Arizona Revised Statutes Title 6 - Banks And Financial Institutions

Chapter 1 DEPARTMENT OF FINANCIAL INSTITUTIONS
Article 1 Definitions

• § 6-101 Definitions
  In this title, unless the context otherwise requires: 1. " Automated teller machine" means an automated device that is established by a bank, savings...

Article 2 Department of Financial Institutions

• § 6-110 Department Of Financial Institutions
  The department of financial institutions is established. The department has charge of the execution of the laws of this state relating to financial institutions...
• § 6-111 Superintendent; Appointment; Qualifications; Salary
  A. The chief officer of the department shall be the superintendent who shall be appointed by the governor pursuant to section 38-211. B. The...
• § 6-112 Deputy Superintendent; Examiners; Personnel
  Subject to title 41, chapter 4, article 4, the superintendent: 1. Shall appoint a deputy superintendent who shall have the power and perform the...
• § 6-113 Acts Prohibited; Officers; Employees
  A. Neither the superintendent, the deputy superintendent nor any personnel of the department shall do any of the following with respect to any financial...
• § 6-114 Balloon Payments Prohibited; Applicability; Exemptions
  A. A person engaged in the business of lending money or negotiating a loan between parties shall not make or arrange a loan in...
• § 6-115 Insurance Premium Transmitters; Timely Payment Required; Civil Penalty
  A. A person who contracts to receive a payment that includes an amount for payment of a mortgage, deed of trust or any other...
• § 6-116 Sale Of Securities; Disclosure
  A. A financial institution doing business in this state or any other person shall not sell or offer to sell equity securities or debt...

Article 3 Powers and Duties

• § 6-121 Examination; Supervision
  All financial institutions and enterprises shall be subject to examination and supervision by the department.
• § 6-122 Superintendent; Authority; Duties; Exemption
  A. The superintendent has the authority and responsibility for the discharge of all duties imposed by law on the department. B. The superintendent shall:...
• § 6-123 Superintendent; Powers
  In addition to the other powers, express or implied, the superintendent may: 1. Exercise all powers that are necessary for the administration and enforcement...
• § 6-123.01 Fingerprint Requirements; Fees
  A. Before receiving and holding a license, permit, certificate or permission to organize a bank, savings and loan association or credit union, the superintendent...
• § 6-124 Investigations; Compelling Testimony And The Production Of Documents; Self‑incrimination
  A. The superintendent may conduct examinations and investigations within or outside this state to determine whether any person has engaged, is engaging or is...
• § 6-125 Annual Examination Assessment Of Financial Institutions And Enterprises; Costs Of Foreign Examination; Payment
  A. Before August 31 of each year the superintendent shall make the following annual assessments: 1. Upon banks, the annual assessment set by the...
• § 6-126 Application Fees For Financial Institutions And Enterprises
  A. The following nonrefundable fees are payable to the department with the filing of the following applications: 1. To apply for a banking permit,...
• § 6-127 Disposition Of Revenue
  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...
• § 6-128 Joint Examinations; Acceptance Of Federal Regulatory And Other Authorized Examinations
  A. The examination of a financial institution or enterprise may be made in coordination with any authorized federal examination or an examination by another...
• § 6-129 Records; Disclosure And Limitations On Disclosure; Evidentiary Effect
  A. Except as otherwise provided by this title, the records of the department relating to financial institutions shall not be public documents nor shall...
• § 6-129.01 Enterprise Documents Open To Public Inspection
  All papers, documents, reports and other written instruments filed with the superintendent pursuant to the requirements of this title by an enterprise shall be...
• § 6-130 Limitation Of Personal Liability
  No officer or employee of the department shall be liable in any civil action for damages for any act done or omitted in good...
• § 6-131 Right To Sue And Defend In Actions; Liability Limitation; Award Of Fees And Other Expenses
  A. The superintendent may sue and prosecute or defend in any action or proceeding in any court of this state or any other state...
• § 6-131.01 Appointment Of Superintendent As Receiver; Award Of Property, Fees And Costs
  A. The superintendent may be appointed as a receiver of a financial institution or enterprise under his supervision. No bond is required of the...
• § 6-132 Violation Of Title; Civil Penalty
  The superintendent may assess a civil penalty in an amount of not more than five thousand dollars against a person, including any officer, director,...
• § 6-133 Violations; Classification
  A. Any person who knowingly violates any provision of this title for which a different penalty is not specifically provided or knowingly violates any...
• § 6-134 False Statements As To Financial Condition; Classification
  Any person who knowingly makes, circulates or transmits to another a false statement or rumor, written, printed or by word of mouth, which is,...
• § 6-135 Department Revolving Fund; Use Of Fund
  A. There is established a department revolving fund to be administered by the superintendent under the conditions and for the purposes provided by this...
• § 6-135.01 Department Receivership Revolving Fund; Use Of Fund
  A. A department receivership revolving fund is established to be administered by the superintendent. The fund shall consist of monies from the following sources:...
• § 6-136 Violation Of Order Or Injunction; Penalty
  Any person who violates any order or injunction issued by a court of competent jurisdiction pursuant to this title shall, in addition to any...
• § 6-137 Cease And Desist Orders; Injunctions; Public Inspection
  A. If it appears to the superintendent that any person has engaged, is engaging or is about to engage in any act, practice or...
• § 6-138 Hearings
  The superintendent or an administrative law judge shall conduct hearings, including hearings relating to orders of the superintendent granting, denying, revoking or suspending a...
• § 6-139 Judicial Review
  Except as provided in section 41-1092.08, subsection H, a final decision of the superintendent is subject to judicial review pursuant to title 12, chapter...

Article 4 Acquisition of Control of a Bank, Trust Company or Savings and Loan Association

• § 6-141 Definitions
  In this article, unless the context otherwise requires: 1. " Acquisition of control" means any transaction whereby a person obtains, directly or indirectly, control...
• § 6-142 Unlawful Control
  A person shall not directly or indirectly acquire control of a bank, trust company, savings bank, savings and loan association or controlling person, except...
• § 6-143 Exempt Persons And Transactions
  A. This article shall not apply to the following persons or transactions of the type specified: 1. A person who controls a bank, trust...
• § 6-144 Acquisition Of Control; Approval Of Superintendent
  A person shall not, directly or indirectly, make a tender offer for, request or invite a tender offer for, offer to exchange securities for...
• § 6-145 Application For Approval
  A. An application for approval of the superintendent shall be in writing in such form as the superintendent may prescribe and shall be accompanied...
• § 6-146 Material Change Of Fact; Filing Amended Statements
  If any material change occurs in the facts set forth in the application, or if for any other reason the acquiring party desires to...
• § 6-147 Denial Of Application; Grounds
  A. With respect to the proposed acquisition of control of a bank, trust company, savings and loan association or controlling person, an application shall...
• § 6-148 Failure To Act On Application As Approval
  A. Notwithstanding any other provision of this article, any application for approval to acquire control of a bank, trust company, savings and loan association...
• § 6-149 Determination Of Control Of One Person By Another; Hearing; Notice
  Before determining whether a person controls another person or before denying or approving an application for approval to acquire control of a bank, trust...
• § 6-150 Appointment Of Superintendent As Agent For Service Of Process; Forwarding Of Process; Consent To Jurisdiction
  Any person who is not a resident of this state, domiciled in this state or authorized to do business in this state and who...
• § 6-151 Injunctions
  If it appears to the superintendent that any person has committed or is about to commit a violation of any provision of this article...
• § 6-153 Acquisition Of Voting Securities In Violation Of Article; Limitation On Rights As Shareholder; Injunction
  A. With respect to any voting security acquired in violation of this article or any rule or order of the superintendent, a person shall...

Article 5 Proceedings for Officer Removal

• § 6-161 Suspension, Removal Or Prohibition; Hearing; Notice
  A. The superintendent, subject to the requirements of this article, may remove or suspend from office or prohibit from participating in any of the...
• § 6-162 Temporary Prohibition; Injunction
  A. If the superintendent determines from the available facts that the conduct of the respondent is likely to cause the financial institution or enterprise...
• § 6-163 Judicial Review
  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...
• § 6-164 Attorney Fees And Expenses
  In any proceeding instituted under this article in which a director or officer is a party, and if the superintendent or court allows such...
• § 6-165 Enforcement Of Order
  The superintendent may apply to the superior court for the enforcement of any effective and outstanding order issued under this article, and the court...

Chapter 2 BANK ORGANIZATION AND REGULATION
Article 1 General Provisions

• § 6-181 Declaration Of Purposes
  The purposes of this chapter, which shall govern judicial and administrative interpretation and application of the provisions of this chapter, are to provide for:...
• § 6-182 Transition
  All banks shall be operated in accordance with the provisions of this chapter, except that transactions validly entered into before the effective date of...
• § 6-183 Rights, Powers And Privileges Of National Banks
  Except as prohibited by federal law, a national bank with a banking office in this state shall have all the rights, powers and privileges...
• § 6-184 General Corporate And Banking Powers; Incidental Powers; Deposit Insurance; Federal Reserve And Home Loan Bank Membership; Agency Relationship
  A. A corporation holding a banking permit under this chapter may: 1. Except as prohibited by law, exercise the powers derived from its existence...
• § 6-185 Board Of Directors' Meetings; Review; Report Of Failure Of Quorum To Meet
  A meeting of the board of directors of a bank shall be called each month or each quarter. The superintendent shall designate for each...
• § 6-186 Annual Audit And Report
  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...
• § 6-187 Authority To Declare Dividends; Limitation
  The board of directors of a bank may declare dividends as permitted by the general laws governing Arizona corporations, except that dividends payable other...
• § 6-188 Bonds And Insurance; Coverage
  The board of directors shall require protection and indemnity for the bank against defalcation, forgery, theft and other similar insurable losses, with corporate insurance...
• § 6-189 Capital Obligations; Approval; Convertibility
  A. A capital obligation is an unsecured indebtedness of the bank subordinate to the claims of depositors and all other creditors of the bank...
• § 6-190 Bank Offices; Standards And Term Of Approval; Closing; Automated Teller Machines
  A. A bank may establish banking offices anywhere in the world with the authorization of the superintendent and upon such conditions as he may...
• § 6-191 Foreign Banking Offices; Additional Powers; Separate Accounts; Additional Offices; Definition
  A. In addition to its other powers, a bank may through any foreign banking office act as fiscal agent of the United States and,...
• § 6-192 Investments In International And Foreign Banking And Financing Corporations; Limitation; Consent; Exceptions
  A. No bank may, without the consent of the superintendent, invest in stock or other evidence of ownership in any of the following: 1....
• § 6-193 Bank And Holding Company Subsidiaries; Powers
  A subsidiary of a bank or a nonbank subsidiary of a holding company may: 1. Deal in and underwrite all obligations issued or guaranteed...

