State Codes and Statutes
Statutes > Utah > Title-07 > Chapter-01 > 7-1-7017-1-701. Representation and transacting business as financial institution restricted-- Restricted names -- Penalty.
(1) As used in this section, "transact business" includes:
(a) advertising;
(b) representing oneself in any manner as being engaged in transacting business;
(c) registering an assumed name under which to transact business; or
(d) using an assumed business name, sign, letterhead, business card, promotion, or otherindication that one is transacting business.
(2) Unless authorized by the department or an agency of the federal government to do so,it is unlawful for any person to:
(a) transact business as a:
(i) bank;
(ii) savings and loan association;
(iii) savings bank;
(iv) industrial bank;
(v) credit union;
(vi) trust company; or
(vii) other financial or depository institution; or
(b) engage in any other activity subject to the jurisdiction of the department.
(3) (a) Except as provided in Subsections (3)(b) through (d), only the following maytransact business in this state under a name that includes "bank," "banker," "banking," "banque,""banc," "banco," "bancorp," "bancorporation," any derivative of these words, or any other wordor combination of words reasonably identifying the business of a bank:
(i) a national bank;
(ii) a bank authorized to do business under Chapter 3, Banks;
(iii) a bank holding company; or
(iv) an industrial bank.
(b) A person authorized to operate in this state as a credit card bank, as described inSection 7-3-3:
(i) may transact business under the name "credit card bank"; and
(ii) may not transact business under the name of "bank" unless it is immediately precededby "credit card."
(c) A nonbank subsidiary of a bank holding company may transact business under aname restricted in Subsection (3)(a) if the name:
(i) is also part of the name of its parent holding company; or
(ii) is used for a group of subsidiaries of the parent holding company.
(d) The Utah Bankers Association or other bona fide trade association of authorizedbanks may transact its affairs in this state under a name restricted under Subsection (3)(a) if itdoes not operate and does not hold itself out to the public as operating a depository or financialinstitution.
(4) (a) Except as provided in Subsection (4)(b), only the following may transact businessin this state under a name that includes "savings association," "savings and loan association,""building and loan association," "building association," any derivative of these words, or anyother word or combination of words reasonably identifying the business of a savings and loanassociation:
(i) a federal savings and loan association;
(ii) a federal savings bank; or
(iii) a savings and loan association authorized to do business under Chapter 7, Savingsand Loan Associations Act.
(b) A national bank may transact business under a name restricted in Subsection (4)(a) ifthe restricted words are part of the bank's corporate name.
(5) Only the following may transact business under the name "savings bank":
(a) a depository institution listed in Subsection (3)(a);
(b) a depository institution listed in Subsection (4)(a); or
(c) a depository institution authorized under state law to operate in this state as a savingsbank.
(6) (a) Only an industrial loan company authorized to do business under Chapter 8,Industrial Banks, to the extent permitted by Section 7-8-21, may transact business in this stateunder a name that includes "industrial loan company," "ILC," or any other word, combination ofwords, or abbreviation reasonably identifying the business of an industrial loan company.
(b) Only an industrial bank authorized to do business under Chapter 8, Industrial Banks,may transact business in this state under a name that includes "industrial bank," "thrift," or anyother word, combination of words, or abbreviation reasonably identifying the business of anindustrial bank.
(7) (a) Except as provided in Subsection (7)(b), only a credit union authorized to dobusiness under the laws of the United States or Chapter 9, Utah Credit Union Act, may transactbusiness in this state under a name that includes "credit union" or any other word or combinationof words reasonably identifying the business of a credit union.
(b) The restriction in Subsection (7)(a) does not apply to the Utah League of CreditUnions, any credit union chapter, or any other association affiliated with the Utah League ofCredit Unions that restricts its services primarily to credit unions.
(8) (a) Except as provided in Subsection (8)(b), only a person granted trust powers underChapter 5, Trust Business, may transact business in this state under a name that includes "trust,""trustee," "trust company," or any other word or combination of words reasonably identifying thebusiness of a trust company.
(b) A business entity organized as a business trust, as defined in Section 7-5-1, may use"business trust" in its name if it does not hold itself out as being a trust company.
(9) The restrictions of Subsections (3) through (8) do not apply to:
(a) the name under which an out-of-state depository institution operates a loanproduction office in this state, if the commissioner approves the name as not being reasonablylikely to mislead the public;
(b) the name under which a service organization of a financial institution transactsbusiness, if the commissioner approves the name as not being reasonably likely to mislead thepublic;
(c) the name under which a subsidiary of a depository or financial institution transactsbusiness, if the commissioner approves the name as not being reasonably likely to mislead thepublic; or
(d) a trade association or other nonprofit organization composed of members of aparticular class of financial institutions using words applicable to that class.
(10) (a) Upon written request, the commissioner may grant an exemption to this section
if the commissioner finds that the use of an otherwise restricted name or word is not reasonablylikely to cause confusion or lead the public to believe that the person requesting the exemption isa depository or financial institution or is conducting a business subject to the jurisdiction of thedepartment.
(b) In granting an exemption under Subsection (10)(a), the commissioner may restrict orcondition the use of the name or word or the activities of the person or business as thecommissioner considers necessary to protect the public.
(11) (a) Each person and each principal and officer of a business entity violating thissection is guilty of a class A misdemeanor. Each day of violation constitutes a separate offense.
(b) In addition to a criminal penalty imposed under Subsection (11)(a), the commissionermay issue a cease and desist order against a person violating this section. The commissioner mayimpose a civil penalty of up to $500 for each day the person fails to comply with the cease anddesist order.
Amended by Chapter 277, 2007 General Session
