reglab/statecodes huggingface dataset:
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-811 - Exemptions

6-811.
Exemptions
A. The provisions of this chapter do not apply to and the term " escrow agent"  does not include:
1. Any person who is licensed to practice law in this state and who is not actively engaged in conducting an escrow business.
2. Any person doing any of the acts specified in section 6-801,  paragraph 4 pursuant to the order of a court.
3. Trustees of deeds of trust to the extent the activities are performed as a trustee under a deed of trust.
4. Any person doing any of the acts specified in section 6-801,  paragraph 4 in a fiduciary capacity for any person,  trust or estate pursuant to the order of a court.
5. Licensed real estate brokers who render certain services by collecting rents for others,  as to such rents,  and who within a reasonable time account for such rents to the person or persons properly entitled to such accounting.
6. Licensed real estate brokers who in the regular course of their business accept earnest money for the purpose of effecting the sale or transfer of property,  as to such earnest money,  and who within a reasonable time account for such earnest money to the prospective buyer or seller or to a licensed escrow agent.
7. Persons licensed pursuant to title 32,  chapter 9,  but only to the extent that these activities are regulated by title 32,  chapter 9.
8. Any person who is licensed pursuant to chapter 9,  article 2 of this title and who is approved to service loans for either:
(a) The federal national mortgage association.
(b) The federal home loan mortgage corporation.
(c) The government national mortgage association.
9. Any person licensed pursuant to chapter 14,  article 1 of this title.
10. Any person who is licensed pursuant to chapter 9,  article 3 of this title.
B. The provisions of this article do not apply to:
1. A person doing business under the laws of this state or the United States relating to banks,  credit unions,  savings banks,  trust companies and savings and loan associations,  except that this subsection does not exempt such banks,  credit unions,  trust companies,  savings banks and savings and loan associations from regulation of such escrow activities under other statutes or laws of this state or of the United States nor does this subsection allow an affiliate of the bank,  credit union,  savings bank,  trust company or savings and loan association to engage in the escrow business unless it is licensed pursuant to this article and engages in such a business in accordance with this chapter.
2. A person who is licensed pursuant to chapter 9,  article 2 of this title and who is not approved to service loans for either:
(a) The federal national mortgage association.
(b) The federal home loan mortgage corporation.
(c) The government national mortgage association.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-813 - License of agent; nontransferable; posting

6-813.
License of agent;  nontransferable;  posting
A. A person,  except those exempt under section 6-811,  shall not engage in or carry on,  or hold himself out as engaging in or carrying on,  the escrow business or act in the capacity of an escrow agent in this state without first obtaining a license.
B. An escrow agent's license is not transferable or assignable and control of a license shall not be acquired through stock purchase or other devices without the prior written consent of the deputy director.
C. A license shall be kept conspicuously posted in all licensed places of business of the licensee.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-815 - Renewal of license

6-815.
Renewal of license
A licensee shall make application for renewal as prescribed by the deputy director and pay the renewal fee prescribed in section 6-126 not later than September 30 of each year. For each day after September 30 that the renewal application is not received by the deputy director the applicant shall pay $25 in addition to the fee prescribed by section 6-126. Licenses for which renewal applications are not received by the deputy director by September 30 are suspended,  and the licensee shall not act as an escrow agent until the license is renewed or a new license is issued pursuant to this article. A license of a licensee that has not filed its renewal application and paid the renewal fee by October 31 expires. A license shall not be granted to the holder of an expired license except as provided in this article for the issuance of an original license.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-816 - Fees

6-816.
Fees
A. Each application for a new license or a renewal license shall be accompanied by the fee prescribed in section 6-126.
B. For each day a report required by section 6-832 is not received by the department,  a licensee shall pay a fee of $25. The deputy director may excuse the fee for good cause if the cause is presented before the due date of the report.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-832 - Annual audit; report

