A. A trust company shall not allow a person, other than a director, officer, agent or employee of the trust company or the legal or beneficial owner of the trust funds or the authorized representative of the owner, to access, examine or inspect the fiduciary records of the trust company.

Terms Used In Arizona Laws 6-870.02

  • 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
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • 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
  • Fiduciary: means a personal representative, administrator, guardian, conservator, trustee, agent or other person who acts in a fiduciary capacity and who is not exempt by section 6-852. See Arizona Laws 6-851
  • Fiduciary: A trustee, executor, or administrator.
  • Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • 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
  • Wilfully: means , with respect to conduct or to a circumstance described by a statute defining an offense, that a person is aware or believes that the person's conduct is of that nature or that the circumstance exists. See Arizona Laws 1-215

B. A trust company shall not make a loan to or make other use of monies from a fiduciary account to or for the benefit of another fiduciary account unless the transaction is authorized by a court order or a governing instrument of the fiduciary account or its amendments from which the loan or use of monies is made.

C. A director, officer, agent or employee of a trust company shall not:

1. Knowingly make or publish, or concur in making or publishing, a written report, exhibit or statement of the trust company’s affairs or financial condition containing any material statement that is false.

2. Wilfully refuse or neglect to make a proper entry in the trust company’s books, wilfully refuse or neglect to exhibit the trust company’s books to the department or allow the department to inspect or extract the trust company’s books.

3. Knowingly make a material false promise or statement or a material misrepresentation to the department or to a legal or beneficial owner of trust funds or an authorized representative of the owner in the course of the trust business.

4. Knowingly conceal an essential or material fact from the department or a legal or beneficial owner of the trust funds or an authorized representative of the owner in the course of the trust business.

D. A trust company shall not directly or indirectly use funds from a fiduciary account for the benefit of any officer, director or employee of the trust company or any individual with whom there exists a connection, or organization in which there exists an interest, as might affect the exercise of the best judgment of the trust company in performing its fiduciary duties, unless the transaction is authorized by a court order or a governing instrument of the fiduciary account.

E. A trust company shall not charge a fee except in accordance with a governing instrument or its amendments, a court order or a written communication.

F. A trust company shall not refuse to disclose to the public a general statement of the trust company’s financial condition and its assets and liabilities or the last report of financial condition submitted to the deputy director pursuant to section 6-861.

G. A person shall not receive compensation for engaging in the trust business if the person is not licensed or exempt from licensing pursuant to this article.

H. A director, officer, agent or employee of the trust company who knowingly violates this article is liable for the damages the trust company or the legal or beneficial owners of the trust funds sustain because of the violation. A director, officer, agent or employee is individually liable for the amount of a loss of trust funds if the director, officer, agent or employee knowingly participates in an illegal activity that results in a loss of trust funds. A director or officer of a trust company who meets the standards of conduct prescribed by section 10-830 or 10-842 shall not be liable for any loss to the company or to the legal or beneficial owners of the trust funds and shall be entitled to indemnification to the extent allowed by Title 10, Chapter 8, Article 5.

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