  offer to exchange securities for or acquire in the open market or otherwise any voting security or any security convertible into a voting security of a financial institution or controlling person if the transaction would result in the person becoming a financial institution holding company unless the deputy director has approved the acquisition of control pursuant to this article. This section does not prohibit a person from negotiating or entering into agreements subject to the condition that the acquisition of control is not effective until approval of the deputy director pursuant to this article is obtained.
B. A person who has been approved pursuant to this article is not required to make a subsequent application pursuant to this article to acquire additional control or fractions of control of the financial institution or controlling person for which it was approved if the person has remained in continuous control of the financial institution or controlling person.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1105 - Application for approval

6-1105.
Application for approval
A. An application shall be in writing,  in such form as the deputy director may prescribe and accompanied by the information,  data and records the deputy director requires. The deputy director shall prescribe by rule or order the form of the application and the information,  data or records that may be required.
B. The deputy director shall cause copies of an initial application and any amendment or supplement to the application to be given to the financial institution concerned and the controlling person,  if any,  within three business days.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1106 - Material change of fact; filing amended statements

6-1106.
Material change of fact;  filing amended statements
If any material change occurs in the facts set forth in the application,  or if for any other reason the acquiring party desires to amend the application,  the person shall file with the deputy director an amendment setting forth the change,  together with copies of all documents and other material relevant to the change.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1107 - Denial of application; grounds

6-1107.
Denial of application;  grounds
A. The deputy director may deny an application if the deputy director finds any of the following:
1. The financial condition of the financial institution holding company that would acquire control will jeopardize the financial stability of the financial institution or controlling person or prejudice the interests of the depositors,  beneficiaries,  creditors and shareholders of the financial institution or controlling person.
2. A plan or proposal to liquidate or consolidate the financial institution or controlling person or to make any other major change in the business,  corporate structure or management of the financial institution or controlling person is not fair and reasonable to the depositors,  beneficiaries,  creditors and shareholders of the financial institution or controlling person.
3. The applicant has neglected,  failed or refused to furnish to the deputy director any required information.
4. The proposed acquisition is contrary to law.
5. The acquisition would result in a monopoly or would be in furtherance of any combination or any conspiracy to monopolize or to attempt to monopolize the business of financial institutions and financial institution holding companies.
6. The effect of the proposed acquisition will be to substantially lessen competition,  tend to create a monopoly or in any other manner be a restraint of trade,  unless the deputy director finds that the effects of the proposed acquisition are clearly outweighed by its probable effect in meeting the convenience and needs of the community to be served and by the public interest.
7. The applicant has made a material false statement on the application.
B. The deputy director shall give the applicant written notification of the granting or denial of an application together with a statement in support of the decision. If the deputy director,  based on the information available at the time,  plans to deny the application and no hearing has been held in accordance with title 41,  chapter 6,  article 10,  the deputy director shall send the applicant a written statement that specifies the reasons for the tentative denial. The applicant shall have fifteen days following the date of this statement within which to file a written request to amend its application. On the filing of the request,  the applicant shall be given thirty days in which to amend its application.
C. The deputy director may approve an application subject to conditions the deputy director considers necessary and appropriate to protect the public interest and carry out the purposes of this title. The deputy director shall give the applicant written notification of the approval of an application that is subject to conditions together with a statement in support of the decision.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1108 - Failure to act on application as approval

6-1108.
Failure to act on application as approval
An application that is not denied or approved by the deputy director within sixty days after the application is filed with the deputy director is deemed to be approved by the deputy director as of the first day after the period. The deputy director and the applicant may extend the sixty-day period by agreement. If the deputy director gives notice of a hearing,  the sixty-day period is extended to the date fixed by order of the deputy director. For the purposes of this section,  an application is not deemed filed until all amendments,  supplements and additional information required by the deputy director have been received.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1109 - Determination of control of one person by another; hearing; notice

6-1109.
Determination of control of one person by another;  hearing;  notice
Before determining whether a person controls another person or before denying or approving an application for approval to become a financial institution holding company the deputy director may hold a hearing. The deputy director shall give notice of the hearing to the applicant,  the financial institution or controlling person concerned and to such other persons as the deputy director determines appropriate. The date for commencement of the hearing shall be not later than thirty days after the date of the notice,  unless the applicant consents to an extension of the period.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1110 - Appointment of deputy director as agent for service of process; forwarding of process; consent to jurisdiction

