A.R.S. tit. 6 ch. 1 — Arizona Revised Statutes Title 6 Chapter 1 — Financial Institutions Division

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 and loan association or credit union and that facilitates customer-bank communications activities, including taking deposits and disbursing cash drawn against a customer's deposit account or a customer's preapproved loan account, at a location separate from the home office or a branch. 2. "Bank" means a corporation that holds a banking permit issued pursuant to chapter 2 of this title. 3. "Banking office" means any place of business of the bank at which deposits are received, checks are paid or money is loaned but does not include the premises used for computer operations, proofing, record keeping, accounting, storage, maintenance or other administrative or service functions. 4. "Branch" means any banking office other than the principal banking office. 5. "Department" means the department of insurance and financial institutions. 6. "Deputy director" means the deputy director of the financial institutions division of the department. 7. "Director" has the same meaning prescribed in section 20-102. 8. "Division" means the financial institutions division within the department. 9. "Enterprise" means any person under the jurisdiction of the department other than a financial institution. 10. "Federal deposit insurance corporation" includes any successor to the corporation or other agency or instrumentality of the United States that undertakes to discharge the purposes of the corporation. 11. "Financial institution" means banks, trust companies, savings and loan associations, credit unions, consumer lenders, international banking facilities and financial institution holding companies under the jurisdiction of the department. 12. "Home state" means the state that has granted the bank its charter, permit or license to operate. 13. "Host state" means the state in which a financial institution is doing business and not the state that has granted the bank its charter, permit or license to operate. 14. "In-state financial institution" means a state or federal bank, savings bank, savings and loan association or holding company with its home office located in this state. 15. "International banking facility" means a facility that is represented by a set of asset and liability accounts segregated on the books and records of a commercial bank, the principal office of which is located in this state, and that is incorporated and doing business under the laws of the United States or of this state, a United States branch or agency of a foreign bank, an edge corporation organized under section 25(a) of the federal reserve act (12 United States Code sections 611 through 631) or an agreement corporation having an agreement or undertaking with the board of governors of the federal reserve system under section 25 of the federal reserve act (12 United States Code sections 601 through 604(a)) that includes only international banking facility time deposits and international banking facility extensions of credit as defined in 12 Code of Federal Regulations part 204. 16. "National credit union administration" includes any successor to the organization or other agency or instrumentality of the United States that undertakes to discharge the purposes of the organization. 17. "Out-of-state bank" means a bank, savings bank or savings and loan association that is approved by the deputy director pursuant to section 6-322 and that has a charter, a permit or any other license to operate that is issued by a state other than this state. 18. "Out-of-state financial institution" means a state or federal bank, savings bank, savings and loan association or holding company with its home office in a state other than this state. 19. "Title" includes this title, title 32, chapters 9 and 36 and title 44, chapter 2.1. 6-110. Financial institutions division; deputy director The financial institutions division is established in the department. The director shall appoint a deputy director of the financial institutions division of the department to assist the director with the execution of the laws of this state relating to financial institutions and enterprises. The deputy director serves at the pleasure of the director and reports directly to the director. 6-112. Assistant director; examiners; personnel Subject to title 41, chapter 4, article 4, the director: 1. Shall appoint an assistant director who shall have the power and perform the duties of the deputy director of the financial institutions division of the department. The assistant director shall hold the appointment at the will and pleasure of the director. 2. May appoint other assistants as the director deems necessary whose powers are limited to the powers, duties or functions set forth in the appointment. 3. Shall appoint examiners and other personnel as necessary. 6-113. Acts prohibited; officers; employees A. The director, the deputy director, the assistant director and any personnel of the department may not do any of the following with respect to any financial institution or enterprise under the jurisdiction of the department: 1. Be indebted, directly or indirectly, as borrower, accommodation endorser, surety or guarantor, to any financial institution or enterprise unless the indebtedness was contracted before becoming employed by the department and is fully disclosed to the department, except that an employee of the department, other than the director, the deputy director or the assistant director, may become so indebted if the indebtedness is both: (a) Incurred on terms not more favorable than those available to the general public. (b) Fully disclosed to and approved by the director before funding, including the following information: (i) The date of the indebtedness. (ii) The amount. (iii) The interest rate. (iv) Other obligors. (v) Security. (vi) The purpose for which the monies are to be used. The borrower shall not participate in any examination of the lender conducted by the department. 2. Be an officer, director or employee of any financial institution or enterprise. 3. Own or deal in, directly or indirectly, the shares or obligations of any financial institution or enterprise. 4. Be interested in, directly or indirectly, or receive from any financial institution or enterprise, or any officer, director or employee of the financial institution or enterprise, any salary, fee, compensation or other valuable thing by way of gift, credit, compensation for services or otherwise. 5. Be interested in or engage in the negotiation of any loan to, obligation of, or accommodation for another person to or with any financial institution or enterprise. B. Notwithstanding subsection A of this section, the director, the deputy director, the assistant director and any personnel of the department may: 1. Maintain demand, savings, time, share and trust accounts in any financial institution. 2. Become a beneficiary of any trust or estate administered by any fiduciary under the jurisdiction of the division. 