reglab/statecodes huggingface dataset:
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-329 - Deposit production offices

6-329.
Deposit production offices
A. Except as prescribed by subsection B of this section,  a person shall not establish or operate a deposit production office or similar office in this state for the purpose of soliciting deposits or similar evidence of indebtedness or participation interests in indebtedness.
B. This section does not apply to activities conducted at the main office or a branch of an affiliated financial institution that is acting as an agent as prescribed by section 6-184.
C. In determining whether an activity is prohibited by this section,  the deputy director shall consider the factors specified in the Riegle-Neal interstate banking and branching efficiency act of 1994,  section 109 (c)(2) (P.L. 103-328;  108 Stat. 2338;  12 United States Code section 1835a(c)(2)).
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-330 - Rights, powers and privileges of out-of-state banks

6-330.
Rights,  powers and privileges of out-of-state banks
Except as prohibited by federal law,  an out-of-state bank doing business in this state,  including any special purpose depository institution that is chartered as a bank,  has all of the rights,  powers and privileges and is entitled to the same exemptions and immunities as a comparable in-state financial institution that holds a permit under this title and is subject to all of the provisions of this title to the same extent as a comparable in-state financial institution.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-331 - Enforcement

6-331.
Enforcement
A. If the deputy director determines that a branch that is maintained in this state by an out-of-state bank is being operated in violation of any law of this state or any rule adopted by this state or that the branch is being operated in an unsafe or unsound manner,  the deputy director has authority to take all enforcement actions against that branch as if the branch were regulated pursuant to section 6-201.
B. The deputy director shall promptly notify the regulatory agency of the out-of-state bank's home state of each enforcement action taken against the out-of-state bank and to the extent practicable shall consult and cooperate with the regulatory agencies of the out-of-state bank in pursuing and resolving any enforcement actions.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-351 - Definitions

6-351.
Definitions
In this article,  unless the context otherwise requires:
1. " Capital"  means the aggregate primary capital and secondary capital.
2. " Obligation"  means a primary or contingent liability for the payment of money.
3. " Person"  includes an individual,  a corporation,  government or governmental subdivision or agency,  business trust,  estate,  trust,  partnership,  joint venture or association or any other legal or commercial entity.
4. " Primary capital"  means the aggregate of the following:
(a) Common and perpetual preferred stock.
(b) Capital surplus.
(c) Undivided profits.
(d) Contingency and other capital reserves.
(e) The allowance for loan and lease losses.
(f) Mandatory convertible debt only to the extent that it does not exceed twenty per cent of the aggregate of subdivisions (a) through (e) of this paragraph.
5. " Secondary capital"  means the aggregate of the following:
(a) Limited life preferred stock.
(b) Subordinated notes and debentures.
(c) Mandatory convertible debt not included in primary capital.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-353 - Obligations of directors, officers and employees; reports

6-353.
Obligations of directors,  officers and employees;  reports
A. No bank shall make any loan to any of its own directors,  officers or employees that shall cause the outstanding loans of the bank to such person to exceed one percent of the capital account of the bank unless the loan is expressly authorized by the board of directors with any interested director taking no part in such vote. Any loan in violation of this subsection shall be payable on demand to the extent required to bring the loan into compliance with this subsection.
B. Each bank shall include with but not as a part of each report of condition to the deputy director a report of the obligations to the bank of each director and officer outstanding at the date of the report of condition,  if the aggregate obligations of such person,  exclusive of obligations outstanding in the regular process of bank collection transactions,  exceeds the lesser of $50, 000 or one percent of the capital account of the bank.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-355 - Change loans

6-355.
Change loans
A bona fide change loan of ten thousand dollars or less,  for a term not to exceed four days,  which entails the services of furnishing coins or currency in specific amounts required by the borrower,  may be compensated for,  at the option of the bank,  in lieu of interest,  by a service charge of not more than fifteen dollars.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-382 - Powers of bank as fiduciary

6-382.
Powers of bank as fiduciary
The prohibitions,  limitations and restrictions on the transactions of a bank in dealing with its general assets shall not be applicable to a bank in the exercise of its powers as a fiduciary over assets held in such capacity or with respect to obligations incurred in such capacity against the credit of the trust.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-383 - Identification and segregation of fiduciary assets