6-1110.
Appointment of deputy director as agent for service of process;  forwarding of process;  consent to jurisdiction
A person who is not a resident of this state,  domiciled in this state or authorized to do business in this state and who files an application is deemed to have:
1. Consented to the jurisdiction of the courts of this state for all actions arising under this article.
2. Appointed the deputy director as the person's lawful agent for the purpose of accepting service of process in any action,  suit or proceeding that may arise under this article. The deputy director shall transmit copies of all such lawful process accepted by the deputy director as an agent by certified mail to the person at the person's last known address.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1112 - Acquisition of voting securities in violation of article; limitation on rights as shareholder; injunction

6-1112.
Acquisition of voting securities in violation of article;  limitation on rights as shareholder;  injunction
A. With respect to any voting security acquired in violation of this article or any rule or order of the deputy director,  a person is not entitled to vote or give a written proxy or consent for a period of five years after the acquisition except with the written consent of the deputy director. If a voting security of a financial institution or controlling person is acquired in violation of this article or any rule or order,  any shareholder of the financial institution or controlling person or the deputy director may apply to the superior court for injunctive or other equitable relief,  including costs and reasonable attorney fees,  to enjoin prospectively any person from voting or giving any written proxy or consent with respect to the voting security for a period of five years after the acquisition except with the written consent of the deputy director. The deputy director may apply to the superior court for injunctive or other relief,  including costs,  to void any vote or any giving of a written proxy or consent with respect to the security that has occurred since the acquisition,  except that the court may not void the vote if the court finds that to void the vote would not be in the interest of the depositors,  beneficiaries,  creditors or shareholders of the financial institution or controlling person or in the public interest.
B. A person may file an application for consent of the deputy director with the deputy director and the deputy director shall grant or deny the application within thirty days. In giving consent,  the deputy director may require those conditions that the deputy director deems reasonable,  necessary or otherwise in the public interest. Except as provided in section 41-1092.08,  subsection H,  the final action of the deputy director is subject to judicial review pursuant to title 12,  chapter 7,  article 6 if the complaint seeking review is filed with the superior court in Maricopa county.
C. No civil action may be brought to void any vote pursuant to subsection A of this section unless commenced within one year after the transaction that constituted a violation of this article or any rule or order of the deputy director.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1113 - Reports; examination; costs

6-1113.
Reports;  examination;  costs
A. The deputy director may require reports from and examine financial institution holding companies and each subsidiary of the holding companies. The deputy director shall accept the examination and financial reports of the appropriate federal or state holding company regulatory authority in lieu of any examination or financial report authorized or required by this chapter. The reports so accepted are considered for all purposes as official reports of the department.
B. Notwithstanding subsection A of this section,  the deputy director may require reports from and examine financial institution holding companies and their subsidiaries if it appears to the deputy director that any of these entities has engaged,  is engaging or is about to engage in any act,  practice or transaction that constitutes an unsafe or unsound practice or a violation of this title or any rule or order of the deputy director. This section does not prohibit the department from participating with federal regulators in the examinations to aid in enforcing this title.
C. The cost of any examination shall be assessed against and paid by each financial institution holding company pursuant to section 6-125.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1203 - Implementation; fees

6-1203.
Implementation;  fees
A. To implement this article,  the director may:
1. Enter into agreements or relationships with other government officials or federal and state regulatory agencies and regulatory associations in order to improve efficiencies and reduce regulatory burden by standardizing methods or procedures,  providing for licensure by reciprocity and sharing resources,  records or related information obtained under this article.
2. Use,  hire,  contract or employ analytical systems,  methods or software to examine or investigate any person subject to this article.
3. Accept the following from other state or federal government agencies or officials:
(a) Licensing,  examination or investigation reports made by other state or federal government agencies or officials.
(b) Audit reports made by an independent certified public accountant or other qualified third-party auditor for an applicant or licensee and incorporate the audit report in any report of examination or investigation.
B. The director shall administer,  interpret and enforce this article and adopt rules to implement this article. The director may impose fees to administer and enforce this article.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1204 - Examinations; investigations; records

