reglab/statecodes huggingface dataset:
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 2 - Possession of Depository Institution by Commissioner › Section 10 - Inventory of assets -- Listings of claims -- Report of proceedings -- Filing -- Inspection.

Effective 7/1/2024
7-2-10.
Inventory of assets -- Listings of claims -- Report of proceedings -- Filing -- Inspection.
(1) As soon as is practical after taking possession of an institution the commissioner, or any receiver or liquidator appointed by the commissioner, shall make or cause to be made in duplicate an inventory of its assets, one copy to be filed in the commissioner's office and one with the clerk of the court.
(2) Upon the expiration of the time fixed for presentation of claims the commissioner, or any receiver or liquidator appointed by the commissioner, shall make in duplicate a full and complete list of the claims presented, including and specifying claims disallowed by the commissioner, of which one copy shall be filed in the commissioner's office and one copy in the office of the clerk of the court.
(3) The commissioner, or any receiver or liquidator appointed by the commissioner, shall in like manner make and file supplemental lists showing all claims presented after the filing of the first list.
(4) The supplemental lists shall be filed every six months and at least 15 days before the declaration of any dividend.
(5) At the time of the order for final distribution the commissioner, or any receiver or liquidator appointed by the commissioner, shall make a report in duplicate of the proceeding, showing the disposition of the assets and liabilities of the institution, one copy to be filed in the commissioner's office and one with the clerk of the court.
(6) The accounting, inventory, and lists of claims shall be open at all reasonable times for inspection.
(7) Any objection to any report or accounting shall be filed with the clerk of the court within 30 days after the report of accounting has been filed by the commissioner, or any receiver or liquidator appointed by the commissioner, and shall be subject to judicial review only as provided in Section 7-2-9.
Amended by Chapter 401, 2023 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 2 - Possession of Depository Institution by Commissioner › Section 11 - Special counsel -- Employment by attorney general.

7-2-11.
Special counsel -- Employment by attorney general.
Upon taking possession of any institution or other person subject to the jurisdiction of the department, the commissioner may request the attorney general to employ special counsel on his behalf to assist and advise him in connection with a liquidation or reorganization proceeding and the prosecution or defense of any action or proceeding connected with it.
Enacted by Chapter 8, 1983 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 2 - Possession of Depository Institution by Commissioner › Section 13 - Collections in liquidation -- Deposit -- Preference.

7-2-13.
Collections in liquidation -- Deposit -- Preference.
The money collected in process of a liquidation by the commissioner shall be from time to time deposited, subject to his order as herein provided, in one or more federally insured depository institutions organized under the laws of this state. In case of the suspension or insolvency of the depository institution, these deposits shall be preferred before all other deposits.
Enacted by Chapter 16, 1981 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 2 - Possession of Depository Institution by Commissioner › Section 14 - Expenses during possession.

7-2-14.
Expenses during possession.
The expenses reimbursable to the commissioner during possession or in the course of proceedings under this chapter include the compensation of deputies, agents, clerks, and examiners employed by him and reasonable fees for counsel, accountants or consultants employed by him or on his behalf. The compensation shall be fixed by the commissioner subject to the approval of the court. The expenses of the proceedings shall be paid out of the property of the institution in the hands of the commissioner, shall be a valid charge against that property, and shall be paid first in order of priority. No expenses may be paid out of the property of the institution until an account of the expense has been filed with and approved by the court.
Amended by Chapter 8, 1983 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 2 - Possession of Depository Institution by Commissioner › Section 16 - Interim ratable dividends.

7-2-16.
Interim ratable dividends.
At any time after the expiration of the date fixed for the presentation of claims and prior to the declaration of a final dividend the commissioner may, out of the funds remaining in his hands after the payment of expenses, declare and pay, subject to their priorities established under Section 7-2-15, one or more interim ratable dividends to any person and in the amount and upon such notice as the court directs.
Amended by Chapter 267, 1989 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 2 - Possession of Depository Institution by Commissioner › Section 17 - Disposition of records after liquidation.

7-2-17.
Disposition of records after liquidation.
After liquidation of an institution under this chapter, the commissioner shall dispose of its books, papers, and records in accordance with the order of the court.
Enacted by Chapter 16, 1981 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 2 - Possession of Depository Institution by Commissioner › Section 18 - Plan for reorganization or liquidation of institution -- Hearing -- Procedure -- Effect -- Appeals.

