Skip to main content
Find a Lawyer

Arizona Revised Statutes Title 6. Banks and Financial Institutions § 6-856. Minimum capital; dividends; other requirements

Current as of January 01, 2025 | Updated by Findlaw Staff

A. In order to obtain a certificate, a trust company shall have not less than $500,000 of liquid capital. The trust company shall have additional capital in the following amounts:

1. For each $750,000,000 of nondiscretionary assets, an additional $250,000 of capital.

2. For each $250,000,000 of discretionary assets, an additional $250,000 of capital.

3. For a trust company whose most recent composite rating from the deputy director was four as defined in the revised uniform interagency trust rating system as published in the federal register volume 63, number 197, October 13, 1998, pages 54704 through 54711, an additional $250,000 of capital.

4. For a trust company whose most recent composite rating from the deputy director was five as defined in the revised uniform interagency trust rating system as published in the federal register volume 63, number 197, October 13, 1998, pages 54704 through 54711, an additional $500,000 of capital.

B. A minimum of one-half of the additional capital required under subsection A, paragraphs 1 and 2 of this section shall consist of liquid capital. All of the additional capital required under subsection A, paragraph 3 or 4 of this section shall consist of liquid capital.

C. The trust company shall notify the deputy director of the form in which and location where the liquid capital is held and its date of maturity.

D. A trust company that has a certificate issued before June 30, 2001 has until December 31, 2002 to comply with the additional capital requirements prescribed in subsection A of this section.

E. The deputy director may reduce the amount of the additional capital requirement prescribed in subsection A of this section if the deputy director determines that the trust company is a subsidiary of a financial institution or financial holding company that is capable of providing sufficient support.

F. A trust company that has been issued a certificate by the deputy director shall maintain capital in the amount required under subsection A of this section.

G. A trust company may declare a dividend to be paid from net profits. A dividend shall not be declared, credited or paid if there is an impairment of the liquid capital. A trust company that proposes dividends in a calendar year that are more than the net profit for the same calendar year shall obtain the deputy director's approval before declaring the dividends.

H. Notwithstanding subsection A of this section, a trust company that accepts monies to be held in a savings account or time deposit prescribed in § 6-882 shall comply with all of the rules and requirements necessary to obtain and maintain insurance issued by the federal deposit insurance corporation or its successor.

Previous Part of Code Next Part of Code
Back to Chapter List

Cite this article: FindLaw.com - Arizona Revised Statutes Title 6. Banks and Financial Institutions § 6-856. Minimum capital; dividends; other requirements - last updated January 01, 2025 | https://codes.findlaw.com/az/title-6-banks-and-financial-institutions/az-rev-st-sect-6-856/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

Was this helpful?

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw’s Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About The Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to Find an Attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

Copied to clipboard