6-832.
Annual audit;  report
A. The records of each escrow agent shall be audited at least once each fiscal year by a certified public accountant. The audit shall include an audit of the escrow,  account servicing and subdivision trust activities of the escrow agent and shall follow generally accepted accounting principles. A copy of the audit report shall be filed with the deputy director not more than one hundred twenty days after the end of the escrow agent's fiscal year. The audit requirement may be satisfied by filing a copy of the audit report,  which is prepared by a certified public accountant,  of the parent of the escrow agent including an audit of the escrow,  account servicing and subdivision trust activities of the escrow agent within the prescribed time period. The deputy director may extend the time period in this subsection up to ninety days for good cause shown.
B. At the time required by the deputy director,  every escrow agent shall make and file in the office of the deputy director a true and correct report,  in the form and containing the data the deputy director may require,  of the business of the agent,  including the agent's escrow,  account servicing and subdivision trust activities. Every agent shall reply promptly in writing to an inquiry from the deputy director concerning the escrow agent's business.
C. The scope of the audit shall include consideration of the escrow agent's internal control structure as defined in section 6-841 in accordance with generally accepted auditing standards. A separate report shall be submitted to the deputy director if reportable conditions are identified that indicate significant deficiencies in the design or operation of the internal control structure of the escrow agent that would adversely affect the agent's ability to record,  process,  summarize and report financial data consistent with the assertions of management in the financial statements. If reportable conditions are identified,  the report on reportable conditions shall recommend specific measures to improve the escrow agent's internal control structure.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-833 - Seizure of property of impaired escrow agent

6-833.
Seizure of property of impaired escrow agent
A. When the deputy director ascertains by examination or otherwise that the assets or capital of any agent are impaired,  or that the agent's affairs are in an unsafe condition,  the deputy director may immediately take possession of all the property,  business and assets of the agent that are located in this state and retain possession of them pending the further proceedings specified in this section. If the board of directors or any officer or person in charge of the offices of the agent refuses to allow the deputy director to take possession as prescribed by this subsection,  the deputy director shall communicate such fact to the attorney general,  whereupon the attorney general shall immediately institute such proceedings as may be necessary to place the deputy director in immediate possession of the property of the agent. The deputy director shall make or have made an inventory of the assets and known liabilities of the agent. The deputy director shall file one copy of the inventory in the deputy director's office and one copy in the office of the clerk of the superior court of the county in which the principal office of the agent is located. The clerk of the superior court shall mail one copy to each stockholder of the agent at each stockholder's last known address,  if by the exercise of reasonable diligence it can be determined. The clerk of the court with whom the copy of the inventory is filed shall file it as any other case or proceeding pending in the court.
B. The officers,  directors or stockholders of the agent may have sixty days after the date the deputy director takes possession of the property,  business and assets to make good any deficit that may exist or to remedy the unsafe condition of its affairs. At the expiration of this time,  if the deficiency in assets or capital has not been made good or the unsafe condition remedied,  the deputy director may apply to the court to be appointed receiver and proceed to liquidate the assets of the agent that are located in this state in the same manner as provided by law for liquidation of a private corporation in receivership. The inventory made by the deputy director and all claims filed by creditors shall be open at all reasonable times for inspection and any action taken by the receiver on any of the claims shall be subject to the approval of the court before whom the cause is pending. The expenses of the receiver and compensation of counsel,  as well as expenditures required in the liquidation proceedings,  shall be fixed by the deputy director,  subject to the approval of the court,  and on certification of the deputy director shall be paid out of the funds in the deputy director's hands as receiver.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-833.01 - Priority of distribution during receivership

6-833.01.
Priority of distribution during receivership
A. In a receivership proceeding filed against an escrow agent,  the priority of distribution of claims from the general assets of the escrow agent shall be as provided by this section. Every claim in each class shall be paid in full or adequate monies shall be reserved for the payment before the members of the next class may receive any payment. Subclasses may not be established in any class. The order of distribution is as follows:
1. The costs and expenses of administration incurred in connection with the receivership proceedings.
2. Claims for compensation actually owing to employees of the escrow agent other than its officers for services rendered within three months before the beginning of a receivership against the escrow agent. A claim for compensation may not exceed two months of monetary compensation for each employee. The compensation owed shall be paid as soon as is practicable after the receivership begins,  except that the receiver at all times shall reserve enough monies that in the receiver's opinion are sufficient to cover the expenses of administration. This priority is in lieu of any other similar priority authorized by law as to wages or compensation of employees.
3. Claims for breach of escrow agreements.
4. Claims of general creditors that do not fall within any other priority under this section.
5. Claims of the federal,  any state or a local government except those claims that are treated as secured claims.
6. Claims of shareholders,  members or other owners in that capacity.
B. The owner of a secured claim against an escrow agent for which a receiver has been appointed may surrender the security,  and any deficiency shall be treated as a claim against the general assets of the escrow agent on the same basis as claims of unsecured creditors.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-834 - Deposit of monies; definition