3. Become indebted to and own and deal in shares and obligations of national banks, federal savings and loan associations and federal credit unions. 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 violation of this section. B. On a loan in an amount of ten thousand dollars or less for a term up to three years which is secured by a lien on real property comprising an owner-occupied dwelling, an installment payment, whether providing for payment of principal, interest or principal and interest, shall not be greater than twice the amount of the smallest installment. C. This section applies only to mortgages, trust deeds or other evidences of indebtedness secured by a lien other than a primary or first lien on real property. D. This section does not apply to transactions involving the purchase or sale or the proposed purchase or sale of real property or to a financial institution licensed or chartered by this state or the federal government. E. Pursuant to the provisions of 12 United States Code section 3804, this section shall not be superseded by the provisions of 12 United States Code section 3803. 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 obligation secured by real estate and any amounts to be tendered for payment of an insurance policy premium, a property tax assessment or any other collateral obligation shall make timely payment of those amounts, except as provided in subsection C of this section. B. Monies collected for payment of an insurance policy premium, a property tax assessment or any other collateral obligation shall be such that the total of the payments collected for each category during the insurance, tax or other period will approximate the actual insurance premium, tax or other payment when due. C. A person who contracts to receive and tender monies as described in subsection A of this section and who receives a delinquent payment from the payor shall exercise reasonable diligence in tendering those payments and is not subject to a penalty for failure to make a timely payment of those monies when first due. D. A person who violates this section is subject to a civil penalty under section 6-132. 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 instruments to the public in a financial institution's retail office where deposits are accepted without the prior written approval of the deputy director. B. A financial institution or any other person that receives written approval as prescribed by subsection A of this section and that sells or offers to sell equity securities or debt instruments of the financial institution or the holding company of a financial institution shall disclose to the purchaser prior to any sale that the equity security or debt instrument is not a federally insured deposit and shall provide to the purchaser a disclosure form that is approved by the deputy director. The deputy director may by rule prescribe requirements for the disclosure form. C. A financial institution's or a holding company of the financial institution's application for approval of the disclosure form required by subsection B of this section shall include information describing the policies and procedures that the financial institution or any other person authorized to offer or sell the securities has adopted to ensure that it is marketing the securities with appropriate disclosures regarding the nature of the investment. 6-117. Assumed business name; trade name; notification; definition A. Unless otherwise required by this title or rules adopted by the department, an enterprise or a consumer lender is not required to obtain a separate license when doing business under an assumed name or a trade name if the enterprise or consumer lender notifies the department in writing, on a form prescribed by the director, before using the assumed name or trade name. B. A licensee may not use an assumed name or trade name that either: 1. Is so substantially similar to the assumed name or trade name of another department licensee that it may cause uncertainty or confusion among the public. 2. Tends to deceive or mislead the public as to the nature of business that the licensee conducts. C. An individual may not use an assumed name or a trade name if the individual is licensed, certified or registered pursuant to either: 1. Chapter 9, article 4 of this title. 2. Title 32, chapter 36, article 2 or 4. D. A person using an assumed name or a trade name shall notify the director within fifteen days after any material change to the information provided in subsection A of this section. E. For the purposes of this section, "consumer lender" has the same meaning prescribed in section 6-601. 6-121. Examination; supervision All financial institutions and enterprises shall be subject to examination and supervision by the department. 6-122. Deputy director; authority; duties A. The deputy director has the authority and responsibility for the discharge of all duties imposed by law on the division. B. The deputy director shall: 1. Examine or cause to be examined each financial institution annually, except financial institution holding companies, banks, savings and loan associations, credit unions and consumer lenders, and more frequently if the deputy director considers it necessary. 2. Examine or cause to be examined each bank, credit union and savings and loan association at the deputy director's discretion but at least once in every twenty-four month period. 3. Examine or cause to be examined the business and affairs of any enterprise and any consumer lender for the purpose of administering and enforcing this title at the deputy director's discretion. 4. Examine or cause to be examined financial institution holding companies as frequently as the deputy director considers necessary to administer and enforce this title. 5. Notwithstanding paragraph 3 of this subsection, examine or cause to be examined the accounts held in trust by each escrow agent at least once in every two-year period and examine or cause to be examined each escrow agent at least once in every four-year period or more frequently if the deputy director considers it necessary. 6. Publish a consumer information brochure that includes: (a) The finance charges allowed by this state. (b) The types of insurance that may be offered but that are not required by law to be purchased with the granting of a loan. (c) Interest rate limitations on all lenders including amounts that may not be charged to borrowers. (d) Consumer rights and means of recourse from unfair practitioners. 7. Make it a priority to encourage the growth of state-chartered financial institutions in this state and by February 1 of each calendar year notify the governor, the president of the senate and the speaker of the house of representatives if the total number of state-chartered banks or state-chartered credit unions decreases during the prior calendar year. C. Notwithstanding subsection B, paragraph 5 of this section, an escrow agent shall be examined within twelve months when an escrow agent's license is transferred or assigned pursuant to section 6-813 or when control of the license is otherwise acquired. 