Arizona Laws 6-184. General corporate and banking powers; incidental powers; deposit insurance; federal reserve and home loan bank membership; agency relationship
A. A corporation holding a banking permit under this chapter may:
Terms Used In Arizona Laws 6-184
- Bank: means a corporation that holds a banking permit issued pursuant to chapter 2 of this title. See Arizona Laws 6-101
- 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. See Arizona Laws 6-101
- Branch: means any banking office other than the principal banking office. See Arizona Laws 6-101
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Deputy director: means the deputy director of the financial institutions division of the department. See Arizona Laws 6-101
- Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC
- 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
- Home state: means the state that has granted the bank its charter, permit or license to operate. See Arizona Laws 6-101
- 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. See Arizona Laws 6-101
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- 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. See Arizona Laws 6-101
1. Except as prohibited by law, exercise the powers derived from its existence as an Arizona corporation.
2. Except as prohibited by law, exercise any power and engage in any activity which it could exercise or engage in if it were a national banking association with a banking office in this state.
3. Directly or through a bank subsidiary engage in any lawful activity that is reasonably related or incidental to banking. All activities in which any bank was lawfully engaged directly or through a subsidiary on December 31, 1971 are declared to be incidental and related to banking for the purposes of this paragraph.
4. Do the acts necessary to obtain and maintain insurance of its deposits by the federal deposit insurance corporation.
5. Do the acts necessary to acquire and hold membership in the federal reserve system or the federal home loan bank.
6. Except as prohibited by law, directly or through a bank subsidiary, make any loan or investment, offer accounts or engage in any business activity authorized for national banking associations, federal savings banks, or state or federally chartered or licensed savings and loan associations doing business in this state. This paragraph is subject to section 33-1571.
7. Except as prohibited by law and subject to such rules as the deputy director may adopt, through a bank subsidiary, invest in real estate in the state or interests therein, including corporations, partnerships, and joint ventures that acquire, develop, improve, hold, lease, operate and sell real estate. This paragraph is subject to section 33-1571.
B. An in-state financial institution or an out-of-state financial institution may act as an agent of any other in-state financial institution or out-of-state financial institution that is a subsidiary of the same holding company for purposes of conducting the activities authorized by this subsection. This subsection applies regardless of whether the affiliated entities share the same home state. An in-state financial institution or an out-of-state financial institution entering into an agency relationship shall notify the deputy director of that agency relationship at least ten days before the effective date of that agency relationship. Agency relationships among affiliates shall be consistent with safe and sound business practices and shall comply with all applicable laws and rules. An in-state financial institution or an out-of-state financial institution acting as an agent is not deemed to be a branch of the affiliate solely because of activities lawfully conducted pursuant to this subsection. An in-state financial institution or an out-of-state financial institution that is acting as an agent for an affiliated entity may do any of the following:
1. Receive deposits.
2. Renew time deposits.
3. Service loans.
4. Receive payments on loans and other obligations.
5. Perform other customary banking services with the prior approval of the deputy director.
C. An in-state financial institution or an out-of-state financial institution acting as an agent as prescribed by subsection B of this section on behalf of an affiliated financial institution may not do any of the following:
1. Open demand, savings or time accounts.
2. Evaluate or approve loans.
3. Disburse loan monies.
4. Conduct any activity as an agent that it is prohibited from conducting as a principal under any applicable law or rule.
D. An in-state financial institution or an out-of-state financial institution that is acting as a principal as prescribed by subsection B of this section may not have its affiliated entity act as an agent on its behalf in conducting any of the following:
1. Any activity that is prohibited to the principal.
2. Any activity that is prohibited to the agent.