6-834.
Deposit of monies;  definition
A. Unless all of the parties to the escrow otherwise instruct the escrow agent in writing,  the escrow agent shall deposit and maintain all monies deposited in escrow to be delivered on the close of the escrow or on any other contingency in a bank,  savings bank or savings and loan association doing business in this state and the escrow agent shall keep all of the escrow monies separate,  distinct and apart from monies belonging to the escrow agent. Notwithstanding the parties' instructions to the escrow agent,  the escrow agent shall not deposit the escrow monies in an institution outside the United States. When deposited,  the monies shall be designated as " escrow accounts"  or given some other appropriate designation indicating that the monies are not the monies of the escrow agent. These monies shall be deposited immediately on receipt or as soon thereafter as is reasonably practicable.
B. A person shall not knowingly keep or cause to be kept any monies in any bank or savings and loan association under the heading of " escrow accounts"  or any other name designating the monies as belonging to the clients of any escrow agent,  except actual escrow monies deposited with such escrow agent.
C. Escrow property is not subject to execution or attachment on any claim against the escrow agent.
D. Not later than three business days after receipt of any escrow monies,  the escrow agent shall provide to each depositing buyer or seller,  adequate notice of his right to earn interest on all deposited monies. The notice shall accurately set forth the following information with respect to this right:
1. A brief description of the depositor's right to earn interest on escrowed monies through an interest-bearing deposit account.
2. The dollar charge that may be imposed by the escrow agent solely to set up the interest-bearing account.
3. A good faith estimate of the amount of interest that may be earned during the life of the escrow account,  or an example of a typical transaction calculated on a one thousand dollar deposit,  using the prevailing savings account interest rate for a thirty day period.
4. A brief description of how the interest-bearing account can be established,  including the name,  address and telephone number of the escrow agent to be contacted.
E. An escrow agent shall not receive from any depository institution any interest earned or other benefit from monies deposited with an escrow agent in connection with any escrow. Nothing in this subsection prohibits the escrow agent from receiving accounting,  data processing or other services directly related to the administration of escrow accounts.
F. For the purposes of this article,  " adequate notice"  means a printed notice to the depositing buyer or seller that sets forth the pertinent facts clearly and conspicuously. The notice shall be printed on the escrow instructions or on an independent document and given to the depositing customer in a manner reasonably assuring the customer's receipt of the notice.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-835 - Limit of legal action

6-835.
Limit of legal action
Nothing in this chapter shall limit any statutory or common law right of any person to bring an action in any court having jurisdiction for any act involved in the transaction of the escrow business or the right of the state to punish any person for any violation of any law based on such act.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-837 - Duty of escrow agent to produce escrow records for inspection; violation; classification

6-837.
Duty of escrow agent to produce escrow records for inspection;  violation;  classification
A. Any escrow agent shall produce for inspection any escrow records concerning the assets,  existence,  condition,  management and administration and the names of the parties,  including any or all beneficiaries,  of any escrow of which the person is the escrow agent to any peace officer or local,  state or federal law enforcement agency,  provided such person requesting information signs and submits a sworn statement to the escrow agent that the request is made in the lawful performance of such person's duties. The peace officer or local,  state or federal law enforcement agency shall be prohibited from using or releasing said information except in the proper performance of the person's duties.
B. Any escrow agent shall produce for inspection required by law any escrow records of any escrow of which he or she is the escrow agent to the deputy director or to any state or federal administrative agency lawfully requiring such disclosure. The deputy director or any state or federal administrative agency shall be prohibited from using or releasing said information except in the proper performance of the deputy director's or agency's duties.
C. Any person who knowingly fails to produce records pursuant to this section or who obtains information under subsection A or B of this section and is prohibited from releasing such information but does release such information is guilty of a class 2 misdemeanor.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-838 - Surrender of license

6-838.
Surrender of license
A licensee that desires to surrender its license shall file with the deputy director a certified copy of the resolution of its board of directors or a verified statement of intent signifying this desire,  and thereafter shall not accept additional escrow business. On receipt of the resolution or statement of intent,  the deputy director shall make an investigation,  and if the deputy director determines that the licensee has been discharged from all duties that it has undertaken as an escrow agent,  the deputy director shall issue an order to the licensee certifying that it is no longer authorized to exercise the powers of an escrow agent and the licensee shall immediately surrender its license.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-840 - Prohibitions; definitions