6-123. Deputy director; powers In addition to the other powers, express or implied, the deputy director may: 1. Exercise all powers that are necessary for the administration and enforcement of the laws and rules relating to financial institutions and enterprises. 2. In accordance with title 41, chapter 6, adopt rules that are necessary or appropriate to administer, enforce and accomplish the purposes of this title and adopt rules and issue orders that limit transactions between financial institutions or enterprises and the directors, officers or employees of the financial institutions or enterprises. 3. Require appropriate records, documents, information and reports from any financial institution or enterprise. 4. Submit to the department of public safety, or the nationwide mortgage licensing system and registry established by the secure and fair enforcement for mortgage licensing act of 2008 (P.L. 110-289; 122 Stat. 2810; 12 United States Code sections 5101 through 5116) or its successor, the name and fingerprints of any applicant, licensee, active manager or responsible individual or the name and fingerprints of any organizer, director or officer of any corporate applicant or licensee for: (a) A banking permit. (b) Permission to organize a savings and loan association or credit union. (c) Any license. (d) Any certificate. (e) Authority to engage in interstate banking and branching in this state. The department of public safety shall report the criminal record, if any, of such applicant, licensee or organizer, director or officer of such corporate applicant or licensee within ninety days after receiving the deputy director's request. 5. Employ appraisers to appraise any property that is owned or held as security by any financial institution or enterprise. The reasonable expenses and compensation of such appraisers shall be paid by the financial institution or enterprise. 6. Hold membership in, pay dues to and attend the convention of the national and regional organizations of state officials occupying like offices or performing similar functions. 7. Cooperate with other regulatory agencies and professional associations to promote the efficient, safe and sound operation and regulation of interstate banking and branching activities, including the formulation of interstate examination policies and procedures and the drafting of model rules and agreements. 8. Participate in the nationwide mortgage licensing system and registry established by the secure and fair enforcement for mortgage licensing act of 2008 (P.L. 110-289; 122 Stat. 2810; 12 United States Code sections 5101 through 5116), or its successor, and use the system for all aspects of licensure pursuant to this title, title 32, chapter 9 and title 44, chapter 2.1. The deputy director may allow the system to collect licensing fees on behalf of the deputy director, to collect a processing fee for the services of the system directly from each applicant for a license or licensee and to process and maintain records on behalf of the deputy director, including information collected pursuant to this section and section 6-123.01. This paragraph does not affect the records disclosure requirements and limitations prescribed in section 6-129.01. 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 deputy director may require an applicant, licensee, active manager or responsible individual, an organizer, director or officer of any corporate applicant or licensee, any individual in control of a licensee or applicant, any individual who seeks to acquire control of a licensee or each key individual to submit a full set of fingerprints and fees to the department. The department of insurance and financial institutions shall submit the fingerprints and fees to the department of public safety, or the nationwide mortgage licensing system and registry established by the secure and fair enforcement for mortgage licensing act of 2008 (P.L. 110-289; 122 Stat. 2810; 12 United States Code sections 5101 through 5116) or its successor, for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation. B. The fees that the department collects under subsection A of this section shall be credited pursuant to section 35-148. C. The applicant is responsible for providing the department with readable fingerprints. The applicant shall pay any costs that are attributable to refingerprinting due to the unreadability of any fingerprints and any fees that are required for the resubmission of fingerprints. D. The department may issue a temporary license or certificate or grant temporary permission to organize to an original applicant before the department receives the results of a criminal records check if there is not evidence or reasonable suspicion that the applicant has a criminal history background that would be cause for denial of a license, certificate or permission to organize. The department may terminate the temporary license or certificate or permission to organize if a fingerprint card is returned as unreadable and the applicant fails to submit new fingerprints within ten days after being notified by the department that the original card was unreadable or if the results of the criminal records check reveal grounds for the denial of the license or certificate or permission to organize. The temporary license or certificate or permission to organize shall not be effective longer than one hundred eighty days. E. The deputy director may require a current licensee, organizer, director, active manager, responsible individual or officer of any corporate licensee to submit a full set of fingerprints to the department. The department of insurance and financial institutions shall submit the fingerprints and fees to the department of public safety for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation. F. This section does not affect the department's authority to otherwise issue, deny, cancel, terminate, suspend or revoke a license. 6-124. Investigations; compelling testimony and the production of documents; self-incrimination A. The deputy director may conduct examinations and investigations within or outside this state to determine whether any person has engaged, is engaging or is about to engage in any act, practice or transaction which constitutes an unsafe or unsound practice or a violation of any law or rule applicable to persons subject to the jurisdiction of the deputy director or any order of the deputy director or to aid in the enforcement of this title or to aid in adopting rules. B. The deputy director and any examiner or administrative law judge, in the performance of the deputy director's, examiner's or administrative law judge's duties, may take evidence, examine on oath any person and compel the attendance of witnesses and the production of documents, books and papers. On refusal to appear or produce, the deputy director may apply to the superior court in Maricopa county to compel appearance or production. C. All financial institutions and enterprises shall, on request of the deputy director, make their books and records available for inspection and examination by the deputy director or the deputy director's examiners. 