Arizona Laws 6-817. Refusal to license; suspension; revocation
A. The deputy director on investigation may refuse to license any applicant or may suspend or revoke any license pursuant to Title 41, Chapter 6, Article 10 by entering an order to that effect, together with findings in respect to the order and by notifying the applicant or escrow agent either personally or by certified mail, return receipt requested, sent to the agent’s stated address, on the determination by the deputy director that the applicant or escrow agent:
Terms Used In Arizona Laws 6-817
- Control: means ownership or the power to vote, either directly or indirectly, more than twenty per cent of the outstanding voting shares of the controlled person. See Arizona Laws 6-801
- 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
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Escrow: means any transaction in which any escrow property is delivered with or without transfer of legal or equitable title, or both, and irrespective of whether a debtor-creditor relationship is created, to a person not otherwise having any right, title or interest therein in connection with the sale, transfer, encumbrance or lease of real or personal property, to be delivered or redelivered by that person upon the contingent happening or nonhappening of a specified event or performance or nonperformance of a prescribed act, when it is then to be delivered by such person to a grantee, grantor, promisee, promisor, obligee, obligor, bailee or bailor, or any designated agent or employee of any of them. See Arizona Laws 6-801
- Escrow agent: means any person engaged in the business of accepting escrows. See Arizona Laws 6-801
- Escrow business: means a commercial activity characterized by the regular and continuous carrying on of escrow transactions. See Arizona Laws 6-801
- Escrow property: means property, money, a written instrument or evidence of title or possession to real or personal property or any other thing of value. See Arizona Laws 6-801
- 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
- Fraud: Intentional deception resulting in injury to another.
- 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.
- License: means a license issued pursuant to this chapter. See Arizona Laws 6-801
- 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
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
1. Is unable to pay debts as they fall due in the regular course of business.
2. Has not conducted the applicant’s or agent’s business in accordance with law or has violated this chapter or the rules relating to this chapter.
3. Is in such a financial condition that the applicant or agent cannot continue in business with safety to the applicant’s or agent’s customers or the public.
4. Has been found guilty of fraud in a legal or administrative proceeding in this jurisdiction or any other jurisdiction.
5. Has made any material misrepresentations or false statements to, or concealed any essential or material fact from, any person in the course of the escrow business.
6. Has knowingly made or caused to be made to the deputy director any false representation of a material fact, or has suppressed or withheld from the deputy director any information that the applicant or agent possesses, and that if submitted by the applicant or agent would have caused the issuance of a license to be withheld or be grounds for the suspension or revocation of a license.
7. Has failed to account properly for escrow property as required by the terms of the escrow.
8. Refuses to allow an examination or investigation by the deputy director of the applicant’s or agent’s books and affairs or has refused or failed within a reasonable time to furnish any information or make any report required by the deputy director under this chapter or rules relating to this chapter.
9. Has been convicted of any criminal offense involving moral turpitude within the last fifteen years.
10. Does not have the financial resources, experience or competence to adequately serve the public or to warrant the belief that the business will be operated lawfully, honestly, fairly and efficiently pursuant to this chapter.
11. Has disbursed monies in violation of escrow instructions.
12. Has failed to maintain an adequate internal control structure as prescribed by section 6-841.
13. Has caused or allowed any overdraft or returned check for insufficient funds on any of the escrow agent‘s trust or fiduciary accounts.
14. Has failed to authorize each financial institution with which it has deposited trust or fiduciary funds to notify the deputy director of any overdraft or check returned for insufficient funds on any trust or fiduciary accounts of the escrow agent.
B. It is sufficient cause for refusal, suspension or revocation of a license, in case of a partnership, a corporation or any other group or association, if any member of such persons, or officer or director thereof, has been guilty of any act or omission that would be cause for refusing a license or suspending or revoking the license of an individual agent.