reglab/statecodes huggingface dataset:
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 5 - Trust Business › Section 8 - Segregation of trust assets -- Books and records required -- Examination -- Trust property not subject to claims or debts against trust company.

Effective 5/13/2014
7-5-8.
Segregation of trust assets -- Books and records required -- Examination -- Trust property not subject to claims or debts against trust company.
A trust company exercising the powers to act as an agent or fiduciary under this chapter shall segregate all assets held in any agency or fiduciary capacity from the general assets of the company and shall keep a separate set of books and records showing in proper detail all transactions engaged in under authority of this chapter. These books and records shall be open to inspection by the commissioner and shall be examined by him or by examiners appointed by him as provided in Chapter 1, General Provisions, or examined by other appropriate regulating agencies or both. Property held in an agency or fiduciary capacity by a trust company is not subject to claims or debts against the trust company.
Amended by Chapter 189, 2014 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 5 - Trust Business › Section 9 - Registration of investment in name of nominee -- Records -- Possession of investment.

7-5-9.
Registration of investment in name of nominee -- Records -- Possession of investment.
(1) A trust company may cause any security, as defined in Section 75-1-201, held in its agency or fiduciary capacity to be registered and held in the name of a nominee or nominees of the trust company. The trust company shall be liable for the acts of any such nominee with respect to any investment so registered. Investments other than securities held in the name of a nominee on June 30, 1981, may continue to be held in that manner.
(2) The records of the trust company shall at all times show the ownership of any such investment, which investment shall be in the possession or control of the trust company and be kept separate and apart from the assets of the trust company.
Amended by Chapter 93, 2010 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 5 - Trust Business › Section 10 - Lending trust funds to trust company, officer, director, or employee as felony.

7-5-10.
Lending trust funds to trust company, officer, director, or employee as felony.
Unless expressly permitted in the instrument creating a trust account or by a person authorized to give that permission or by a court order as permitted in Section 75-7-802, no trust company shall lend to itself or to any officer or director or employee of the trust company any funds held in any trust account under the powers conferred in this chapter. Any officer, director or employee making such a loan, or to whom such a loan is made, is guilty of a third degree felony.
Amended by Chapter 89, 2004 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 5 - Trust Business › Section 11 - Self-dealing with trust property -- Own stock as trust property -- Policies for dealing with trust securities.

Effective 5/13/2014
7-5-11.
Self-dealing with trust property -- Own stock as trust property -- Policies for dealing with trust securities.
(1) Except as provided in Section 7-5-7, in Title 75, Utah Uniform Probate Code, or as authorized under the instrument creating the relationship, a trust company may not invest funds held as an agent or fiduciary in stock or obligations of, or with such funds acquire property from, the trust company or any of its directors, officers or employees, nor shall a trust company sell property held as an agent or fiduciary to the company or to any of its directors, officers, or employees.
(2) A trust company may retain and vote stock of the trust company or of any of its affiliates received by it as assets of any trust account or in any other fiduciary relationship of which it is appointed agent or fiduciary, unless the instrument creating the relationship otherwise provides.
(3) Every trust company shall adopt written policies and procedures regarding decisions or recommendations to purchase or sell any security to facilitate compliance with federal and state securities laws. These policies and procedures, in particular, shall prohibit the trust company from using material inside information in connection with any decision or recommendation to purchase or sell any security.
Amended by Chapter 189, 2014 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 5 - Trust Business › Section 12 - Directors' audit of trust business -- Report available to commissioner or examiners -- Examinations in lieu of audit.

7-5-12.
Directors' audit of trust business -- Report available to commissioner or examiners -- Examinations in lieu of audit.
A committee of the board of directors, exclusive of any active officers of the trust department, of every trust company authorized to engage in the trust business in this state shall, at least once during a 15-month period, make a suitable audit of the trust business operations of the institution or cause a suitable audit to be made by auditors responsible only to the board of directors and shall ascertain whether the trust business operations of the institution have been administered in accordance with law and sound fiduciary principles. A report of the audit, together with the action taken thereon, shall be made available to the commissioner, his examiners, or the examiners of other trust company regulating agencies upon request. An examination by the state or other trust company regulating agencies or both made during the same period may be substituted for this audit.
Amended by Chapter 9, 1983 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 5 - Trust Business › Section 13 - Collective investment funds.

