Title 6, Banks and Financial Institutions

In this title, unless the context otherwise requires: 1. "Automated teller machine" means an automated device that is established by a bank, savings and loan association or credit union and that facilitates customer-bank communications activities, including taking deposits and di…

The financial institutions division is established in the department. The director shall appoint a deputy director of the financial institutions division of the department to assist the director with the execution of the laws of this state relating to financial institutions and e…

Subject to title 41, chapter 4, article 4, the director: 1. Shall appoint an assistant director who shall have the power and perform the duties of the deputy director of the financial institutions division of the department. The assistant director shall hold the appointment at th…

A. The director, the deputy director, the assistant director and any personnel of the department may not do any of the following with respect to any financial institution or enterprise under the jurisdiction of the department: 1. Be indebted, directly or indirectly, as borrower, …

A. A person engaged in the business of lending money or negotiating a loan between parties shall not make or arrange a loan in violation of this section. B. On a loan in an amount of ten thousand dollars or less for a term up to three years which is secured by a lien on real prop…

A. A person who contracts to receive a payment that includes an amount for payment of a mortgage, deed of trust or any other obligation secured by real estate and any amounts to be tendered for payment of an insurance policy premium, a property tax assessment or any other collate…

A. A financial institution doing business in this state or any other person shall not sell or offer to sell equity securities or debt instruments to the public in a financial institution's retail office where deposits are accepted without the prior written approval of the deputy …

A. Unless otherwise required by this title or rules adopted by the department, an enterprise or a consumer lender is not required to obtain a separate license when doing business under an assumed name or a trade name if the enterprise or consumer lender notifies the department in…

All financial institutions and enterprises shall be subject to examination and supervision by the department.

A. The deputy director has the authority and responsibility for the discharge of all duties imposed by law on the division. B. The deputy director shall: 1. Examine or cause to be examined each financial institution annually, except financial institution holding companies, banks,…

In addition to the other powers, express or implied, the deputy director may: 1. Exercise all powers that are necessary for the administration and enforcement of the laws and rules relating to financial institutions and enterprises. 2. In accordance with title 41, chapter 6, adop…

A. Before receiving and holding a license, permit, certificate or permission to organize a bank, savings and loan association or credit union, the deputy director may require an applicant, licensee, active manager or responsible individual, an organizer, director or officer of an…

A. The deputy director may conduct examinations and investigations within or outside this state to determine whether any person has engaged, is engaging or is about to engage in any act, practice or transaction which constitutes an unsafe or unsound practice or a violation of any…

A. Before August 31 of each year the deputy director shall make the following annual assessments: 1. On banks, the annual assessment set by the deputy director. 2. On savings and loan associations, a charge not to exceed the annual assessment set for state banks under paragraph 1…

A. The following nonrefundable fees are payable to the department with the filing of the following: 1. To apply for a banking permit, $1,000. 2. To apply for an amendment to a banking or savings and loan association permit, $1,000. 3. To establish each banking branch office, $750…

All fees, charges, fines and assessments received by the department shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund except as provided in sections 6-135 and 6-135.01.

A. The examination of a financial institution or enterprise may be made in coordination with any authorized federal examination or an examination by another state. The deputy director in the deputy director's discretion may accept the examination report or other information compi…

A. Except as otherwise provided by this title, the records of the department relating to financial institutions are not public documents, are not open for inspection by the public and the director and any member of the director's staff may not disclose any information obtained in…

All papers, documents, reports and other written instruments filed with the deputy director pursuant to the requirements of this title by an enterprise shall be open to public inspection, except that the deputy director may withhold from public inspection for such time as the dep…

Notwithstanding any other law and except as provided by an applicable law that requires a retention period that exceeds ten years, a bank or financial institution shall destroy, in a manner prescribed by law, all personal information belonging to a former customer or client not l…

No officer or employee of the department shall be liable in any civil action for damages for any act done or omitted in good faith in performing the functions of the department.

A. The director may sue and prosecute or defend in any action or proceeding in any court of this state or any other state or territory and in any court of the United States for the enforcement or protection of any right or pursuit of any remedy necessary or proper in connection w…

A. The deputy director may be appointed as a receiver of a financial institution or enterprise under the deputy director's supervision. No bond is required of the deputy director for acting as a receiver. B. All reasonable expenses of the department relating or apportioned to a r…

The deputy director may assess a civil penalty in an amount of not more than $5,000 against a person, including any officer, director, employee, agent or other person who participates in the conduct of the affairs of the person, for any knowing violation of any provision of this …

A. Any person who knowingly violates any provision of this title for which a different penalty is not specifically provided or knowingly violates any rule, regulation or order issued or promulgated pursuant to this title is guilty of a class 6 felony. Each day of violation shall …