6-383.
Identification and segregation of fiduciary assets
Except as may be otherwise provided by law or by the writing creating the trust,  a bank holding any asset as a fiduciary shall segregate all such assets from the general assets of the bank and shall maintain such safekeeping methods and records that the assets of each trust may be readily identified and distinguished from the assets of any other trust. Trust assets may be held in the name of nominees of the bank whether the bank is the sole fiduciary or acting with others,  but the bank shall be responsible for the acts of any such nominee.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-384 - Deposit of fiduciary funds

6-384.
Deposit of fiduciary funds
Cash held by a bank as fiduciary may be deposited to the credit of the bank as such fiduciary on time or demand account with itself or with any other bank the deposits of which are insured by the federal deposit insurance corporation. Unless otherwise provided by the writing creating the trust,  if such funds are deposited with itself the bank shall secure such deposits with securities described in section 6-352,  subsection D,  paragraph 2,  or other security approved by the deputy director for the purpose,  in the amount of the deposit,  subject to section 6-245,  subsection C.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-385 - Substitution of corporate fiduciary

6-385.
Substitution of corporate fiduciary
Any fiduciary capacity of a trust company,  a bank or a savings and loan association as trustee,  executor,  administrator,  guardian,  conservator,  registrar of stocks and bonds,  assignee,  receiver or any other fiduciary capacity may be transferred to and assumed by a bank authorized under its banking permit to conduct trust business in this state or a savings and loan association authorized to conduct trust business in this state,  without any order or other action on the part of any court or interested person,  with the approval of the deputy director to the extent the substitution is specified in the order of approval. The deputy director's order of approval shall be conclusive evidence of the authority of the assuming bank or savings and loan association to hold and enjoy all rights of property,  franchises and interests,  including appointments,  designations and nominations,  and all other rights and interests in each such fiduciary capacity in the same manner and to the same extent as such rights,  franchises and interests were held or enjoyed by the bank,  savings and loan association or trust company for which the assuming bank or savings and loan association has been substituted. The substitution of fiduciary provided in this section is to assure a continuity of fiduciary administration and is supplemental to other rights and powers of substitution which require no approval by the deputy director. Substitution by order of the deputy director shall not affect the authority of the court having jurisdiction over the trust to determine the right of any other person to succeed to the fiduciary capacity of the assuming bank or savings and loan association.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-386 - Investment by fiduciaries; governmental obligations

6-386.
Investment by fiduciaries;  governmental obligations
In the absence of an express provision to the contrary,  if an indenture or other governing instrument directs,  requires,  authorizes or permits investment in United States government obligations,  a bank,  trust company,  trust department or other fiduciary may invest in the obligations,  either directly or in the form of securities or other interests in any open end or closed end management type investment company or investment trust registered under the investment company act of 1940 (54 Stat. 789;  15 United States Code sections 80a-1 through 80a-64) if the portfolio of the investment company or investment trust is limited to United States government obligations and repurchase agreements fully collateralized by United States government obligations and the investment company or investment trust takes delivery of the collateral for any repurchase agreement either directly or through an authorized custodian.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-391 - Unauthorized conduct of banking business; false representation

6-391.
Unauthorized conduct of banking business;  false representation
It is unlawful for any person to engage in this state in the banking business as defined in section 6-201 or to make use of the word " bank"  or any other words in a manner reasonably calculated to convey the impression that the person is engaged in the banking business in this state,  unless the act is done by or on behalf of a person having authority under section 6-201.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-394 - Prohibited ownership or control of a financial institution and interest in insurer insuring deposits; assets and reserves of insurer

6-394.
Prohibited ownership or control of a financial institution and interest in insurer insuring deposits;  assets and reserves of insurer
A. No person may own or control a financial institution and at the same time have an interest in an insurer that directly or indirectly insures or purports to insure the deposit accounts of the financial institution.
B. No insurer of the deposit accounts of a financial institution other than a federal insurance corporation shall have and maintain assets and reserves equaling less than fifty per cent of the withdrawal accounts or investment certificates of the insured financial institution.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-395 - Possession by deputy director and receivership

6-395.
Possession by deputy director and receivership
If the status of a bank as an insured bank is terminated by the federal deposit insurance corporation or the deputy director finds that a bank is in such an unsafe or unsound condition that it is or will become unable to meet the anticipated demands of its depositors and that the condition cannot be corrected by the procedures of chapter 1,  article 5 of this title or section 6-137,  the deputy director may immediately take possession and control of the bank and in such event shall,  through the attorney general,  apply to the superior court for the appointment of a receiver for the bank. The court may act on the application forthwith and without notice to any person. If at any time the court finds that no ground for receivership exists,  the receivership shall be dissolved and the deputy director's possession terminated.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-395.01 - Powers of deputy director in possession