Superseded 7/1/2024
7-5-13.
Collective investment funds.
(1) A person authorized to engage in the trust business in this state may:
(a) establish collective investment funds that authorize participation by fiduciary or trust accounts of the trust company, its affiliates, or both; and
(b) participate in collective investment funds established by an affiliate of the trust company, if:
(i) the affiliate is authorized under the laws of its chartering authority to establish a collective investment fund in which its affiliates may participate; and
(ii) the plan establishing the collective investment fund specifically authorized the participation.
(2) Funds held by a trust company may be invested collectively in a collective investment fund in accordance with the rules prescribed by the appropriate governmental regulatory agency or agencies, if this investment is not specifically prohibited under the instrument, judgment, decree, or order creating the regulatory relationship.
(3) Unless ordered to do so by a court of competent jurisdiction, a trust company operating collective investment funds is not required to render a court accounting with regard to those funds; but it may, by application to the district court, secure approval of such an accounting on such conditions as the court may establish.
(4) This section applies to all relationships in existence on or after May 1, 1989.
Amended by Chapter 267, 1989 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 5 - Trust Business › Section 13 - Collective investment funds.

Effective 7/1/2024
7-5-13.
Collective investment funds.
(1) A person authorized to engage in the trust business in this state may:
(a) establish collective investment funds that authorize participation by fiduciary or trust accounts of the trust company, its affiliates, or both; and
(b) participate in collective investment funds established by an affiliate of the trust company, if:
(i) the affiliate is authorized under the laws of its chartering authority to establish a collective investment fund in which its affiliates may participate; and
(ii) the plan establishing the collective investment fund specifically authorized the participation.
(2) Funds held by a trust company may be invested collectively in a collective investment fund in accordance with the rules prescribed by the appropriate governmental regulatory agency or agencies, if this investment is not specifically prohibited under the instrument, judgment, decree, or order creating the regulatory relationship.
(3) Unless ordered to do so by a court, a trust company operating collective investment funds is not required to render a court accounting with regard to those funds but the trust company may petition a court with jurisdiction under Title 78A, Judiciary and Judicial Administration, to secure approval of such an accounting on such conditions as the court may establish.
(4) This section applies to all relationships in existence on or after May 1, 1989.
Amended by Chapter 401, 2023 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 5 - Trust Business › Section 15 - Assets of trust company in possession of the commissioner.

Effective 5/13/2014
7-5-15.
Assets of trust company in possession of the commissioner.
With respect to a trust company in the possession of the commissioner under Chapter 2, Possession of Depository Institution by Commissioner, notwithstanding any law to the contrary, the assets held by the trust company in a fiduciary capacity as a part of its trust business, as defined in Section 7-5-1, are not subject to the claims of any secured or unsecured creditor of the trust company.
Amended by Chapter 189, 2014 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 8 - Industrial Banks › Section 3 - Organization -- Authorization to conduct business -- Deposit insurance.

Effective 5/8/2018
7-8-3.
Organization -- Authorization to conduct business -- Deposit insurance.
(1) Subject to Subsection (4), the commissioner may authorize a person described in Subsection (2) to conduct business as an industrial bank.
(2)
(a) Each person organized to conduct the business of an industrial bank in this state shall be organized under:
(i)Title 16, Chapter 10a, Utah Revised Business Corporation Act; or
(ii) in accordance with Section 7-1-810 or Title 48, Chapter 3a, Utah Revised Uniform Limited Liability Company Act.
(b) A person may not conduct business as an industrial bank authorized under this chapter to conduct business as an industrial bank in any form of entity other than those provided in Subsection (2)(a).
(3)
(a) All rights, privileges, powers, duties, and obligations of a corporation authorized to conduct business as an industrial bank and its officers, directors, and stockholders shall be governed by Title 16, Chapter 10a, Utah Revised Business Corporation Act, except as otherwise provided in this title.
(b) All rights, privileges, powers, duties, and obligations of a limited liability company authorized to conduct business as an industrial bank and its members and managers shall be governed by Title 48, Chapter 3a, Utah Revised Uniform Limited Liability Company Act, except as otherwise provided in this title.
(4)
(a) An industrial bank is authorized to receive and hold deposits.
(b) An industrial bank may not conduct business under this chapter as an industrial bank unless the industrial bank obtains insurance from the Federal Deposit Insurance Corporation or a successor federal deposit insurance entity for any deposits received or held by the industrial bank.
Amended by Chapter 281, 2018 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 8 - Industrial Banks › Section 5 - Acquisition of own stock restricted -- Capital requirements.