6-1204.
Examinations;  investigations;  records
A. The director may conduct an examination or investigation and take action authorized by this title or by a rule adopted or order issued under this title to administer and enforce this article and other applicable law,  including the bank secrecy act (P.L. 91-508;  84 Stat. 1114) and the patriot act (P.L. 107-56;  115 Stat. 272).
B. Persons whose activity is regulated under this article shall provide,  and the director shall have full and complete access to,  all records the director may reasonably require to conduct a complete examination or investigation. The records must be provided at the location and in the format specified by the director. The director may use multistate record production standards and examination procedures when the standards reasonably achieve the requirements of this subsection.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1205 - Multistate supervision

6-1205.
Multistate supervision
A. The director may participate in multistate supervisory processes established between states for all licensees that hold licenses in this state and other states. As a participant in multistate supervision,  the director shall:
1. Cooperate,  coordinate and share information with other state and federal regulators in accordance with this title.
2. Enter into written cooperation,  coordination or information-sharing contracts or agreements with organizations that have state or federal governmental agencies as members.
3. Cooperate,  coordinate and share information with organizations that have state or federal governmental agencies as members if the organizations agree in writing to maintain the confidentiality and security of the shared information pursuant to section 6-129.
B. The director may not waive and this section does not constitute a waiver of the director's authority to conduct an examination or investigation or otherwise take action authorized by this title or a rule adopted or order issued under this title to enforce compliance with an applicable state or federal law.
C. A joint examination or investigation or acceptance of an examination or investigation report does not waive an examination assessment provided for in this title.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1206 - Relationship to federal law

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.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1207 - Licensure; prohibition; applicability

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.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1208 - Consistent licensure

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.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1210 - Information requirements for certain individuals

6-1210.
Information requirements for certain individuals
A. Any individual in control of a licensee or applicant,  any individual who seeks to acquire control of a licensee and each key individual shall submit both:
1. A full set of fingerprints pursuant to section 6-123.01.
2. The individual's personal history and experience to the director in a form prescribed by the director so the director may obtain the following:
(a) An independent credit report from a consumer reporting agency if the individual has a social security number.
(b) Information related to any criminal convictions or pending charges.
(c) Information related to any regulatory or administrative action and any civil litigation involving claims of fraud,  misrepresentation,  conversion,  mismanagement of funds,  breach of fiduciary duty or breach of contract.
B. A person is presumed to exercise a controlling influence when the person holds the power to vote,  directly or indirectly,  at least ten percent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee. A person presumed to exercise a controlling influence may rebut the presumption of control if the person is a passive investor.
C. If the individual has resided outside of the United States at any time in the last ten years,  the individual shall also provide an investigative background report prepared by an independent search firm that meets the following requirements:
1. At a minimum,  the search firm shall do both of the following:
(a) Demonstrate that it has sufficient knowledge,  resources and employs accepted and reasonable methodologies to conduct the research of the background report.
(b) Not be affiliated with or have an interest in the individual it is researching.
2. At a minimum,  the investigative background report shall be written in english and shall contain the following:
(a) If available in the individual's current jurisdiction of residency,  a comprehensive credit report or any equivalent information obtained or generated by the independent search firm to accomplish the report,  including a search of the court data in the countries,  provinces,  states,  cities,  towns and contiguous areas where the individual resided and worked.
(b) Criminal records information for the past ten years,  including felonies,  misdemeanors or similar convictions for violations of law in the countries,  provinces,  states,  cities,  towns and contiguous areas where the individual resided and worked.
(c) Employment history.
(d) Media history,  including an electronic search of national and local publications,  wire services and business applications.
(e) Financial services-related regulatory history,  including money transmission,  securities,  banking,  insurance and mortgage-related industries.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1212 - License renewal

6-1212.
License renewal
A. A license under this article shall be renewed annually.
B. An applicant for license renewal shall pay all applicable fees as prescribed in section 6-126 not more than sixty days before the license expires.
C. The renewal term shall be for a period of one year and shall begin on January 1 of each year after the initial license term and shall expire on December 31 of the year the renewal term begins.
D. A licensee shall submit a renewal report with the renewal fee in a form prescribed by the director. The renewal report must specify information that is materially different from the information that the licensee submitted in the original license application if the licensee has not previously reported the information to the director.
E. A licensee may renew an expired license not later than January 31 subject to a late fee of $500.
F. The director may use NMLS to process license renewals if functionality is consistent with this section.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1213 - License maintenance

