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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
technical correction; cosmetology schools; contracts
(NOW: special purpose banks; comparable;
rights)
Purpose
Extends the rights and entitlements for out-of-state banks with an office
in Arizona to
out-of-state banks doing business in Arizona, including a special purpose
depository institution that is chartered as a bank.
Background
Statute authorizes and outlines the regulation and operation of banks and financial institutions in Arizona. The laws and rules governing permits and licenses vary by type of financial institution (A.R.S. Title 6). Except as prohibited by federal law, an out-of-state bank with a banking office in Arizona has all the rights, powers and privileges and is entitled to the same exemptions and immunities as a comparable in-state financial institution. An out-of-state bank with a banking office in Arizona is subject to statutes governing in-state financial institutions. An in-state financial institution is a state or federal bank, savings bank, savings and loan association or holding company with its home office located in Arizona. An out-of-state bank is a bank, savings bank or savings and loan association approved by the Deputy Director of the Department of Insurance and Financial Institutions that has a charter, a permit or any other license to operate that is issued by another state (A.R.S. §§ 6-101 and 6-330).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Grants an out-of-state bank doing business in Arizona, rather than with a banking office in Arizona, the same rights, powers, privileges and entitlements as a comparable in-state financial institution and subjects an out-of-state bank doing business in Arizona to the statutes governing comparable in-state financial institutions.
2. Includes, in out-of-state banks doing business in Arizona, any special purpose depository institution that is chartered as a bank.
3. Becomes effective on the general effective date.
House Action
COM 2/15/22 DPA/SE 10-0-0-0
3rd Read 2/23/22 58-1-1
Prepared by Senate Research
March 7, 2022
MG/AN/slp