7-8-5.
Acquisition of own stock restricted -- Capital requirements.
(1)
(a) An industrial bank may not accept as collateral, or be a purchaser of, shares of its own capital stock, unless taking the shares as collateral or purchasing them is necessary to prevent loss upon a debt previously contracted in good faith.
(b) All shares of stock acquired under this Subsection (1) by the industrial bank through any purchase, foreclosure, judgment, or otherwise shall be sold within 12 months from the date of acquisition.
(c) The par value of all the shares held after acceptance or purchase may not exceed 10% of the capital and surplus of the industrial bank.
(2)
(a) Each industrial bank accepting or holding deposits shall maintain the minimum amount of capital required by its federal deposit insurer.
(b) The commissioner may require a greater amount of capital if the commissioner determines that it is necessary to protect the interests of:
(i) the depositors and other customers of the industrial bank; and
(ii) the public.
Amended by Chapter 92, 2004 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 8 - Industrial Banks › Section 11 - Dividends.

Effective 5/13/2014
7-8-11.
Dividends.
(1) The board of directors of an industrial bank may declare a dividend out of the net profits of the industrial bank after providing for all expenses, losses, interest, and taxes accrued or due from the industrial bank in accordance with this section.
(2) The industrial bank shall transfer to a surplus fund at least 10% of its net profits before dividends for the period covered by the dividend, until the surplus reaches 100% of its capital stock.
(3) Any amount paid from the industrial bank's net earnings into a fund for the retirement of any debenture capital or preferred stock for the period covered by the dividend is 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 industrial bank. In this case the industrial bank shall 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 8 - Industrial Banks › Section 13 - Real estate acquisition, holding, and conveyance.

7-8-13.
Real estate acquisition, holding, and conveyance.
An industrial bank may purchase, hold, and convey real estate, other than premises used in the conduct of its business, only for the purposes and in a manner prescribed by rule.
Amended by Chapter 92, 2004 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 8 - Industrial Banks › Section 14 - Investment in property used in conduct of business.

7-8-14.
Investment in property used in conduct of business.
(1) An industrial bank may invest in premises, equipment, and other property used in conducting its own business, as the board of directors may approve by resolution. This property may include:
(a) real property and any interest in real property, furniture, fixtures, and equipment for use in carrying on its own business; and
(b) the stock, bonds, debentures, or other obligations of any subsidiary or affiliate whose exclusive activity is the ownership and management of property used in conducting the industrial bank's business.
(2) The amount of these investments may not exceed 50% of the industrial bank's total capital, unless the commissioner approves a higher amount in writing.
Amended by Chapter 92, 2004 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 8 - Industrial Banks › Section 15 - Bad debts.

7-8-15.
Bad debts.
(1) All demand and matured debts due to any industrial 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 the process of collection, are considered bad debts and shall be charged off to the profit and loss account.
(2) The industrial bank shall maintain in its files documentation to support its evaluation of the security and monthly reports of its collection efforts and a plan of collection.
Amended by Chapter 92, 2004 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 8 - Industrial Banks › Section 16 - Registration of industrial bank holding company -- Filing and contents of statement -- Exemptions -- Rules.

7-8-16.
Registration of industrial bank holding company -- Filing and contents of statement -- Exemptions -- Rules.
(1) Each industrial bank holding company shall register with the department by filing a registration statement in a form prescribed by the commissioner. The statement shall include:
(a) the name, address, and principal occupation of each officer and director of the registrant;
(b) a statement of financial condition as of a date not more than six months prior to the date of registration;
(c) a certificate of good standing in the state in which the registrant is incorporated; and
(d) evidence that the company is authorized to transact business in this state.
(2)
(a) A person may not form an industrial bank holding company, unless it:
(i) is authorized to do so by the commissioner; and
(ii) is registered with the department as provided in Subsection (1).
(b) An applicant for authorization to form a holding company shall file an application in a form prescribed by the commissioner by rule.
(3) The commissioner may exempt an industrial bank holding company in whole or in part from registration if it is:
(a) a bank holding company or savings and loan holding company subject to federal regulation;
(b) a person that is a holding company only because the person owns or controls voting shares of an industrial bank or holding company acquired in connection with the underwriting of securities if the person holds these shares no longer than 120 days, unless the commissioner approves a longer period to permit their sale on a reasonable basis;
(c) a person exempt from the jurisdiction of the department under Section 7-1-502; or
(d) a person exempted in writing by the commissioner or by rule.
(4) The commissioner may adopt rules with respect to industrial bank holding companies as are necessary to protect:
(a) depositors;
(b) other creditors;
(c) the public; and
(d) the financial system of the state.
Amended by Chapter 92, 2004 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 8 - Industrial Banks › Section 19 - Meetings of the board of directors.