6-1213.
License maintenance
A. If a licensee does not continue to meet the qualifications or satisfy the requirements that apply to an applicant for a new money transmission license pursuant to this article,  the director may suspend or revoke the licensee's license.
B. An applicant for a money transmission license must demonstrate that the applicant meets or will meet the requirements prescribed in sections 6-1227,  6-1228 and 6-1229.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1215 - Notice and information requirements for a change of key individuals

6-1215.
Notice and information requirements for a change of key individuals
A. A licensee adding or replacing any key individual shall provide both of the following:
1. Notice in a manner prescribed by the director within fifteen days after the effective date of the key individual's addition or replacement.
2. Information as required by section 6-1210 within forty-five days after the effective date of the key individual's addition or replacement.
B. Within ninety days after the date on which the notice provided pursuant to subsection A of this section is determined to be complete,  the director may issue a notice of disapproval of a key individual if the competence or experience of the individual is not in the best interests of the public or the customers of the licensee to allow the individual to be a key individual of the licensee.
C. A notice of disapproval shall contain a statement of the basis for disapproval and shall be sent to the licensee and the disapproved individual. A licensee may appeal a notice of disapproval pursuant to title 41,  chapter 6,  article 10.
D. If the notice provided pursuant to subsection A of this section is not disapproved within ninety days after the date on which the notice is determined to be complete,  the key individual is approved.
E. If a multistate licensing process includes a key individual notice review and disapproval process pursuant to this section and the licensee is subject to the multistate licensing process:
1. The director may accept the determination of another state if the investigating state has sufficient staffing,  expertise and minimum standards for the purposes of this section.
2. If this state is a lead investigative state,  the director may investigate the applicant subject to the time frames established by agreement through the multistate licensing process.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1216 - Report of condition

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.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1217 - Audited financial statements; certificate of opinion

6-1217.
Audited financial statements;  certificate of opinion
A. Within ninety days after the end of each fiscal year or within any extended time as the director prescribes,  each licensee shall file with the director both of the following:
1. An audited financial statement of the licensee for the fiscal year prepared in accordance with United States generally accepted accounting principles.
2. Any other information the director reasonably requires.
B. The audited financial statements shall be prepared by an independent certified public accountant or independent public accountant who is satisfactory to the director.
C. The audited financial statements shall include or be accompanied by a certificate of opinion of the independent certified public accountant or independent public accountant that is satisfactory in form and content to the director. If the certificate or opinion is qualified,  the director may order the licensee to take any action as the director may find necessary to enable the independent certified public accountant or independent public accountant to remove the qualification.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1218 - Authorized delegate reporting

6-1218.
Authorized delegate reporting
A. Each licensee shall submit a report of authorized delegates within forty-five days after the end of the calendar quarter. The director may use NMLS for the submission of the report required by this subsection if functionality complies with this section.
B. The authorized delegate report shall include the following information for each authorized delegate:
1. The company legal name.
2. The taxpayer employer identification number.
3. The principal provider identifier.
4. The physical address,  if any.
5. The mailing address.
6. Any business conducted in other states.
7. Any fictitious or trade name.
8. The contact person name,  telephone number and email address.
9. The start date as the licensee's authorized delegate.
10. The end date as the licensee's authorized delegate,  if applicable.
11. Any other information the director reasonably requires with respect to the authorized delegate.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1219 - Reports

6-1219.
Reports
A. A licensee shall file a report with the director within one business day after the licensee has reason to know of the occurrence of any of the following:
1. The filing of a petition by or against the licensee under the United States bankruptcy code (11 United States Code sections 101 through 112) for bankruptcy or reorganization.
2. The filing of a petition by or against the licensee for receivership,  the commencement of any other judicial or administrative proceeding for its dissolution or reorganization or the making of a general assignment for the benefit of its creditors.
3. The commencement of a proceeding to revoke or suspend the licensee's license in a state or country in which the licensee engages in business or is licensed.
B. A licensee shall file a report with the director within three business days after the licensee has reason to know of the occurrence of either of the following:
1. A felony charge or conviction of the licensee or of a key individual or person in control of the licensee.
2. A felony charge or conviction of an authorized delegate.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1220 - Bank secrecy act reports

6-1220.
Bank secrecy act reports
A licensee and an authorized delegate shall file all reports required by federal currency reporting,  recordkeeping and suspicious activity reporting requirements as set forth in the bank secrecy act (P.L. 91-508;  84 Stat. 1114) and other federal and state laws relating to money laundering. The timely filing of a complete and accurate report required under this section with the appropriate federal agency is deemed compliance with the requirements of this section.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1221 - Records

