Section R20-4-807. Unsafe or Unsound Condition

For purposes of A.R.S. §§ 6-863 and 6-865, a trust company con- ducts business in an unsafe manner or its affairs are in an unsound condition if it:

1.        Violates any fiduciary duty or obligation, including those listed in R20-4-809 through R20-4-815;

2.        Violates any state or federal requirement for operating or maintaining trusts, common trust funds, or other accounts;

3.        Violates any applicable federal or state law or regulation regarding corporations or securities;

4.        Employs an officer or director who violates a corporate fiduciary duty;

5.        Is insolvent; or

6.        Engages in any conduct that the Superintendent deter- mines constitutes an unsafe or unsound business practice jeopardizing the trust company’s financial condition or the interests of a stockholder, creditor, trustor, benefi- ciary, or trust company’s principal.

Historical Note

Adopted effective June 30, 1977 (Supp. 77-3). R20-4- 807 recodified from R4-4-807 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 2471, effective June 8, 2000 (Supp. 00-2). Amended by final rulemaking at 8 A.A.R.

2718, effective June 6, 2002 (Supp. 02-2).