7-3-20 - Bank acquiring, holding, or accepting as collateral its own stock -- Loans to or investment in affiliates. - Utah Statutes

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Statutes > Utah > Title-07 > Chapter-03 > 7-3-20

7-3-20. Bank acquiring, holding, or accepting as collateral its own stock -- Loans toor investment in affiliates.
(1) (a) A bank may not accept as collateral or acquire its own stock except when thetaking of the collateral or acquisition of the stock is necessary to prevent loss upon a debtpreviously contracted in good faith.
(b) If a bank acquires stock as permitted under Subsection (1)(a), the bank shall sell thestock within 12 months from the date of the bank's acquisition.
(c) The value of all the stock held after acceptance or acquisition may not exceed 10% ofthe total capital of the bank.
(2) (a) A bank may not:
(i) make any loan or any extension of credit to any of its affiliates;
(ii) invest any of its funds in the capital stock, bonds, debentures, or other obligations ofany affiliate; or
(iii) accept the capital stock, bonds, debentures, or other obligations of any affiliate ascollateral security for advances made to any person unless authorized by the commissioner byorder.
(b) The exception of Subsection (2)(a)(iii) may not be inconsistent with similar exceptionsapplicable to national banks under federal law.

Amended by Chapter 260, 2000 General Session

State Codes and Statutes

Statutes > Utah > Title-07 > Chapter-03 > 7-3-20

7-3-20. Bank acquiring, holding, or accepting as collateral its own stock -- Loans toor investment in affiliates.
(1) (a) A bank may not accept as collateral or acquire its own stock except when thetaking of the collateral or acquisition of the stock is necessary to prevent loss upon a debtpreviously contracted in good faith.
(b) If a bank acquires stock as permitted under Subsection (1)(a), the bank shall sell thestock within 12 months from the date of the bank's acquisition.
(c) The value of all the stock held after acceptance or acquisition may not exceed 10% ofthe total capital of the bank.
(2) (a) A bank may not:
(i) make any loan or any extension of credit to any of its affiliates;
(ii) invest any of its funds in the capital stock, bonds, debentures, or other obligations ofany affiliate; or
(iii) accept the capital stock, bonds, debentures, or other obligations of any affiliate ascollateral security for advances made to any person unless authorized by the commissioner byorder.
(b) The exception of Subsection (2)(a)(iii) may not be inconsistent with similar exceptionsapplicable to national banks under federal law.

Amended by Chapter 260, 2000 General Session

State Codes and Statutes

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State Codes and Statutes

Statutes > Utah > Title-07 > Chapter-03 > 7-3-20

7-3-20. Bank acquiring, holding, or accepting as collateral its own stock -- Loans toor investment in affiliates.
(1) (a) A bank may not accept as collateral or acquire its own stock except when thetaking of the collateral or acquisition of the stock is necessary to prevent loss upon a debtpreviously contracted in good faith.
(b) If a bank acquires stock as permitted under Subsection (1)(a), the bank shall sell thestock within 12 months from the date of the bank's acquisition.
(c) The value of all the stock held after acceptance or acquisition may not exceed 10% ofthe total capital of the bank.
(2) (a) A bank may not:
(i) make any loan or any extension of credit to any of its affiliates;
(ii) invest any of its funds in the capital stock, bonds, debentures, or other obligations ofany affiliate; or
(iii) accept the capital stock, bonds, debentures, or other obligations of any affiliate ascollateral security for advances made to any person unless authorized by the commissioner byorder.
(b) The exception of Subsection (2)(a)(iii) may not be inconsistent with similar exceptionsapplicable to national banks under federal law.

Amended by Chapter 260, 2000 General Session