State Codes and Statutes

Statutes > Utah > Title-07 > Chapter-01 > 7-1-803

7-1-803. Conflicting interests of commissioner, supervisors, and examiners --Loans and accounts -- Disclosure -- Penalty.
(1) Neither the commissioner nor any supervisor or examiner may do any of thefollowing with respect to any institution under the supervision of the department:
(a) be indebted, directly or indirectly, as a borrower, accommodation endorser, surety, orguarantor to an institution, or to an individual or any other legal or commercial entity owning orcontrolling an institution;
(b) be an officer, director, or employee of any institution or of an individual or any otherlegal or commercial entity owning or controlling an institution;
(c) own or deal in, directly or indirectly, the shares or obligations of an institution or of acorporation owning or controlling an institution;
(d) receive, directly or indirectly, from an institution or any officer, director, or employeeof an institution, any salary, fee, or compensation; or
(e) be interested in or engage in the negotiations of any loan to, obligation of, oraccommodation for another person to or with an institution.
(2) Notwithstanding Subsection (1), the commissioner, any supervisor, or any examinerof the department may:
(a) have and maintain savings, transaction, share, time deposit, or other accounts, orcertificates and deposits in any financial or depository institution in the state, or be a lessee of asafe deposit box on the same terms and conditions available to the public generally;
(b) be indebted to a depository institution under the supervision of the department onterms offered to the public generally upon:
(i) a mortgage loan upon the mortgagor's own home;
(ii) an open or closed end consumer loan granted before the person became employedwith the department or before the institution became subject to the jurisdiction of the department;
(iii) in the case of a supervisor or examiner, a consumer loan lawfully made prior toJanuary 1, 1991, provided that while the debt is subject to the provisions of this chapter, the termsof the debt are not changed in favor of the debtor in a manner not offered and provided to othercreditworthy borrowers or waived or extended as a result of delinquency or default; and
(iv) a debt fully secured at all times by deposits in the institution;
(c) be indebted on an installment debt transferred to an institution under the jurisdiction ofthe department in the regular course of business by a seller of consumer goods; and
(d) continue to receive payments under a regularly established pension plan of generalapplication for fully retired employees of an institution under the supervision of the department.
(3) Full disclosure in writing of any indebtedness incurred under Subsection (2) shall befiled in the commissioner's office.
(4) Any person who knowingly violates this section with the intention of getting gainthrough the influence of his office shall forfeit the office or employment and is guilty of a thirddegree felony.

Amended by Chapter 200, 1994 General Session