Article 2 Banking Permit

• § 6-201 Authority To Engage In Banking Business; Exception
  A. No person, except a national banking association with its home office in this state or bank authorized to do business in this state...
• § 6-202 Existing Banks
  The authority under which an existing bank is engaged in the banking business or the banking and trust business under the laws of this...
• § 6-203 Application For Banking Permit; Organizational Application; Final Application
  A. Except as otherwise provided in this section, an application for a banking permit or amendment to a banking permit shall be in writing,...
• § 6-204 Issuance Of Banking Permit; Trust Business; Conditional Approval; Hearing; Banker's Bank; Definitions
  A. Upon the filing of an application for a banking permit the superintendent shall make or cause to be made an investigation and examination...
• § 6-205 Term Of Permit; Surrender; Revocation
  A. A banking permit shall be valid until surrendered to the superintendent or revoked by him. B. No banking permit may be surrendered to...

Article 3 Merger, Consolidation and Conversion of National and State Banks

• § 6-211 Definitions
  In this article, unless the context otherwise requires: 1. " Converting bank" means a bank converting from a national to a state bank, or...
• § 6-212 Resulting National Bank
  Nothing in the law of this state shall restrict the right of a state bank to merge with or convert into a national bank....
• § 6-215 Retention Of Nonconforming Assets; Permission; Maximum Value
  If a merging or converting bank has assets which do not conform to the requirements of law for a state bank or if assets...
• § 6-216 Continuation Of Business And Corporate Entity
  A resulting state bank shall be considered the same business and corporate entity as each merging bank or converting bank. All rights of property,...
• § 6-217 Emergency Acquisition Of In‑state Financial Institution
  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 superintendent...

Article 4 Accounts

• § 6-231 Deposit Accounts
  A bank may maintain all types of deposit accounts and prescribe such terms and conditions relating to the accounts as are permissible for the...
• § 6-232 Powers Of Attorney; Notice Of Revocation; Payment After Notice
  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...
• § 6-233 Adverse Claim To Bank Deposit; Court Order Required; Definitions
  A. Notice to a bank of an adverse claim is not sufficient to require the bank to refuse to honor the order of any...
• § 6-234 Deposit Of Minor; School Saving Plan
  A. A bank may operate a deposit account in the name of a minor or in the name of two or more persons, one...
• § 6-235 Bank Deposits In Two Or More Names; Payment To Survivor
  Bank deposits may be made in the name of two or more persons, including minors, payable to either or any of them, or payable...
• § 6-236 Payment Of Deposits In Trust
  Bank deposits may be made in the name of one or more persons as trustees for one or more persons designated as beneficiaries. The...
• § 6-237 Payment Of Deposit To Foreign Personal Representative
  If the deposit account is with one person and if within sixty days from the date of death of such depositor, no personal representative...

Article 5 Regulation of Conduct of Business

• § 6-241 Banking Days; Notice; Closing
  A. A bank is authorized to fix from time to time the days and hours when each of its banking offices that are located...
• § 6-242 Preservation Of Bank Records; Regulations; Disposal
  A. Every bank shall retain its corporate and business records in accordance with regulations of the superintendent. The regulations shall classify the records, establish...
• § 6-243 Acquisition Of Property To Satisfy Or Protect Loans
  Except as specifically prohibited by law, a bank may take property of any kind to secure or satisfy or partially secure or partially satisfy...
• § 6-244 Borrowing By Bank; Treatment As Capital
  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.
• § 6-245 Pledge Of Assets; Rediscount; Exception To Requirement Of Security
  A. A bank may pledge, mortgage or otherwise hypothecate its assets: 1. To qualify the bank to act as a fiscal agent for any...
• § 6-246 Permitted Investments; Limitations
  A. In addition to other investments authorized by law, a bank or trust company that is acting as a fiduciary may invest and reinvest...

Article 6 Reserves

• § 6-271 Reserves Against Deposits; Rule; Limitations
  Banks which are not members of the federal reserve system shall maintain such legal reserves as are from time to time fixed by rule...
• § 6-272 Deposits Exempt From Reserve Requirement
  In determining the legal reserves required by this article a bank may deduct from its gross deposits such deposits as are lawfully secured and...
• § 6-273 Form Of Reserves; Limitations
  Legal reserves shall consist of: 1. Cash. 2. Cash items in the process of collection payable immediately upon presentation in the United States. 3....
• § 6-275 Computation Of Reserves
  Compliance with reserve requirements shall be determined as of the close of business on the first Thursday following the effective date of this chapter...

Article 7 Arizona Interstate Bank and Savings and Loan Association Act

• § 6-321 Definitions
  In this article, unless the context otherwise requires: 1. " Acquire" as applied to an in-state financial institution means any of the following actions...
• § 6-322 Interstate Acquisitions; Approval Of Superintendent; Exception
  A. Except as otherwise expressly permitted by federal law, an out-of-state financial institution shall not acquire an in-state financial institution unless the superintendent has...
• § 6-324 De Novo Entry By Certain Financial Institutions
  An out-of-state financial institution may establish a bank, savings and loan association or holding company in this state through de novo entry subject to...
• § 6-325 Failure To Act On Application As Approval
  The superintendent shall rule on any application submitted under section 6-322 not later than sixty days following the date the application is filed with...
• § 6-326 Denial Of Application; Grounds
  The superintendent shall deny an application for acquisition of an in-state financial institution if the superintendent finds any of the following: 1. The financial...
• § 6-327 Applicable Laws And Rules; Cooperative Agreements; Contracting Exemption
  A. Any bank, savings and loan association, out-of-state financial institution or holding company doing business as such in this state is subject to the...
• § 6-328 Deposit Concentration Limits
  A. Neither an out-of-state financial institution nor an in-state financial institution shall acquire another out-of-state financial institution or in-state financial institution if either of...
• § 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...
• § 6-330 Rights, Powers And Privileges Of Out‑of‑state Banks
  Except as prohibited by federal law, an out-of-state bank that has a banking office in this state has all of the rights, powers and...
• § 6-331 Enforcement
  A. If the superintendent determines that a branch that is maintained in this state by an out-of-state bank is being operated in violation of...

Article 9 Loans

• § 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...
• § 6-352 Limitations Of Obligations To A Bank; Exceptions; Definitions
  A. A bank may lend to a single borrower an amount equal to not more than twenty per cent of its capital, plus an...
• § 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 which shall cause the outstanding loans of the...
• § 6-354 Loans On Capital Stock Or Capital Obligations Of A Bank
  No bank shall take or hold its capital stock or its capital obligations as security for an obligation to the bank unless such security...
• § 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...

Article 11 Trust Business

• § 6-381 Authority Of Bank To Engage In The Trust Business
  A bank may not engage in the trust business unless authorized by its banking permit. A bank which engages in the trust business is...
• § 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...
• § 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...
• § 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...
• § 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...
• § 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...

Article 12 Prohibited Practices; Penalties

• § 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...
• § 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...

Article 13 Liquidation and Dissolution

• § 6-395 Possession By Superintendent And Receivership
  If the status of a bank as an insured bank is terminated by the federal deposit insurance corporation or the superintendent finds that a...
• § 6-395.01 Powers Of Superintendent In Possession
  When the superintendent has taken possession of a bank and until the appointment and qualification of the receiver, or the adjudication that no ground...
• § 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...
• § 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 superintendent or...
• § 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...
• § 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...
• § 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...
• § 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...
• § 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...
• § 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...
• § 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...
• § 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...
• § 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...
• § 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 no plan of...
• § 6-395.14 Voidable Transactions
  A transaction that occurs within six months of the date on which the superintendent takes possession of a bank is voidable by the receiver...
• § 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...

Chapter 3 SAVINGS AND LOAN ASSOCIATIONS
Article 1 General Provisions

• § 6-401 Definitions
  In this chapter, unless the context otherwise requires: 1. " Account" means withdrawable capital deposited with or invested in an association in accordance with...
• § 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...
• § 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...
• § 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...
• § 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...
• § 6-405.01 Capital Notes And Debentures
  A. With prior approval of the superintendent an association may issue and sell its capital notes or debentures. B. Capital notes and debentures legally...
• § 6-406 Incidental Powers
  An association also shall have any power conferred on a corporation by the general corporation laws of the state, and any power not prohibited...

Article 2 Formation and Licensing

• § 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...
• § 6-408 Application For Permit To Organize
  The application for a permit to organize an association shall be addressed to the superintendent in such form as he shall provide; shall be...
• § 6-409 Findings And Hearings
  If the superintendent does not deny the application on the basis of the data submitted by the applicants and any other information in his...
• § 6-410 Superintendent's Approval And Issuance Of Permit To Organize
  The superintendent shall not approve the application and issue a permit to organize unless he shall find: 1. A need exists for an association,...
• § 6-411 Subscription To Capital And Temporary Organization
  Upon receipt of the permit to organize an association, the applicants shall constitute the organization committee and shall perfect a temporary organization by electing...
• § 6-412 Completion Of Organization
  A. When the board of directors has organized as provided in this chapter and the report of such organization has been filed with the...
• § 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....

Article 3 Membership and Management

• § 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...
• § 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...
• § 6-416 Record Date For Voting, Dividend And Other Purposes
  For the purpose of determining the holders of accounts and of shares of guaranty capital, and membership entitled to notice of or to vote...
• § 6-417 Directors
  The business affairs of the association shall be exercised by its board of directors, which shall be elected, and shall exercise its powers, as...
• § 6-418 Waiver Of Notice
  Whenever notice is required to be given under this chapter, a waiver thereof in writing signed by the person or persons entitled to said...
• § 6-419 Officers
  A. The officers of an association shall consist of a president, one or more vice presidents, secretary, treasurer, and such other officers as the...
• § 6-420 Bonds Of Officers And Employees
  A. Every person appointed or elected to any position requiring the receipt, payment, management or use of money belonging to an association, or whose...
• § 6-421 Access To Books And Records; Communication With Members
  A. Every member or holder of capital shall have the right to inspect such books and records of the association as pertain to his...