6-395.01.
Powers of deputy director in possession
When the deputy director has taken possession of a bank and until the appointment and qualification of the receiver,  or the adjudication that no ground for the receivership exists,  the deputy director shall be vested with the full and exclusive power of management and control. The deputy director shall immediately close the bank for the acceptance and withdrawal of deposits,  but shall otherwise have the power to continue or to discontinue the business,  to stop or to limit the payment of its obligations,  to employ any necessary assistants,  to execute any instrument in the name of the bank,  to commence,  defend and conduct in its name any action or proceeding in which the bank may be a party.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-395.02 - Federal deposit insurance corporation as receiver

6-395.02.
Federal deposit insurance corporation as receiver
If the court grants the application for receivership of a bank it shall first tender the appointment as receiver to the federal deposit insurance corporation,  which is authorized to qualify and act without bond. If the corporation accepts the appointment it shall have all of the powers,  privileges and duties as such receiver provided by the laws of this state except insofar as such powers,  privileges and duties are in conflict with the provisions of the federal deposit insurance act as amended,  which act shall control. If the corporation does not accept the appointment,  the deputy director shall be appointed receiver.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-395.03 - Federal deposit insurance corporation power pending judicial proceedings

6-395.03.
Federal deposit insurance corporation power pending judicial proceedings
The federal deposit insurance corporation may pay out and acquire the insured deposit liabilities of a bank notwithstanding the possession by the deputy director or the pendency of receivership proceedings and for such purposes shall have the use of the facilities and records of the bank. The federal deposit insurance corporation and its directors,  officers,  agents and employees,  the deputy director and the receiver and the respective agents and employees of each,  shall be free from liability to the bank,  its directors,  stockholders and creditors,  for or on account of any action authorized by this section.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-395.04 - Right of subrogation of federal deposit insurance corporation

6-395.04.
Right of subrogation of federal deposit insurance corporation
The federal deposit insurance corporation shall be subrogated to the rights of depositors upon payment of their claims to the extent required by the law of the United States as a condition of the authority to insure deposits or make such payment.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-395.05 - Effect of receivership proceedings on liens and limitations

6-395.05.
Effect of receivership proceedings on liens and limitations
A. Every lien against any asset of a bank obtained by attachment,  judgment,  levy or other legal or equitable process or proceedings after the filing of the application for the appointment of a receiver under this article shall be null and void as to the receiver and to any purchaser from the receiver where the sale is ordered by the court to be free and clear of such liens.
B. A receiver,  upon his appointment shall be vested by operation of law with the title to all of the assets of the bank as of the time of filing of the application for the appointment of the receiver;  and as to all assets of the bank,  whether or not coming into his physical possession,  upon which a creditor of the bank could have obtained a lien by legal or equitable proceedings at the time of filing of the application for the appointment of the receiver,  the receiver shall be vested as of the time of such filing with all of the rights,  remedies and powers of a creditor then holding a lien thereon by such proceedings,  whether or not such a creditor actually exists.
C. Upon the filing of the application for the appointment of a receiver under this article there shall be a postponement for a period of six months of the date upon which any period of limitations fixed by statute or agreement would otherwise expire on a claim or right of action of the bank or upon which an appeal must be taken or a pleading or other document must be filed by the bank in any pending action or proceeding.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-395.06 - Rights, powers and duties of a receiver