7-2-18.
Plan for reorganization or liquidation of institution -- Hearing -- Procedure -- Effect -- Appeals.
(1) If the commissioner has taken possession of any institution or other person under the jurisdiction of the department he may propose to the court a plan for the reorganization or liquidation of the institution or the establishment of a new institution by filing a petition with the court, setting forth the details of the plan and requesting the court to set a day for hearing on the petition.
(2) The court shall make an order fixing a day for the hearing of the petition, prescribing the manner in which notice of the hearing is given, and may prescribe a deadline for filing written objections. The court may adjourn the hearing from time to time and no further notice is required. At the time of hearing or any adjournment of a hearing the court shall take testimony, and if it appears that it is in the best interests of the depositors and other creditors, the court shall approve the plan.
(3) A plan of reorganization or liquidation approved by the court shall be fully binding upon and constitute a final adjudication of all claims, rights, and interests of all depositors, creditors, shareholders, and members of the institution being reorganized or liquidated, and all other parties in interest with regard to the plan and with regard to any institution or other person receiving any assets or assuming any liabilities under the plan.
(4) Notice of an appeal of an order approving a plan of reorganization or liquidation shall be filed within 10 days after the date of entry of the order appealed from.
Amended by Chapter 1, 1986 Special Session 4
Amended by Chapter 1, 1986 Special Session 4
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 2 - Possession of Depository Institution by Commissioner › Section 19 - Suspension of payments by institution -- Order of commissioner -- Approval of governor -- Period effective -- Exempt payments -- Operation during suspension -- Modification of orders -- Adoption of rules and regulations.

7-2-19.
Suspension of payments by institution -- Order of commissioner -- Approval of governor -- Period effective -- Exempt payments -- Operation during suspension -- Modification of orders -- Adoption of rules and regulations.
(1) The commissioner, whenever in his opinion the action is necessary in the public interest, may, if the governor approves, order such institutions as are subject to his supervision to suspend the payment in any manner of their respective liabilities to their depositors and other creditors, except as hereinafter provided.
(2) The order shall become effective upon notice, and shall continue in full force and effect until rescinded or modified by him. No such order shall be issued for an initial period of more than 60 days, but any such order may, if the governor approves, be extended from time to time for further periods not exceeding 60 days each.
(3) Nothing contained in this chapter shall affect the right of the institutions to pay current operating expenses and other liabilities incurred during a period of suspension.
(4) Whenever in the opinion of the commissioner conditions warrant such action, he may, if the governor approves, authorize the issuance of clearing house certificates, post notes or other evidences of indebtedness, either during a period of suspension, or during such longer period as he may prescribe, and during a period of suspension, he may permit the suspended institution to receive deposits and may authorize any such institution to pay any part of its liabilities, or of any class thereof, payment of which has been suspended.
(5) He may, if the governor approves, at any time, by order, modify or rescind any or all previous orders made by him under authority of this chapter.
(6) The commissioner may, if the governor approves, prescribe such rules and regulations as he considers necessary in order to carry out the provisions of this chapter, and an order may be issued on such terms and conditions as may be incorporated in the order.
Enacted by Chapter 16, 1981 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 2 - Possession of Depository Institution by Commissioner › Section 21 - Applicability of Utah Procurement Code.

7-2-21.
Applicability of Utah Procurement Code.
No action of the commissioner taken under this chapter or Chapter 19, Acquisition of Failing Depository Institutions or Holding Companies, is subject to the provisions of Title 63G, Chapter 6a, Utah Procurement Code.
Amended by Chapter 347, 2012 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 2 - Possession of Depository Institution by Commissioner › Section 22 - Termination of authority to transact business.

7-2-22.
Termination of authority to transact business.
If an institution or other person subject to the jurisdiction of the department is operated by a federal deposit insurance agency or its appointee pursuant to a federal receivership or conservatorship for a period of 180 days or more, the authority of that institution or person to transact business under this title shall terminate upon the expiration of the 180-day period.
Enacted by Chapter 229, 1987 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 2 - Possession of Depository Institution by Commissioner › Section 23 - Limitation of action -- Tolling of period.

7-2-23.
Limitation of action -- Tolling of period.
(1) If applicable law, an order entered in any proceeding, any cause of action arising under this chapter, or an agreement, fixes a period within which the institution, the commissioner, or any receiver or liquidator appointed under Section 7-2-9 may commence an action, and the period has not expired before the date of possession by the commissioner, the receiver or liquidator may commence an action only before the later of:
(a) the end of the period;
(b) three years after the date of appointment of a receiver or liquidator under Section 7-2-9; or
(c) three years after the date of possession by the commissioner.
(2) No statute of limitations as to any cause of action against an officer or director of a depository institution begins to run as to the commissioner or any receiver or liquidator appointed under Section 7-2-9 until the date the commissioner takes possession of the institution under this chapter.
Enacted by Chapter 267, 1989 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 1 - Application of chapter.