Article 4 Capital

• § 6-422 Types Of Capital; Personal Property
  A. The capital of an association may be represented by capital notes and debentures, accounts or guaranty capital, as provided in this article and...
• § 6-423 Accounts
  A. An association may maintain all types of deposit accounts and prescribe those terms and conditions relating to the accounts as are permissible for...
• § 6-424 Shares Of Guaranty Capital; Nature; Consideration
  A. Shares of guaranty capital shall constitute a secondary reserve out of which losses shall be paid after all other available reserves have been...
• § 6-425 Shares Of Guaranty Capital; Authorization Of Issuance; Minimum Amount
  A. An association may provide for the issuance of shares of guaranty capital, either by its original articles of incorporation or by an amendment...
• § 6-426 Shares Of Guaranty Capital; Rights Of Existing Shareholders
  When an association already in operation amends its articles of incorporation to authorize the issuance of shares of guaranty capital, or when an association...
• § 6-427 Shares Of Guaranty Capital; Advertisement; Sales; Collection Of Subscription
  A. All prospectae and advertising matter regarding the subscription for shares of guaranty capital shall include a statement to the effect that such shares...
• § 6-428 Retirement Or Reduction Of Shares Of Guaranty Capital
  A. The board of directors of an association operating with guaranty capital may propose an amendment to the articles of incorporation providing for the...
• § 6-429 Issuance, Delivery, And Transfer Of Certificates And Account Books
  A. An association may evidence an account by one or more appropriate certificates. B. The holder of an account may transfer his rights in...
• § 6-430 Who May Hold Capital And Membership
  Accounts, shares of guaranty capital, and membership in an association may be held: 1. By any person in his own right, regardless of his...
• § 6-432 Effect Of Payment To Minor Or Fiduciary
  A. Unless the written agreement provides otherwise, or unless the association has had written notice of the terms under which a fiduciary holds an...
• § 6-433 Payment On Disability Or Death Of Holder In His Own Right Of Account
  A. If the holder in his own right of an account becomes a person with a disability and a conservator has been appointed, by...
• § 6-434 Shares And Accounts Of Certain Associations As Legal Investments; Deposit Of Fiduciary Monies
  A. All accounts of a federal savings and loan association and all accounts of a savings and loan association operating under the provisions of...
• § 6-435 Voluntary Withdrawal Of Accounts
  A. A holder of an account may make application for withdrawal of, and the association may pay, all or any part of the withdrawal...
• § 6-436 Maturity Of Shares
  A. When a regular installment or prepaid share reaches maturity value by reason of payments or dividend credits, or both, all payments thereon by...
• § 6-437 Enforced Retirement Of Accounts
  A. The board of directors, when authorized by the by-laws, and in conformity with the provisions of this section and of the by-laws, may...
• § 6-438 Authorized Charges Applicable To Members
  An association may charge initial membership fee and a fee for transfer of membership or capital, as may be authorized by the by-laws, but...
• § 6-439 Accounts Subject To Liens
  Every account shall be subject to a lien for the payment of such charges as lawfully may accrue thereon under the provisions of this...
• § 6-440 Apportionment Of Profits
  The board of directors may apportion the profits of the association as the bylaws may prescribe, and each apportionment shall be made in accordance...
• § 6-442 Dividends And Interest
  A. Subject to the restrictions set forth in this section and the association's bylaws, an association from time to time may determine the term,...
• § 6-443 Bonus Plans
  For the purpose of encouraging thrift, systematic savings and long-term investment, the board of directors may establish by resolution bonus plans for holders of...
• § 6-444 Promotional Activities Prohibited
  After the effective date hereof, an association shall not give for the opening of, or increasing the amount of, any account, any give-away that...

Article 5 Investments and Powers

• § 6-446 Other Investments And Powers
  A. An association may invest funds as follows: 1. In an account of any state or federal association, the accounts of which are insured...
• § 6-449 General Loan Contract Provisions
  A. Each loan, and any agreement for securing the same, shall be evidenced by one or more written instruments, consistent with sound lending practices...
• § 6-450 Modification Agreements
  The association at any time may enter into a written agreement with the borrower to modify, in any manner not inconsistent with the provisions...
• § 6-451 Servicing Of Loans
  An association may contract to service a loan in any manner unless restricted by regulations prescribed by the superintendent and shall require sufficient compensation...
• § 6-452 Purchase Of Real Or Personal Property At Forced Sale
  An association may purchase, at any sheriff's or other judicial sale, either public or private, any real or personal property upon which the association...
• § 6-453 Purchase Of Real Estate For Office And Rental Purposes
  An association may invest in land upon which to erect an office building, an office building or buildings and appurtenances, for the transaction of...
• § 6-454 Appraisal Of Real Estate Owned
  At the time of acquisition by purchase, foreclosure or otherwise, an association shall cause to be appraised, in the manner, and by appraisers appointed...
• § 6-456 Effect Of Unauthorized Investments And Loans; Liability Of Officers
  A. Every loan or other investment made in violation of this chapter shall be due and payable according to its terms, and the obligation...
• § 6-457 Appraisals
  Every appraisal or reappraisal of property which an association is required to make shall be made as follows: 1. In accordance with the superintendent's...
• § 6-458 Acknowledgments
  No acknowledgment of a deed, mortgage, or other instrument shall be invalid because such acknowledgment was taken before an officer authorized by the laws...

Article 6 Voluntary Corporate Changes

• § 6-459 Amendment Of Articles Of Incorporation
  An association may amend its articles of incorporation from time to time, in accordance with the procedure prescribed in this article; but the articles...
• § 6-460 Procedure To Amend Articles Of Incorporation
  The procedure to effect an amendment of articles of incorporation shall be as follows: 1. The board of directors shall adopt a resolution setting...
• § 6-461 Existing Associations; Adoption Of Articles And By‑laws
  Any existing association may, at an annual or special meeting, amend its present articles of incorporation or other instruments concerning organization by adopting articles...
• § 6-462 Conversion From State To Federal Association
  Any association operating under this chapter may become a federal association pursuant to the laws and regulations of the United States and in accordance...
• § 6-463 Conversion From Federal To State Association
  A. Any federal association may become an association operating under this chapter, pursuant to the laws and regulations of the United States and in...
• § 6-464 Effect Of Conversion
  When an association effects a conversion in accordance with either of the two preceding sections, the corporate functions of such association shall not be...
• § 6-465 Merger Of Associations Or Corporations
  A. An association operating under this chapter may merge into or with one or more associations, whether operating under this chapter or otherwise, or...
• § 6-466 Effect Of Merger
  A. The continuing association or corporation shall be considered the same business and corporate entity as each merging association or corporation, with all of...

Article 7 Voluntary Liquidation

• § 6-467 Authority To Liquidate
  An association may liquidate voluntarily in accordance with a plan of voluntary liquidation which has been adopted in the manner provided in this article.
• § 6-468 Decision As To Liquidation; Adoption Of Plan
  A. At any annual or special meeting of the members, the members may vote to liquidate the association, and may adopt a plan of...
• § 6-469 Election Of Liquidators; Report; Supervision
  A. Upon adoption of a plan of voluntary liquidation, the members shall proceed to elect, with cumulative voting permitted as in elections of directors,...
• § 6-470 Protection And Liquidation Of Assets
  The liquidators are authorized to advance funds of the association and to take such other action as is advisable to preserve, protect, or purchase...
• § 6-471 Filing And Payment Of Claims
  A. The liquidators shall fix a time for all persons having claims against the association, other than as members thereof, to present such claims,...
• § 6-472 Final Distribution And Dissolution
  When all assets have been liquidated and all expenses, claims and holders of withdrawable capital have been paid, dissolution of the association shall be...

Article 8 Supervision

• § 6-474 Accounting Practices And Records
  A. Every association shall maintain in this state a detailed record of all transactions of the association at its home office, or at a...
• § 6-475 Branch Office
  A. A branch office is a legally established place of business of the association, other than the home office, authorized by the board of...
• § 6-476 Examination
  The superintendent shall make a report of each examination to the board of directors of the association examined, and if the affairs of the...
• § 6-477 Audit By Public Accountant
  An audit of the affairs of the association shall be made annually as of the end of its fiscal year by or under the...
• § 6-478 Reports To Superintendent And Members
  A. Every association operating under this chapter shall file with the superintendent within sixty days following the close of each fiscal year of such...
• § 6-479 Information To Federal Authorities
  The superintendent may give copies of reports of his examinations of an association, and copies of the association's reports to him, and any other...
• § 6-482 Receiver; Appointment; Transfer Of Assets; Powers; Liability
  A. If the court grants a petition for receivership filed by the superintendent, the superintendent shall be appointed as receiver and may forthwith take...
• § 6-483 Procedure For Liquidation; Rights Of Share Transferor
  A. The liquidation under this article of an association, and a receivership thereof, may, at the discretion of the receiver or receivers, be conducted...
• § 6-484 Illegal Use Of Name; Classification
  No person shall use the name " building and loan company" , " building and loan association" , " savings and loan company" ,...

Article 9 Rehabilitation and Reorganization

• § 6-486 Rehabilitation Of Associations; Definition Of Plan
  A. When the business, property and affairs of any association are in the possession of the superintendent for liquidation, or when an association is...
• § 6-487 Proposal Of Plan; Petition; Notice Of Hearing
  A. A plan may be proposed by the superintendent or by an association subject to the approval of the superintendent. If proposed by an...
• § 6-488 Hearing; Fairness Of Plan
  A. At the time and place fixed for the hearing, or at the time and place to which the hearing may be continued by...
• § 6-489 Consents Required For Plan To Operate; Exceptions
  A. After completion of the hearing provided by section 6-488, the court shall approve, modify or disapprove the plan. The plan shall not become...
• § 6-490 Time Of Giving Consents; Jurisdiction Of Court
  A. The consents required by section 6-489 may be given before the plan is presented to the court, or after the presentation and before...
• § 6-491 Effect Of Approval And Consents
  A. When a plan has been approved by the court and the required consents given, the plan shall be binding upon the superintendent, the...
• § 6-492 Appeals
  A. An appeal from an order of the superior court approving a plan shall not be effectual for any purpose, unless within thirty days...
• § 6-493 Securities Defined; Power To Issue Under Plan
  A. The term " securities" , as used in this article in respect to any plan, includes not only shares of guaranty capital and...
• § 6-494 Authority Of Fiduciaries
  An executor, administrator, guardian, receiver, trustee of any kind or nature, and an insurance company may consent to any plan or exchange any shares...