6-125. Annual examination assessment of financial institutions and enterprises; costs of foreign examination; payment A. Before August 31 of each year the deputy director shall make the following annual assessments: 1. On banks, the annual assessment set by the deputy director. 2. On savings and loan associations, a charge not to exceed the annual assessment set for state banks under paragraph 1 of this subsection. 3. On credit unions, the annual assessment set by the deputy director. B. The deputy director shall assess against the institution or enterprise examined a charge at the rate set by the deputy director but not to exceed $65 per hour for each examiner employed in the following examinations: 1. Any examination of a trust company. 2. Any examination of the trust operation of a bank or a savings and loan association. 3. Any examination of a financial institution ordered by the deputy director in addition to the regular examination required under section 6-122. 4. Any examination of an enterprise ordered by the deputy director. 5. Any examination of a financial institution holding company or international banking facility. 6. Any examination of a consumer lender. C. For a financial institution or enterprise maintaining an office outside this state, in addition to the annual assessment or examination assessment, the deputy director shall make an assessment equal to the travel and subsistence expense incurred in the examination of the office in the foreign state or country. Notwithstanding any other limitation prescribed by law, examiners engaged in examination of a foreign office shall be reimbursed for their necessary travel and subsistence expenses. Reimbursement for examiners' expenses shall be credited to the appropriation account of the department. D. Assessments under this section are due and payable to the department within thirty days after notice of the assessment is mailed by the department. The deputy director shall assess a penalty of $50 for each day after the thirty-day period that the financial institution or enterprise fails to remit the assessment, unless, on good cause shown, a written request for an extension is approved by the deputy director prior to the expiration of the specified time. In no event shall the total penalty exceed the examination assessment. E. The deputy director shall set the amount of the annual assessment to be charged to banks and credit unions. In setting the annual assessment on banks, the deputy director shall consider the annual assessment set by the comptroller of currency for national banks. In setting the annual assessment on credit unions the deputy director shall consider the annual assessment set by the national credit union administration for federal credit unions. 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: 1. To apply for a banking permit, $1,000. 2. To apply for an amendment to a banking or savings and loan association permit, $1,000. 3. To establish each banking branch office, $750. 4. To move a banking office to other than an established office of a bank, $1,000. 5. To apply for a savings and loan association permit, $5,000. 6. To establish each savings and loan association branch office, $1,500. 7. To move an office of a savings and loan association to other than an established office, $1,000. 8. To organize and establish a credit union, $100. 9. To establish each credit union branch or to move a credit union office to other than an established office of a credit union, $250. 10. To organize and establish any other financial institutions for which an application or investigation fee is not otherwise provided by law, $1,000. 11. To acquire control of a financial institution other than a consumer lender, $5,000. 12. To apply for a trust company license, $1,000. 13. To apply for a commercial mortgage banker, mortgage banker, escrow agent or consumer lender license, $1,000. 14. To apply for a mortgage broker, commercial mortgage broker, sales finance company or debt management company license, $500. 15. To apply for a collection agency license, $1,500. 16. To apply for a branch office of an escrow agent, consumer lender, commercial mortgage banker, mortgage banker or trust company, $500. 17. To apply for a branch office of a mortgage broker, commercial mortgage broker, debt management company or sales finance company, $250. 18. To apply for approval for the merger or consolidation of two or more financial institutions, $5,000 per institution. 19. To apply for approval to convert from a national bank or federal savings and loan charter to a state chartered institution, $1,000. 20. To apply for approval to convert from a federal credit union to a state chartered credit union, $500. 21. To apply for approval to merge or consolidate two or more credit unions, $500 per credit union. 22. To change the licensee name on a financial institution or enterprise license, except for a loan originator or appraiser license, not more than $250. 23. To apply for a license pursuant to chapter 12, article 1 of this title, $1,500 plus $25 for each branch office and authorized delegate to a maximum of $4,500. 24. To acquire control of a person that is licensed pursuant to chapter 12, article 1 of this title or a controlling person pursuant to chapter 12 of this title, $2,500. 25. To receive the following publications: (a) Quarterly bank and savings and loan statement of condition, not more than $10 per copy. (b) Monthly summary of actions report, not more than $5 per copy. (c) A list of licensees, a monthly pending actions report and all other in-house prepared reports or listings made available to the public, not more than $1 per page. 26. To apply for a loan originator license, an amount to be determined by the deputy director. 27. To apply for a loan originator license transfer, an amount to be determined by the deputy director. 28. To apply for a conversion from a mortgage banker license to a mortgage broker license, an amount to be determined by the deputy director. 29. For a premium finance company, $300 plus $300 for each branch office. 30. For an advance fee loan broker, $50. B. On application for a license or permit for an enterprise or consumer lender, the applicant shall pay the first year's annual assessment listed in subsection D of this section, prorated according to the number of quarters remaining until the date of the next annual assessment or renewal. If the result of the application ends in a denial, the department shall refund the prorated annual assessment that the applicant paid. Annual renewal fees are nonrefundable. C. On issuance of a license or permit for a financial institution, the department shall collect the first year's annual assessment or renewal fee for the financial institution, except for a consumer lender that paid on application, prorated according to the number of quarters remaining until the date of the next annual assessment or renewal. D. The following annual assessments and renewal fees shall be paid each year: 1. For an escrow agent or trust company, $1,000 plus $250 for each branch office. 