reglab/statecodes huggingface dataset:
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-860 - Duty of trustee, escrow officer or agent to produce trust or escrow records for inspection; violation; classification

6-860.
Duty of trustee,  escrow officer or agent to produce trust or escrow records for inspection;  violation;  classification
A. Any trustee,  escrow officer or agent shall produce for inspection any trust or escrow records concerning the assets,  existence,  condition,  management and administration and the names of the parties,  including any or all beneficiaries,  of any trust or escrow of which the person is the trustee,  escrow officer or agent,  to any peace officer or local,  state or federal law enforcement agency,  provided such person requesting information signs and submits a sworn statement to the trustee,  escrow officer or agent that the request is made in the lawful performance of such person's duties. The peace officer or local,  state or federal law enforcement agency shall be prohibited from using or releasing said information except in the proper performance of the person's duties.
B. Any trustee,  escrow officer or agent shall produce for inspection required by law any trust or escrow records of any trust or escrow of which the person is the trustee,  escrow officer or agent to the deputy director or to any state or federal administrative agency lawfully requiring such disclosure. The deputy director or any state or federal administrative agency shall be prohibited from using or releasing said information except in the proper performance of the deputy director's or agency's duties.
C. Any person who knowingly fails to produce records pursuant to this section or who obtains information under subsection A or B of this section and is prohibited from releasing such information but does release such information is guilty of a class 2 misdemeanor.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-861 - Reports

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.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-862 - Trust funds

6-862.
Trust funds
All monies received by a trust company as fiduciary on trust business within this state shall be deposited in a bank or savings and loan association in this state in a specially designated account or accounts,  shall not be commingled with any funds of the trust company and shall remain on deposit until disbursed or invested in accordance with powers and duties of the trust company in its capacity as such fiduciary.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-865 - Unsafe condition; receivership

6-865.
Unsafe condition;  receivership
If the deficiency in capital has not been made good or the trust company is in an unsafe or unsound condition that is not remedied within the time prescribed under an order of the deputy director issued pursuant to section 6-137,  the deputy director may apply to the superior court to be appointed receiver for the liquidation or rehabilitation of the company. The expense of such receivership shall be paid out of the assets of the trust company.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-867 - Trust company name

6-867.
Trust company name
A. It is unlawful for a person to make use of the words " trust"  or " trust company"  or any other words in a manner reasonably calculated to convey the impression that the person is engaged in the trust business unless the act is done by or on behalf of a person having authority under this chapter or conducting subdivision trust activity pursuant to chapter 7 of this title.
B. Nothing in this section shall prohibit any existing corporation that does not have authority under this chapter from using in its name the words " trust"  or " trust company"  if that corporation was originally organized under the laws of the territory of Arizona and has not since the date of its original organization amended or restated its articles of incorporation to delete from its name the words " trust"  or " trust company" .
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-868 - Fidelity bond; requirements

6-868.
Fidelity bond;  requirements
A. A trust company doing business under this chapter shall obtain and maintain a fidelity bond,  naming the trust company as obligee,  in the following amounts:
Trust Assets Fidelity
(market value) Bond Amounts
less than $3, 000, 000 $500, 000
$3, 000, 000 to $4, 999, 999 $525, 000
$5, 000, 000 to $7, 499, 999 $550, 000
$7, 500, 000 to $9, 999, 999 $575, 000
$10, 000, 000 to $14, 999, 999 $600, 000
$15, 000, 000 to $19, 999, 999 $650, 000
$20, 000, 000 to $24, 999, 999 $700, 000
$25, 000, 000 to $34, 999, 999 $750, 000
$35, 000, 000 to $49, 999, 999 $850, 000
$50, 000, 000 to $74, 999, 999 $950, 000
$75, 000, 000 to $99, 999, 999 $1, 000, 000
$100, 000, 000 to $149, 999, 999 $1, 250, 000
$150, 000, 000 to $249, 999, 999 $1, 600, 000
$250, 000, 000 to $499, 999, 999 $2, 100, 000
$500, 000, 000 to $999, 999, 999 $2, 400, 000
$1, 000, 000, 000 to $2, 000, 000, 000 $4, 400, 000
$2, 000, 000, 001 to $3, 000, 000, 000 $6, 000, 000
for every $1, 000, 000, 000 over $3, 000, 000, 000 $1, 000, 000
B. The trust company shall file a signed copy of its bond with the deputy director,  and the bond remains a part of the department's records. The bond company shall not cancel the bond for failure to pay the premium unless the bond company files a written notice with the department at least thirty days before canceling the bond. The bond company shall not cancel the bond for any other reason unless the bond company files a written notice with the department at least forty-five days before canceling the bond.
C. The bond may contain a deductible clause not to exceed fifteen percent of the face amount of the bond. If the deductible exceeds fifteen percent of the face amount of the bond,  the deductible clause must be approved by the deputy director.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-869 - Meetings; reports; report of examination; response; penalties