Effective 5/13/2014
7-3-1.
Application of chapter.
This chapter applies to all banks organized under the laws of this state, to all other banks doing business in this state as permitted by the laws and Constitution of the United States, and to all persons conducting banking business in this state except as provided in Chapter 1, General Provisions.
Amended by Chapter 189, 2014 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 2 - Restrictions on conduct of banking business.

7-3-2.
Restrictions on conduct of banking business.
(1) The establishment or operation in this state of private or partnership banks is expressly prohibited.
(2) An institution may establish or maintain a main office or branch in this state at which to conduct banking business only if:
(a) it is legitimately chartered as a bank by a state, the federal government, or a foreign government; and
(b) in the case of a bank whose home state is not Utah, it is authorized to have a branch in Utah under the laws of this state and the laws of its home state.
Amended by Chapter 49, 1995 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 3 - "Banking business" defined -- Credit card banks -- Insurance of deposit accounts.

Effective 5/12/2020
7-3-3.
"Banking business" defined -- Credit card banks -- Insurance of deposit accounts.
(1)
(a) Except as provided under Subsection (1)(b), a person is considered to be conducting a banking business and is a bank subject to the provisions of this title that are applicable to banks if the person is authorized:
(i) under the laws of this:
(A) state;
(B) another state;
(C) the United States;
(D) the District of Columbia; or
(E) a territory of the United States; and
(ii)
(A) to accept deposits from the public; and
(B) to conduct such other business activities as may be authorized by statute or by the commissioner in accordance with Subsection 7-3-10(3).
(b) A person is not considered to be a bank subject to the provisions of this title that are applicable to banks if the person is authorized to conduct the business of:
(i) a federal savings and loan association;
(ii) a federal savings bank;
(iii) an industrial bank subject to Chapter 8, Industrial Banks;
(iv) a federally chartered credit union; or
(v) a credit union subject to Chapter 9, Utah Credit Union Act.
(2) A person authorized to operate as a bank in this state may operate as a credit card bank if it:
(a) engages only in credit card operations;
(b) does not accept demand deposits or deposits that the depositor may withdraw by check or similar means for payment to third parties or others;
(c) does not accept a savings or time deposit of less than $100,000;
(d) maintains only one office that accepts deposits; and
(e) does not engage in the business of making commercial loans.
(3) All deposit accounts in banks or branches subject to the jurisdiction of the department shall be insured by the Federal Deposit Insurance Corporation or a successor to the Federal Deposit Insurance Corporation.
Amended by Chapter 354, 2020 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 10 - Organization -- Powers, rights, and privileges of banking corporation -- Other business activities.

Effective 5/8/2018
7-3-10.
Organization -- Powers, rights, and privileges of banking corporation -- Other business activities.
(1) A bank chartered under this chapter shall be:
(a) a domestic corporation under Title 16, Chapter 10a, Utah Revised Business Corporation Act; or
(b) subject to Section 7-1-810, including the requirement that the bank be an S Corporation immediately before becoming a limited liability company, a limited liability company created under Title 48, Chapter 3a, Utah Revised Uniform Limited Liability Company Act.
(2) A bank has all the rights, privileges, and powers necessary or incidental to carrying on the business of banking in addition to the powers granted:
(a) if the bank is a corporation, under Title 16, Chapter 10a, Utah Revised Business Corporation Act; or
(b) subject to Section 7-1-810, if the bank is a limited liability company, under Title 48, Chapter 3a, Utah Revised Uniform Limited Liability Company Act.
(3) The commissioner may, by rule or order, determine that necessary or incidental rights, privileges, and powers include:
(a) the rights, privileges, and powers held by national banks; or
(b) other business activities so long as the commissioner's determination is not inconsistent with the rules, regulations, or other actions of the board of governors of the Federal Reserve System under Section 4(c)(8) of the Bank Holding Company Act of 1956, 12 U.S.C. Sec. 1843(c)(8).
(4) The commissioner shall implement this section in a manner consistent with the purposes set forth in Section 7-1-102.
Amended by Chapter 281, 2018 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 12 - Prohibited investments and loans.