7-8-19.
Meetings of the board of directors.
(1) A quorum of the board of directors of each industrial bank shall meet at least once each quarter.
(2) Minutes of each meeting of the board of directors shall be:
(a) kept by the secretary of the industrial bank; and
(b) maintained at the head office of the industrial bank.
Amended by Chapter 92, 2004 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 8 - Industrial Banks › Section 20 - Limitations on loans to one borrower -- Exceptions -- Rules.

7-8-20.
Limitations on loans to one borrower -- Exceptions -- Rules.
(1) Except as provided in this section, the total loans and extensions of credit, including credit exposure to a derivative transaction, by an industrial bank to a person outstanding at any one time may not exceed 15% of the industrial bank's total capital.
(2) Subsection (1) does not apply to an extension of credit that is subject to, or expressly exempted from, a federal statute or federal regulation limiting the amount of total loans and credit that may be extended to any person or group of persons.
(3) The commissioner may by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
(a) exempt from Subsection (1) a class of loans or class of extensions of credit, including credit exposure to a derivative transaction, that are adequately secured or are not otherwise a risk to the safe and sound operation of an industrial bank;
(b) define terms and phrases necessary to interpret and implement this section;
(c) adopt standards for aggregating or segregating loans to the same or different persons;
(d) describe records required to be maintained;
(e) require specific actions to be taken by an institution's board of directors or executive officers; and
(f) prescribe other actions necessary to interpret and implement this section.
Amended by Chapter 194, 2012 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 8 - Industrial Banks › Section 21 - Application of chapter to industrial loan companies.

7-8-21.
Application of chapter to industrial loan companies.
(1) As used in this section, "industrial loan company" is a person that on March 17, 2004, is:
(a) authorized to conduct business under this chapter; and
(b) not authorized to hold or receive deposits.
(2) An industrial loan company may operate as an industrial bank under this chapter except that the industrial loan company:
(a) may not hold or receive deposits without:
(i) the prior written approval of the commissioner; and
(ii) obtaining insurance from the Federal Deposit Insurance Corporation or a successor federal deposit insurance entity;
(b) may not engage in any conduct authorized by this title that is conditioned on the industrial loan company being a depository institution without meeting the conditions described in Subsections (2)(a)(i) and (ii); and
(c) may not use a term listed in Subsection 7-1-701(3) in its name without meeting the conditions described in Subsections (2)(a)(i) and (ii).
(3) If a person is not authorized to conduct business under this chapter on March 17, 2004, that person may not be considered an industrial loan company under this section.
Enacted by Chapter 92, 2004 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 2 - Description of credit unions.

7-9-2.
Description of credit unions.
A credit union is a cooperative, nonprofit association, incorporated under this chapter to encourage thrift among its members, to create sources of credit at fair and reasonable rates of interest, and to provide an opportunity for its members to use and control their resources on a democratic basis in order to improve their economic and social condition.
Enacted by Chapter 16, 1981 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 3 - Definitions.

7-9-3.
Definitions.
As used in this chapter:
(1)
(a) "Association" means a group of persons that:
(i) constitute the members of a formal association organized for:
(A) an identifiable interest;
(B) an identifiable purpose;
(C) a specific profession; or
(D) a specific occupation; or
(ii) are employed by a common employer.
(b) "Association" does not include a group of persons that is:
(i) identified or created primarily on the basis of a relationship between any person and:
(A) a consumer;
(B) a customer; or
(C) a client; or
(ii) created primarily for the purpose of expanding the membership in a credit union.
(2) "Capital and surplus" means:
(a) shares;
(b) deposits;
(c) reserves; and
(d) undivided earnings.
(3) "Corporate credit union" means any credit union organized pursuant to any state or federal act for the purpose of serving other credit unions.
(4) "Credit union service organization" means an entity:
(a) that provides any of the services listed in Subsection 7-9-59(2); and
(b) in which a credit union organized under this chapter holds an ownership interest.
(5) "Deposits" means that portion of the capital paid into the credit union by members on which a specified rate of interest will be paid.
(6) "Field of membership" means persons designated as eligible for credit union membership in accordance with:
(a) Section 7-9-51 or 7-9-53; and
(b) the bylaws of the credit union.
(7) "Immediate family" means parents, spouse, surviving spouse, children, and siblings of the member.
(8)
(a) "Member-business loan" means any loan, line of credit, or letter of credit, the proceeds of which will be used for:
(i) a commercial purpose;
(ii) other business investment property or venture purpose; or
(iii) an agricultural purpose.
(b) "Member-business loan" does not include an extension of credit:
(i) that is fully secured by a lien on a one- to four- family dwelling that is the primary residence of a member;
(ii) that is fully secured by:
(A) shares or deposits in the credit union making the extension of credit; or
(B) deposits in other financial institutions;
(iii) the repayment of which is fully insured or fully guaranteed by, or where there is an advance commitment to purchase in full by, an agency of:
(A) the federal government;
(B) a state; or
(C) a political subdivision of a state; or
(iv) that is granted by a corporate credit union to another credit union.
(9) "Nonexempt credit union" means a credit union that is a nonexempt credit union under Section 7-9-55.
(10) "Share drafts," "deposit drafts," and "transaction accounts" mean accounts from which owners are permitted to make withdrawals by negotiable or transferable instruments or other orders for the purpose of making transfers to other persons or to the owner.
(11) "Shares" means that portion of the capital paid into the credit union by members on which dividends may be paid.
Amended by Chapter 327, 2003 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 6 - Formation of corporation to conduct credit union -- Approval of commissioner.

