Ariz. Admin. Code § R20-4-1901 - Exemption for an Institutional Investor

A. The exemption from the licensure requirement for an institutional investor, solely as that term is used in A.R.S. §§ 6-971, 6-972, and this Article, applies only if a person claiming the exemption meets all the following criteria:

1. The claimant originates or directly or indirectly makes, negotiates, or offers to make or negotiate commercial mortgage loans that are all exclusively funded by the claimant's own resources, as defined in A.R.S. § 6-971;

2. The claimant does so in the regular course of business;

3. The claimant makes only commercial mortgage loans, as defined in A.R.S. § 6-971;

4. The claimant makes each loan on the security of commercial property, as defined in A.R.S. § 6-971; and

5. The claimant makes only loans of more than $250,000.

B. If a claimant makes even one commercial mortgage loan that does not satisfy all the above criteria, any claim of exemption is invalid, and that person shall not engage in any lending activity before obtaining a license.

Notes

Ariz. Admin. Code § R20-4-1901

New Section adopted by final rulemaking at 5 A.A.R. 2094, effective June 10, 1999 (Supp. 99-2).