7-3-12.
Prohibited investments and loans.
(1)
(a) Except as provided in Subsection (2), a bank may not make an investment or loan described in Subsection (1)(b) if the aggregate of the investments and loans described in Subsections (1)(b)(i) and (ii) plus any indebtedness incurred by any corporation holding the premises of the bank which is an affiliate of the bank, exceeds the greater of:
(i) the amount of the capital stock and surplus of the bank; or
(ii) 50% of the total capital accounts of the bank.
(b) If an investment or loan will violate Subsection (1)(a), a bank may not:
(i) invest in its own premises including furniture, fixtures and equipment, or in the stock, bonds, debentures, or other obligations of any corporation holding the premises of the bank; or
(ii) make loans to or upon the security of the stock of any corporation holding the bank's premises.
(2) A bank may make an investment or loan prohibited under Subsection (1) with the prior written approval of the commissioner if the bank can demonstrate reasonable need for the investment or loan to the commissioner.
Amended by Chapter 91, 1997 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 13 - Changes in articles of incorporation restricted.

7-3-13.
Changes in articles of incorporation restricted.
No change shall be made in the articles of incorporation of any bank if the change would result in the impairment of the rights, remedies, or securities of depositors and other creditors of the bank.
Enacted by Chapter 16, 1981 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 15 - Dividends allowed -- Surplus requirements.

Effective 5/13/2014
7-3-15.
Dividends allowed -- Surplus requirements.
(1) The board of directors of a bank may declare a cash or stock dividend out of the net profits of the bank after providing for all expenses, losses, interest, and taxes accrued or due from the bank, as it shall judge expedient.
(2) Before any dividend is declared pursuant to Subsection (1), not less than 10% of the net profits of the bank for the period covered by the dividend shall be carried to a surplus fund until the surplus shall amount to 100% of its capital stock.
(3) Under this section, any amounts paid into a fund for the retirement of any debenture capital or preferred stock of the bank from its net earnings for the period covered by the dividend shall be considered an addition to its surplus fund if, upon the retirement of the debenture capital or preferred stock, the amount paid into the retirement fund for the period may be properly carried to the surplus fund of the bank. In this case the bank shall be obligated to transfer to the surplus fund the amount paid into the retirement fund.
Amended by Chapter 97, 2014 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 18 - Real estate acquisition, holding, and conveyance.

7-3-18.
Real estate acquisition, holding, and conveyance.
A bank may purchase, hold, and convey real estate, other than bank premises, only for those purposes and in a manner prescribed by commissioner by regulation. Such regulations may not be more restrictive than the laws and regulations applicable to acquisition and holding of real estate by national banks.
Amended by Chapter 8, 1983 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 19 - Limitations on loans and extensions of credit.

7-3-19.
Limitations on loans and extensions of credit.
(1) The total loans and extensions of credit, including credit exposure to a derivative transaction, by a bank to a person outstanding at one time and not fully secured, as determined in a manner consistent with Subsection (2), by collateral having a market value at least equal to the amount of the loan or extension of credit may not exceed 15% of the amount of the bank's total capital.
(2)
(a) The total loans and extensions of credit, including credit exposure to a derivative transaction, by a bank to a person outstanding at one time and fully secured by readily marketable collateral having a market value, as determined by reliable and continuously available price quotations, at least equal to the amount of the funds outstanding may not exceed 10% of the total capital of the bank.
(b) The limitation of Subsection (2)(a) is separate from and in addition to the limitation described in Subsection (1).
(3)
(a) The limitations contained in Subsections (1) and (2) are subject to exceptions the commissioner may prescribe by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(b) A rule made under this section may not be inconsistent with law and regulations applicable to loan restrictions on national banks.
(4)
(a) The commissioner may, by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, define the following terms as used in this section:
(i) "credit exposure to a derivative transaction";
(ii) "derivative";
(iii) "loans and extensions of credit"; and
(iv) "person".
(b) The definitions described under Subsection (4)(a) may not be inconsistent with those applicable to national banks.
Amended by Chapter 194, 2012 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 20 - Bank acquiring, holding, or accepting as collateral its own stock.

Effective 5/13/2014
7-3-20.
Bank acquiring, holding, or accepting as collateral its own stock.
(1) A bank may not accept as collateral or acquire its own stock except when the taking of the collateral or acquisition of the stock is necessary to prevent loss upon a debt previously contracted in good faith.
(2) If a bank acquires stock as permitted under Subsection (1), the bank shall sell the stock within 12 months from the date of the bank's acquisition.
(3) The value of all the stock held after acceptance or acquisition may not exceed 10% of the total capital of the bank.
Amended by Chapter 97, 2014 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 21 - Stock ownership by banks.