7-9-6.
Formation of corporation to conduct credit union -- Approval of commissioner.
(1)
(a) Ten or more incorporators belonging to the same group of 200 persons or more having a field of membership may, with the approval of the commissioner, form a corporation to conduct a credit union under:
(i) this chapter;
(ii)Title 16, Chapter 10a, Utah Revised Business Corporation Act; and
(iii)Chapter 1, General Provisions.
(b) This chapter takes precedence over conflicting provisions of other state law governing:
(i) the formation of the corporation; and
(ii) the duties and obligations of:
(A) the corporation;
(B) the corporation's officers; and
(C) the corporation's shareholders or members.
(2) The commissioner may grant the approval referenced in Subsection (1) if the commissioner finds that:
(a) the proposed field of membership is favorable to the success of the credit union;
(b) the standing of the proposed membership will give assurance that its affairs will be administered in accordance with this chapter;
(c) the proposed credit union has a reasonable promise of financial viability; and
(d) formation of the credit union would not result in a substantial adverse financial impact on an existing credit union having the same or substantially the same field of membership.
(3)
(a) Except as provided in Subsection (3)(b) and in addition to the requirements of Subsections (1) and (2), Section 7-1-704 governs the formation of a credit union.
(b) Notwithstanding Subsection (3)(a):
(i) if the proposed credit union has a field of membership that does not base eligibility on residence in a county, the persons seeking formation of the proposed credit union are not required to provide the notice required under Subsection 7-1-704(3); and
(ii) a credit union may not be required to obtain federal insurance if the credit union complies with Subsection 7-9-45(2).
Amended by Chapter 327, 2003 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 9 - Amendment of articles of incorporation.

7-9-9.
Amendment of articles of incorporation.
(1) The articles of incorporation may be amended at meetings of the shareholders called for that purpose.
(2) A notice of a meeting called for that purpose shall be given by mailing a copy thereof to each member at least 10 days prior to the date of the meeting or by giving notice as provided by the articles of incorporation and the bylaws of the credit union. Notice of meetings shall contain the proposed amendment.
(3) A three-fourths vote of all members present shall be necessary to amend the articles.
(4) No amendment shall be made without the approval of the commissioner.
Enacted by Chapter 16, 1981 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 11 - Bylaws and amendments to be approved.

7-9-11.
Bylaws and amendments to be approved.
(1) A credit union may not receive payments on shares, deposits, or certificates, or make any loans or other transactions, until its bylaws have been approved in writing by the commissioner.
(2) An amendment to a credit union's bylaws does not become operative until the amendment to the bylaws is approved by the commissioner.
(3)
(a) If the amendment to the bylaws of a credit union expands the field of membership of a credit union as described in Subsection 7-9-52(1), the commissioner's approval of the amendment is subject to Section 7-9-52.
(b) If the bylaws or an amendment to the bylaws of a credit union adds an association to the field of membership of the credit union, the commissioner may require that the credit union provide written confirmation from the association that the association has agreed to be served by the credit union.
Amended by Chapter 327, 2003 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 12 - Contents of bylaws.