6-395.06.
Rights,  powers and duties of a receiver
A. After taking possession of the bank,  the receiver may do any of the following in its own name,  in the name of the bank,  in the name of both or otherwise:
1. Collect all obligations and money due the bank.
2. Exercise and possess all the rights,  powers and privileges of the bank and its officers and directors.
3. Institute or otherwise participate in any legal proceeding by or against the receiver or the bank,  or in which the bank or its creditors have an interest,  and in every way represent the bank and its creditors.
4. Be the custodian of all monies coming into the receiver's possession,  but it may deposit any part of those monies in a bank instituted by the federal deposit insurance corporation.
5. Invest or reinvest those portions of the monies and assets of the bank as the receiver deems appropriate.
6. Revise or settle any obligation on those terms and conditions that the receiver deems appropriate.
7. Sell,  compound,  compromise or assign debts due the bank on those terms and conditions that the receiver deems appropriate.
8. Negotiate settlements of claims against the bank on those terms and conditions that the receiver deems appropriate.
9. Settle,  compromise or obtain the release of claims against the bank for cash or other consideration.
10. Sell,  exchange,  encumber or otherwise deal with any real or personal property that has come into the bank's possession by any means on the basis of reasonable market value without notice for cash or on those terms and conditions that the receiver deems appropriate.
11. Execute,  acknowledge and deliver any deed or other instrument necessary or proper for any purpose.
B. Any deed or other instrument executed pursuant to subsection A,  paragraph 11 is valid for all purposes as if it had been executed as the act and deed of the bank.
C. The receiver may disburse monies for any of the following:
1. The discharge of any taxes,  assessments or charges of any nature against the bank or the receiver or on any asset or other property in which the bank or the receiver has an interest.
2. The protection or improvement of any asset or other property of the bank.
3. The costs and expenses of the liquidation and for exercising the receiver's rights,  powers,  privileges and duties.
4. Debts and interest owed by the bank that arise out of the liquidation or otherwise.
5. The costs and expenses of the operation of the bank.
D. Notwithstanding the grant or denial of any power or duty prescribed in this chapter,  the receiver has those rights,  powers,  privileges,  immunities and duties authorized or imposed from time to time in specific cases by order of the court.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-395.07 - Sale of bank assets; authority to borrow monies; injunction; hearing

6-395.07.
Sale of bank assets;  authority to borrow monies;  injunction;  hearing
A. The receiver may sell all or any part of the bank's assets to another bank,  to a savings and loan association,  to the federal deposit insurance corporation or to an instrumentality of the United States government. The receiver may borrow from the federal deposit insurance corporation,  an instrumentality of the United States government or a private insurer which insures or guarantees the bank's investment certificates any amount necessary to facilitate the assumption of investment certificate liabilities by a newly chartered or existing bank,  assigning any part or all of the assets of the bank as security for that loan.
B. If the receiver has taken possession of the property and business of a bank,  that bank,  within ten days after the taking,  if it deems itself aggrieved,  may apply to the court in the county in which the principal place of business of the bank is located to enjoin further proceedings. The receiver may exercise all powers granted by this article during the ten day period after taking possession of the property and business of the bank. The court,  after ordering the receiver to show cause why further proceedings should not be enjoined and after a hearing and a determination of the facts on the merits,  may dismiss the application or enjoin the receiver from further proceedings and direct the receiver to surrender the property and business to the bank or make such further order as the court determines.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-395.08 - Rejection of contracts and leases on liquidation

6-395.08.
Rejection of contracts and leases on liquidation
The receiver may at his election reject any executory contract to which the bank is a party or any obligation of the bank as a lessee of real or personal property. The claim of a lessor for damages for injury resulting from the rejection of an unexpired lease of real property or for damages or indemnity under a covenant in such lease shall in no event be allowed in any amount exceeding the rent reserved by the lease,  without acceleration,  for six months after the date of surrender or reentry,  plus the amount of the unpaid rent accrued to such date.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-395.09 - Notice to claimants on liquidation

6-395.09.
Notice to claimants on liquidation
As soon after the commencement of liquidation as practicable the receiver shall cause notice of the liquidation to be published in a newspaper of general circulation in each county in which the bank has an office,  once a week for eight successive weeks. The notice shall demand that all persons who have claims against the bank present them to the receiver and make legal proof thereof,  in accordance with the procedure prescribed in the notice. The receiver shall mail a copy of the notice at the address shown on the records of the bank,  to each person who appears from the records to be a creditor of the bank,  with the advice of the nature and amount of the purported indebtedness,  provided that the notice in respect to any indebtedness to which the federal deposit insurance corporation claims complete subrogation need be made only to the corporation. The receiver's advice of a purported indebtedness shall not bind the receiver on the validity or the amount of any claim based thereon.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-395.10 - Disposition of unclaimed property