Effective 5/13/2014
7-3-21.
Stock ownership by banks.
(1) A bank may purchase, own and hold, and sell or otherwise dispose of:
(a) shares of the Federal Reserve Bank of the Twelfth Federal Reserve District;
(b) the stock of a corporation organized under the laws of the United States for purposes similar to those of the federal reserve banks or the Federal Deposit Insurance Corporation;
(c) shares of the Federal National Mortgage Association;
(d) the stock of a safe deposit company;
(e) the stock of a corporation owning the banking house in which any place of business of the bank is located;
(f) the stock of a bank service corporation performing services for the bank;
(g) the stock of a corporation acquired by the bank in satisfaction of or on account of debts previously contracted in the course of the bank's business;
(h) the stock of a foreign banking corporation;
(i) the stock of a corporation authorized under Title IX of the Housing and Urban Development Act of 1968;
(j) the stock of the Government National Mortgage Association authorized under 12 U.S.C. Sec. 1716 et seq.;
(k) the stock of a charitable foundation;
(l) the stock of a community development corporation;
(m) the stock of bankers' banks; and
(n) the stock of an agricultural credit corporation.
(2) A bank may invest in a small business investment company to the same extent allowed federally chartered banks.
(3) Unless expressly authorized by this chapter, a bank may not purchase or own the stock of any other corporation except in a fiduciary capacity.
Amended by Chapter 97, 2014 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 22 - Certificates and evidences of deposit binding -- Issuance of items intended to circulate as money prohibited.

7-3-22.
Certificates and evidences of deposit binding -- Issuance of items intended to circulate as money prohibited.
All certificates or evidences of deposit made by the proper officers of any bank bind the bank with or without its corporate seal affixed. No bank shall issue any bill, note, or certificate intended to circulate as money.
Enacted by Chapter 16, 1981 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 24 - Certification of check.

7-3-24.
Certification of check.
It shall be unlawful for any bank to certify any check drawn upon the bank unless the person drawing the check has on deposit with the bank at the time the check is certified an amount of money equal to the amount specified in the check.
Enacted by Chapter 16, 1981 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 25 - Bad debts.

7-3-25.
Bad debts.
All demand and matured debts due to any bank on which interest is past due and has not been paid for a period of six months, unless they are well secured and in process of collection, are considered bad debts and shall be charged off to the reserve for loan losses account.
Amended by Chapter 200, 1994 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 28 - Capital notes or debentures.

7-3-28.
Capital notes or debentures.
(1) Any bank, with the prior written approval of the commissioner and the authorization by resolution of its board of directors may issue its convertible or nonconvertible capital notes or debentures. The issuance may be in the amounts, for the term, and contain provisions as may be approved by the commissioner.
(2) All such notes or debentures shall be subordinated to the claims of depositors and other creditors.
(3) The total amount of outstanding capital notes or debentures of any bank may not exceed such limitations as the commissioner may by regulation prescribe for the protection of depositors. The limitations prescribed may not be more restrictive than those prescribed for national banks.
(4) The amount of such outstanding capital notes or debentures not maturing within one year shall be added to the capital of the issuing bank for the purpose of determining the maximum amount that may be loaned to a single borrower by such bank as provided in this chapter.
(5) The commissioner may prescribe regulations for the protection of the bank's depositors and shareholders as, in the judgment of the commissioner, will effectuate the purposes of this section.
Amended by Chapter 8, 1983 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 30 - Board of directors to manage business -- Residency of directors.

7-3-30.
Board of directors to manage business -- Residency of directors.
The business and affairs of a corporation conducting a banking business shall be managed by its board of directors. Directors are not required to be residents of this state or shareholders of the corporation unless its articles of incorporation or bylaws so require.
Enacted by Chapter 16, 1981 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 31 - Oath of bank directors.

7-3-31.
Oath of bank directors.
When a person is appointed or elected to be a director of a bank, that person shall take an oath promising to diligently carry out the duties required of a director, to honestly administer the affairs of the bank, and not to knowingly violate or wilfully permit the violation of any of the provisions of law applicable to the bank. The oath shall be subscribed by the director and shall be immediately filed in the office of the commissioner.
Enacted by Chapter 16, 1981 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 32 - Meetings of board of directors -- Reports -- Records -- Loans to officers, directors and principal shareholders.