Article 10 Miscellaneous Provisions

• § 6-495 Reservation Of Powers To Legislature
  The legislature shall have power to amend, repeal, or modify this chapter, and such amendments or modifications shall be binding upon any and all...
• § 6-496 Applicability Of Other Statutes
  Whenever in any statute the terms " savings and loan" , " building and loan" , " mutual building and loan" , or other...
• § 6-497 Effect On Existing Associations
  With respect to any existing association: 1. The valid articles of incorporation, bylaws, shares, contracts and obligations of such association shall continue in full...

Chapter 4 CREDIT UNIONS
Article 1 General Provisions

• § 6-501 Definitions
  A. In this chapter, unless the context otherwise requires: 1. " Branch office" means a place of business of a credit union, other than...
• § 6-502 Reports And Examinations
  A. The superintendent shall examine or cause to be examined each credit union at periodic intervals as provided by section 6-122. The superintendent shall...
• § 6-503 Accounting And Records
  A. A credit union shall keep and use in its business those books, accounts and records that will enable the superintendent to readily ascertain...
• § 6-504 Advertising
  A credit union shall not make, advertise, display, distribute, broadcast or televise, or cause or permit to be made, advertised, displayed, distributed, broadcast or...

Article 2 Formation of Credit Union

• § 6-506 Organization Procedure
  A. Any seven or more residents of this state who are of legal age and who have a common bond of interest or association...
• § 6-507 Certificate Of Approval; Filing With Corporation Commission; Certificate Of Incorporation
  A. The superintendent shall act on the completed application within sixty days. The superintendent shall issue a certificate of approval if the certificate of...
• § 6-508 Certificate Of Organization And Bylaws
  A. The superintendent shall prepare standard forms of the certificate of organization and bylaws, consistent with this chapter, which may be used by credit...
• § 6-509 Exclusive Use Of Name; Exception
  A. The name of every credit union organized under this chapter shall include the words " credit union" . A credit union shall not...
• § 6-510 Principal Place Of Business; Branch Office; Automated Teller Machines
  A. A credit union may change its principal place of business or branch within this state with the prior approval of the superintendent and...
• § 6-511 Out‑of‑state Credit Union
  A. A credit union organized under the laws of another state or territory of the United States may conduct business as a credit union...
• § 6-512 Fiscal Year
  The fiscal year of each credit union incorporated under this chapter ends on December 31.

Article 3 Powers of Credit Union

• § 6-516 General Powers
  A. In addition to the powers prescribed elsewhere in this chapter and except as prohibited by law, a credit union may: 1. Enter into...
• § 6-517 Federal Parity
  In addition to all other rights, powers and privileges, a credit union organized under the laws of this state whose accounts are insured by...

Article 4 Membership

• § 6-521 Membership
  A. The membership of a credit union consists of the incorporators and other persons who are within the field of membership as prescribed in...
• § 6-522 Organization Members
  A. An organization comprised primarily of individuals who are eligible for membership in the credit union, and a corporation a majority of whose stockholders,...
• § 6-523 Membership Applications
  A. The board of directors shall act on applications for membership or appoint one or more membership officers to approve applications for membership. A...
• § 6-524 Termination Of Membership
  A. A member may withdraw from a credit union at any time on giving notice of withdrawal as required in the bylaws. The credit...
• § 6-525 Meetings Of Members
  A. The members of the credit union shall hold the annual meeting and any special meetings as provided in the bylaws. B. At all...
• § 6-526 Calling Of Special Meetings
  The bylaws shall prescribe the manner in which the members or the board of directors, or both, may call a special meeting of the
• § 6-527 Liability Of Members
  The members of the credit union are not personally or individually liable for the payment of its debts solely by virtue of holding membership.

Article 5 Direction of Affairs

• § 6-531 Authority And Responsibility Of Directors; Voting
  A. The board of directors has the authority and responsibility for directing the business affairs, monies and records of the credit union. B. Directors...
• § 6-532 Election Of Board
  A. The board shall consist of at least five directors, to be elected by and from the members. Elections shall be held at the...
• § 6-533 Compensation Of Officials
  An officer, director or committee member, other than an employee, may not be compensated for services, except that reasonable life, health, accident and similar...
• § 6-534 Conflicts Of Interest
  A director, committee member, officer, agent or employee of the credit union shall not in any manner participate, directly or indirectly, in the deliberation...
• § 6-535 Officers
  A. At the organization meeting held within thirty days after each annual election, the board of directors shall elect from its own number a...
• § 6-536 Executive Committee
  The board of directors may elect from its own number an executive committee, consisting of not fewer than three directors, which may be authorized...
• § 6-537 Certain Duties Of Directors; Insurance
  A. In addition to the duties prescribed in this chapter, the board of directors shall meet at least monthly and shall: 1. Purchase adequate...
• § 6-538 Credit Committee
  A. The credit committee has the general supervision of all loans to members, unless it is replaced by a credit manager as provided in...
• § 6-539 Credit Manager
  If the bylaws so provide, the board may elect a credit manager to serve in place of a credit committee. The credit manager may...
• § 6-540 Loan Officers
  A. The president may appoint one or more loan officers and delegate the power to approve or disapprove loans, subject to those limitations or...
• § 6-541 Audits
  A. The supervisory committee shall make or cause to be made a comprehensive annual audit of the books and affairs of the credit union....
• § 6-542 Suspension And Removal Of Officials
  A. Both the supervisory committee and the board may suspend for cause by a two-thirds vote of their entire membership any director, officer or...

Article 6 Accounts

• § 6-551 Share Accounts
  A. Share accounts shall be subscribed to and paid for in such manner as the bylaws prescribe. A credit union may require its members...
• § 6-552 Dividends
  A. After provision for the required reserves, the board of directors may declare dividends to be paid on share accounts from the undivided earnings....
• § 6-553 Deposit Accounts
  A. A credit union may only accept deposit accounts from its members, employers of members, sponsors of profit or pension trusts of those members,...
• § 6-554 Withdrawals
  A. A person may withdraw monies in share and deposit accounts for payment to the account holder or to third parties in the manner...
• § 6-555 Minors' Accounts
  The credit union may receive payment on share and deposit accounts from a minor, who may withdraw monies from the accounts, including any dividends...
• § 6-556 Multiple Party Accounts
  A. A credit union may enter into multiple party accounts, as provided in title 14, chapter 6, article 1. No multiple party owner, unless...
• § 6-557 Liens
  A. A credit union has a lien on the share and deposit accounts and accumulated dividends of a member for any amount owed the...
• § 6-558 Member Account Insurance
  A. Before the incorporators of a credit union forward the organization documents to the superintendent, as required by section 6-506, they shall apply for...

Article 7 Loans

• § 6-561 Purpose And Conditions Of Loans; Prepayment Penalties
  A. A credit union may make loans, including lines of credit, to members for the purposes and on the conditions as the bylaws provide....
• § 6-562 Interest Rates And Other Charges
  A. The board of directors shall determine the interest rates on loans. The board may also authorize any refund of interest on loans under...
• § 6-563 Other Loan Programs
  A. A credit union may participate in loans to its members jointly with other credit unions, credit union organizations or other organizations pursuant to...
• § 6-564 Loans To Officials
  A. A credit union may make loans to an officer, director or member of its supervisory and credit committees if both of the following...

Article 8 Other Member Services

• § 6-571 Insurance For Members
  A credit union may purchase or provide insurance on the lives or credit disability of its members in an amount equal to their respective...
• § 6-572 Group Purchasing
  A credit union may enter into marketing arrangements and joint ventures with other credit unions, credit union organizations or other organizations to facilitate its...
• § 6-573 Money Type Instruments
  A credit union may collect, receive and disburse monies in connection with the providing of negotiable instruments, money orders, traveler's checks, credit or debit...
• § 6-574 Retirement Accounts
  A credit union may act as trustee or custodian of any form of retirement, pension, profit sharing or deferred income accounts for its members,...

Article 9 Investments

• § 6-576 Investment Authority
  A. The board of directors has charge of the investment of credit union monies, except that the board may designate an investment committee or...
• § 6-577 Authorized Investments
  A. Monies not used in loans to members may be invested in: 1. Securities, obligations or other instruments of or issued by or fully...

Article 10 Reserves

• § 6-581 Transfers To Regular Reserve
  A. At the end of each accounting period, but not less frequently than quarterly, the credit union shall set aside, as a regular reserve...
• § 6-582 Use Of Regular Reserve
  Losses on risk assets, but not operating losses, shall be promptly charged against the regular reserve when those losses occur. The credit union shall...
• § 6-583 Special Reserves
  In addition to the regular reserve, special reserves for losses shall be established if required by rule or if the superintendent or the board...

Article 11 Dissolutions

• § 6-584 Voluntary Dissolution
  A. A credit union may elect to dissolve voluntarily and terminate its affairs in the following manner: 1. The board of directors shall adopt...
• § 6-585 Involuntary Dissolution
  A. The superintendent may forthwith take possession and control of the business and property of any credit union to which this chapter is applicable...
• § 6-586 Distribution Of Assets Of Liquidating Credit Union
  If there is either a voluntary or involuntary liquidation of a credit union the assets of the credit union or the proceeds from any...

Article 12 Change in Corporate Status

• § 6-587 Merger Or Consolidation Of Credit Unions
  A. Any two or more credit unions may merge or consolidate into a single credit union. The merger or consolidation may be with a...
• § 6-588 Conversion Of Credit Union
  A. A credit union incorporated under the laws of this state may be converted to a credit union organized under the laws of the...