6-395.10.
Disposition of unclaimed property
A. As soon after the commencement of liquidation as practicable the receiver shall cause notice to be given by mail to each person at the address shown on the records of the bank who appears from the records to be a bailor of property held by the bank or a lessee of a safety deposit repository. The notice shall demand that the property held by the bank as bailee or located in its safe deposit repositories be withdrawn by a date certain and,  if appropriate,  the notice shall designate the name of the bank that has assumed the obligations of the closed bank as bailee or repository lessor and the place where the repository or property will be located after a specified date.
B. If the obligations of the closed bank as repository lessor have not been assumed by another bank,  the safety deposit repository,  the contents of which have not been removed before the date specified in the notice under subsection A of this section,  shall be opened by the receiver in the manner provided for repositories upon which the payment of rental is in default. The unclaimed contents of the repositories together with all unclaimed property held by the bank as bailee shall be delivered by the receiver to the clerk of the court having jurisdiction of the receivership to be disposed of pursuant to section 44-302,  subsection A,  paragraph 11 if not thereafter claimed.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-395.11 - Priority of claims; interest

6-395.11.
Priority of claims;  interest
A. Claims allowed in a proceeding under this article shall be paid in the following order:
1. Costs and expenses of the administration of the receivership and liquidation.
2. Taxes due to this state.
3. Claims with priority under the laws of this state and under federal law.
4. Claims of creditors that are fully secured including contract claims for interest to the date of payment.
5. Claims of depositors.
6. Claims of general creditors.
7. Claims on obligations that are subordinated to the claims of general creditors.
B. Claims that are approved shall bear interest calculated as provided by law or by judgment from the date that the court grants the deputy director's application for the appointment of a receiver for that bank to the extent that monies are available to pay that interest. If monies are not available to pay interest,  the interest shall be prorated. Interest owed shall receive the same priority as the claim on which it accrues,  but interest on a claim shall not be paid until all claims within that same class have received payment of the full principal amount of the claim.
C. Any monies remaining after the payment of claims as provided in this section shall be returned to the stockholders of the bank as prescribed by this article.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-395.12 - Payment of claims and distribution to stockholders on liquidation

6-395.12.
Payment of claims and distribution to stockholders on liquidation
From time to time after full provision has been made for the payment of disputed claims and claims having priority,  the receiver shall make ratable distribution on all claims that have been proved to his satisfaction or adjudicated in a court of competent jurisdiction. After all claims have been finally settled and paid,  the balance of the assets shall be distributed to the stockholders of the bank in proportion to the stock by them respectively held.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-395.13 - Voluntary liquidation and dissolution

6-395.13.
Voluntary liquidation and dissolution
A bank may voluntarily dissolve and wind up its affairs as any other corporation under the provisions of title 10,  but a plan of liquidation or dissolution shall not be submitted to the stockholders until the deputy director on application by the bank finds that the bank has assets of such a form and amount as to allow the satisfaction in full of the claims of all depositors in accordance with their rights and that the plan contains proper provision for the satisfaction.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-395.14 - Voidable transactions

6-395.14.
Voidable transactions
A transaction that occurs within six months after the date on which the deputy director takes possession of a bank is voidable by the receiver if the transaction has the effect of enabling a creditor,  affiliate,  officer,  director,  stockholder or employee,  or a relative of any of those persons,  to obtain a preference over any other creditor of the bank.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-395.15 - Notice of taking; effect

6-395.15.
Notice of taking;  effect
On taking possession of the property and business of a bank,  the receiver shall give notice of the taking to all persons who hold any assets of that bank. The notice required by this section is not a prerequisite to taking possession. A person who knows of the taking may not claim a lien or charge against any assets of the bank for any subsequent payment,  advance or clearance or for any other subsequent liability.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-402 - Scope of chapter; application to federal associations and federal savings banks

6-402.
Scope of chapter;  application to federal associations and federal savings banks
A. This chapter applies to all existing savings and loan associations,  and other similar associations and savings banks by whatever name called,  organized under this or any prior act.
B. Every federal savings and loan association and federal savings bank shall have all the rights,  powers and privileges and shall be entitled to the same exemptions and immunities as savings and loan associations organized under the laws of this state unless prohibited by federal law. In addition to all other rights,  powers and privileges,  savings and loan associations organized under the laws of the state,  whose accounts are insured by an insurance corporation,  shall have all the rights,  powers and privileges and shall be entitled to the same exemptions and immunities as federal savings and loan associations doing business in this state unless prohibited by this chapter.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-403 - Prohibitions