7-3-32.
Meetings of board of directors -- Reports -- Records -- Loans to officers, directors and principal shareholders.
(1) In this section "principal shareholder" means any officer, director, or person who directly or indirectly owns, controls, or has the power to vote more than 10% of any class of voting securities of the bank.
(2) The board of directors of every bank shall hold at least one regular meeting every three months. The board shall designate an officer or officers of the bank to prepare and submit reports to the board at every regular quarterly meeting in such detail as the board may direct. Such reports shall include pertinent information on the loans and investments, the transactions with affiliates, and the lines of credit and acquisitions of real estate made during the preceding quarter or since the last report. It shall also include information on delinquent loans, other possible losses, and such other information as the regulations of the department may require.
(3) At regular intervals at least twice each year, a report shall be made to the board of:
(a) the aggregate amount of all extensions of credit by the bank to its officers, directors, and principal shareholders and their related interests; and
(b) all extensions of credit from a correspondent bank of the bank to an executive officer or principal shareholder of the bank, since the last preceding report. The board of directors shall make the reports part of the record of the meeting, and the record shall show its action.
Amended by Chapter 177, 1990 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 33 - Examination of affairs by board of directors -- Purposes -- Frequency -- Report filed in bank records.

7-3-33.
Examination of affairs by board of directors -- Purposes -- Frequency -- Report filed in bank records.
(1) Except as otherwise expressly provided in this chapter, it shall be the duty of the board of directors of every bank to examine or cause to be examined fully the books, papers, and affairs of the bank, and particularly the loans, discounts, and overdrafts thereof with a special view of ascertaining the value and security thereof and of the collateral security, if any, given in connection therewith, and to inquire into such other matters as the commissioner of financial institutions or bank examiner may require.
(2) The examination shall be made not less frequently than once within an 18-month period and at such other times as the commissioner may require.
(3) Within 30 days after the completion of the examination a report in writing thereof shall be made and placed on file with the records of the bank and shall be subject to examination by the commissioner or bank examiner.
Amended by Chapter 20, 1995 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 34 - Contents of examination report of board of directors -- Failure to make and file report as misdemeanor.

7-3-34.
Contents of examination report of board of directors -- Failure to make and file report as misdemeanor.
The report required by Subsection 7-3-33(3) shall contain a statement of the assets and liabilities of the bank as shown by its books, and any deductions for the assets or additions to the liabilities which the directors, an examining committee, or examiner after the examination, may recommend. It shall also contain a detailed statement of loans, if any, which in their opinion are worthless or doubtful, together with their reasons for so regarding them, also a statement of loans made on collateral security which in their opinion are insufficiently secured, giving in each case the amount of the loan, the name and market value of the collateral, if it has any market value, and, if without market value, a statement of that fact and its actual value as near as it is possible to ascertain. The report shall also contain a statement of overdrafts with the names of the persons owing the same and the amounts of those they consider worthless or doubtful, and a full statement of other matters which affect the solvency and soundness of the bank. If the directors of any bank wilfully fail to make and file, or cause to be made and filed, the examination and report in the manner and within the time specified, each director of the bank shall be guilty of a class C misdemeanor.
Enacted by Chapter 16, 1981 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 35 - Examinations in lieu of directors' examination -- Report filed with board minutes.

7-3-35.
Examinations in lieu of directors' examination -- Report filed with board minutes.
(1) With the approval of the commissioner, and under rules and regulations prescribed by him, any examination made during an 18-month period by the department, the applicable federal reserve bank or the Federal Deposit Insurance Corporation, or a certified audit prepared by an independent certified public accountant may be substituted for the directors' examination required under Section 7-3-33.
(2) If an examination by the department, the applicable federal reserve bank, or the Federal Deposit Insurance Corporation or an audit by a certified public accountant, is substituted for the directors' examination, the board of directors of the examined bank, or an examining committee appointed by the board shall prepare and file with the minutes of the board a detailed written report of the findings and recommendations based upon the examination. The report shall be in addition to any other requirements prescribed by the commissioner.
Enacted by Chapter 16, 1981 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 36 - Loans to officers, directors and stockholders.

7-3-36.
Loans to officers, directors and stockholders.
A bank may lend its funds or extend credit to any executive officer or director of the bank or to any person who directly or indirectly owns, controls, or has the power to vote 10% or more of any class of voting securities of the bank only in the manner and to the extent that the commissioner may prescribe by regulation. Any limitations imposed by the commissioner under this section may not be more restrictive than those prescribed by regulations issued by the bank's federal supervisory or insuring agency.
Amended by Chapter 8, 1983 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 39 - Shareholders' right to examine bank records -- Records as to a particular customer.