Any person who knowingly makes, circulates or transmits to another a false statement or rumor, written, printed or by word of mouth, which is, directly or by inference, derogatory of the financial condition or solvency of any bank, savings and loan association or credit union is …

A. The department revolving fund is established to be administered by the deputy director under the conditions and for the purposes provided by this section. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. B. Any investig…

A. The department receivership revolving fund is established to be administered by the deputy director. The fund shall consist of monies from the following sources: 1. Monies awarded and received as fees and costs in receiverships in which the deputy director was the receiver, as…

Any person who violates any order or injunction issued by a court of competent jurisdiction pursuant to this title shall, in addition to any other penalty or remedy for contempt of court, forfeit and pay to this state a civil penalty of not more than ten thousand dollars for each…

A. If it appears to the deputy director that any person has engaged, is engaging or is about to engage in any act, practice or transaction that constitutes a violation of this title or any rule or order of the deputy director or a violation of any federal insurance regulation as …

The deputy director or an administrative law judge shall conduct hearings, including hearings relating to orders of the deputy director granting, denying, revoking or suspending a permit, certificate or license provided for under this title, in accordance with title 41, chapter 6…

Except as provided in section 41-1092.08, subsection H, a final decision of the deputy director is subject to judicial review pursuant to title 12, chapter 7, article 6 if the complaint seeking review is filed with the superior court in Maricopa county and served on the deputy di…

In this article, unless the context otherwise requires: 1. "Acquisition of control" means any transaction whereby a person obtains, directly or indirectly, control of a bank, trust company, savings and loan association or controlling person. 2. "Control" means direct or indirect …

A person shall not directly or indirectly acquire control of a bank, trust company, savings bank, savings and loan association or controlling person, except with the approval of the deputy director or as otherwise allowed by this article.

A. This article shall not apply to the following persons or transactions of the type specified: 1. A person who controls a bank, trust company or savings and loan association or controlling person on the date this article becomes law and who continues to control such bank, trust …

A person shall not, directly or indirectly, make a tender offer for, request or invite a tender offer for, offer to exchange securities for or acquire in the open market or otherwise, any voting security or any security convertible into a voting security of a bank, trust company,…

A. An application for approval of the deputy director shall be in writing in such form as the deputy director may prescribe and shall be accompanied by such information, data and records as the deputy director may require. For such purpose the deputy director shall adopt rules pr…

If any material change occurs in the facts set forth in the application, or if for any other reason the acquiring party desires to amend such application, an amendment setting forth such change, together with copies of all documents and other material relevant to such change, sha…

A. With respect to the proposed acquisition of control of a bank, trust company, savings and loan association or controlling person, an application shall be denied if the deputy director finds any of the following: 1. That the financial condition of any person who would acquire c…

A. Notwithstanding any other provision of this article, any application for approval to acquire control of a bank, trust company, savings and loan association or controlling person that is not denied or approved by the deputy director within a period of sixty days after such appl…

Before determining whether a person controls another person or before denying or approving an application for approval to acquire control of a bank, trust company, savings and loan association or controlling person the deputy director may hold a hearing. Notice of such hearing sh…

Any person who is not a resident of this state, domiciled in this state or authorized to do business in this state and who files an application is deemed to have: 1. Consented to the jurisdiction of the courts of this state for all actions arising under the provisions of this art…

If it appears to the deputy director that any person has committed or is about to commit a violation of any provision of this article or of any rule or order of the deputy director, the deputy director may apply to the superior court for an order enjoining such person from violat…

A. With respect to any voting security acquired in violation of this article or any rule or order of the deputy director, a person shall not be entitled to vote or give a written proxy or consent for a period of five years after such acquisition except with the written consent of…

A. The deputy director, subject to the requirements of this article, may remove or suspend from office or prohibit from participating in any of the affairs of a financial institution or enterprise any director, officer, employee, agent or other person participating in the conduct…

A. If the deputy director determines from the available facts that the conduct of the respondent is likely to cause the financial institution or enterprise to suffer substantial financial loss before an order can be issued under section 6-161, the deputy director may issue a temp…

Except as provided in section 41-1092.08, subsection H, any party to a proceeding under this article may obtain judicial review of any final order pursuant to title 12, chapter 7, article 6 other than an order issued with consent of the financial institution or enterprise or othe…

In any proceeding instituted under this article in which a director or officer is a party, and if the deputy director or court allows such party reasonable expenses and attorney fees, the deputy director or the court may provide that such expenses and fees shall be paid by the fi…

The deputy director may apply to the superior court for the enforcement of any effective and outstanding order issued under this article, and the court has jurisdiction to order and require compliance with the order. Except as otherwise provided in this article, a court has juris…

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. …