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.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-870 - Trust committee

6-870.
Trust committee
A. The board of directors may appoint a trust committee. The trust committee shall be comprised solely of directors,  officers,  employees or any combination thereof. The committee may be authorized to act for the company in matters dealing with the initial and annual reviews of accounts,  account acceptance and investment strategies. The trust committee shall keep a record of its actions and shall report in writing to the board on all actions since the previous board meeting. The board shall ratify or rescind each action.
B. The trust committee shall meet at least once a month to review existing accounts and to consider acceptance of new accounts. The trust committee shall not accept a new account unless it is approved by a majority of the members of the trust committee present at the meeting in which the new account is considered.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-870.01 - Acceptance of other examinations; cooperative agreements

6-870.01.
Acceptance of other examinations;  cooperative agreements
A. Instead of an examination prescribed by section 6-122,  the deputy director may accept the examination report of a federal or state agency that has regulatory or supervisory authority over the trust company. The deputy director's acceptance of the examination report does not constitute a waiver of the licensing fees and assessments provided by law. An accepted examination report becomes an official report of the department.
B. The deputy director may enter into cooperative agreements and take joint action with other regulatory or supervisory authorities that have concurrent jurisdiction over a trust company.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-871 - Establishment of common trust funds

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.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-872 - Court accountings

6-872.
Court accountings
A. Unless ordered by a court of competent jurisdiction,  a bank,  savings and loan association or trust company operating a common trust fund pursuant to section 6-871 is not required to render a court accounting with regard to such funds. It may,  by application to the superior court,  secure approval of such an accounting on conditions as the court may establish.
B. When an accounting of a common trust fund is presented to a court for approval,  the court shall assign a time and place for hearing and order notice thereof by:
1. Publication once a week for three weeks,  the first publication to be not less than twenty days prior to the date of hearing,  of a notice in a newspaper having a circulation in the county in which the home office of the bank,  savings and loan association or trust company operating the common trust fund is located.
2. Mailing not less than fourteen days prior to the date of the hearing a copy of the notice to all beneficiaries of the trusts participating in the common trust fund whose names are known to the bank,  savings and loan association or trust company from the records kept by it in the regular course of business in the administration of such trusts,  directed to them at the addresses shown by the records.
3. Such further notice,  if any,  as the court may order.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-881 - Definitions

6-881.
Definitions
In this article,  unless the context otherwise requires:
1. " Savings account"  means monies received or held by the trust company in the usual course of business and for which the trust company is obligated to give conditional or unconditional credit.
2. " Time deposit"  means a deposit that the depositor does not have a right to withdraw for at least seven days after the date of deposit.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-882 - Savings accounts and time deposits; insurance; withdrawal; notice

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.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-901 - Definitions

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.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-902.01 - Exemption; responsible individual; fees; revocation; rules

6-902.01.
Exemption;  responsible individual;  fees;  revocation;  rules
A. A parent company may apply for and be granted a certificate of exemption on behalf of an entity that allows a responsible individual,  as prescribed in section 6-903,  subsection H,  to reside out of state if the responsible individual meets the following criteria:
1. Is a natural person.
2. Meets all of the requirements pursuant to this article.
3. Receives notification from the parent company that the parent company was granted a certificate of exemption by the director.
B. The parent company must apply on behalf of the entity and submit an attestation form as prescribed by the director that the parent company meets all of the following requirements:
1. Maintains a physical presence in this state.
2. Does not have any disciplinary actions by the department.
3. Has a class of securities registered with the United States securities and exchange commission.
C. The applicant shall pay all applicable fees as prescribed in rule.
D. The director may revoke the certificate if the director finds either of the following:
1. The interests of the consumer are not met.
2. The requirements of the responsible individual prescribed by this section are not met.
E. The duration of the certificate of exemption is continuous during the license period unless the certificate of exemption is revoked pursuant to this section.
F. If the director denies the application for or revokes a certificate of exemption,  the director shall issue an order outlining the findings of fact,  conclusions of law and reasons for the denial or revocation. The applicant has a right to a hearing pursuant to title 41,  chapter 6,  article 10.
G. The director may prescribe rules to carry out this section.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-905 - Denial, suspension or revocation of licenses