2. For a debt management company or sales finance company, $500 plus $200 for each branch office. 3. For a collection agency, $600. 4. For an inactive mortgage broker or commercial mortgage broker, $250. 5. For a mortgage banker that negotiates or closes in the aggregate one hundred loans or less in the immediately preceding calendar year, $750, and for a mortgage banker that negotiates or closes in the aggregate over one hundred loans in the immediately preceding calendar year, $1,250. In addition, a mortgage banker shall pay $250 for each branch office. 6. For a commercial mortgage banker, $1,250. In addition, a commercial mortgage banker shall pay $250 for each branch office. 7. For a mortgage broker or commercial mortgage broker that negotiates or closes in the aggregate fifty loans or less in the immediately preceding calendar year, $250 and for a mortgage broker or commercial mortgage broker that negotiates or closes in the aggregate more than fifty loans in the immediately preceding calendar year, $500. In addition, a mortgage broker or commercial mortgage broker shall pay $200 for each branch office. 8. For a consumer lender, $1,000 plus $200 for each branch office. 9. For a licensee pursuant to chapter 12, article 1 of this title, $500 plus $25 for each branch office and each authorized delegate to a maximum of $2,500. 10. For a loan originator, an amount to be determined by the deputy director. 11. For a loan originator change to inactive status, an amount to be determined by the deputy director. 12. For a premium finance company, $300 plus $300 for each branch office. 13. For an advance fee loan broker, $25. 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 except as provided in sections 6-135 and 6-135.01. 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 state. The deputy director in the deputy director's discretion may accept the examination report or other information compiled or generated by a federal regulatory authority or by another state regulatory authority that has jurisdiction over the financial institution or enterprise in lieu of any examination authorized or required by the laws of this state. Acceptance of the examination reports shall not be a waiver of the examination assessments provided by law, and reports so accepted are considered for all purposes as an official report of the department. B. The deputy director may take any reasonable and lawful action to coordinate the examination of financial institutions or enterprises, including: 1. Negotiating and entering into cooperative agreements with an agency of another state or of the federal government. 2. Sharing information and reports with persons as prescribed by section 6-129. 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 are not public documents, are not open for inspection by the public and the director and any member of the director's staff may not disclose any information obtained in the discharge of official duties to any person not connected with the department. B. Records and information may be disclosed as follows: 1. To representatives of federal agencies insuring accounts in the financial institution. 2. To representatives of state or federal agencies and foreign countries having regulatory or supervisory authority over the activities of the financial institution or enterprise or similar financial institutions or enterprises if such representatives are permitted to and do, on request of the director, disclose similar information respecting those financial institutions or enterprises under their regulation or supervision or to such representatives who state in writing under oath that they shall maintain the confidentiality of such information. 3. To the attorney general of this state. 4. To a select committee of the legislature of this state appointed for the purpose of inspecting such records, but this paragraph does not permit disclosure of information as to the condition of any particular financial institution or enterprise, or disclosure of information as to any particular transaction or transactions of a financial institution or enterprise, or disclosure of information that has been disclosed to a financial institution or enterprise by or on behalf of any person in connection with a transaction or proposed transaction with such financial institution or enterprise. 5. To a federal, state or county grand jury in response to a lawful subpoena. 6. To the auditor general of this state for the purpose of conducting audits authorized by law. 7. To state and federal law enforcement agencies. 8. To a federal home loan bank, as defined by the federal home loan act of 1932 (12 United States Code section 1422), after the department receives authorization to release the records from the financial institution that is the subject of the records. C. The director may: 1. Disclose the fact of filing of applications with the department pursuant to this title, give notice of a hearing, if any, regarding such applications, and announce the director's action thereon. 2. Disclose whether a person is or was certified or licensed by the department, the type of license or certificate held and the status of the license or certificate. 3. Disclose final decisions in connection with proceedings for the suspension or revocation of licenses or certificates issued pursuant to this title. 4. Disclose final decisions in connection with the issuance of an order to cease and desist issued pursuant to section 6-137. 5. Disclose to the financial institution or enterprise or its holding company the results of any examination, inquiry or investigation by the department regarding that financial institution or enterprise. 6. Disclose to the financial institution or enterprise any complaint made concerning that financial institution or enterprise. 7. Disclose to any person who complains to the department concerning any financial institution or enterprise the result of any investigation concerning the complaint. 8. Prepare and circulate reports reflecting the assets and liabilities of financial institutions, including such other information considered pertinent to the purpose of each report for general statistical information. 9. Prepare and circulate reports provided by law. D. Every official report of the department is prima facie evidence of the facts therein stated in any action or proceeding wherein the director is a party. E. Disclosure of the results of any examination, inquiry or investigation disclosed to the financial institution or enterprise pursuant to subsection C, paragraph 5 of this section or disclosure of any complaint to the financial institution or enterprise pursuant to subsection C, paragraph 6 of this section does not make that information a public record, and the financial institution or enterprise or its holding company may not disclose any of the information to the general public. Under no circumstances shall any of the comments, conclusions or results of an examination, inquiry or investigation disclosed pursuant to subsection C, paragraph 5 of this section be used or referenced in any form by a financial institution, enterprise or holding company in any type of communication to a customer or potential customer. F. This section does not prevent the disclosure of information that is admissible in evidence in any civil or criminal proceeding brought by or at the request of the director or this state to enforce or prosecute violations of this title or the rules or orders issued or adopted pursuant to this title. 