Arizona § 6-204 - Issuance of banking permit; trust business; conditional approval; hearing; banker's bank; definitions

§ 6-204. Issuance of banking permit; trust business; conditional approval; hearing; banker's bank; definitions

A. On the filing of an application for a banking permit, the deputy director shall make or cause to be made an investigation and examination of the facts concerning the applicant.  Except as provided in subsection F of this section, the deputy director shall issue the permit if, but only if, the deputy director finds:

1. The applicant is a corporation organized under the laws of this state having powers and purposes to engage in the banking business.

2. The deposits of the bank will be insured by the federal deposit insurance corporation when the bank commences business.

3. The ability of the persons involved in the organization and management of the proposed bank is such as to demonstrate that it will be operated in a sound and lawful manner.

4. The applicant has paid in capital that is adequate for its prospective business.

5. The need for the bank in the community or area where the bank will be located is such as to demonstrate the favorable prospect for a sound banking operation.

B. An application that is not denied or approved by the deputy director within ninety days after the application is filed with the deputy director is deemed to be approved by the deputy director as of the first day after the period.

C. A banking permit may initially or by amendment include the authority of a bank to engage in the trust business.

D. The deputy director may approve the application conditioned on specific requirements being met, but a permit shall not be issued unless such conditions have been met within the time specified in the order or any extension.

E. The permit may be granted or denied without a hearing, but the deputy director may, and shall at the request of the applicant, fix a date for a hearing on the application. At the hearing any person may be heard with reference to the facts to be investigated.

F. The deputy director shall not issue a banking permit pursuant to subsection A of this section for a banker's bank unless all of the following apply:

1. The stock of the applicant is owned exclusively by one or more state or nationally chartered banks or, if the stock is owned by a holding company, the holding company's stock is owned exclusively by one or more state or nationally chartered banks.

2. The applicant engages in or will engage exclusively in providing banking services to or for other depository institutions or their holding companies and the directors, officers or employees of the depository institutions.

3. The applicant offers or will offer correspondent banking services for other depository institutions or their holding companies.

4. The applicant is fully insured by the federal deposit insurance corporation.

5. No single entity acquires or retains at any time ownership, control or power to vote more than ten percent of any class of voting securities of the banker's bank.

G. For purposes of this section:

1. "Banker's bank" means an entity that is owned exclusively by one or more state or nationally chartered banks or bank holding companies and that exclusively provides banking services to or for other depository institutions and their holding companies.

2. "Nationally chartered bank" means a bank or savings bank chartered by the office of the comptroller of the currency or the office of thrift supervision.