6-403.
Prohibitions
Except as authorized under this title:
1. No person or group of persons shall transact business within the scope of this chapter or do any business under any name or title,  or circulate or use any advertising or make any representation or give any information to any person,  which indicates or reasonably implies the operation of a business which is within the scope of this chapter.
2. No foreign savings and loan association or savings bank shall be admitted or allowed to maintain an office in this state to transact the business of a savings and loan association or savings bank.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-404 - General corporate powers

6-404.
General corporate powers
An association operating under this chapter shall be a body corporate and politic and shall have all of the specific powers conferred by this chapter and as provided for under the general laws of this state and,  in addition to these powers,  the following powers:
1. To obtain and maintain insurance of the association's accounts by an insurance corporation,  as defined in this chapter,  and to comply with all the regulations and requirements of such insurance corporation.
2. Notwithstanding the provisions of article 4 of this chapter,  to designate part or all of the guaranty capital of the association as part of its federal insurance reserve established for the sole purpose of absorbing losses which the insurance corporation may require.
3. To become a member of a federal home loan bank and to have all powers of such a member which are not inconsistent with the provisions of this chapter.
4. To act as a fiscal agent for the United States when duly designated for that purpose,  and as such agent to perform such reasonable functions as may be required of it.
5. To become a member of or deal with any corporation or agency of the United States to the extent that such agency assists in furthering or facilitating the association's purposes or powers,  and to that end to purchase stock or securities thereof or deposit money therewith and to comply with any other conditions of membership or credit.
6. To make donations in reasonable amounts for the public welfare or for charitable,  scientific,  religious or educational purposes.
7. To adopt and operate reasonable insurance,  bonus,  profit sharing and retirement plans for officers and employees.
8. To reject any application for membership,  to retire accounts by enforced retirement as provided in this chapter and the bylaws and to limit the issuance of or payments on accounts,  subject however to contractual obligations.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-405 - Power to borrow

6-405.
Power to borrow
A. No insured institution shall borrow an aggregate amount exceeding one-half the amount paid in and credited on accounts,  except that with prior approval of the deputy director,  any such association may borrow without limitation on such terms and conditions as may be required by the lender. No action of an insured institution in obtaining funds through borrowing,  in accordance with this section,  shall be deemed a violation hereof if its aggregate borrowings exceed the limitation of this section because of a subsequent reduction in the amounts paid in and credited on accounts.
B. A debt incurred by the association in violation of this section is not invalid or illegal as to the rights of the lender.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-405.01 - Capital notes and debentures

6-405.01.
Capital notes and debentures
A. With prior approval of the deputy director,  an association may issue and sell its capital notes or debentures.
B. Capital notes and debentures legally issued by an association may be converted into shares of guaranty capital in accordance with such provision therefor as may be made in such capital notes and debentures with prior approval of the deputy director.
C. Capital notes and debentures shall be an unsecured indebtedness of the association and shall be subordinate to the claims of depositors,  account holders and all other creditors of the association,  regardless of whether the claims of depositors,  account holders or other creditors arose before or after the issuance of such debentures or capital notes. In the event of liquidation,  all depositors,  account holders and other creditors of the association shall be entitled to be paid in full before any payment shall be made on account of principal or interest on such capital notes or debentures. No payment shall at any time be made on account of the principal thereof if the payment is prohibited by regulation of the insurance corporation.
D. Subject to a requirement in the articles of incorporation of the association,  or an amendment thereto,  and if authorized by the deputy director,  convertible capital notes and debentures may be issued without offer thereof to existing stockholders.
E. The amounts of outstanding capital notes and debentures legally issued by any association shall be treated as if guaranty capital.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-407 - Applicants and initial capital

6-407.
Applicants and initial capital
A. Any five or more adult individuals,  residents of this state,  may apply for a permit to organize an association under this article. The minimum initial capital which an association must have shall be determined by the deputy director,  but in no event shall it be less than the amount determined by the following table,  based on the population of the community in which the association's business office is to be located:
Population Minimum
More than Not more than capital
00 10, 000 $ 50, 000.00
10, 000 50, 000 100, 000.00
50, 000 ------ 200, 000.00
B. If the association's business office is to be located in an unincorporated area more than five miles from the limits of any community,  then the required minimum capital shall be that for a community of ten thousand population or less;  otherwise,  the required capital shall be that of the community to which it is adjacent,  or if near several communities,  that of the community with the highest population classification in the above schedule. Minimum capital to be paid in may consist of withdrawable capital and guaranty capital as provided in this chapter. If the capital of the association to be organized includes guaranty capital,  the amount of minimum initial guaranty capital shall not be less than $50, 000,  and not less than $100, 000 if the association is to be located in a county with more than seventy-five thousand population.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-408 - Application for permit to organize