6-129.01. Enterprise documents open to public inspection All papers, documents, reports and other written instruments filed with the deputy director pursuant to the requirements of this title by an enterprise shall be open to public inspection, except that the deputy director may withhold from public inspection for such time as the deputy director considers necessary any information which in the deputy director's judgment the public welfare or the welfare of the financial enterprise requires to be so withheld. 6-129.02. Records destruction; personal information Notwithstanding any other law and except as provided by an applicable law that requires a retention period that exceeds ten years, a bank or financial institution shall destroy, in a manner prescribed by law, all personal information belonging to a former customer or client not later than ten years after the business relationship ends. 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 faith in performing the functions of the department. 6-131. Right to sue and defend in actions; liability limitation; award of fees and other expenses A. The director may sue and prosecute or defend in any action or proceeding in any court of this state or any other state or territory and in any court of the United States for the enforcement or protection of any right or pursuit of any remedy necessary or proper in connection with the matters committed to the director for administration or in connection with any financial institution or enterprise under the director's supervision, or the rights, liabilities, property or assets thereof, and may obtain without bond any order necessary to enforce or protect such rights or remedies, including any of the following: 1. An order impounding records, books, documents, accounts, monies, negotiable instruments or papers and placing such articles in the possession of the director until completion of all proceedings undertaken pursuant to this title. 2. An order appointing a receiver. 3. An order restoring to any person in interest any monies or property, real or personal, that may have been acquired or transferred in violation of this title. B. This section does not render the director as such director or otherwise liable to suit except as any other department or agency of the state may be liable under the general law. C. In addition to any costs that are awarded as prescribed by statute, a court shall award fees and other expenses to the department if the department prevails by an adjudication on the merits in any action brought by the department to enforce the provisions of this title or any rule adopted under this title. The department may apply pursuant to the applicable procedural rules for an award of attorney fees and other expenses authorized under this section and shall include as part of the application evidence of the department's eligibility for the award and the amount sought, including an itemized statement from the attorneys and experts stating the actual time expended in representing the department and the rate at which the fees were computed. For the purposes of this subsection, "fees and other expenses" includes the reasonable expenses of expert witnesses, the reasonable cost of any study, analysis, report, test or project that is found by the court to be necessary for the preparation of the department's case and reasonable and necessary attorney fees. The department shall deposit any fees or other expenses awarded by a court in the revolving fund established by section 6-135. 6-131.01. Appointment of deputy director as receiver; award of property, fees and costs A. The deputy director may be appointed as a receiver of a financial institution or enterprise under the deputy director's supervision. No bond is required of the deputy director for acting as a receiver. B. All reasonable expenses of the department relating or apportioned to a receivership, including receiver fees and attorney fees, costs of preliminary or other examinations of the person placed into receivership and expenses relating to the management of any office or other asset of the person placed in receivership, shall be awarded by the court for payment to the department out of the assets of the receivership. The department shall assess those expenses against the receivership quarterly and shall deposit those amounts in the department receivership revolving fund, as provided in section 6-135.01. Those assessments have priority over the other creditors of the receivership. Notwithstanding the other provisions of this subsection, on request by the deputy director, the court may award personal property of the receivership to the department as partial compensation for the services rendered during the administration of the receivership. C. The deputy director shall maintain a complete accounting of each receivership in which the deputy director is appointed as receiver. 6-132. Violation of title; civil penalty The deputy director may assess a civil penalty in an amount of not more than $5,000 against a person, including any officer, director, employee, agent or other person who participates in the conduct of the affairs of the person, for any knowing violation of any provision of this title or of any rule or order adopted or issued pursuant to this title. If the assessment is not paid in full within thirty days after the service of the notice of the assessment on the person, the attorney general, on request of the deputy director, shall bring an action in the superior court in the county in which a violation of this section is alleged to have occurred in the same manner as the filing of other actions. On the finding of a knowing violation of this section by the defendant in any such action, the court may enforce the civil penalty imposed by the deputy director or may impose a different civil penalty in an amount as it deems appropriate for each violation. Each day of violation constitutes a separate offense. 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 rule, regulation or order issued or promulgated pursuant to this title is guilty of a class 6 felony. Each day of violation shall constitute a separate offense. B. Any person who knowingly makes any false statement, misrepresentation or false certification in any application, record, report, plan or other document filed or required to be maintained pursuant to this title or under any license, certificate, rule, regulation or order issued pursuant to this title with intent to deceive the deputy director is guilty of a class 3 felony. C. Any person who knowingly makes any false entry or omits a material entry in any record, report or statement of a financial institution with intent to injure or defraud the financial institution or to deceive the deputy director or any agent or examiner appointed by the deputy director to examine the affairs of the financial institution is guilty of a class 3 felony. 