Title 6 — Banks and Financial Institutions

The purposes of this chapter, which shall govern judicial and administrative interpretation and application of the provisions of this chapter, are to provide for: 1. Safe and sound conduct of banks. 2. Conservation of bank assets. 3. Maintenance of public confidence in banks. 4. …

All banks shall be operated in accordance with the provisions of this chapter, except that transactions validly entered into before the effective date of this chapter and the rights, duties and interests flowing from them remain valid thereafter and may be terminated, completed, …

Except as prohibited by federal law, a national bank with a banking office in this state shall have all the rights, powers and privileges and shall be entitled to the same exemptions and immunities as banks holding banking permits under this chapter.

A. A corporation holding a banking permit under this chapter may: 1. Except as prohibited by law, exercise the powers derived from its existence as an Arizona corporation. 2. Except as prohibited by law, exercise any power and engage in any activity which it could exercise or eng…

A meeting of the board of directors of a bank shall be called each month or each quarter. The deputy director shall designate for each bank whether the board shall meet monthly or quarterly. The deputy director may change the designation at any time without providing the bank adv…

A. An audit of the affairs of the bank including an out-of-state bank shall be made annually as of the end of its fiscal year by or under the direction of the board of directors. The deputy director may prescribe certain minimum requirements of the audit and shall require the fil…

The board of directors of a bank may declare dividends as allowed by the general laws governing Arizona corporations, except that dividends payable other than in the bank's own stock may be paid out of capital surplus only with the approval of the deputy director.

The board of directors shall require protection and indemnity for the bank against defalcation, forgery, theft and other similar insurable losses, with corporate insurance or surety companies authorized to do business in this state. Coverage against defalcation shall include all …

A. A capital obligation is an unsecured indebtedness of the bank subordinate to the claims of depositors and all other creditors of the bank regardless of whether the claims arose before or after the issuance of the note or debenture representing the capital obligation. In the ev…

A. A bank may establish banking offices anywhere in the world with the authorization of the deputy director and on such conditions as the deputy director may prescribe. An application for a banking office shall be in writing in such form as the deputy director prescribes supporte…

A. In addition to its other powers, a bank may through any foreign banking office act as fiscal agent of the United States and, except as prohibited or limited by regulations of the deputy director, exercise such powers as are usual in connection with the business of banking in t…

A. No bank, without the consent of the deputy director, may invest in stock or other evidence of ownership in any of the following: 1. Corporations organized under the laws of the United States or any state and principally engaged in international or foreign banking or in other i…

A subsidiary of a bank or a nonbank subsidiary of a holding company may: 1. Deal in and underwrite all obligations issued or guaranteed by or on behalf of a state or a political subdivision of a state or an agency or instrumentality of either a state or political subdivision. 2. …

A. No person, except a national banking association with its home office in this state or bank authorized to do business in this state pursuant to section 6-217 or section 6-322, subsection A, shall engage in the banking business in this state without a banking permit. B. For the…

The authority under which an existing bank is engaged in the banking business or the banking and trust business under the laws of this state before August 8, 1973 shall continue in full force and effect. The deputy director, may, and shall on request, issue a banking permit to su…

A. Except as otherwise provided in this section, an application for a banking permit or amendment to a banking permit shall be in writing, in such form as the deputy director may prescribe, and shall be supported by such information, data and records as the deputy director may re…

A. On the filing of an application for a banking permit, the deputy director shall make or cause to be made an investigation and examination of the facts concerning the applicant. Except as provided in subsection F of this section, the deputy director shall issue the permit if, b…

A. A banking permit shall be valid until surrendered to the deputy director or revoked by the deputy director. B. A banking permit may not be surrendered to the deputy director until such time as the deputy director finds that all of the deposit liabilities of the bank have been …

In this article, unless the context otherwise requires: 1. "Converting bank" means a bank converting from a national to a state bank, or the reverse. 2. "In-state financial institution" means a state or national bank or savings and loan association with its home office in this st…

Nothing in the law of this state shall restrict the right of a state bank to merge with or convert into a national bank. The action to be taken by such merging or converting state bank and its rights and liabilities and those of its stockholders shall be as prescribed at the time…

If a merging or converting bank has assets that do not conform to the requirements of law for a state bank or if assets acquired by a state bank in the transaction of its assuming deposit liabilities of another bank do not conform to such legal requirements, the deputy director m…

A resulting state bank shall be considered the same business and corporate entity as each merging bank or converting bank. All rights of property, franchises and interests of each merging bank or the converting bank shall be transferred to and vested in the resulting state bank b…

A. Notwithstanding any other provisions of law, an in-state financial institution or out-of-state financial institution may acquire an in-state financial institution if the deputy director determines that both of the following exist: 1. The in-state financial institution proposed…

A bank may maintain all types of deposit accounts and prescribe such terms and conditions relating to the accounts as are permissible for the bank to maintain the insurance on its deposits by the federal deposit insurance corporation.

