Agency Mission:
To regulate and supervise the financial institutions and enterprises of Arizona according to the statutes in ways that will not unreasonably impede economic growth or business activity.

Agency Description
The Department of Financial Institutions is statutorily charged with the licensing, supervision and regulation of state chartered financial institutions and enterprises. The responsibility is twofold: ensuring the safety and soundness of state chartered financial entities, as well as compliance with applicable state and federal laws. The Department also reviews  complaints that are filed by consumers against licensed entities when violations of state law or rules have been alleged, directing appropriate remedial action if the violations are substantiated. The Department serves approximately 3,600 entities licensed to conduct business in the state, as well as Arizona citizens who receive services from these companies.

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The current superintendent is Felecia A. Rotellini, who joined the Department in January, 2005 as an Assistant Superintendent. Prior to that, she served as an Assistant Attorney General since 1992. From 1992 to 1996, she represented the Department as their senior counsel and was involved in the supervision & examination of financial institutions and enterprises.  From 1986 to 1992, she was in private practice. Her law degree is from the University of Notre Dame.

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The Superintendent, upon being appointed receiver for a licensee will take possession of the licensee’s business, by virtue of a Superior Court Order and assume custody and control of the licensee’s business. The order generally outlines the Receiver’s duties and responsibilities. Those typically include: providing notice of Order to all officers of the company, taking possession of all books, records and assets, notifying all customers in writing of the receivership, and liquidating the business. The primary responsibility of a receiver is to conserve all receivership property to prevent further injury to customers and citizens of Arizona. This is accomplished through a thorough review of the company’s records and all other information relating to its assets, liabilities, and legal actions. The receiver provides this information to the court via accounting reports and petitions relating to the liquidation of the estate.

The Department aims to close the receivership through liquidation as quickly as possible to the benefit of the consumers. However, some receiverships are not closed for many years because multiple legal matters require resolution. In the past several years, the number of open receiverships has dropped to zero from thirteen.

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If banks choose to become members of the Federal Reserve System (Fed), they must purchase shares. Fed membership gives banks access to overnight lending and allows them to offer their customers additional services. Once a bank is a Fed member, the FDIC generally will accept examinations prepared by Federal Reserve examiners in place of its own.

The responsibility for supervision and insurance of various depository institutions can be summarized as follows:

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The powers of Arizona banks, like those of any regulated enterprise, are set forth by the legislature. Two provisions in Arizona law are noteworthy and serve to make Arizona a relatively attractive place to do business. A.R.S. § 6-184.1 establishes that a bank may exercise the powers derived from its existence as an Arizona corporation, except as prohibited by law. Thus, banks may, for instance, sell insurance.

In addition, Arizona state banks are subject to A.R.S. § 6-184.2, sometimes called the "Parity Provision." Under this, state banks may exercise any power and engage in any activity that a national bank may carry out, unless state law explicitly prohibits that activity.

For banks, credit unions, and savings and loan associations, the advantages of a state charter include greater access to legislators and regulators as well as the possibility of lower annual assessments. Institutions generally choose a national charter if their operation is interstate.

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