Article 13 Corporate Credit Union

• § 6-591 Organization
  A corporate credit union shall be organized in the manner provided for the organization of a credit union in section 6-506.
• § 6-592 Purposes; Membership
  A. The purposes of a corporate credit union are to: 1. Accumulate and prudently manage the liquidity of its member credit unions through inter-lending...
• § 6-593 Powers Of Corporate Credit Union; Federal Parity
  A. A corporate credit union shall enjoy the powers and privileges of any other credit union incorporated under this chapter and in addition may:...
• § 6-594 Participation In Central System
  A corporate credit union may enter into agreements and subscribe to any required shares for the purpose of participation in the national credit union...
• § 6-595 Reserves
  A. A corporate credit union shall establish and maintain a corporate reserve in accordance with the reserve requirements of the national credit union administration...

Chapter 5 CONSUMER LENDERS
Article 1 General Provisions

• § 6-601 Definitions
  In this chapter, unless the context otherwise requires: 1. " Actuarial method" means the method of allocating each payment between finance charges and principal...
• § 6-602 Exemptions
  A. This chapter does not apply to: 1. A person who does business under any other law of this state, or any other state...
• § 6-603 License; Contents Of Application; Fees; Nontransferable
  A. Unless exempt under section 6-602, a person, whether located in this state or in another state, shall not engage in the business of...
• § 6-604 Issuance Of License; License Year; Requirements
  A. If the superintendent finds no grounds for denial of a license, within one hundred twenty days after receiving a complete application, the superintendent...
• § 6-605 Denial Of Renewal; Suspension; Revocation
  A. The superintendent may deny renewal of a license or suspend or revoke a license if the superintendent finds that a licensee: 1. Is...
• § 6-606 Business Limited To Licensed Locations; Restrictions
  A. Except as provided in subsection B of this section, no licensee may conduct the business of making consumer lender loans pursuant to this...
• § 6-607 Books; Accounts; Records; Access
  A. A licensee shall maintain books, accounts and records that enable the superintendent to determine whether the licensee is in compliance with this chapter....
• § 6-608 Annual Report Of Licensee; Civil Penalty For Failure To File
  A. On or before October 1 of each year, the licensee shall file a report under oath and in the form prescribed by the...
• § 6-609 Reporting Rates; Change In Rates; Quarterly Report Of Superintendent
  A. At the time of making its annual report to the superintendent, each licensee shall report the licensee's standard annual percentage rate or range...
• § 6-610 Effect Of Revocation, Suspension Or Surrender On Preexisting Contract; Impairment Of Contracts
  A. The revocation, suspension or surrender of a consumer lender license does not impair or affect: 1. The obligation of any preexisting consumer lender...
• § 6-611 Prohibited Acts
  A. A licensee shall not knowingly advertise, display, distribute, broadcast or televise, or cause or permit to be advertised, displayed, distributed, broadcast or televised,...
• § 6-612 Rules
  The superintendent may adopt rules that are necessary to regulate the proper conduct of a licensee.
• § 6-613 Restrictions; Voidable Loans
  A. Except as the result of an accidental or bona fide error, if the licensee charges, contracts for or receives any amount in excess...
• § 6-614 Noncompliance
  Except as provided in section 6-613, a failure to comply with this chapter does not affect the validity or enforceability of any consumer lender...
• § 6-615 Foreign Loans; Reciprocity
  If a consumer lender loan subject to this chapter is made at a location outside this state to a consumer who is a resident...

Article 2 Requirements for Consumer Lender Loans

• § 6-631 Disclosures; Penalty
  A. To the extent applicable, a licensee shall comply with the disclosure requirements of the truth in lending act. B. Each note or agreement...
• § 6-632 Finance Charges
  A. A licensee may contract for and receive finance charges on consumer loans that are not more than the following amounts: 1. On a...
• § 6-633 Computation Of Finance Charges
  A. A licensee shall compute and measure finance charges on consumer loans on unpaid balances outstanding from time to time. A licensee may also...
• § 6-634 Precomputation Of Consumer Loan
  A. A precomputed consumer loan shall require repayment in substantially equal consecutive monthly installments of principal and finance charges combined. The first installment of...
• § 6-635 Other Allowable Fees; Annual Reporting
  A. In addition to the finance charges authorized by section 6-632, a licensee may contract for and receive, and collect finance charges on, the...
• § 6-636 Insurance Securing Loan; Cancellation; Notice
  A. The following types of insurance may be sold to the consumer in connection with a consumer lender loan and the consumer may contract...
• § 6-637 Term; Payments
  A. The scheduled term of a consumer loan shall not be longer than the following: 1. Twenty-four months and fifteen days from the date...
• § 6-638 Other Insurance
  A. A licensee who is licensed to sell life insurance pursuant to title 20 may sell and include in the principal amount of a...
• § 6-639 Loans From Theft Or Fraud; Consumer Not Responsible; Correction Of Credit Information
  A licensee may not hold a person responsible for any loan amount that is incurred as a result of a violation of section 13-2008,...

Chapter 6 DEBT MANAGEMENT COMPANIES
Article 1 In General

• § 6-701 Definitions
  In this chapter, unless the context otherwise requires: 1. " Agency" means any business serving the public, which as part of its services accepts...
• § 6-702 Exemptions
  The provisions of this chapter shall not be applicable to: 1. Attorneys at law, whose principal activities are other than debt management, when debt...
• § 6-703 License Required
  No person shall engage in the business for compensation of receiving money as agent of a debtor for the purpose of distributing the same...
• § 6-704 Application For License; Bonds; Contract
  A. An application for a license shall be in writing, under oath and in a form prescribed by the superintendent, and shall contain the...
• § 6-705 Branch Offices And Agencies
  A licensee may establish branch offices or agencies only if it expressly assumes responsibility for the acts of any person accepting money in its...
• § 6-706 Fees
  A. An applicant at the time of filing an application for a license under the terms of this article shall pay to the superintendent...
• § 6-707 Issuance Of License; Display; Cancellation On Termination
  A. Upon the filing of the application and the payment of the fees and the approval of the bond, or bonds, the superintendent shall...
• § 6-708 Denial; Revocation Or Suspension Of License
  A. If the superintendent finds that the applicant fails to meet any of the conditions set forth in this article, he shall deny the...
• § 6-709 Requirements
  A. A licensee at all times shall maintain minimum liquid assets of at least two thousand five hundred dollars in excess of his business...
• § 6-710 Prohibitions
  It is unlawful for a licensee to: 1. Accept an account unless it appears on the basis of a reasonable budget analysis, reduced to...
• § 6-714 Advertising
  The rules and regulations of the superintendent shall include standards and criteria for proper advertising and may include specific prohibitions as to improper advertising...
• § 6-715 Prohibitions
  No person may engage in the business of a debt management company without the license required by this article.
• § 6-716 Fees Collected
  All fees collected under the provisions of this article shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund.

Chapter 7 ESCROW AGENTS
Article 1 Administration

• § 6-801 Definitions
  In this chapter, unless the context otherwise requires: 1. " Account servicing" means the holding of documents or written instruments and the receipt and...
• § 6-802 Acknowledgment Of Report Of Examination; Penalty
  A. The superintendent shall examine or cause to be examined each escrow agent as prescribed by section 6-122. The superintendent shall forward a report...

Article 2 Licensing

• § 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...
• § 6-812 Foreign Corporations
  No foreign corporation without a valid grant of authority to do business under title 10, chapter 15, article 1 shall transact any escrow business...
• § 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...
• § 6-814 Procedure For Licensing; Surety Bond
  A. Every escrow agent before engaging in the escrow business shall file with the superintendent an application for a license, in writing, verified by...
• § 6-815 Renewal Of License
  A licensee shall make application for renewal as prescribed by the superintendent and pay the renewal fee prescribed in section 6-126 not later than...
• § 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...
• § 6-817 Refusal To License; Suspension; Revocation
  A. The superintendent may upon investigation refuse to license any applicant, or may suspend or revoke any license pursuant to title 41, chapter 6,...

Article 3 Regulations

• § 6-831 Records
  All escrow agents shall keep and maintain at all times in their principal places of business complete and suitable records of all escrow transactions...
• § 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...
• § 6-833 Seizure Of Property Of Impaired Escrow Agent
  A. When the superintendent ascertains by examination or otherwise that the assets or capital of any agent are impaired, or that the agent's affairs...
• § 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...
• § 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...
• § 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...
• § 6-836 Commissions; Other Considerations Prohibited
  No escrow agent may pay or give a commission or any part of its fees or charges, including fees for escrow services or other...
• § 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...
• § 6-838 Surrender Of License
  A licensee that desires to surrender its license shall file with the superintendent a certified copy of the resolution of its board of directors...
• § 6-839 Continuing Jurisdiction
  If the license of an escrow agent is surrendered, suspended or revoked, the agent nevertheless continues to be subject to the provisions of this...
• § 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:...
• § 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...
• § 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...
• § 6-841.02 Liability Of Title Insurer; Closing Protection Letter; Definition
  A. A real property escrow agent that is a title insurance agent shall disclose to the buyer and seller of a residential dwelling that...
• § 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...
• § 6-843 Disbursements; Applicability
  A. Except as provided by subsection B, an escrow agent may only disburse money out of an escrow account if deposits are previously made...

Article 4 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...
• § 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 superintendent his schedules of fees, every...
• § 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...
• § 6-846.03 Disapproval Of Escrow Filings
  A. Before issuing an order of disapproval and not less than twenty days after written notice, the superintendent shall hold a hearing on an...
• § 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 superintendent finds...