7-9-12.
Contents of bylaws.
The bylaws of a credit union shall specify at least the following:
(1) the name of the credit union;
(2) the purpose for which the credit union was formed;
(3) a field of membership of the credit union that complies with Section 7-9-51 or 7-9-53;
(4) the number of directors and procedures for their election;
(5) the term of directors;
(6) whether a credit manager, credit committee, or combination of both shall be responsible for credit functions of the credit union;
(7) the duties of the officers;
(8) the time of year of the annual meeting of members;
(9) the manner in which members shall be notified of meetings;
(10) the number of members which shall constitute a quorum at meetings;
(11) the manner of amending;
(12) the manner in which officers may act as surety; and
(13) such other matters, rules, and regulations as the board of directors consider necessary.
Amended by Chapter 327, 2003 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 14 - Meetings.

7-9-14.
Meetings.
(1) The annual meeting of the credit union shall be held at such time and place as the bylaws prescribe.
(2) Special meetings may be held as the bylaws prescribe.
(3) Notice of all meetings of the credit union shall be given as the bylaws prescribe.
(4) In the absence of any provisions in the bylaws, special meetings of the members of the credit union may be called by a majority of the members of the corporation.
Enacted by Chapter 16, 1981 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 16 - Members -- Eligibility -- Liability -- Grounds for closing account -- Denial of membership.

7-9-16.
Members -- Eligibility -- Liability -- Grounds for closing account -- Denial of membership.
(1) A person within the field of membership of a credit union may be admitted to membership, upon:
(a) payment of any required entrance or membership fee;
(b) payment for one or more shares; and
(c) compliance with this chapter and the bylaws of the credit union.
(2) A member who is eligible for membership in a credit union at the time the member is admitted as a member but who is no longer in the field of membership of the credit union may retain membership in the credit union unless otherwise provided in the bylaws of the credit union.
(3) A member of the credit union may not be held personally or individually liable for payment of the credit union's debts.
(4) The credit union may close the account of any member whose actions have resulted in any financial loss to the credit union.
(5) Denial of membership is not considered a denial of credit.
Amended by Chapter 327, 2003 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 17 - Membership officer -- Appointment -- Eligibility -- Function -- Appeals from.

7-9-17.
Membership officer -- Appointment -- Eligibility -- Function -- Appeals from.
(1) One or more membership officers may be appointed by the board of directors.
(2) A membership officer may approve applications for membership under conditions prescribed by the board of directors and the bylaws.
(3) A membership officer shall be appointed from among the members of the credit union.
(4) A president, vice president, or loan officer may not serve as a membership officer.
(5) The membership officer authorized to approve membership shall submit to the board of directors at each monthly meeting a list of approved or pending applications for membership received since the previous monthly meeting, and other related information as the board or the bylaws may require.
(6) A person denied membership by a membership officer may appeal the denial to the board of directors.
Enacted by Chapter 16, 1981 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 18 - Expulsion of member.

7-9-18.
Expulsion of member.
(1) The board of directors or board-designated representatives may expel from the credit union any member who has not carried out his engagements with the credit union, or neglected or refused to comply with the credit union board policies, provisions of this chapter, or of the credit union bylaws.
(2) If the member whose expulsion is under consideration is a member of the board of directors or credit committee, the supervisory committee shall call a special meeting of the members to hear the facts and act upon the proposed expulsion.
Amended by Chapter 182, 1996 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 19 - Payments to expelled members -- Liability of member not relieved by expulsion.

7-9-19.
Payments to expelled members -- Liability of member not relieved by expulsion.
(1) Except in the case of liquidation or dissolution, the amount paid in on shares or deposited by members who have been expelled shall be paid to them with all accrued interest, in the order of expulsion.
(2) Payment shall be made only as funds become available.
(3) All amounts due the credit union by the expelled member shall be deducted by the credit union before any amounts are paid to the expelled member.
(4) Expulsion does not relieve a member from any liability to the credit union.
Amended by Chapter 378, 2010 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 21 - Executive officers -- Election -- Power -- Terms.

7-9-21.
Executive officers -- Election -- Power -- Terms.
(1) At their first meeting held within 30 days following each annual meeting of the members, the board of directors shall elect from their own number a board chairman, one or more vice chairmen, and a secretary. These officers shall be the executive officers of the credit union.
(2) The executive officers may act for the board in matters delegated to them by the board, as provided in the bylaws, however, the president appointed by the board, who may be a member of the board, shall take active direction of the credit union's operation, as prescribed in this chapter or in the bylaws.
(3) The terms of the executive officers shall be one year or until their successors are chosen by the board of directors and have been duly qualified.
Enacted by Chapter 16, 1981 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 22 - Credit committee -- Credit manager.

