Arizona Laws 6-1210. Information requirements for certain individuals
A. Any individual in control of a licensee or applicant, any individual who seeks to acquire control of a licensee and each key individual shall submit both:
Terms Used In Arizona Laws 6-1210
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Contract: A legal written agreement that becomes binding when signed.
- Control: means :
(a) The power to vote, directly or indirectly, at least twenty-five percent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee. See Arizona Laws 6-1201
- Credit report: A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness. Source: OCC
- Fiduciary: A trustee, executor, or administrator.
- Fraud: Intentional deception resulting in injury to another.
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Individual: means a natural person. See Arizona Laws 6-1201
- 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.
- Key individual: means any individual ultimately responsible for establishing or directing policies and procedures of the licensee, such as an executive officer, manager, director or trustee. See Arizona Laws 6-1201
- Licensee: means a person licensed under this article. See Arizona Laws 6-1201
- Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
- Passive investor: means a person that:
(a) Does not have the power to elect a majority of key individuals or executive officers, managers, directors, trustees or other persons exercising managerial authority of a person in control of a licensee. See Arizona Laws 6-1201
- Person: means any individual, general partnership, limited partnership, limited liability company, corporation, trust, association, joint stock corporation or other corporate entity identified by the director. See Arizona Laws 6-1201
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
1. A full set of fingerprints pursuant to Section 6-123.01.
2. The individual’s personal history and experience to the director in a form prescribed by the director so the director may obtain the following:
(a) An independent credit report from a consumer reporting agency if the individual has a social security number.
(b) Information related to any criminal convictions or pending charges.
(c) Information related to any regulatory or administrative action and any civil litigation involving claims of fraud, misrepresentation, conversion, mismanagement of funds, breach of fiduciary duty or breach of contract.
B. A person is presumed to exercise a controlling influence when the person holds the power to vote, directly or indirectly, at least ten percent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee. A person presumed to exercise a controlling influence may rebut the presumption of control if the person is a passive investor.
C. If the individual has resided outside of the United States at any time in the last ten years, the individual shall also provide an investigative background report prepared by an independent search firm that meets the following requirements:
1. At a minimum, the search firm shall do both of the following:
(a) Demonstrate that it has sufficient knowledge, resources and employs accepted and reasonable methodologies to conduct the research of the background report.
(b) Not be affiliated with or have an interest in the individual it is researching.
2. At a minimum, the investigative background report shall be written in english and shall contain the following:
(a) If available in the individual’s current jurisdiction of residency, a comprehensive credit report or any equivalent information obtained or generated by the independent search firm to accomplish the report, including a search of the court data in the countries, provinces, states, cities, towns and contiguous areas where the individual resided and worked.
(b) Criminal records information for the past ten years, including felonies, misdemeanors or similar convictions for violations of law in the countries, provinces, states, cities, towns and contiguous areas where the individual resided and worked.
(c) Employment history.
(d) Media history, including an electronic search of national and local publications, wire services and business applications.
(e) Financial services-related regulatory history, including money transmission, securities, banking, insurance and mortgage-related industries.