Arizona Laws 6-882. Savings accounts and time deposits; insurance; withdrawal; notice
A. If authorized by the articles of incorporation and bylaws and if approved by the deputy director, a trust company may receive monies for the purpose of maintaining savings accounts and time deposits. The trust company may pay interest on the savings accounts and time deposits and may prescribe terms and conditions that are consistent with the requirements of the federal deposit insurance corporation.
Terms Used In Arizona Laws 6-882
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Certificate: means a certificate of authority issued under this chapter to engage in trust business. See Arizona Laws 6-851
- 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 Deposit Insurance Corporation: A government corporation that insures the deposits of all national and state banks that are members of the Federal Reserve System. Source: OCC
- Federal deposit insurance corporation: includes any successor to the corporation or other agency or instrumentality of the United States that undertakes to discharge the purposes of the corporation. See Arizona Laws 6-101
- Savings account: means monies received or held by the trust company in the usual course of business and for which the trust company is obligated to give conditional or unconditional credit. See Arizona Laws 6-881
- Time deposit: means a deposit that the depositor does not have a right to withdraw for at least seven days after the date of deposit. See Arizona Laws 6-881
- Trust company: means a corporation holding a certificate issued under this article. See Arizona Laws 6-851
B. Before offering savings accounts and time deposits the board of directors shall approve the action by a written resolution that specifies the written documents to be issued representing the savings accounts and time deposits. The board shall submit:
1. A certified copy of the approving resolution to the deputy director.
2. Copies of the written documents to the deputy director for approval by the deputy director.
C. The federal deposit insurance corporation or its successor shall insure all savings accounts and time deposits held by a trust company. A trust company shall immediately notify the deputy director when the trust company applies to the federal deposit insurance corporation or its successor for deposit insurance. Until final disposition of the application for deposit insurance, the trust company shall submit monthly reports to the deputy director specifying the status of the application.
D. A trust company may require the holder of a savings account to give the trust company written notice at least seven days before an intended withdrawal that is not payable on a specified date or at the expiration of a specified time after the date of deposit.
E. A trust company may issue a transferable, nontransferable, negotiable or nonnegotiable certificate, instrument, passbook or statement representing a time deposit or savings account.