6-905.
Denial,  suspension or revocation of licenses
A. The deputy director may deny a license to a person or suspend or revoke a license if the deputy director finds that an applicant or licensee:
1. Is insolvent as defined in section 47-1201.
2. Has violated any applicable law,  rule or order.
3. Refuses to allow an examination by the deputy director of the licensee's books and affairs or refuses or fails,  within a reasonable time,  to furnish any information or make any report that may be required by the deputy director.
4. Has been convicted in any state of a felony or any crime involving breach of trust or dishonesty.
5. Has had a final judgment entered against the applicant or licensee in a civil action on grounds of fraud,  deceit or misrepresentation and the conduct on which the judgment is based indicates that it would be contrary to the interest of the public to allow such a person to be licensed or to control or manage a licensee.
6. Has had an order entered against the applicant or licensee involving fraud,  deceit or misrepresentation by an administrative agency of this state,  the federal government or any other state or territory of the United States and that the facts relating to the order indicate that it would be contrary to the interest of the public to allow such a person to be licensed or to control or manage a licensee.
7. Has made a material misstatement or suppressed or withheld information on the application for a license or any document required to be filed with the deputy director.
B. If a person to whom a license is issued or who has applied for a license under this article is indicted or informed against for forgery,  embezzlement,  obtaining money under false pretenses,  extortion,  criminal conspiracy to defraud or a like offense or offenses,  and a certified copy of the indictment or information or other proper evidence of the indictment or information is filed with the deputy director,  the deputy director may suspend the license issued to the licensee or refuse to grant a license to an applicant pending trial on the indictment.
C. If a licensee is other than a natural person,  it is sufficient cause for the suspension or revocation of the license if an officer,  director,  member,  partner,  trustee,  employee,  while acting in the course of the mortgage broker business,  or person entitled to vote more than twenty percent of the outstanding voting shares of the licensed corporation,  partnership,  association or trust has acted or failed to act in the same manner as would be cause for suspending or revoking a license of the party as an individual. If a licensee is a natural person,  it is sufficient cause for the suspension or revocation of the license if an employee of the person,  while acting as an employee,  has acted or failed to act in the course of the mortgage broker business of the licensee in the same manner as would be cause for suspending or revoking a license of the party as an owner.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-907 - Required disclosure to investors

6-907.
Required disclosure to investors
A. Before payment of any money by an investor in connection with a mortgage loan,  a licensee shall provide to an investor that is not a financial institution,  state or national bank,  state or federal savings and loan association,  state or federal savings bank,  state or federal credit union,  financial enterprise,  licensed real estate broker or salesman,  profit sharing or pension trust or insurance company:
1. An opinion from an independent source stating the value of the property subject to the mortgage loan being made or sold. The opinion shall state the value of the property as it exists on the date of the opinion.
2. A copy of the preliminary title report that states the condition of title and discloses any encumbrances,  assessments and liens of record on the property securing the mortgage loan being made or sold.
3. A disclosure statement that includes the following information:
(a) The name and address of the fee owner of the property securing the mortgage loan being made or sold.
(b) Information relative to the ability of the borrower to meet the obligations of the mortgage loan.
(c) A legal description or address of the property securing the mortgage loan being made or sold.
(d) The existence of any improvements on the property or any utilities on or adjacent to the property that will serve the property.
(e) The terms and conditions of the mortgage loan being made or sold,  including the principal balance owed and the status of principal and interest payments thereon.
(f) The terms and conditions of all liens on the property securing the mortgage loan being made or sold.
(g) A statement as to whether the mortgage broker is acting as principal or agent in the transaction.
(h) Any additional information prescribed by the deputy director.
B. After using the licensee's best efforts to verify all of the information required by this section,  the licensee shall sign the statement attesting to the validity of the information to the best of the licensee's knowledge and belief. The licensee shall maintain a record of acknowledgment from the lender of the receipt of this information for not less than two years from the date of the mortgage loan closing.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-908 - Testing committee; testing of applicants; approval by deputy director; definition

