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:

Terms Used In Arizona Laws 6-113

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Department: means the department of insurance and financial institutions. See Arizona Laws 6-101
  • Deputy director: means the deputy director of the financial institutions division of the department. See Arizona Laws 6-101
  • Division: means the financial institutions division within the department. See Arizona Laws 6-101
  • Enterprise: means any person under the jurisdiction of the department other than a financial institution. See Arizona Laws 6-101
  • Fiduciary: A trustee, executor, or administrator.
  • 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. See Arizona Laws 6-101
  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
  • including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215

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.

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