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, directly or by inference, derogatory of the financial condition or solvency of any bank, savings and loan association or credit union is guilty of a class 2 misdemeanor. 6-135. Department revolving fund; use of fund A. The department revolving fund is established to be administered by the deputy director under the conditions and for the purposes provided by this section. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. B. Any investigative costs, attorney fees or civil penalties recovered for the state by the attorney general or the deputy director as a result of actions brought pursuant to this title, whether by final judgment, settlement or otherwise, shall be deposited in the department revolving fund. If the unencumbered portion of the fund exceeds $700,000 at the end of the fiscal year, all unencumbered monies in excess of $700,000 shall be deposited in the department receivership revolving fund pursuant to section 6-135.01. C. The monies in the fund shall be used by the deputy director and the attorney general for investigative proceedings or for purposes of instituting and prosecuting civil actions pursuant to this title. D. On or before the fifteenth day of February, May, August and November each year, the deputy director shall file with the governor, with copies to the director of the department of administration, the president of the senate and the speaker of the house of representatives, a full and complete account of the receipts and disbursements from the fund in the previous calendar quarter. 6-135.01. Department receivership revolving fund; use of fund A. The department receivership revolving fund is established to be administered by the deputy director. The fund shall consist of monies from the following sources: 1. Monies awarded and received as fees and costs in receiverships in which the deputy director was the receiver, as provided in section 6-131.01. 2. Monies received from the department revolving fund, as provided in section 6-135, subsection B. B. Monies in the fund may be used to pay any costs incurred by the division arising out of the administration of a receivership in which the deputy director is the receiver. C. The director shall submit to the legislature with the department's annual budget request a full and complete account of the department receivership revolving fund through the end of its most recent fiscal year. 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 other penalty or remedy for contempt of court, forfeit and pay to this state a civil penalty of not more than ten thousand dollars for each violation as such court may deem just and proper. For the purpose of this section, the superior court issuing any order or injunction shall retain jurisdiction and the cause shall be continued. The attorney general acting in the name of this state may petition for recovery of civil penalties pursuant to this section. 6-137. Cease and desist orders; injunctions; public inspection A. If it appears to the deputy director that any person has engaged, is engaging or is about to engage in any act, practice or transaction that constitutes a violation of this title or any rule or order of the deputy director or a violation of any federal insurance regulation as determined by the appropriate federal regulatory authority in writing, the deputy director may issue an order directing the person and directors, officers, employees and agents of the person to cease and desist from engaging in the act, practice or transaction or doing any act in furtherance of the act, practice or transaction and to take appropriate affirmative action, within a reasonable period of time as prescribed by the deputy director, to correct the conditions resulting from the act, practice or transaction. B. If it appears to the deputy director that any financial institution or enterprise or any officer, director, employee, agent or other person participating in the conduct of the affairs of the financial institution or enterprise has engaged, is engaging or is about to engage in any act, practice or transaction that constitutes an unsafe or unsound practice or a violation of any order of the deputy director, applicable law or rule, written agreement entered into with the deputy director or condition imposed in writing by the deputy director in connection with the granting of any application or other request by the financial institution or enterprise, the deputy director may issue an order directing the financial institution or enterprise or any director, officer, employee, agent or other person participating in the conduct of the affairs of the financial institution or enterprise to cease and desist from engaging in the act, practice or transaction or doing any act in furtherance of the act, practice or transaction and to take appropriate affirmative action, within a reasonable period of time as prescribed by the deputy director, to correct the conditions resulting from the act, practice or transaction. C. An order issued by the deputy director under this section becomes effective at the time of service and remains effective and enforceable except to the extent that it is stayed, modified, terminated or set aside by the deputy director or a reviewing court pursuant to this article. D. A person aggrieved by an order issued by the deputy director under this section may request a hearing pursuant to title 41, chapter 6, article 10. After requesting a hearing, the person may move that the order be stayed or modified pending the hearing. If the order is not stayed or modified or the motion is not acted on within ten days, the person may apply to the superior court for an order for relief. E. If it appears to the deputy director that a person has engaged, is engaging or is about to engage in an act, practice or transaction that constitutes a violation of this title or any rule or order of the deputy director or a violation of any federal insurance regulation as determined by the appropriate federal regulatory authority, the deputy director may apply to the superior court in Maricopa county for any of the following: 1. An injunction enjoining the person from engaging in the act, practice or transaction or from doing any act in furtherance of the act, practice or transaction, and on a showing by the deputy director that the person has engaged, is engaging or is about to engage in an act, practice or transaction in violation of this title, any other applicable law or any rule or order of the deputy director the court shall grant without bond a temporary restraining order, preliminary injunction or permanent injunction. 