6-1221.
Records
A. To help the director determine the licensee's compliance with this article,  a licensee shall maintain the following records for at least five years:
1. A record of each outstanding money transmission obligation sold.
2. A general ledger posted at least monthly that contains all asset,  liability,  capital,  income and expense accounts.
3. Bank statements and bank reconciliation records.
4. Records of outstanding money transmission obligations.
5. Records of each outstanding money transmission obligation paid during the five-year period.
6. A list of the last known names and addresses of all of the licensee's authorized delegates.
7. Any other records the director reasonably requires by rule.
B. The items specified in subsection A of this section may be maintained in any form of record.
C. Records specified in subsection A of this section may be maintained outside of this state if they are made accessible to the director with seven business days' notice that is sent in a record.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1223 - Unauthorized activities

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.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1224 - Timely transmission

6-1224.
Timely transmission
A. Every licensee shall forward all money received for transmission in accordance with the terms of the agreement between the licensee and the sender unless the licensee has a reasonable belief or a reasonable basis to believe that the sender may be a victim of fraud or that a crime or violation of law has occurred,  is occurring or may occur.
B. If a licensee fails to forward money received for transmission pursuant to this section,  the licensee must respond to inquiries by the sender with the reason for the failure unless providing a response would violate a state or federal law.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1225 - Refunds; exceptions

6-1225.
Refunds;  exceptions
A. Except as provided in subsection B of this section,  every licensee shall refund to the sender within ten days after receipt of the sender's written request for a refund of money received for transmission unless any of the following occurs:
1. The money is forwarded within ten days after the date on which the money is received for transmission.
2. Instructions have been given committing an equivalent amount of money to the person designated by the sender within ten days after the date on which the money is received for transmission.
3. The agreement between the licensee and the sender instructs the licensee to forward the money at a time that is more than ten days after the date on which the money is received for transmission. If monies have not yet been forwarded in accordance with the terms of the agreement between the licensee and the sender,  this paragraph does not apply.
4. The refund is requested for a transaction that the licensee has not completed based on a reasonable belief that a crime or violation of law has occurred,  is occurring or may occur.
5. The refund request does not enable the licensee to identify either:
(a) The sender's name and address or telephone number.
(b) The particular transaction to be refunded if the sender has multiple transactions outstanding.
B. This section does not apply to:
1. Money received for transmission subject to the federal remittance rule (12 Code of Federal Regulations sections 1005.30 through 1005.36).
2. Money received for transmission pursuant to a written agreement between the licensee and payee to process payments for goods or services provided by the payee.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1226 - Receipts; requirements; exceptions; definition

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.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1227 - Net worth requirements; exemption

6-1227.
Net worth requirements;  exemption
A. A licensee shall maintain at all times a tangible net worth as follows:
1. The greater of $100, 000 or three percent of total assets for the first $100, 000, 000.
2. Two percent of additional assets for $100, 000, 000 to $1, 000, 000, 000.
3. One-half percent of additional assets for over $1, 000, 000, 000.
B. Tangible net worth must be demonstrated at initial application by the applicant's most recent audited or unaudited financial statements pursuant to section 6-1209,  subsection B,  paragraph 6.
C. The director may exempt,  in part or in whole,  an applicant or licensee from this section.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1228 - Surety bond

6-1228.
Surety bond
A. An applicant for a money transmission license must provide and a licensee at all times must maintain a surety bond in a form satisfactory to the director.
B. Except as provided in subsection C of this section,  the amount of the required security shall be the greater of $25, 000 or an amount equal to one hundred percent of the licensee's average daily money transmission liability in this state calculated for the most recently completed three-month period,  up to a maximum of $500, 000.
C. If a licensee's tangible net worth exceeds ten percent of total assets,  the licensee may maintain a surety bond of $25, 000.
D. A licensee that maintains a bond in the maximum amount provided for in subsection B of this section is not required to calculate the licensee's average daily money transmission liability in this state for purposes of this section.
E. A licensee may exceed the maximum required bond amount pursuant to section 6-1230,  subsection A,  paragraph 6.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1229 - Maintenance of permissible investments