Chapter 8 TRUST COMPANIES
Article 1 General Provisions

• § 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...
• § 6-852 Exemptions And Permitted 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...
• § 6-853 Certificate Required; Exceptions
  A. A person shall not engage in the trust business without first obtaining a certificate from the superintendent except as provided by subsection B...
• § 6-854 Application For Certificate
  A. An application for a certificate shall be in writing, in such form as the superintendent shall prescribe, verified under oath and supported by...
• § 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...
• § 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...
• § 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...
• § 6-856 Minimum Capital; Dividends; Other Requirements
  A. In order to obtain a certificate, a trust company shall have not less than five hundred thousand dollars of liquid capital. The trust...
• § 6-857 Issuance Of Certificate; Hearing
  A. Upon the filing of an application for a certificate the superintendent shall make or cause to be made an investigation and examination of...
• § 6-859 Records; Audits; Preservation Of Records; Protection; Insurance; Bond; Contingency Plan
  A. A bank, savings and loan association or trust company shall keep and use in its business any books, accounts and records which will...
• § 6-860 Duty Of Trustee, Escrow Officer Or Agent To Produce Trust Or Escrow Records For Inspection; Violation; Classification
  A. Any trustee, escrow officer or agent shall produce for inspection any trust or escrow records concerning the assets, existence, condition, management and administration...
• § 6-861 Reports
  A. The superintendent may require reports of financial condition and relevant information concerning the business operations of each trust company, shall fix and extend...
• § 6-862 Trust Funds
  All monies received by a trust company as fiduciary on trust business within this state shall be deposited in a bank or savings and...
• § 6-863 Suspension Or Revocation Of Certificate
  A. The superintendent may suspend or revoke the certificate of a trust company pursuant to title 41, chapter 6, article 10 if the superintendent...
• § 6-864 Continuing Jurisdiction
  If the certificate of a trust company is surrendered, suspended or revoked, the company shall nevertheless continue to be subject to the provisions of...
• § 6-865 Unsafe Condition; Receivership
  If the deficiency in capital has not been made good or the trust company is in an unsafe or unsound condition that is not...
• § 6-866 Limit Of Legal Action
  This article does not limit any statutory or common law right of a person to bring an action in a court for any act...
• § 6-867 Trust Company Name
  A. It is unlawful for a person to make use of the words " trust" or " trust company" or any other words in...
• § 6-868 Fidelity Bond; Requirements
  A. A trust company doing business under this chapter shall obtain and maintain a fidelity bond, naming the trust company as obligee, in the...
• § 6-869 Meetings; Reports; Report Of Examination; Response; Penalties
  A. The board of directors of a trust company shall meet at least once every three months. The superintendent or any director may call...
• § 6-870 Trust Committee
  A. The board of directors may appoint a trust committee. The trust committee shall be comprised solely of directors, officers, employees or any combination...
• § 6-870.01 Acceptance Of Other Examinations; Cooperative Agreements
  A. Instead of an examination prescribed by section 6-122, the superintendent may accept the examination report of a federal or state agency that has...
• § 6-870.02 Prohibited Acts
  A. A trust company shall not permit a person, other than a director, officer, agent or employee of the trust company or the legal...

Article 2 Uniform Common Trust Fund Act

• § 6-871 Establishment Of Common Trust Funds
  A. Any bank, savings and loan association or trust company qualified to act as a fiduciary in this state may establish and administer common...
• § 6-872 Court Accountings
  A. Unless ordered by a court of competent jurisdiction, a bank, savings and loan association or trust company operating a common trust fund pursuant...
• § 6-873 Uniformity Of Interpretation
  This article shall be so construed as to make uniform the law of those states which enact it.
• § 6-874 Short Title
  This article may be cited as the uniform common trust fund act.

Article 3 Authorization to Accept Savings Accounts and Time Deposits

• § 6-881 Definitions
  In this article, unless the context otherwise requires: 1. " Savings account" means monies received or held by the trust company in the usual...
• § 6-882 Savings Accounts And Time Deposits; Insurance; Withdrawal; Notice
  A. If authorized by the articles of incorporation and bylaws and if approved by the superintendent, a trust company may receive monies for the...

Chapter 9 MORTGAGE BROKERS, MORTGAGE BANKERS AND LOAN ORIGINATORS
Article 1 Mortgage Brokers

• § 6-901 Definitions
  In this article, unless the context otherwise requires: 1. " Affiliate" means an entity which directly or indirectly, through one or more intermediaries, controls,...
• § 6-902 Exemptions
  A. This article does not apply to: 1. A person who does business under any other law of this state, or law of any...
• § 6-903 Licensing Of Mortgage Brokers Required; Qualifications; Application; Bond; Fees; Renewal
  A. A person shall not act as a mortgage broker if the person is not licensed under this article. A person who brokers only...
• § 6-904 Issuance Of License; Renewal; Inactive Status; Branch Office License; Application; Fee
  A. The superintendent, on determining that the applicant is qualified and has paid the fees, shall issue a mortgage broker's license or a commercial...
• § 6-905 Denial, Suspension Or Revocation Of Licenses
  A. The superintendent may deny a license to a person or suspend or revoke a license if the superintendent finds that an applicant or...
• § 6-906 Required Accounting Practices And Records; Escrow Of Monies; Disclosure
  A. Every mortgage broker shall keep and maintain at all times correct and complete records as prescribed by the superintendent which will enable him...
• § 6-907 Required Disclosure To Investors
  A. Before payment of any money by an investor in connection with a mortgage loan, a licensee shall provide to an investor that is...
• § 6-908 Testing Committee; Testing Of Applicants; Approval By Superintendent; Definition
  A. The superintendent shall establish a testing committee to create, periodically update and establish standards for passing a test for mortgage brokers. The committee...
• § 6-909 Prohibited Acts
  A. Except for employment verifications, verifications of mortgages and loans, and deposit or account verifications, a person, in connection with or incidental to the...
• § 6-910 Noncompliance Not To Affect Validity Of Loan
  A failure to comply with this article does not affect the validity or enforceability of any debt, mortgage, deed of trust or any other...
• § 6-911 Active Military Duty; Compensation
  Notwithstanding any other law, a mortgage broker who is a member of the Arizona national guard, the United States armed forces reserves or the...
• § 6-912 Certificate Of Exemption
  A. A person who is exempt from licensure pursuant to articles 1, 2 and 3 of this chapter as a federally chartered savings bank...
• § 6-913 Conversion To Commercial Mortgage Broker License
  Notwithstanding section 6-903, a person who holds a mortgage broker license may convert it to a commercial mortgage broker license by applying in a...

Article 2 Mortgage Bankers

• § 6-941 Definitions
  In this article, unless the context otherwise requires: 1. " Affiliate" means an entity which directly or indirectly, through one or more intermediaries, controls,...
• § 6-942 Exemptions
  A. This article does not apply to: 1. A person who does business under any other law of this state, or any other state...
• § 6-943 Licensing Of Mortgage Bankers Required; Qualifications; Application; Bond; Fees; Renewal
  A. A person shall not act as a mortgage banker if he is not licensed under this article. B. The superintendent shall not grant...
• § 6-944 Issuance Of License; Renewal; Branch Office License; Application; Fee
  A. If the superintendent determines that the applicant has met the requirements set forth in section 6-943, subsection C, is qualified and has paid...
• § 6-945 Denial, Suspension Or Revocation Of Licenses
  A. The superintendent may deny a license to a person or suspend or revoke a license if the superintendent finds that an applicant or...
• § 6-946 Required Accounting Practices And Records; Refundable Deposits; Periodic Impoundment Payments; Disclosure
  A. Every mortgage banker shall keep and maintain at all times correct and complete records clearly reflecting the financial condition of the business as...
• § 6-947 Prohibited Acts
  A. Except for employment verifications and deposit or account verifications, a person in connection with or incidental to the making of any mortgage banking...
• § 6-948 Noncompliance Not To Affect Validity Of Loan
  A failure to comply with the provisions of this article does not affect the validity or enforceability of any debt or any mortgage, deed...
• § 6-949 Conversion To Mortgage Broker License
  Notwithstanding any other law, a licensee who funds in the aggregate one hundred fifty or fewer loans in the immediately preceding calendar year may...

Article 3 Commercial Mortgage Bankers

• § 6-971 Definitions
  In this article, unless the context otherwise requires: 1. " Affiliate" means an entity that directly or indirectly, through one or more intermediaries, controls,...
• § 6-972 Exemptions
  This article does not apply to: 1. Institutional investors. 2. A person who funds a commercial mortgage loan that was originated and processed by...
• § 6-973 Licensing Commercial Mortgage Bankers Required; Qualifications
  A. A person shall not act as a commercial mortgage banker without a license issued under this article. B. A person who engages in...
• § 6-974 Application For License; Issuance Or Denial; Fees
  A. A person shall apply for a license or for a renewal of a license in writing on the forms, in the manner and...
• § 6-975 Bond Or Other Security
  A. Each licensed commercial mortgage banker shall deposit with the superintendent, before doing business as a commercial mortgage banker, a bond executed by the...
• § 6-976 Responsible Individual; Employees
  A. A license entitles the licensee and all officers, directors, members, partners, trustees and employees of the licensee to engage in commercial mortgage banking...
• § 6-977 Displaying And Using License Number
  A. A licensee shall prominently display the commercial mortgage banker license in the office of the commercial mortgage banker. B. A licensee or an...
• § 6-978 Consent Of Superintendent For Transferring, Assigning Or Acquiring Control Of Licensee; Definition
  A license is not transferable or assignable and control of a licensee may not be acquired through a stock purchase or any other device...
• § 6-979 Principal Place Of Business; Branch Office License; Change Of Address
  A. Each licensed commercial mortgage banker shall designate and maintain a principal place of business in this state to transact business. The license shall...
• § 6-980 Annual Renewal; Expiration On Failure To Renew
  A. For licenses approved on or before March 31, 2009: 1. Licenses that are not renewed by March 31, 2009 are suspended, and the...
• § 6-981 Inactive Status
  A. For licenses approved on or before March 31, 2009, a licensee may request inactive status for the following license year, and the license...
• § 6-982 Denial, Suspension Or Revocation Of Licenses
  A. The superintendent may deny a license to a person or suspend or revoke a license if the superintendent finds that an applicant or...
• § 6-983 Required Accounting Practices And Records; Escrow Of Monies; Disclosure
  A. A commercial mortgage banker shall keep and maintain at all times correct and complete records as prescribed by the superintendent that will enable...
• § 6-984 Prohibited Acts
  A. Except for employment verifications and deposit or account verifications, a person shall not induce, require or permit any document in connection with making...
• § 6-985 Noncompliance Not To Affect Validity Of Loan
  A failure to comply with a provision of this article does not affect the validity or enforceability of any debt or any mortgage, deed...