6-840.
Prohibitions;  definitions
A. An escrow agent shall not accept any escrow in which a participant in the escrow is an affiliate of the escrow agent unless:
1. The affiliation is disclosed to all nonaffiliated participants in writing by the escrow agent.
2. Use of the affiliated escrow agent is not required by the affiliate as a condition of making a loan or entering into any other agreement with the nonaffiliated participants.
B. For the purpose of this section:
1. " Controlled escrow business"  means the handling of an escrow by an escrow agent where an affiliate of the escrow agent is a participant in the escrow transaction.
2. " Participant"  means the buyer,  seller,  lender,  mortgage broker,  mortgage banker,  real estate broker or real estate salesman or any person who is a party to the escrow transaction.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-841 - Internal control structure; definition

6-841.
Internal control structure;  definition
A. An escrow agent shall adopt a systematic internal control structure to ensure that persons employed by or associated with the escrow agent's business do not make significant errors or perpetuate significant irregularities or fraud without timely detection.
B. For purposes of this section,  " internal control structure"  means the policies and procedures established to provide reasonable assurance that the escrow agent will achieve the following objectives:
1. Safeguarding of the customers' assets.
2. Reliability in financial reporting.
3. Reliability in recording of all escrow transactions.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-841.01 - Fiduciary duty; notice of returned check

6-841.01.
Fiduciary duty;  notice of returned check
A. An escrow agent is the trustee of all monies received or collected and held in escrow. An agent shall not knowingly or negligently commingle trust monies with the escrow agent's own monies or with monies held in any other capacity. Every escrow agent and every officer,  director and employee of an escrow agent who has actual knowledge of fraud or dishonesty in the application of escrow monies,  owes a fiduciary duty as trustee to the owner of the monies held in escrow.
B. An escrow agent shall notify the deputy director of any returned check for insufficient funds or overdraft on any of the escrow agent's trust or fiduciary accounts. The deputy director may revoke,  suspend or refuse to renew the escrow agent's license for failure to comply with this subsection.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-841.03 - Notice of uninsured monies; rules

6-841.03.
Notice of uninsured monies;  rules
When an escrow is established and not later than three business days after an escrow agent receives any escrow monies,  the escrow agent shall provide a complete and accurate disclosure to each buyer and seller of a residential dwelling as defined in section 6-841.02 that monies deposited in an escrow account are not insured against loss from fraud or theft by this state or the United States government. The deputy director by rule may prescribe requirements for the disclosure form.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-843 - Disbursements; applicability

6-843.
Disbursements;  applicability
A. Except as provided by subsection B of this section,  an escrow agent may only disburse money out of an escrow account if deposits are previously made that are at least equal to the disbursements and the deposits relate directly to the transaction for which the money is being disbursed. The deposits shall be in at least one of the following forms:
1. Wire transfers so that the monies are received by the escrow agent or the agent's depository.
2. Except as provided in paragraphs 1,  4 and 5 of this subsection,  checks,  drafts,  negotiable orders of withdrawal,  money orders or any other item that has become available for withdrawal in accordance with the federal expedited funds availability act (P.L. 100-86;  101 Stat. 635;  12 United States Code section 4001).
3. Credit transfers through the automated clearing house that are deemed available by the depository institution receiving the credits. The credits must conform to the operating rules set forth by a national automated clearing house association.
4. Cashier's checks,  certified checks or teller's checks that have been deposited in the escrow agent's depository account.
5. Checks made by an affiliate of a state or federally regulated depository institution where the check is drawn on the affiliated depository institution so that the monies are deposited in the escrow agent's depository account.
6. Distributed ledger technology transfers within or among a secure network of federally insured depository institutions where disbursements are recorded on a ledger and securely deposited in an escrow agent's depository account. A depository institution shall settle transfers by using an established national clearing house network,  except that transfers may not be settled or backed by a central bank digital currency. Distributed ledger technology transfers shall be fully settled,  irrevocably credited and transferred in United States dollars. For the purposes of this paragraph,  " distributed ledger technology"  means a decentralized,  shared and immutable ledger,  which may be public or private,  permissioned or permissionless,  or driven by tokenized crypto economics or tokenless. The ledger must be tamper resistant and protected with cryptography to preserve the data. For the purposes of this paragraph,  a transfer,  whether tokenized or tokenless,  must maintain price stability by backing the value of the transferred digital asset to United States dollars that is redeemable on a one-to-one basis.
B. An escrow agent may disburse up to $500 per transaction or any funds that are available as cash without complying with subsection A of this section.
C. Subsection A of this section does not apply to account servicing.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-846 - Making of escrow rates