7-9-22.
Credit committee -- Credit manager.
(1) A credit union's bylaws shall provide for a credit committee, credit manager, or combination of both to be responsible for credit functions of the credit union. The bylaws shall prescribe the duties and responsibilities of the credit committee, credit manager, or combination of both.
(2) A director may not be a member of the credit committee.
(3) The credit union president may be appointed as credit manager. If the president is appointed as the credit manager, the president may not receive dual compensation for serving in both capacities.
Amended by Chapter 182, 1996 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 24 - Compensation of directors, committee members, and president -- Expense reimbursement.

7-9-24.
Compensation of directors, committee members, and president -- Expense reimbursement.
(1) A member of the board of directors, credit committee, or supervisory committee may not receive any compensation for services as such, except that the reimbursement of reasonable expenses incurred in the execution of the duties of the position may not be considered compensation.
(2) Any member of a credit union who incurs any expenses or performs any service authorized by the board of directors may be compensated or reimbursed for the expenses or services in an amount approved by the board of directors.
(3) The board of directors shall determine the compensation for a president appointed as general manager.
Amended by Chapter 182, 1996 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 25 - Shares -- Number unlimited -- Subscription and payment -- Par value -- Ownership required for membership -- Dormant accounts.

Effective 5/13/2014
7-9-25.
Shares -- Number unlimited -- Subscription and payment -- Par value -- Ownership required for membership -- Dormant accounts.
(1) The capital of the credit union shall be unlimited in amount.
(2) Shares of the credit union may be subscribed and paid for in cash or its equivalent in a manner prescribed in the bylaws.
(3) The par value of each share of a credit union shall be determined by the board of directors in multiples of $5 as prescribed in the bylaws.
(4) Each member of the credit union shall subscribe to at least one share and pay the initial installment thereon. The par value of the share shall be paid for within six months.
(5) The board of directors may close a member's account when the share par value is not paid within the required period or the par value is not maintained. Notice in writing shall be mailed to the member at the last known address and shall contain a statement that the member may increase payment or voluntarily close the account within 60 days of receipt of the notice.
(6) When a member's account becomes dormant or is reasonably presumed to be dormant and abandoned, as provided in Chapter 1, General Provisions, the credit union by resolution of the board of directors may close the account and transfer the credits of the account to an account for unclaimed shares. Thereafter the credit union may not pay dividends or interest on the account, as provided in the bylaws, until the funds in the account escheat to the state of Utah. Prior to transferring the member's dormant and abandoned account to the credit union unclaimed shares account, the credit union shall mail a written notice to the member at the member's last known address stating that this action will be taken within 30 days of the date of the notice.
Amended by Chapter 189, 2014 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 26 - Loans to members -- Investment officers -- Investments.

7-9-26.
Loans to members -- Investment officers -- Investments.
(1) Subject to Subsections 7-9-20(7) and (8) and Section 7-9-58, capital and surplus of the credit union shall be loaned to the members for the purposes and upon the endorsements or security and the terms as the bylaws provide.
(2) Within 30 days after the annual meeting of the members the board of directors may appoint one or more investment officers who shall have responsibilities for the credit union investment portfolio based upon policy established by the board of directors and as provided in this chapter or in the bylaws.
(3) The credit union by action of its board of directors may invest its funds as follows:
(a) in securities, obligations, or other instruments of, or issued by, or fully guaranteed as to principal and interest by, the United States of America or any of its agencies, or in any trusts established by investing directly or collectively in these instruments;
(b) in obligations of any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and the territories organized by Congress, or any of their political subdivisions;
(c) in certificates of deposit or accounts issued by a federally insured state or national depository institution;
(d) in loans to, or in shares or deposits of, other federally insured credit unions, central credit unions, corporate credit unions, or a central liquidity facility established under state or federal law;
(e) in shares, stocks, loans, or other obligations of any organization, corporation, or association, if the membership or ownership of the organization, corporation, or association is primarily confined or restricted to credit unions, and if the purpose for which it is organized is to strengthen or advance the development of credit unions or credit union organizations; and
(f) in other investments that are reasonable and prudent.
Amended by Chapter 327, 2003 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 27 - Dividends -- Interest refunds.

7-9-27.
Dividends -- Interest refunds.
(1) After allocations to required reserves, a credit union may declare and pay a dividend from current earnings and undivided earnings at the discretion of the board of directors and as provided in its bylaws.
(2) Dividends may be paid at different rates on different types or sizes of accounts.
(3) The board of directors may authorize any interest refunds on such classes of loans and under such conditions as the board authorizes.
(4) A credit union need not pay a dividend on any account less than the par value of one share.
Amended by Chapter 8, 1983 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 28 - Loan to credit union official.