Article 4 Loan Originators

• § 6-991 Definitions
  In this article, unless the context otherwise requires: 1. " Affiliate" means an entity that directly or indirectly, through intermediaries, controls, is controlled by...
• § 6-991.01 Exemptions
  This article does not apply to: 1. Registered loan originators. 2. An individual who offers or negotiates terms of a residential mortgage loan secured...
• § 6-991.02 Prohibited Acts
  A. A loan originator acting on the loan originator's own behalf shall not accept any monies or documents in connection with an application for...
• § 6-991.03 Licensing; Renewal; Qualifications; Application; Fees
  A. A natural person shall not act as a loan originator unless the person is licensed under this article. B. The superintendent shall not...
• § 6-991.04 Issuance Of License; Notice From Employing Mortgage Broker, Mortgage Banker Or Consumer Lender Or Registered Exempt Person; Renewal; Inactive Status; Address Change; Fee
  A. The superintendent, on determining that an applicant is qualified and has paid the required fees, shall issue a loan originator's license to the...
• § 6-991.05 Denial, Suspension Or Revocation Of Licenses
  A. The superintendent may deny a license to a person or suspend or revoke a license if the superintendent finds that an applicant or...
• § 6-991.07 Examination; Fee; Definition
  A. Each applicant for an original loan originator license, before issuance of the license, shall take and pass an examination that is developed or...
• § 6-991.08 Reasonable Efforts To Secure Advantageous Loan For Borrower
  A loan originator shall make reasonable efforts to secure a loan that is reasonably advantageous to the borrower considering all of the circumstances, including...
• § 6-991.09 Mortgage Recovery Fund; Liability Limits
  A. The superintendent shall establish and maintain a mortgage recovery fund consisting of the monies received by the superintendent pursuant to this article for...
• § 6-991.10 Payments To The Mortgage Recovery Fund
  A. In addition to any other fees, applicants shall pay an amount to be determined by the superintendent to the mortgage recovery fund on...
• § 6-991.11 Statute Of Limitations; Service Of Summons; Application For Payment; Insufficient Monies; Definition
  A. An action for a judgment that subsequently results in an order for payment from the mortgage recovery fund shall be started no later...
• § 6-991.12 Notice Of Claim To Judgment Debtor; Response
  A. Within the same time prescribed by section 6-991.11, subsection C for applying for payment from the mortgage recovery fund, an aggrieved party who...
• § 6-991.13 Correction Of Deficiencies In The Application
  A. If the superintendent determines that a claimant's application fails to comply substantially with the requirements of section 6-991.11 or rules adopted pursuant to...
• § 6-991.14 Investigation And Discovery
  In considering and investigating an application, the department may use all appropriate means of investigation and discovery that are available pursuant to this article.
• § 6-991.15 Final Decision And Order On Claim; Notice
  A. The superintendent shall make a final written decision and order on a claim within ninety calendar days after receiving a completed application except...
• § 6-991.16 Claimant's Right To Appeal Denial Of Claim; Service Of Notice Of Appeal; Response; Failure To File Response
  A. A claimant whose application is denied pursuant to section 6-991.15 may file within six months after receiving notice of a denial of the...
• § 6-991.17 Superintendent's Standing In Court
  The superintendent may enter an appearance, file an answer, appear at the court hearing, defend the action or take whatever other action the superintendent...
• § 6-991.18 Subrogation Of Rights; Collection
  A. Before receiving payment from the fund, a claimant must complete and execute, as judgment creditor, an assignment of judgment lien and notice of...
• § 6-991.19 Waiver Of Rights
  The failure of an aggrieved person to comply with all of the provisions of this article constitutes a waiver of any rights.
• § 6-991.20 Effect Of Article On Disciplinary Action
  This article does not limit the authority of the superintendent to take disciplinary action against any licensee for a violation of this chapter or...
• § 6-991.21 Financial Services Fund; Use Of Fund
  A. The financial services fund is established consisting of loan originator fees collected pursuant to this article. The superintendent shall administer the fund for...
• § 6-991.22 Noncompliance Not To Affect Validity Of Loan
  Failure to comply with this article does not affect the validity or enforceability of any debt, mortgage, deed of trust or any other lien...

Chapter 10 SAFE DEPOSIT AND SAFEKEEPING
Article 1 General Provisions

• § 6-1001 Definitions
  In this article, unless the context otherwise requires: 1. " Lessee" means a person contracting with a lessor for the use of a safe...
• § 6-1002 Legal Relationship In Use Of Safe Deposit Facilities
  A. The relationship between the lessor and the lessee shall be that of landlord and tenant in the absence of a written contract to...
• § 6-1003 Change Of Location Of Repositories
  A lessor may, during the term of any lease, move its repositories and the contents to another location upon giving notice to the lessees...
• § 6-1004 Tenancy In Two Or More Names
  A tenancy in a safe deposit repository may be created by contract with two or more persons, including minors, named as lessees. The terms...
• § 6-1005 Lease To A Minor
  A lease of a repository shall not be invalid or voidable by reason of the minority of the lessee or lessees and all rights...
• § 6-1006 Adverse Claims To Repository; Definitions
  A. Notice to the lessor of an adverse claim is not effectual to require the lessor to deny access to any person previously named...
• § 6-1007 Lessee's Death Or Incompetency; Revocation Of Power Of Attorney
  Neither the death nor incompetency of a lessee revokes the authority of a lessor to deal with an agent who has been authorized in...
• § 6-1008 Procedure On Death Of Lessee
  In the event only one lessee is named in the lease of a repository and the lessee dies, or on the death of last...
• § 6-1009 Lessor's Lien; Default Of Lessee; Or Failure To Surrender
  A. The lessor shall have a landlord's lien upon the contents of a repository for the rent. B. If the lessee does not pay...

Chapter 11 FINANCIAL INSTITUTION HOLDING COMPANIES
Article 1 General Provisions

• § 6-1101 Definitions
  In this chapter, unless the context otherwise requires: 1. " Acquisition of control" means a transaction by which a person obtains, directly or indirectly,...
• § 6-1102 Prohibitions
  A person shall not directly or indirectly take any action that causes or results in a company becoming a financial institution holding company, except...
• § 6-1103 Exempt Persons And Transactions
  A. This article does not apply to the following persons or transactions of the type specified: 1. A registered dealer who acts as an...
• § 6-1104 Acquisition Of Control; Approval By Superintendent
  A. A person shall not, directly or indirectly, make a tender offer for, request or invite a tender offer for, offer to exchange securities...
• § 6-1105 Application For Approval
  A. An application shall be in writing, in such form as the superintendent may prescribe and accompanied by the information, data and records the...
• § 6-1106 Material Change Of Fact; Filing Amended Statements
  If any material change occurs in the facts set forth in the application, or if for any other reason the acquiring party desires to...
• § 6-1107 Denial Of Application; Grounds
  A. The superintendent may deny an application if the superintendent finds any of the following: 1. The financial condition of the financial institution holding...
• § 6-1108 Failure To Act On Application As Approval
  An application which is not denied or approved by the superintendent within sixty days after the application is filed with the superintendent is deemed...
• § 6-1109 Determination Of Control Of One Person By Another; Hearing; Notice
  Before determining whether a person controls another person or before denying or approving an application for approval to become a financial institution holding company...
• § 6-1110 Appointment Of Superintendent As Agent For Service Of Process; Forwarding Of Process; Consent To Jurisdiction
  A person who is not a resident of this state, domiciled in this state or authorized to do business in this state and who...
• § 6-1112 Acquisition Of Voting Securities In Violation Of Article; Limitation On Rights As Shareholder; Injunction
  A. With respect to any voting security acquired in violation of this article or any rule or order of the superintendent, a person is...
• § 6-1113 Reports; Examination; Costs
  A. The superintendent may require reports from and examine financial institution holding companies and each subsidiary of the holding companies. The superintendent shall accept...

Chapter 12 TRANSMITTERS OF MONEY
Article 1 Licenses and Regulation

• § 6-1201 Definitions
  In this chapter, unless the context otherwise requires: 1. " Authorized delegate" means a person designated by the licensee under section 6-1208. 2. "...
• § 6-1202 License Required
  A. A person shall not sell or issue payment instruments, engage in the business of receiving money for transmission or transmitting money, engage in...
• § 6-1203 Exemptions
  A. This chapter does not apply to: 1. The United States or any department or agency of the United States. 2. This state, including...
• § 6-1204 Application For License; Fees
  A. Each application for a license shall be made in writing, under oath and in the form prescribed by the superintendent. The application shall...
• § 6-1205 Bond Required; Conditions; Notice; Cancellation; Substitution
  A. Each application for a license shall be accompanied by and each licensee shall maintain at all times a bond executed by the licensee...
• § 6-1205.01 Net Worth Requirements
  A. Each applicant for a license shall have and each licensee shall maintain at all times a net worth of at least one hundred...
• § 6-1206 Issuance Of License; Renewal
  A. On the filing of a complete application, the superintendent shall investigate the financial condition and responsibility, financial and business experience, character and general...
• § 6-1207 Principal And Branch Offices; Notices
  A. A licensee shall designate and maintain a principal place of business for the transaction of business regulated by this chapter. If a licensee...
• § 6-1208 Authorized Delegates Of Licensee; Reports
  A. A licensee may conduct the business regulated under this chapter at one or more locations in this state through authorized delegates designated by...
• § 6-1209 Cease And Desist Orders; Examinations
  A. In addition to his authority under section 6-137, the superintendent may issue an order to cease and desist against a licensee, requiring the...
• § 6-1210 Suspension Or Revocation Of Licenses
  The superintendent may suspend or revoke a license if the superintendent finds any of the following: 1. The licensee has made a material misstatement...
• § 6-1211 Reports
  Each licensee shall file with the superintendent within forty-five days after the end of each fiscal quarter a consolidated financial statement including a balance...
• § 6-1212 Permissible Investments
  A. Every licensee shall maintain at all times permissible investments that comply with either of the following: 1. A market value computed in accordance...
• § 6-1213 Records
  A. Each licensee shall keep and use in its business books, accounts and records in accordance with generally accepted accounting principles that will enable...
• § 6-1214 Liability Of Licensees
  Each licensee is liable for the payment of all moneys covered by payment instruments that it sells or issues in any form in this...
• § 6-1215 Notice Of Source Of Instrument; Transaction Records
  A. Every payment instrument sold by a licensee directly or through an authorized delegate shall bear the name of the licensee and a unique...
• § 6-1216 Acquisition Of Control
  A. A person shall not directly or indirectly acquire control of a licensee or controlling person without the prior written approval of the superintendent,...
• § 6-1217 Appointment Of Superintendent As Agent For Service Of Process; Forwarding Of Process; Consent To Jurisdiction
  A. A licensee, an authorized delegate or a person who knowingly engages in business activities that are regulated under this chapter with or without...
• § 6-1218 Prohibited Transactions
  A person shall not engage in conduct requiring a license under this chapter as an authorized delegate of a principal if that principal is...