6-908.
Testing committee;  testing of applicants;  approval by deputy director;  definition
A. The deputy director shall establish a testing committee to create,  periodically update and establish standards for passing a test for mortgage brokers. The committee shall consist of five members appointed by the deputy director once every two years. Four of the members shall be licensees appointed from nominations submitted by licensees and one of the members shall be an employee of the department. Licensees who serve as members of the committee shall serve without expense to this state. The test is subject to the approval of the deputy director.
B. Each applicant for an original license,  before issuance of the license,  shall personally take and pass the written test given under the supervision of the department. The test must reasonably examine the applicant's knowledge of:
1. The obligations between principal and agent,  the applicable canons of business ethics,  the provisions of this article and the rules adopted under this article.
2. The arithmetical computations common to mortgage brokerage.
3. The principles of real estate lending.
4. The general purposes and legal effect of mortgages,  deeds of trust and security agreements.
C. The department shall administer the test to applicants for licenses not less than once every six months. The deputy director may contract for the testing of applicants. The department or the department's contractor shall reasonably prescribe the time,  place and conduct of testing and collect a fee for administration of the test to be assessed to all persons taking the test. The fee is $50 per testing. If the deputy director contracts for the testing of applicants,  the testing fee owed pursuant to this section is payable by the applicant directly to the contractor. The deputy director may allow a contractor to charge a reasonable testing fee that is more than the fee prescribed in this subsection. An applicant may not take the test more than four times within a twelve-month period.
D. All tests shall be given,  conducted and graded in a fair and impartial manner and without unfair discrimination between individuals tested. The committee shall inform the applicant of the result of the test within thirty days.
E. For testing purposes,  the department shall prepare a handbook for mortgage brokers and distribute it to all applicants for a fee of not to exceed the actual cost of producing and distributing the handbook.
F. For the purposes of this section " applicant"  means a person who has submitted a completed application in the form prescribed by law,  accompanied by a letter of inquiry to a surety company authorized to do business in this state regarding the procurement of a bond pursuant to section 6-903,  to be issued on completion of all requirements for the granting of a license.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-910 - Noncompliance not to affect validity of loan

6-910.
Noncompliance not to affect validity of loan
A failure to comply with this article does not affect the validity or enforceability of any debt,  mortgage,  deed of trust or any other lien interest on real estate. A person acquiring a mortgage loan or any interest in a mortgage loan as mortgagee or beneficiary or as an assignee,  holder or transferee or as a pledgee or the holder of a security interest is not required to ascertain whether this article has been complied with.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-911 - Active military duty; compensation

6-911.
Active military duty;  compensation
Notwithstanding any other law,  a mortgage broker who is a member of the Arizona national guard,  the United States armed forces reserves or the regular component of the United States armed forces and who is serving on federal active duty when the mortgage broker's license expires may receive compensation for transactions under this article.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-913 - Conversion to commercial mortgage broker license

6-913.
Conversion to commercial mortgage broker license
Notwithstanding section 6-903,  a person who holds a mortgage broker license may convert it to a commercial mortgage broker license by applying in a manner prescribed by the deputy director by rule. The approval of the conversion is at the discretion of the deputy director.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-941 - Definitions

6-941.
Definitions
In this article,  unless the context otherwise requires:
1. " Affiliate"  means an entity which directly or indirectly,  through one or more intermediaries,  controls,  is controlled by or is under common control with the entity specified.
2. " Compensation"  means anything of value or any benefit including points,  commissions,  bonuses,  referral fees,  loan origination fees and other similar fees but excluding periodic interest resulting from the application of the note rate of interest to the outstanding principal balance remaining unpaid from time to time.
3. " Generally accepted accounting principles"  means United States generally accepted accounting principles issued by the financial accounting standards board or the international financial reporting standards issued by the international accounting standards board.
4. " License"  means a license issued under this article.
5. " Licensee"  means a person licensed under this article.
6. " Mortgage banker"  means a person who is not exempt under section 6-942 and who for compensation or in the expectation of compensation either directly or indirectly makes,  negotiates or offers to make or negotiate a mortgage banking loan or a mortgage loan.
7. " Mortgage banking loan"  means a loan which is funded exclusively from the mortgage banker's own resources,  which is directly or indirectly secured by a mortgage or deed of trust or any lien interest on real estate located in this state and which is created with the consent of the owner of the real property. For the purposes of this paragraph,  " own resources"  means any of the following:
(a) Cash,  corporate capital,  warehouse credit lines at commercial banks,  savings banks or savings and loan associations or other sources that are liability items on the mortgage banker's financial statements for which its assets are pledged.
(b) Correspondent contracts between the mortgage banker and a bank,  savings bank,  trust company,  savings and loan association,  credit union,  profit sharing or pension trust,  consumer lender or insurance company.
(c) The mortgage banker's affiliates' cash,  corporate capital,  warehouse credit lines at commercial banks or other sources that are liability items on the affiliates' financial statements for which the affiliates' assets are pledged.
8. " Mortgage banking loan closing"  means the day by which all documents relating to the mortgage banking loan or mortgage loan have been executed and recorded and all monies have been accounted for.
9. " Mortgage loan"  means any loan,  other than a mortgage banking loan,  secured by a mortgage or deed of trust or any lien interest on real estate located in this state and created with the consent of the owner of the real estate.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-945 - Denial, suspension or revocation of licenses