7-3-39.
Shareholders' right to examine bank records -- Records as to a particular customer.
Every shareholder of a bank shall have the right to examine the books and records of the bank as provided in Sections 16-10a-1601 through 16-10a-1604. Access to records pertaining solely to the deposits, borrowings, or other financial transaction of a particular customer shall be allowed to a shareholder of the bank upon the following conditions:
(1) a written request for such access is submitted to the board of directors of the bank stating its purpose and necessity;
(2) the board denies such request;
(3) the shareholder files a petition with a court of competent jurisdiction requesting an order granting such access;
(4) after hearing upon not less than 10 days' written notice to the bank and to the particular person whose records are involved, the court finds that the request for access is made in good faith and it is necessary to protect a legitimate interest of a shareholder;
(5) the court orders that the records of the bank pertaining to the particular customer be made available subject to such conditions as the court considers appropriate to protect the privacy of the customer; and
(6) the person seeking to inspect or obtain copies of such records reimburses the bank for the costs of search, retrieval, and reproduction of such records. The bank shall have no liability to the customer in providing to the shareholder of the bank access to such records in accordance with the terms and conditions of the order of the court.
Amended by Chapter 277, 1992 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 3 - Banks › Section 40 - Board of Bank Advisors.

Affected by 63I-1-207 on 7/1/2032
7-3-40.
Board of Bank Advisors.
(1) There is created a Board of Bank Advisors consisting of five members to be appointed by the governor as follows:
(a) each member of the board shall be an individual who is familiar with and associated with banks organized under this chapter; and
(b) at least three of the members of the board shall be individuals who:
(i) have had three or more years experience as a bank executive officer; and
(ii) are selected from a list submitted to the governor by an association in this state representing commercial banks.
(2)
(a) The board shall meet quarterly.
(b) Subject to Subsection (2)(a), meetings of the board shall be held on the call of the chair.
(3) The members of the board shall elect the chair of the board each year from the membership of the advisory board by a majority of the members present at the board's first meeting each year.
(4)
(a) Except as required by Subsection (4)(b), as terms of current board members expire, the governor shall appoint each new member or reappointed member to a four-year term.
(b) Notwithstanding the requirements of Subsection (4)(a), the governor shall, at the time of appointment or reappointment, adjust the length of terms to ensure that the terms of board members are staggered so that approximately half of the board is appointed every two years.
(5) When a vacancy occurs in the membership of the board for any reason, the replacement shall be appointed for the unexpired term.
(6) All members shall serve until their successors are appointed and qualified.
(7) A member may not receive compensation or benefits for the member's service, but may receive per diem and travel expenses in accordance with:
(a) Section 63A-3-106;
(b) Section 63A-3-107; and
(c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and 63A-3-107.
(8) A majority of the members of the board shall constitute a quorum.
(9) The board has the duty to advise the governor and commissioner on problems relating to banks organized under this chapter and to foster the interest and cooperation of banks in the improvement of their services to the people of the state.
Amended by Chapter 286, 2010 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 5 - Trust Business › Section 2 - Permit required to engage in trust business -- Exceptions.

Effective 5/13/2014
7-5-2.
Permit required to engage in trust business -- Exceptions.
(1) No trust company shall accept any appointment to act in any agency or fiduciary capacity, including that of personal representative, executor, administrator, conservator, guardian, assignee, receiver, depositary, or trustee under order or judgment of any court or by authority of any law of this state or as trustee for any purpose permitted by law or otherwise engage in the trust business in this state, unless and until it has obtained from the commissioner a permit to act under this chapter. This provision does not apply to any bank or other corporation authorized to engage and lawfully engaged in the trust business in this state before July 1, 1981.
(2) Nothing in this chapter prohibits:
(a) any corporation organized under Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act, or Chapter 10a, Utah Revised Business Corporation Act, from acting as trustee of any employee benefit trust established for the employees of the corporation or the employees of one or more other corporations affiliated with the corporation;
(b) any corporation organized under Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act, and owned or controlled by a charitable, benevolent, eleemosynary, or religious organization from acting as a trustee for that organization or members of that organization but not offering trust services to the general public;
(c) any corporation organized under Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act, or Chapter 10a, Utah Revised Business Corporation Act, from holding in a fiduciary capacity the controlling shares of another corporation but not offering trust services to the general public; or
(d) any depository institution from holding in an agency or fiduciary capacity individual retirement accounts or Keogh plan accounts established under Section 401(a) or 408(a) of Title 26 of the United States Code.
Amended by Chapter 189, 2014 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 5 - Trust Business › Section 3 - Application for authorization to engage in trust business -- Criteria for granting -- Authority of trust company.