6-1229.
Maintenance of permissible investments
A. A licensee shall maintain at all times permissible investments that have a market value computed in accordance with United States generally accepted accounting principles of not less than the aggregate amount of all of its outstanding money transmission obligations.
B. Except for permissible investments enumerated in section 6-1230,  subsection A,  the director may limit the extent to which a specific investment maintained by a licensee within a class of permissible investments may be considered a permissible investment if the specific investment represents undue risk to customers not reflected in the market value of investments.
C. Permissible investments,  even if commingled with other assets of the licensee,  are held in trust for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations in the event of insolvency,  the filing of a petition by or against the licensee under the United States bankruptcy code (11 United States Code sections 101 through 112) for bankruptcy or reorganization,  the filing of a petition by or against the licensee for receivership,  the commencement of any other judicial or administrative proceeding for its dissolution or reorganization or in an action by a creditor against the licensee that is not a beneficiary of this statutory trust. A permissible investment impressed with a trust pursuant to this subsection is not subject to attachment,  levy of execution or sequestration by order of any court,  except for a beneficiary of this statutory trust.
D. On the establishment of a statutory trust pursuant to subsection C of this section or when any money is drawn on a letter of credit pursuant to section 6-1230,  subsection A,  paragraph 7,  the director shall notify the applicable regulator of each state in which the licensee is licensed to engage in money transmission of the establishment of the trust or the money drawn on the letter of credit. Notice is satisfied if performed pursuant to a multistate agreement or through NMLS. Money drawn on a letter of credit and any other permissible investments held in trust for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations are deemed held in trust for the benefit of such purchasers and holders on a pro rata and equitable basis in accordance with statutes pursuant to which permissible investments are required to be held in this state and other states,  as applicable. A statutory trust is terminated on extinguishment of all of the licensee's outstanding money transmission obligations.
E. The director may allow other types of investments that the director determines are of sufficient liquidity and quality to be a permissible investment. The director may participate in efforts with other state regulators to determine that other types of investments are of sufficient liquidity and quality to be a permissible investment.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1231 - License suspension and revocation

6-1231.
License suspension and revocation
A. The director may suspend or revoke a license if:
1. The licensee violates this article.
2. The licensee does not cooperate with an examination or investigation by the director.
3. The licensee engages in fraud,  intentional misrepresentation or gross negligence.
4. An authorized delegate is convicted of a violation of a state or federal anti-money laundering statute or violates this article as a result of the licensee's wilful misconduct.
5. The competence,  experience,  character or general fitness of the licensee,  person in control of a licensee or key individual indicates that it is not in the public interest to allow the person to provide money transmission.
6. The licensee engages in an unsafe or unsound practice.
7. The licensee is insolvent,  suspends payment of its obligations or makes a general assignment for the benefit of its creditors.
8. The licensee does not remove an authorized delegate after the director issues and serves on the licensee a final order that includes a finding that the authorized delegate has violated this article.
9. The licensee has made a material misstatement or suppressed or withheld information on an application for a license or any document required to be filed with the director.
B. In determining whether a licensee is engaging in an unsafe or unsound practice,  the director may consider the size and condition of the licensee's money transmission,  the magnitude of the loss,  the gravity of the violation of this article and the previous conduct of the licensee.
C. A licensee may appeal any suspension or revocation pursuant to title 41,  chapter 6,  article 10.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-1232 - Authorized delegate suspension and revocation

6-1232.
Authorized delegate suspension and revocation
A. The director may suspend or revoke the designation of an authorized delegate if the director finds that:
1. The authorized delegate violated this article.
2. The authorized delegate did not cooperate with an examination or investigation by the director.
3. The authorized delegate engaged in fraud,  intentional misrepresentation or gross negligence.
4. The authorized delegate is convicted of a violation of a state or federal anti-money laundering statute.
5. The competence,  experience,  character or general fitness of the authorized delegate or a person in control of the authorized delegate indicates that it is not in the public interest to allow the authorized delegate to provide money transmission.
6. The authorized delegate is engaging in an unsafe or unsound practice. To determine whether an authorized delegate is engaging in an unsafe or unsound practice,  the director may consider the size and condition of the authorized delegate's provision of money transmission,  the magnitude of the loss,  the gravity of the violation of this article and the previous conduct of the authorized delegate.
B. An authorized delegate may appeal a suspension or revocation pursuant to title 41,  chapter 6,  article 10.