6-945.
Denial,  suspension or revocation of licenses
A. The deputy director may deny a license to a person or suspend or revoke a license if the deputy director finds that an applicant or licensee:
1. Is insolvent as defined in section 47-1201.
2. Refuses to allow an examination by the deputy director of the licensee's books and affairs or refuses or fails,  within a reasonable time,  to furnish any information or make any report that may be required by the deputy director.
3. Has been convicted in any state of a felony or any crime involving breach of trust or dishonesty.
4. Has had a final judgment entered against the applicant or licensee in a civil action on grounds of fraud,  deceit or misrepresentation and the conduct on which the judgment is based indicates that it would be contrary to the interest of the public to allow the person to be licensed or to control or manage a licensee.
5. Has had an order entered against the applicant or licensee involving fraud,  deceit or misrepresentation by any administrative agency of this state,  the federal government or any other state or territory of the United States and the facts relating to the order indicate that it would be contrary to the interest of the public to allow the person to be licensed or to control or manage a licensee.
6. Has violated any applicable law,  rule or order.
B. If any person to whom a license is issued or who has applied for a license under this article is indicted or informed against for forgery,  embezzlement,  obtaining money under false pretenses,  extortion,  criminal conspiracy to defraud,  or a like offense or offenses and a certified copy of the indictment or information or other proper evidence of such an indictment or information is filed with the deputy director,  the deputy director may suspend the license issued to the licensee or refuse to grant a license to an applicant pending trial on the indictment or information.
C. If a licensee is other than a natural person,  it is sufficient cause for the denial,  suspension or revocation of the license if an officer,  director,  member,  partner,  trustee,  employee,  while acting in the course of the mortgage banker business,  or person entitled to vote more than twenty percent of the outstanding voting shares of the licensed corporation,  partnership,  association or trust has acted or failed to act in the same manner as would be cause for suspending or revoking a license of the party as an individual. If a licensee is a natural person,  it is sufficient cause for the suspension or revocation of the license if an employee of the person has acted or failed to act in the course of the mortgage banker business of the licensee in the same manner as would be cause for suspending or revoking a license of the party as an owner.
D. The deputy director shall grant or deny a license within one hundred twenty days after receiving the completed application and fees.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-948 - Noncompliance not to affect validity of loan

6-948.
Noncompliance not to affect validity of loan
A failure to comply with the provisions of this article does not affect the validity or enforceability of any debt or any mortgage,  deed of trust or lien interest on real estate. A person acquiring a mortgage banking loan or mortgage loan or any interest in a mortgage banking loan or mortgage loan as mortgagee or beneficiary or as an assignee,  holder or transferee or as a pledgee or the holder of a security interest is not required to ascertain whether this article has been complied with.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-949 - Conversion to mortgage broker license

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.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-972 - Exemptions

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.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-973 - Licensing commercial mortgage bankers required; qualifications

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.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-974 - Application for license; issuance or denial; fees

6-974.
Application for license;  issuance or denial;  fees
A. A person shall apply for a license or for a renewal of a license in writing on the forms,  in the manner and accompanied by the information prescribed by the deputy director. The deputy director may require additional information on the experience,  background and competency of the applicant and any responsible individual designated by the applicant. If the applicant is a person other than a natural person,  the deputy director may require this information as to the competency of any officer,  director,  shareholder,  member,  partner,  trustee,  employee or other interested party of the firm,  association or corporation.
B. The deputy director,  on determining that the applicant is qualified,  shall issue a commercial mortgage banker's license to the applicant that is evidenced by a continuous certificate. The deputy director shall grant or deny a license within one hundred twenty days after receiving the completed application. An applicant who has been denied a license may not reapply for a license before one year after the date of the previous application.
C. The nonrefundable application fee and annual renewal fee are as prescribed by the deputy director. Application fees and annual renewal fees shall be based on the cost to the department to process the application and regulate licensees. The nonrefundable application fee shall accompany each application for an original license only. The deputy director shall deposit,  pursuant to sections 35-146 and 35-147,  the monies in the state general fund.