7-5-3.
Application for authorization to engage in trust business -- Criteria for granting -- Authority of trust company.
(1) A person seeking authorization to become a trust company and engage in the trust business in this state shall file an application with the commissioner in the manner provided in Section 7-1-704, and shall pay the fee prescribed in Section 7-1-401.
(2) The commissioner shall, in deciding whether or not to approve the application, take into account:
(a) the character and condition of the applicant's assets;
(b) the adequacy of its capital;
(c) its earnings record;
(d) the quality of its management;
(e) the qualifications of any person proposed to be an officer in charge of the trust operations;
(f) the needs of the community for fiduciary services;
(g) the volume of business that the applicant will probably do; and
(h) any other relevant facts and circumstances, including the availability of legal counsel to advise and pass upon matters relating to the trust business.
(3) The commissioner may not apply criteria making it more difficult for a state chartered depository institution to obtain approval to engage in the trust business than for a federally chartered depository institution of the same class.
(4) The commissioner may impose such conditions when authorizing a person to engage in the trust business as he considers appropriate to protect the public interest.
(5) Upon receiving authorization from the commissioner to become a trust company and engage in the trust business, the trust company is qualified to act as fiduciary in any capacity without bond.
Amended by Chapter 200, 1994 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 5 - Trust Business › Section 4 - Withdrawal from trust business.

7-5-4.
Withdrawal from trust business.
Any trust company which desires to withdraw from and discontinue doing a trust business shall furnish to the commissioner satisfactory evidence of its release and discharge from all the obligations and trusts undertaken by it, and after the company has furnished that evidence the commissioner shall revoke his certificate of authority to do a trust business previously issued to that trust company, and thereafter that trust company may not be permitted to use and may not use the word "trust" in its corporate name or in connection with its business, nor undertake the administration of any trust business.
Amended by Chapter 378, 2010 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 5 - Trust Business › Section 5 - Revocation of trust authority -- Procedure.

7-5-5.
Revocation of trust authority -- Procedure.
(1)
(a) The commissioner may issue and serve upon a trust company a notice of intent to revoke the authority of the trust company to exercise the powers granted by this chapter, if, in the commissioner's opinion, the trust company:
(i) is unlawfully or unsoundly exercising the powers granted under this chapter;
(ii) has unlawfully or unsoundly exercised the powers granted under this chapter;
(iii) has failed, for a period of five consecutive years, to exercise the powers granted by this chapter;
(iv) fails or has failed to comply with requirements upon which its permit is conditioned; or
(v) fails or has failed to comply with any rule of the commissioner.
(b) The notice shall:
(i) contain a statement of the facts constituting the alleged unlawful or unsound exercise of powers, or failure to exercise powers, or failure to comply; and
(ii) fix the time and place at which a hearing will be held to determine whether an order revoking authority to execute those powers should issue against the trust company.
(2)
(a) If the trust company or its representative does not appear at the hearing, the commissioner may consider the trust company to be in default, and may issue a revocation order.
(b) If default has occurred, or if upon the record made at any hearing the commissioner finds that any allegation specified in the notice of charges has been established, the commissioner shall issue and serve upon the trust company an order:
(i) prohibiting it from accepting any new or additional trust accounts; and
(ii) revoking its authority to exercise any powers granted under this chapter.
(c) Any order issued under this section permits the trust company to continue to service all previously accepted trust accounts pending their expeditious divestiture or termination.
(3) A revocation order shall become effective 30 days after service of the order upon the trust company and shall remain effective and enforceable, unless it is stayed, modified, terminated, or set aside by action of the commissioner or by judicial review as provided for in Section 7-1-714.
Amended by Chapter 9, 2001 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 5 - Trust Business › Section 6 - Confidentiality of communications and writings concerning trust -- Actions to protect property or authorized under probate laws not precluded.

Effective 5/13/2014
7-5-6.
Confidentiality of communications and writings concerning trust -- Actions to protect property or authorized under probate laws not precluded.
Any trust company exercising the powers and performing the duties described in this chapter shall keep inviolate all communications and writings made to or by that trust company relating to the existence, condition, management or administration of any agency or fiduciary account confided to it and no creditor or stockholder of any such trust company shall be entitled to disclosure or knowledge of any such communication or writing, except that the directors, president, vice president, manager, treasurer, and trust officers, and any employees assigned to work on the trust business, and the attorney or auditor employed by it shall be entitled to knowledge of any such communication or writing and except that in any suit or proceeding relating to the existence, condition, management or administration of the account, the court in which the suit is pending may require disclosure of any such communication or writing. A trust company is not, however, precluded from filing an action in court to protect trust account property or as authorized under Title 75, Utah Uniform Probate Code.
Amended by Chapter 189, 2014 General Session