6-408.
Application for permit to organize
The application for a permit to organize an association shall be addressed to the deputy director in such form as the deputy director shall provide,  be in duplicate,  be personally signed by each applicant and be verified under oath by each applicant. The applicants shall submit with their application statements,  exhibits,  maps and other data,  which shall be sufficiently detailed and comprehensive to enable the deputy director to pass on the application.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-409 - Findings and hearings

6-409.
Findings and hearings
If the deputy director does not deny the application on the basis of the data submitted by the applicants and any other information in the deputy director's possession,  the applicants shall publish a notice of intention to organize in such form as the deputy director shall prescribe. The deputy director may hear evidence to determine the deputy director's findings at any time prior to the issuance of a permit to organize.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-410 - Deputy director's approval and issuance of permit to organize

6-410.
Deputy director's approval and issuance of permit to organize
The deputy director shall not approve the application and issue a permit to organize unless the deputy director finds:
1. A need exists for an association,  and that the public convenience and advantage will be promoted by the proposed association,  in the community or area of operation stated in the application.
2. The proposed capital meets the requirements of this chapter.
3. The general character of the proposed management is such as to assure reasonable probability of the success of the association.
4. The name of the proposed association is not the same as,  or deceptively similar to,  the name of any other association or bank in the community or area of operation.
5. Such association can be established without undue injury to properly conducted existing associations.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-411 - Subscription to capital and temporary organization

6-411.
Subscription to capital and temporary organization
On receipt of the permit to organize an association,  the applicants shall constitute the organization committee and shall perfect a temporary organization by electing a chairman,  vice chairman,  and a secretary,  who shall act as the temporary officers of such association until their successors are duly elected and qualified. Such temporary officers shall proceed to:
1. Secure subscriptions for the required amount of capital in form and manner approved by the deputy director.
2. Call a meeting of subscribers,  who shall adopt articles of incorporation and elect directors to serve until the first annual meeting of the association and until their successors are elected and qualified.
3. The directors so elected shall proceed to:
(a) Organize as a board and qualify as directors.
(b) Adopt by-laws.
(c) Elect officers pursuant to the by-laws.
(d) Collect subscriptions to the required capital,  but only after the persons designated to collect such subscriptions have been bonded as provided in section 6-420.
(e) Take such other action as may be necessary to complete the organization.
(f) Report the completion of the organization to the deputy director. Unless such report is made to the deputy director within six months after the date of the permit to organize,  the permit shall be deemed revoked and any subscriptions collected shall be refunded unless the deputy director,  on good cause shown,  shall extend the time for filing such report for a fixed period which shall not exceed three months.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-412 - Completion of organization

6-412.
Completion of organization
A. If the board of directors has organized as provided in this chapter and the report of such organization has been filed with the deputy director,  the deputy director shall make a thorough examination into the affairs of the proposed association,  and if the deputy director approves the articles of incorporation and is satisfied that all the requirements of this chapter have been complied with,  and that no intervening circumstance has occurred to change the deputy director's findings made pursuant to this chapter,  on payment into the deputy director's office of the fees for such examination,  the deputy director shall issue a certificate authorizing the filing of the articles of incorporation with the corporation commission and the taking of the other steps required by title 10,  to complete the formation of a corporation. On the appointment of a statutory agent and the issuance of a certificate of incorporation by the corporation commission and the payment into escrow with a responsible corporate escrow agent approved by the deputy director of the amount of the initial capital required by this chapter,  the deputy director shall issue a permit conditioned on the association securing within twelve months after the date of the permit insurance of its insurable accounts by an insurance corporation and the rules and regulations of the corporation.
B. Unless such insurance is secured within the period the permit shall be deemed revoked unless the deputy director,  on good cause shown,  shall extend the time for securing such insurance for a single fixed period that shall not exceed six months. The association shall not operate as a savings and loan association under the laws of this state or transact any other business than that necessary to secure such insurance until it has secured such insurance. If such insurance is not secured within the time provided by this chapter or as extended by the deputy director,  all amounts collected as subscriptions to the required capital shall be returned to the subscribers without reduction.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-413 - Contents of articles of incorporation