7-9-28.
Loan to credit union official.
The board of directors shall review and either approve or deny a loan application on which a member of the board of directors, credit committee, supervisory committee, president, or credit manager is a direct obligor, or endorser, cosigner, or guarantor.
Amended by Chapter 182, 1996 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 29 - Allowance account for loan losses.

7-9-29.
Allowance account for loan losses.
As of January 1, 1984, a credit union shall establish an allowance account for loan losses subject to regulation as the commissioner may prescribe.
Enacted by Chapter 8, 1983 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 30 - Reserve requirements -- "Risk assets" defined.

7-9-30.
Reserve requirements -- "Risk assets" defined.
(1) As used in this section, the words "risk assets" means all assets except the following:
(a) cash on hand;
(b) deposits and shares in federal or state banks, savings and loan associations, and credit unions;
(c) assets which are insured by any agency of the federal government, the Federal National Mortgage Association, or the Government Mortgage Association;
(d) loans to students insured under Title IV, Part B of the Higher Education Act of 1965, 20 U.S.C. Sections 1071 et seq. or similar state insurance programs;
(e) loans insured under Title 1 of the National Housing Act, 12 U.S.C. Sections 1702 et seq. by the Federal Housing Administration;
(f) shares or deposits in corporate credit unions as provided in Section 7-9-44, or of any other state act, or of the Federal Credit Union Act;
(g) accrued interest on nonrisk investments; and
(h) loans fully guaranteed by shares or deposits.
(2) At the end of each accounting period, after payment of any interest refunds, the credit union shall determine the gross income from member loans and from this amount shall set aside a regular reserve in accordance with Subsections (2)(a), (b), and (c).
(a) A credit union in operation for more than four years and having assets of $500,000 or more shall set aside a minimum of 10% of gross income from member loans until the regular reserve equals at least 4% of the total of outstanding loans and risk assets, then a minimum of 5% of gross income from member loans until the regular reserve equals at least 6% of the total of outstanding loans and risk assets.
(b) A credit union in operation for less than four years or having assets of less than $500,000 shall set aside a minimum of 10% of gross income from member loans until the regular reserve equals at least 7-1/2% of the total of outstanding loans and risk assets, then a minimum of 5% of gross income from member loans until the regular reserve equals at least 10% of the total of outstanding loans and risk assets.
(c) The regular reserve belongs to the credit union and shall be used to build equity and to meet contingencies or losses when authorized by the commissioner or the supervisor of credit unions.
(d) The commissioner may temporarily reduce or waive the requirements for the regular reserve placement if he finds it to be in the best interest of the credit union.
Amended by Chapter 324, 2010 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 31 - Shares held in trust.

7-9-31.
Shares held in trust.
(1) Shares may be issued to and deposits received in the name of a minor, and these shares and deposits may, in the discretion of the board of directors, be withdrawn by the minor or by his parent or guardian.
(2) A credit union share account, share certificate, deposit, or deposit certificate may be held in trust provided that the trustor, trustee, or primary beneficiary is a member of the credit union.
(3) The trustee of the trust meeting the requirements of Subsection (2) shall exercise the rights of the trust as a member of the credit union.
Amended by Chapter 182, 1996 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 33 - Lien and right of set off of credit union.

7-9-33.
Lien and right of set off of credit union.
(1) A credit union shall have a lien and right of set off on a member's individual, joint, multiple party, or transaction accounts, including any accumulated dividend or interest, for any sum due the credit union from the member.
(2) All funds in the account at any time are subject to the lien and right of set off.
(3) A security interest in the funds shall be perfected by restricting withdrawals of the funds.
(4) A lien under this section does not apply if:
(a) the application of the lien will cause a loss of a tax incentive for the customer or member; or
(b) is prohibited by law.
Amended by Chapter 182, 1996 General Session
2023 Utah Code › Title 7 - Financial Institutions Act › Chapter 9 - Utah Credit Union Act › Section 34 - Tax exemption of credit unions.

7-9-34.
Tax exemption of credit unions.
(1) Except as otherwise provided in this section, credit unions organized under this chapter or prior law are exempt from taxation.
(2) Any real property or any tangible personal property owned by the credit union shall be subject to taxation to the same extent as other similar property is taxed.
(3) For purposes of the corporate tax, credit unions shall be governed by Section 59-7-102.
(4) This section does not exempt credit unions from sales or use taxes, or fees owed to the department in accordance with this title and rules of the department.
Amended by Chapter 178, 1994 General Session