6-846.
Making of escrow rates
A. Every escrow agent who is also a title insurer or title insurance agent licensed under title 20 shall make escrow rates that are not excessive or inadequate for the safety and soundness of the escrow agent,  that do not unfairly discriminate between risks in this state which involve essentially the same exposure to loss and expense elements and that give due consideration to the following:
1. The desirability for stability of rate structures.
2. The necessity,  by encouraging growth in assets of escrow agents in periods of high business activity,  of assuring the financial solvency of escrow agents in periods of economic depression.
3. The necessity for paying dividends on the capital stock of escrow agents sufficient to induce capital to be invested in the capital stock.
B. Every escrow agent who is required to make escrow rates under subsection A shall adopt basic classifications of escrow services that will be used as the basis for its escrow rates.
C. Rates for escrow services and title insurance policies that are issued in connection with escrow services shall not be combined.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-846.01 - Filing of escrow rates

6-846.01.
Filing of escrow rates
A. Every escrow agent who is required to make escrow rates under section 6-846 shall file with the deputy director the escrow agent's schedules of fees,  every manual of classifications,  the rules and plans pertaining to the manual and every modification of any of the foregoing. The filing shall state the proposed effective date and shall indicate the character and extent of the contemplated service.
B. The deputy director shall review the filings as necessary to carry out the provisions of this article.
C. Subject to subsection E of this section,  each filing does not become effective until fifteen days after the date of filing. On written notice to the escrow agent making the filing,  the deputy director may extend the waiting period for up to an additional fifteen days. The waiting period may be extended further with the consent of the escrow agent making the filing. On written application by the escrow agent making the filing,  the deputy director may authorize part or all of a filing to become effective before the expiration of the waiting period or any extension.
D. Except in the case of rates filed under subsection E of this section,  a filing that has become effective is deemed to meet the requirements of this article.
E. If the deputy director finds that a rate for a particular kind or class of escrow service cannot practicably be filed before it is used or a kind of escrow service,  by reason of rarity or peculiar circumstances,  does not lend itself to advance determination and filing of rates,  the deputy director pursuant to rules adopted by the deputy director may allow the rate to be used without a previous filing and waiting period.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-846.02 - Justification for escrow rates

6-846.02.
Justification for escrow rates
A. An escrow agent shall accompany a rate filing with a statement setting forth the basis on which the rate was fixed and the manner in which the fees are to be computed. A filing may be justified by:
1. The experience or judgment of the escrow agent making the filing.
2. The escrow agent's interpretation of any statistical data on which the agent relied.
3. The experience of other escrow agents.
4. Any other factors that the escrow agent deems relevant.
B. The statement and justification shall be open to public inspection after the rate to which the statement and justification apply becomes effective.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-846.03 - Disapproval of escrow filings

6-846.03.
Disapproval of escrow filings
A. Before issuing an order of disapproval and not less than twenty days after written notice,  the deputy director shall hold a hearing on an escrow rate filing. The notice shall specify in reasonable detail the matters to be considered at the hearing and shall be sent to every escrow agent who made the filing. If after the hearing the deputy director finds that all or part of the filing does not satisfy this article,  the deputy director shall issue an order that specifies what part of the filing failed and,  if the filing has become effective under section 6-846.01,  when all or part of the filing will be deemed no longer effective. At any time an escrow agent may withdraw all or part of a filing. The deputy director shall send copies of the order to each escrow agent affected. The order does not affect any escrow that was contracted before the expiration of the period set forth in the order.
B. On written application to the deputy director,  a person or organization other than the escrow agent who made the filing that is aggrieved with respect to any rate filing that is in effect may request a hearing. The application shall specify in reasonable detail the grounds on which the applicant is relying. If within thirty days after receipt of the application the deputy director finds that the application was made in good faith,  that the applicant would be aggrieved if the applicant's grounds are established and that the grounds justify a hearing,  the deputy director,  not less than twenty days after written notice to the applicant and every escrow agent who made the filing,  shall hold a hearing. If after the hearing the deputy director finds that all or part of the filing does not satisfy this article,  the deputy director shall issue an order that specifies what part of the filing failed and,  if the filing has become effective under section 6-846.01,  when all or part of the filing will be deemed no longer effective. The deputy director shall send copies of the order to the applicant and to each escrow agent affected. The order does not affect any escrow that was contracted before the expiration of the period set forth in the order.
C. A filing or modification shall not be disapproved if the rates satisfy the requirements of this article.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-846.04 - Deviations in escrow rates; civil penalty