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

A. Notice to a bank of an adverse claim is not sufficient to require the bank to refuse to honor the order of any person to whose credit the account stands or who has prior authority on the books of the bank to operate the account, nor is such notice sufficient to require the ban…

A. A bank may operate a deposit account in the name of a minor or in the name of two or more persons, one or more of whom are minors, and all rights and liabilities of the bank and any depositor arising out of such account and any act of the parties in relation thereto shall be o…

Bank deposits may be made in the name of two or more persons, including minors, payable to either or any of them, or payable to either or any of the survivors or the sole survivor, and the deposits or any part thereof and any interest thereon, may be paid to or on order of any of…

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

If the deposit account is with one person and if within sixty days from the date of death of such depositor, no personal representative of such decedent, qualified in this state, has delivered a certified copy of letters testamentary or letters of administration to the bank, the …

A. A bank is authorized to fix from time to time the days and hours when each of its banking offices that are located in this state will be open to the public for its banking business. The days and hours need not be the same for each office. The bank shall notify the deputy direc…

A. Every bank shall retain its corporate and business records in accordance with regulations of the deputy director. The regulations shall classify the records, establish allowable methods for effective and economical preservation of information contained in the records if the or…

Except as specifically prohibited by law, a bank may take property of any kind to secure or satisfy or partially secure or partially satisfy an obligation to the bank.

A bank may borrow money and issue evidence of indebtedness, but no borrowings shall be treated as capital except in compliance with section 6-189.

A. A bank may pledge, mortgage or otherwise hypothecate its assets: 1. To qualify the bank to act as a fiscal agent for any governmental entity. 2. To secure deposits which are required by law to be secured. 3. To secure borrowings from one business day to the next from another b…

A. In addition to other investments authorized by law, a bank or trust company that is acting as a fiduciary may invest and reinvest in the securities of an open-end or closed-end management investment company or investment trust that is registered under the investment company ac…

This article may be cited as the uniform special deposits act.

In this article, unless the context otherwise requires: 1. "Account agreement" means an agreement that: (a) Is in a record between a bank and one or more depositors; (b) May have one or more beneficiaries as additional parties; and (c) States the intention of the parties to estab…

A. This article applies to a special deposit under an account agreement that states the intention of the parties to establish a special deposit governed by this article, regardless of whether a party to the account agreement or a transaction related to the special deposit, or the…

A. The effect of this section and sections 6-252, 6-253, 6-255, 6-256, 6-258, 6-259, 6-260, 6-261 and 6-264 may not be varied by agreement, except as provided in those sections. Subject to subsection B of this section, the effect of sections 6-257, 6-262 and 6-263 may be varied b…

1. A deposit of funds in a bank under an account agreement. 2. For the benefit of at least two beneficiaries, one or more of which may be a depositor. 3. Denominated in a medium of exchange that is currently authorized or adopted by a domestic or foreign government. 4. For a perm…

A. A special deposit must serve at least one permissible purpose stated in the account agreement from the time the special deposit is created in the account agreement until termination of the special deposit. B. If, before termination of the special deposit, the bank or a court d…

A. Unless the account agreement states otherwise, the bank is obligated to pay a beneficiary if there are sufficient actually and finally collected funds in the balance of the special deposit. B. Except as provided in subsection C of this section, the obligation to pay the benefi…

A. Neither a depositor nor a beneficiary has a property interest in a special deposit. B. Any property interest with respect to a special deposit is only in the right to receive payment if the bank is obligated to pay a beneficiary and not in the special deposit itself. Any prope…

B. Creditor process is enforceable against a bank Holding a special deposit with respect to an amount the bank is obligated to pay a beneficiary or a depositor if the process: 1. Is served on the bank; 2. Provides sufficient information to permit the bank to identify the deposito…

A court may enjoin, or grant similar relief that would have the effect of enjoining, a bank from paying a depositor or beneficiary only if payment would constitute a material fraud or facilitate a material fraud with respect to a special deposit.

A. Except as provided in subsection B or C of this section, a bank may not exercise a right of recoupment or setoff against a special deposit. B. An account agreement may authorize a bank to debit the special deposit: 1. When the bank becomes obligated to pay a beneficiary, in an…

A. A bank does not have a fiduciary duty to any person with respect to a special deposit. B. When a bank holding a special deposit becomes obligated to pay a beneficiary, a debtor-creditor relationship arises between the bank and beneficiary. C. A bank holding a special deposit h…

A. Unless otherwise provided in an account agreement, a special deposit terminates five years after the date the special deposit was first funded. B. Unless otherwise provided in the account agreement, if the bank cannot identify or locate a beneficiary entitled to payment when t…

Title 47, consumer protection law, law governing deposits generally, law related to escheat and abandoned or unclaimed property, and the principles of law and equity, including law related to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress, c…