2. An order granting additional relief as may be available under this title. F. The court shall give an action brought pursuant to this section precedence over all other civil actions. G. An order that is issued by the deputy director under this section to a person, financial institution or financial enterprise that has engaged or is engaging in a violation that relates to unlicensed activity shall be open to public inspection. 6-138. Hearings The deputy director or an administrative law judge shall conduct hearings, including hearings relating to orders of the deputy director granting, denying, revoking or suspending a permit, certificate or license provided for under this title, in accordance with title 41, chapter 6, article 10. 6-139. Judicial review Except as provided in section 41-1092.08, subsection H, a final decision of the deputy director is subject to judicial review pursuant to title 12, chapter 7, article 6 if the complaint seeking review is filed with the superior court in Maricopa county and served on the deputy director. 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 of a bank, trust company, savings and loan association or controlling person. 2. "Control" means direct or indirect ownership of or power to vote twenty-five percent or more of the outstanding voting securities of a bank, trust company, savings and loan association or controlling person or to control in any manner the election of a majority of the directors of a bank, trust company, savings and loan association or controlling person. For the purposes of determining the percentage of voting securities owned, controlled or held by a person, there shall be aggregated with the voting securities attributed to such person the voting securities of any other person directly or indirectly controlling, controlled by or under common control with such other person or by any officer, partner, employee or agent of such person, or by any spouse, parent or child of such person. 3. "Controlling person" means any person directly or indirectly in control of a bank, trust company or savings and loan association. 4. "Person" means an individual, corporation, partnership, association, trust or agency or any similar entity. 5. "Voting security" means any security presently entitling the owner or holder of such security to vote for the election of directors of a bank, trust company, savings and loan association or controlling person, excluding, in the case of a savings and loan association, votes attributable to savings accounts. A specified percentage of outstanding voting securities means such amount of the outstanding voting securities as entitles the holder or holders of such securities to cast that specified percentage of the aggregate votes that the holders of all the outstanding voting securities are entitled to cast. 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 with the approval of the deputy director or as otherwise allowed by this article. 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 company or savings and loan association or controlling person on the date this article becomes law and who continues to control such bank, trust company, or savings and loan association. 2. A registered dealer who acts as an underwriter or member of a selling group in a public offering of the voting securities of a bank, trust company, savings and loan association or controlling person. 3. A person who acts as proxy for the sole purpose of voting at a designated meeting of the security holders of a bank, trust company, savings and loan association or controlling person. 4. A person who acquires control of a bank, trust company, savings and loan association or controlling person by devise or descent. 5. A person who acquires control of a bank, trust company, savings and loan association or controlling person as a personal representative, custodian, guardian or conservator appointed by a court or as a trustee, receiver or other officer appointed by a court. 6. A pledgee of a voting security of a bank, trust company, savings and loan association or controlling person who does not have the right, as pledgee, to vote such voting security. 7. A transaction approved pursuant to chapter 2, article 7 of this title. B. There shall be exempted from the provisions of this article any person or transaction that the deputy director by rule or order exempts as not being necessary or appropriate in the public interest or for the protection of a bank, trust company, savings bank or savings and loan association, or the depositors, beneficiaries, creditors or shareholders of such bank, trust company, savings bank or savings and loan association. C. A person, prior to filing an application for approval, may request in writing a determination from the deputy director as to whether the person, on consummation of a proposed transaction, will be in control. On such a request, the deputy director may enter an order that the person will not be in control, in which event the proposed transaction will be an exempt transaction under this article. 6-144. Acquisition of control; approval of deputy director A person shall not, directly or indirectly, make a tender offer for, request or invite a tender offer for, offer to exchange securities for or acquire in the open market or otherwise, any voting security or any security convertible into a voting security of a bank, trust company, savings and loan association or controlling person if such a transaction would result in the person acquiring control of a bank, trust company or savings and loan association or controlling person unless the deputy director has approved such acquisition of control, except that this section does not prohibit a person from negotiating or entering into agreements subject to the condition that the acquisition of control will not be effective until approval of the deputy director is obtained. 6-145. Application for approval A. An application for approval of the deputy director shall be in writing in such form as the deputy director may prescribe and shall be accompanied by such information, data and records as the deputy director may require. For such purpose the deputy director shall adopt rules prescribing the form and the information, data or records that may be required. B. On receipt of any initial application for approval or any amendment or supplement to the application, the deputy director shall cause copies of the application, amendment or supplement to be given to the bank, trust company or savings and loan association concerned within three business days. 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 amend such application, an amendment setting forth such change, together with copies of all documents and other material relevant to such change, shall be filed with the deputy director. 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 be denied if the deputy director finds any of the following: 1. That the financial condition of any person who would acquire control is such as may jeopardize the financial stability of the bank, trust company or savings and loan association, or prejudice the interests of the depositors, beneficiaries, creditors and shareholders of the bank, trust company or saving