6-846.04.
Deviations in escrow rates;  civil penalty
A. An escrow agent may not deviate from his escrow rates that are in effect pursuant to section 6-846.01.
B. If the deputy director finds that an escrow rate has been charged that deviates from the escrow rate in effect pursuant to section 6-846.01,  the escrow agent may be subject to a penalty that is equal to the difference between the rate charged and the allowable rate in effect pursuant to section 6-846.01.
C. If the deputy director finds that an escrow agent knowingly or with such frequency as to indicate a general business practice violated subsection A of this section with respect to a particular provision of the applicable escrow rate,  the deputy director,  in addition to the penalty imposed under subsection B of this section,  may:
1. For each violation,  impose an additional penalty of not more than two times the penalty imposed under subsection B of this section.
2. Revoke the escrow agent's license.
D. In addition to penalties imposed under subsection B or C of this section,  the deputy director may impose civil penalties pursuant to section 6-132 if the deputy director finds that an escrow agent knowingly violated subsection A of this section with respect to a particular provision of the applicable escrow rate by charging rates that are greater than the rates allowable pursuant to section 6-846.01.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-851 - Definitions

6-851.
Definitions
A. In this chapter,  unless the context otherwise requires:
1. " Trust business"  means the holding out by a person to the public at large by advertising,  solicitation or other means that the person is available to act as a fiduciary in this state and accepting and undertaking to perform the duties as such a fiduciary in the regular course of business.
2. " Trust company"  means a corporation holding a certificate issued under this article.
B. In this article,  unless the context otherwise requires:
1. " Agent"  means a person who receives compensation to regularly perform services specifically related to the conduct of the trust business.
2. " Asset"  means any property or property right held by a licensee for the benefit of another.
3. " Capital"  means the total of outstanding common stock,  preferred stock and surplus and undivided profits.
4. " Certificate"  means a certificate of authority issued under this chapter to engage in trust business.
5. " Contingency plan"  means a document stating a trust company's means of conducting business and preserving records in the event of any power outage,  flood or other physical emergency.
6. " Discretionary assets"  means those assets in which the trust company has the unilateral authority to determine investment strategies and execute investment transactions without seeking the concurrence,  approval or authority from the customer or any other external party.
7. " Fiduciary"  means a personal representative,  administrator,  guardian,  conservator,  trustee,  agent or other person who acts in a fiduciary capacity and who is not exempt by section 6-852.
8. " Impaired"  or " insolvent"  means the trust company does not possess assets that are at least equal to liabilities,  required reserves and total issued and outstanding capital.
9. " Legal tender"  means a medium of exchange,  including specie,  that is authorized by the United States Constitution or Congress for the payment of debts,  public charges,  taxes and dues.
10. " Liquid capital"  means legal tender,  capital in the form of certificates of deposit issued by banks,  savings banks or savings and loan associations doing business in this state and insured by the federal deposit insurance corporation or any successor institution,  including deposits to a single depository where excess deposit insurance is provided through a reciprocal deposit arrangement by participating banks,  or direct obligations of the United States government with maturity of not more than five years.
11. " Nondiscretionary assets"  means those assets for which the trust company must obtain from the customer,  broker or investment advisor specific direction and instructions regarding both investment strategies and investment executions.
12. " Specie"  means coins having precious metal content.
13. " Surplus"  means the total amount paid by shareholders in excess of the par or stated value of the shares of capital stock of a trust business in consideration for the shares.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-852 - Exemptions and allowed activities