Article 2 Money Laundering

• § 6-1241 Reports To The Attorney General; Investigation; Violation; Classification
  A. Within thirty days after any transaction or series or pattern of transactions that is conducted or attempted by, at or through the business...
• § 6-1242 Investigations
  A. The attorney general may conduct investigations within or outside this state to determine if a licensee, authorized delegate, money transmitter, financial institution or...

Chapter 12 DEFERRED PRESENTMENT COMPANIES
Article 1 General Provisions

• § 6-1251 Definitions
  In this chapter, unless the context otherwise requires: 1. " Branch office" means any office operated by a licensee to provide deferred presentment services....
• § 6-1252 Exemptions
  This chapter does not apply to: 1. Banks, savings and loan associations, collection agencies or financing or lending institutions authorized and licensed to transact...
• § 6-1253 Application For License; Financial Statement
  A. A person shall make an application for a license in writing, under oath and in the form prescribed by the superintendent. The superintendent...
• § 6-1254 Qualifications Of Applicants
  A. An applicant for a license: 1. Shall be a citizen of the United States. 2. Shall be a person of honesty, truthfulness and...
• § 6-1255 Issuance Of Licenses
  A. On receipt of an original application that is accompanied by the fees prescribed in section 6-126 and the financial statement prescribed in this...
• § 6-1256 Annual Renewal Of License
  A. On or before June 30 of each year, an applicant for licensure renewal shall: 1. File with the superintendent a financial statement prepared...
• § 6-1257 Duties Of Licensees
  A licensee: 1. Shall meet the financial responsibility requirements of this chapter. 2. Shall deal openly, fairly and honestly in the conduct of the...
• § 6-1258 Denial, Revocation Or Suspension Of License
  A. The superintendent may deny a license to a person or suspend or revoke a license if the superintendent finds that an applicant or...
• § 6-1259 Prohibited Acts
  A. A person shall not engage in the business of providing deferred presentment services without first obtaining a license pursuant to this chapter. A...
• § 6-1260 Deferred Presentment; Amount; Fees; Loans To Members Of Military Service
  A. The licensee may accept for deferred presentment or deposit a check with a face amount of at least fifty dollars but not more...
• § 6-1261 Books, Accounts And Records; Examinations; Costs
  A. A licensee shall maintain in its branch and home offices all books, accounts and records that the superintendent reasonably requires. The licensee shall:...
• § 6-1262 Violation; Classification; Individual Liability
  A. A person that provides deferred presentment services without a license is guilty of a class 1 misdemeanor. B. A licensee that violates this...
• § 6-1263 Program Termination
  The deferred presentment licensing program established by this chapter ends on July 1, 2010 pursuant to section 41-3102.

Chapter 13 ADVANCE FEE LOAN BROKERS
Article 1 General Provisions

• § 6-1301 Definitions
  In this chapter, unless the context otherwise requires: 1. " Advance fee" means a fee, interest or other consideration directly or indirectly received by...
• § 6-1302 Scope Of Chapter; Exemptions
  A. Any person who acts as an advance fee loan broker shall register with the superintendent as provided in this chapter. A person who...
• § 6-1303 Application For Registration
  A. Application for registration as an advance fee loan broker may be made by any person. An application for registration shall be signed by...
• § 6-1304 Fees
  Each original application shall be accompanied by a nonrefundable fee of fifty dollars. Each supplemental statement shall be accompanied by a nonrefundable fee of...
• § 6-1305 Registration; Renewal; Reporting Requirements
  A. The superintendent shall register the applicant as an advance fee loan broker when an applicant has fully complied with this chapter and the...
• § 6-1306 Register Of Advance Fee Loan Brokers
  The names and addresses of all persons who have been registered as advance fee loan brokers shall be recorded in a register of advance...
• § 6-1307 Records
  Advance fee loan brokers shall maintain books, records and accounts in connection with transactions involving the receipt and disbursement of funds received by the...
• § 6-1308 Denial, Revocation Or Suspension Of Registration
  A. The superintendent may deny, revoke or suspend the registration of an advance fee loan broker if the superintendent finds that: 1. The application...
• § 6-1309 Prohibited Acts
  A. An advance fee loan broker shall not advertise, display, distribute, broadcast or televise or cause or permit to be advertised, displayed, distributed, broadcast...
• § 6-1310 Noncompliance Not To Affect Validity Of Loan
  Failure to comply with the provisions of this chapter does not affect the validity or enforceability of any loan or extension of credit.

Chapter 14 PREMIUM FINANCE COMPANIES
Article 1 General Provisions

• § 6-1401 Definitions
  In this chapter, unless the context otherwise requires: 1. " Branch office" means any place of business maintained by a licensee in addition to...
• § 6-1402 Licensure Required; Contents Of Application; Fees; Nontransferable; Branch Office Permit
  A. A person shall not engage in the business of a premium finance company in this state without first being licensed as a premium...
• § 6-1403 Exemptions
  A. The licensing requirements of this article do not apply to: 1. Any savings and loan association, bank, savings bank, trust company, consumer lender...
• § 6-1404 Denial, Suspension Or Revocation Of Licenses And Branch Office Permits
  A. The superintendent may deny a license to a person or suspend or revoke a license if the superintendent finds that an applicant or...
• § 6-1405 Issuance Of License Or Branch Office Permit; License Year; Requirements
  A. If no grounds for denial of a license or branch office permit are found to exist, the superintendent shall, within one hundred twenty...
• § 6-1406 Books And Records Of Premium Finance Company; Access To Records
  A. A licensee shall maintain books, accounts and records as prescribed by the superintendent that will enable the superintendent to determine whether the licensee...
• § 6-1407 Removal Of Place Of Business
  A licensee may change the licensed place of business by giving written notice to the superintendent, who shall amend the license accordingly.
• § 6-1408 Annual Report Of Licensee; Civil Penalty For Failure To File
  A. On or before February 1, the licensee shall annually file a report under oath and in the form prescribed by the superintendent concerning...
• § 6-1409 Effect Of Revocation, Suspension Or Surrender On Preexisting Contracts; Impairment Of Contracts
  A. A revocation, suspension or surrender of any license does not impair or affect the obligation of any preexisting premium finance agreement between any...
• § 6-1410 Form Of Premium Finance Agreement; Notice
  A. A premium finance agreement shall: 1. Be dated and signed by the insured and the printed portion of the agreement shall be in...
• § 6-1411 Disclosure Requirements
  Every licensee shall make available to agents, brokers and managing general agents disclosures as prescribed by title I of the consumer credit protection act...
• § 6-1412 Limitation On Interest And Other Charges
  A. It is unlawful for a licensee to charge, contract for, receive or collect an interest charge other than as permitted by this article....
• § 6-1413 Other Charges Allowed
  A. A licensee may contract for, and if so contracted for, may collect a service charge for financing or arranging the financing of premiums...
• § 6-1414 Splitting Of Premium Finance Agreement Prohibited
  No agent or broker or premium finance company shall induce an insured to become obligated under more than one premium finance agreement for the...
• § 6-1415 Cancellation Of Insurance Contract Upon Default
  A. If a premium finance agreement contains a power of attorney enabling the licensee to cancel any insurance contract or contracts listed in the...
• § 6-1416 Return Premiums
  A. Except as provided in subsection B, if a financed insurance policy is cancelled by any party, the insurer shall return the gross unearned...
• § 6-1417 Servicing Of Premium Finance Agreements
  A. A licensee may receive and disburse monies in the servicing of premium finance agreements. All monies received in the process of servicing these...
• § 6-1418 Exemption From Any Filing Requirements
  No filing is necessary to perfect the validity of the premium finance agreement as a secured transaction as against creditors, subsequent purchasers, pledgees, encumbrancers,...
• § 6-1419 Rules
  The superintendent may adopt rules necessary for the proper conduct of a premium finance company.

Chapter 15 TAXES ON FINANCIAL INSTITUTIONS
Article 1 General Provisions

• § 6-1501 Method Of Taxing National Banking Associations
  A. Each national banking association: 1. Shall be taxed on its net income under title 43. 2. Is subject to all other taxes that...
• § 6-1502 Method Of Taxing Banks, Investment Companies And Savings And Loan Associations
  Banks, including national banking associations, investment companies and savings and loan associations, including federal savings and loan associations, are subject to all taxes that...

Chapter 16 FINANCIAL INSTITUTIONS DATA MATCH AND DATA EXCHANGE
Article 1 General Provisions

• § 6-1601 Financial Institutions Data Match And Data Exchange; Surrender Of Assets Of Delinquent Taxpayer; Nonliability
  A. Financial institutions may enter into agreements with the department of revenue for data match and data exchange as prescribed by section 42-1207. B....

Chapter 17 REVERSE MORTGAGES
Article 1 General Provisions

• § 6-1701 Definitions
  In this chapter, unless the context otherwise requires: 1. " Agreement" means the document that on execution obligates the borrower and originator under the...
• § 6-1702 Financial Counseling; Counselor Requirements
  A. Adequate counseling under this chapter must be provided by a counselor who is an independent third party. B. To qualify as an independent...
• § 6-1703 Required Disclosures; Counseling
  A. Before accepting a final and complete application for a reverse mortgage or assessing any fees, the originator shall: 1. Provide the borrower with...
• § 6-1704 Reverse Mortgage; Provisions
  A. A reverse mortgage may provide for a fixed or variable interest rate or future sharing between the originator and the borrower of the...
• § 6-1705 Prepayment; Repayment Conditions
  A. Prepayment, in whole or in part, shall be permitted without penalty at any time during the term of a reverse mortgage. B. For...
• § 6-1706 Borrower Liability; Prohibited Practices; Investments; Annuities
  A. The borrower is not liable for any difference between the net amount of the borrower's remaining debt under the reverse mortgage and the...
• § 6-1707 Enforcement
  A. An act or practice in violation of this chapter is an unlawful practice under section 44-1522 and is subject to enforcement through private...
• § 6-1708 Lien Priority And Validity
  The full amount secured by a reverse mortgage security interest has the same priority over any other lien on the property as if the...

Last modified: October 13, 2016