6-413.
Contents of articles of incorporation
A. The articles of incorporation shall set forth:
1. The name of the association.
2. The location of the principal place of business.
3. The general nature of the business to be transacted.
4. The authorization,  if any,  to issue withdrawable shares,  the aggregate amount of which may be unlimited.
5. The authorization,  if any,  to issue guaranty shares,  the aggregate number thereof,  and the par value per share,  if any.
6. The date of the annual meeting of the members,  which shall not be more than one hundred fifty days after the close of the association's fiscal year.
7. The quorum required for action of members if a quorum other than specified in this chapter is desired.
8. The names,  residences and post-office addresses of the incorporators,  who shall be the individuals who made and filed with the deputy director the application for a permit to organize.
9. The time of commencement and termination of the association,  which shall be governed by the general corporation laws of the state,  with the right of renewal of existence.
10. By what officers the affairs of the association are to be conducted and the time of their election. The number of directors shall not be less than five nor more than twenty-five.
11. The highest amount of indebtedness or liability,  direct or contingent,  to which the association may at any time subject itself which shall not exceed one-half of the accounts and paid-in guaranty stock without prior approval of the deputy director.
12. That the private property of the shareholders is exempt from the debts and obligations of the association.
13. Any other provision not inconsistent with law,  which the subscribers may desire for the internal regulation of the affairs of the association.
14. The articles need not set forth any of the powers that this chapter confers.
B. The articles of incorporation may:
1. Provide that the guaranty shares be divided into different kinds or classes.
2. Define the designations,  preferences,  rights and limitations of each kind or class.
3. Define the voting rights of the different types of members.
4. Restrict the power to vote to holders of guaranty shares or to one or more kinds or classes of guaranty shares.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-414 - Members

6-414.
Members
A. The membership of an association shall consist of:
1. Every holder of an account or one or more shares of guaranty capital issued by the association.
2. Every borrower from the association,  as long as his loan remains unpaid and he remains liable to the association for the payment thereof,  and every obligor of an investment made by the association. Each of such members shall be known as a borrowing member.
B. Each joint ownership and each joint obligation shall constitute one membership.
2023 Arizona Revised Statutes › Title 6 - Banks and Financial Institutions › § 6-415 - Members' meetings

6-415.
Members' meetings
A. Each annual meeting of the members shall be held at the time specified in the articles of incorporation;  but the failure to hold an annual meeting at the time so specified shall not work a forfeiture or dissolution of the association. The board of directors,  or the holders of not less than twenty per cent of the outstanding guaranty shares or of the withdrawal value of all withdrawable capital of the association,  or such other person or persons as may be designated by the by-laws,  may call a special meeting of the members. Every annual or special meeting shall be held at the business office of the association,  or in such other place within the same county as shall be specifically designated in the notice of such meeting. Notice of an annual or any special meeting shall be published twice,  and the last publication shall be not less than ten days nor more than forty days before the date of the meeting. Such notice shall state the place,  day,  hour and purpose of the meeting.
B. A quorum at any meeting of the members shall consist of the members present in person or represented by proxy,  who are entitled to cast a majority of the total number of votes which all members of the association are entitled to cast at such meeting;  except that the articles of incorporation may specify some other quorum requirement,  but not less than one-third of such total number of votes. Any meeting,  including one at which a quorum is not present,  may be adjourned by majority vote to a specified date without further notice.
C. Voting at a meeting may be either in person or by proxy executed in writing by the shareholder or by his duly authorized attorney-in-fact. No proxy shall be valid after eleven months from the date of its execution,  unless otherwise specifically provided in the proxy.
D. Unless the articles of incorporation provide otherwise,  in the determination of all questions requiring ascertainment of the members entitled to vote and of the number of outstanding shares,  the following rules shall apply:
1. The date of determination shall be as provided in section 6-416.
2. Each person holding one or more accounts shall have the vote of one share for each one hundred dollars of the aggregate withdrawal value of such accounts,  and shall have the vote of one share for any fraction of one hundred dollars.
3. Each holder of guaranty shares shall have one vote for each guaranty share which he holds.
4. Each borrowing member as such shall have the vote of one share in addition to any vote which he may have otherwise.
5. Shares owned by the association shall not be counted or voted.