6-852.
Exemptions and allowed activities
A. For the purposes of this article,  a person does not engage in the trust business by:
1. Rendering services as an attorney-at-law in the performance of the person's duties as such.
2. Acting as trustee under a deed of trust made only as security for the payment of money or for the performance of another act.
3. Acting as a trustee in bankruptcy or as a receiver.
4. Holding trusts of real estate for the primary purpose of subdivision,  development or sale,  or to facilitate any business transaction with respect to such real estate,  provided such person is not regularly engaged in the business of acting as a trustee for such trusts.
5. Engaging in the business of a debt management company to the extent of the activities for which it is licensed under chapter 6 of this title.
6. Engaging in the business of an escrow agent to the extent of the activities for which it is licensed under chapter 7 of this title.
7. Holding assets as trustee of trusts created for charitable purposes.
8. Receiving rents and proceeds of sale as a licensed real estate broker on behalf of a principal.
9. Engaging in securities transactions as a dealer or salesman registered under title 44,  chapter 12.
10. Acting as a guardian,  conservator,  special conservator,  trustee or personal representative pursuant to a court order under title 14 or 36.
B. Insurance companies licensed to write life insurance policies and annuity or endowment contracts in this state and subject to regulation and control of the director are excluded from the provisions of this chapter,  except the provisions of section 6-860.
C. A bank,  savings and loan association or credit union not exercising trust powers may act as a trustee or custodian of individual retirement accounts established pursuant to the employees retirement income security act of 1974 or self-employed retirement plans established pursuant to the self-employed individuals tax retirement act of 1962 without the prior written consent of the deputy director if both:
1. The duties of the bank,  savings and loan association or credit union as trustee or custodian are essentially custodial or ministerial in nature.
2. The bank,  savings and loan association or credit union is required to invest the funds from such plans only in its own time or savings deposits or shares.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-853 - Certificate required; exceptions

6-853.
Certificate required;  exceptions
A. A person shall not engage in the trust business without first obtaining a certificate from the deputy director except as provided by subsection B or C of this section,  or by section 6-852,  subsection C.
B. A bank,  if a member of the federal deposit insurance corporation and otherwise authorized under the laws of the United States,  this state or any other state to engage in the trust business in this state,  may engage in that business as a bank without obtaining a certificate under this chapter,  and shall not be subject to this article,  except for section 6-859,  subsection A and section 6-860.
C. If a savings and loan association or savings bank is a member of the federal deposit insurance corporation and is authorized under the laws of the United States,  this state or any other state to engage in the trust business in this state,  the savings and loan association or savings bank may engage in that business as a savings and loan association or savings bank without obtaining a certificate under this chapter and is not subject to this article,  except for section 6-859,  subsection A and section 6-860.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-854 - Application for certificate

6-854.
Application for certificate
A. An application for a certificate shall be in writing,  in such form as the deputy director shall prescribe,  verified under oath and supported by such information,  data and records as the deputy director may require.
B. An application for a certificate shall include the applicant's executed articles of incorporation and the fee prescribed in section 6-126.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-854.01 - Articles of incorporation; approval; changes

6-854.01.
Articles of incorporation;  approval;  changes
A. Notwithstanding title 10,  chapter 2,  the articles of incorporation shall include:
1. The name of the proposed trust company.
2. A description of the general nature of the business to be transacted and a statement authorizing the company to engage in any activity or business allowed by law.
3. The amount of authorized capital stock,  the maximum number of shares of par value common stock and preferred stock,  and the kind,  class,  series,  distinguishing characteristics and par value of all shares.
4. The amount of capital,  which is at least the amount required by section 6-856,  the applicant will use to begin the trust company.
5. A statement that the company will have perpetual existence unless the company is terminated pursuant to this article.
6. The initial street address of the main office of the trust company.
7. The number of directors and the directors' names and addresses.
8. If applicable,  a statement allowing preemptive rights.
9. A statement authorizing the board of directors to appoint additional directors when necessary.
B. Within thirty days after receiving the executed articles of incorporation,  the deputy director shall approve or disapprove the articles. If the deputy director disapproves the articles,  the deputy director shall notify the applicant of the articles' deficiencies. After approval or after addressing the deficiencies,  the applicant shall file the approved or revised articles of incorporation with the corporation commission.
C. The corporate existence of a trust company begins on the date the trust company files the approved or revised articles of incorporation with the corporation commission. After the trust company files the articles with the corporation commission,  the company may perform all acts necessary to perfect the organization and obtain and equip a place of business.
D. Within seven days after proposing a change to the articles of incorporation at a meeting of the board of directors,  a trust company shall report the proposed changes to the deputy director for approval. The deputy director shall approve the proposed changes as long as the proposed changes are consistent with this chapter. The deputy director shall notify the trust company of any inconsistencies within thirty days after receiving the proposed changes. The trust company shall have thirty days,  after receiving the deputy director's notice,  to correct any inconsistencies and submit revised proposed changes to the deputy director.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-854.02 - Board of directors; number; bylaws

