Arizona Laws 6-863. Suspension or revocation of certificate
A. The deputy director may suspend or revoke the certificate of a trust company pursuant to Title 41, Chapter 6, Article 10 if the deputy director determines that:
Terms Used In Arizona Laws 6-863
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Agent: means a person who receives compensation to regularly perform services specifically related to the conduct of the trust business. See Arizona Laws 6-851
- Capital: means the total of outstanding common stock, preferred stock and surplus and undivided profits. See Arizona Laws 6-851
- Certificate: means a certificate of authority issued under this chapter to engage in trust business. See Arizona Laws 6-851
- Deputy director: means the deputy director of the financial institutions division of the department. See Arizona Laws 6-101
- Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. Source: OCC
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Forgery: The fraudulent signing or alteration of another's name to an instrument such as a deed, mortgage, or check. The intent of the forgery is to deceive or defraud. Source: OCC
- Fraud: Intentional deception resulting in injury to another.
- Indictment: The formal charge issued by a grand jury stating that there is enough evidence that the defendant committed the crime to justify having a trial; it is used primarily for felonies.
- insolvent: means the trust company does not possess assets that are at least equal to liabilities, required reserves and total issued and outstanding capital. See Arizona Laws 6-851
- Moral turpitude: means an offense, whether a misdemeanor or felony, that is related to extortion, burglary, larceny, bribery, embezzlement, robbery, racketeering, money laundering, forgery, fraud, murder, voluntary manslaughter or a sexual offense that requires the individual to register pursuant to section 13-3821. See Arizona Laws 1-215
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- Trust business: means the holding out by a person to the public at large by advertising, solicitation or other means that the person is available to act as a fiduciary in this state and accepting and undertaking to perform the duties as such a fiduciary in the regular course of business. See Arizona Laws 6-851
- Trust company: means a corporation holding a certificate issued under this article. See Arizona Laws 6-851
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
1. The trust company has failed or refused to comply with any order issued pursuant to section 6-137.
2. The application for a certificate or for renewal of a certificate or any report submitted to the deputy director contained a false representation or omission of a material fact.
3. Any officer or agent of the trust company, in connection with the submission of any report or information to the deputy director or an application for a certificate or for renewal of a certificate, knowingly made a false representation of a material fact or failed to disclose a material fact to the deputy director or the duly authorized agent of the deputy director.
4. The trust company has violated any applicable law, rule or order.
5. The trust company is impaired or insolvent and the trust company is unable to pay debts as they become due in the regular course of its business.
6. The trust company refuses to allow an examination or investigation by the deputy director of its books and affairs or has failed or refused to furnish within thirty days any information or to make any report that may be required by the deputy director.
7. The trust company is unable to maintain the amount of capital required by law.
8. The trust company failed to conduct business in a safe, sound and lawful manner.
9. Any officer, director, employee or agent of the trust company has been convicted in any state of a felony or a crime of moral turpitude, breach of trust, fraud, theft or dishonesty.
10. The trust company’s certificate or authorization to engage in trust business in any state or country has been revoked, suspended or denied.
11. A final judgment has been entered in a civil action against any officer, director, employee or agent of the trust company involving fraud, deceit or misrepresentation and the conduct is contrary to the interest of the public to allow the person to engage in a trust business, to control or manage a trust company or to work for a trust company handling trust funds.
12. An order by an administrative agency of this state, another state, the federal government, a territory of the United States or another country has been entered against any officer, director, employee or agent of the trust company involving fraud, deceit or misrepresentation and the conduct is contrary to the interest of the public to allow the person to engage in a trust business, to control or manage a trust company or to work for a trust company handling trust funds.
B. The deputy director may suspend the certificate if an indictment or information is issued against any officer, director, employee or agent of the trust company for forgery, embezzlement, retaining monies under false pretenses, extortion, criminal conspiracy to defraud or a like offense and a certified copy of the indictment or information or other proper evidence of the indictment or information is filed with the deputy director.
C. Pursuant to subsection A of this section, the deputy director may suspend or revoke the certificate for the acts and omissions of:
1. Any officer, director, employee or agent of the trust company while acting in the course of the trust business.
2. A person entitled to vote more than fifteen percent of the outstanding voting shares of the trust company.