House of Representatives

SB 1046

financial institutions

Sponsors: Senator Cirillo

DP	Committee on Financial Institutions and Insurance
X	Caucus and COW
	As Passed the House

SB 1046 exempts out-of-state chartered banks and savings and loan associations from having to obtain trust certification by the State Banking Department prior to conducting trust business in Arizona.

Background

TRUST CERTIFICATION

The State Banking Department exempts federal banks and federal savings and loan associations from trust certification so long as the banks are an FDIC member. This exemption does not apply to banks chartered in another state.

ADVANCE FEE LOAN BROKERS

A.R.S. 6-1302 requires any person who acts as an advance fee loan broker to register with the State Banking Department. A person who makes or procures a loan or extension of credit for an advance fee is engaged in the business of an advance fee loan broker.

Provisions

· Exempts out-of-state chartered banks from having to obtain trust certification by the State Banking Department prior to conducting trust business in this state.

· Eliminates the use of gross earnings for the determination of credit union reserves for loan losses.

· Exempts a person who makes a loan with his/her money or for his/her own investment from having to register with the State Banking Department as an advance fee loan broker.

· Adds lenders to those subject to the interest rate caps for a secondary motor vehicle finance transaction.

· Makes technical corrections.

SB 1046 passed the Financial Institutions and Insurance Committee unamended.

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44th Legislature

Second Regular Session 2 March 22, 2001

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