6-854.02.
Board of directors;  number;  bylaws
A. A trust company shall have at least three directors. The shareholders of the company shall elect all of the directors.
B. Unless the articles of incorporation provide otherwise,  the board of directors may adopt or amend the bylaws as long as the bylaws adopted or amended by the board do not conflict with the bylaws adopted by the shareholders. The board of directors shall file a current copy of the bylaws with the deputy director.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-855 - Fees

6-855.
Fees
A. Each application to establish a trust company or branch or to renew the license of a trust company or branch shall be accompanied by the fee prescribed in section 6-126.
B. The annual renewal fee is payable on or before January 1 of each year the certificate is outstanding. A penalty payment of one hundred dollars shall be assessed for each day after January 15 that such fee is not received by the department.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-856 - Minimum capital; dividends; other requirements

6-856.
Minimum capital;  dividends;  other requirements
A. In order to obtain a certificate,  a trust company shall have not less than $500, 000 of liquid capital. The trust company shall have additional capital in the following amounts:
1. For each $750, 000, 000 of nondiscretionary assets,  an additional $250, 000 of capital.
2. For each $250, 000, 000 of discretionary assets,  an additional $250, 000 of capital.
3. For a trust company whose most recent composite rating from the deputy director was four as defined in the revised uniform interagency trust rating system as published in the federal register volume 63,  number 197,  October 13,  1998,  pages 54704 through 54711,  an additional $250, 000 of capital.
4. For a trust company whose most recent composite rating from the deputy director was five as defined in the revised uniform interagency trust rating system as published in the federal register volume 63,  number 197,  October 13,  1998,  pages 54704 through 54711,  an additional $500, 000 of capital.
B. A minimum of one-half of the additional capital required under subsection A,  paragraphs 1 and 2 of this section shall consist of liquid capital. All of the additional capital required under subsection A,  paragraph 3 or 4 of this section shall consist of liquid capital.
C. The trust company shall notify the deputy director of the form in which and location where the liquid capital is held and its date of maturity.
D. A trust company that has a certificate issued before June 30,  2001 has until December 31,  2002 to comply with the additional capital requirements prescribed in subsection A of this section.
E. The deputy director may reduce the amount of the additional capital requirement prescribed in subsection A of this section if the deputy director determines that the trust company is a subsidiary of a financial institution or financial holding company that is capable of providing sufficient support.
F. A trust company that has been issued a certificate by the deputy director shall maintain capital in the amount required under subsection A of this section.
G. A trust company may declare a dividend to be paid from net profits. A dividend shall not be declared,  credited or paid if there is an impairment of the liquid capital. A trust company that proposes dividends in a calendar year that are more than the net profit for the same calendar year shall obtain the deputy director's approval before declaring the dividends.
H. Notwithstanding subsection A of this section,  a trust company that accepts monies to be held in a savings account or time deposit prescribed in section 6-882 shall comply with all of the rules and requirements necessary to obtain and maintain insurance issued by the federal deposit insurance corporation or its successor.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-857 - Issuance of certificate; hearing

6-857.
Issuance of certificate;  hearing
A. On the filing of an application for a certificate,  the deputy director shall make or cause to be made an investigation and examination of the facts concerning the truth of the statements and the background of the management,  controlling shareholder or shareholders,  directors and executive officers and shall issue a certificate if the deputy director finds:
1. The applicant is a corporation having powers and purposes to engage in the trust business organized under the laws of this state or authorized to do business in this state as a foreign corporation.
2. The applicant has complied with all of the applicable provisions of this article.
3. The general financial standing,  business qualifications and ability of the persons involved in the management of the applicant's business are such as to demonstrate that the trust company will be operated in a safe,  sound and lawful manner.
4. The proposed capital meets the requirements of section 6-856.
5. The applicant has submitted a business plan demonstrating a knowledge of potential markets and the ability to generate business.
6. The applicant has procured a fidelity bond as prescribed in section 6-868.
7. The applicant has procured insurance as prescribed in section 6-859,  subsections E and F.
B. The deputy director may conditionally accept the application on specific requirements being met,  but a certificate shall not be issued until such conditions have been met.
C. The certificate may be granted or denied without a hearing,  but the deputy director may,  and shall at the request of the applicant,  fix a date for a hearing on the application. At the hearing any person may be heard with reference to the facts to be investigated.