State Codes and Statutes

Statutes > Utah > Title-07 > Chapter-07 > 7-7-24

7-7-24. Earnings on savings accounts.
An association may pay earnings on its savings accounts from sources available forpayment of earnings at such rate and for such times as shall be determined by resolution of itsboard of directors. All savings account holders shall participate equally in earnings pro rata to thewithdrawal value of their respective accounts, except that an association may classify its savingsaccounts according to the character, amount, duration, regularity of additions thereto, or, if theassociation is operating in more than one state, the state in which the account is located. Anassociation may pay different earnings according to those classifications. An association mayagree in advance to pay an additional or different rate of earnings on all savings accounts in thesame account classification, and shall regulate those earnings in such manner that each savingsaccount in the same classification shall receive the same ratable portion of the additional earnings.Except for accounts which shall be classified according to a specified contractual time or noticeperiod, earnings shall be declared on the withdrawal value of each savings account at thebeginning of the accounting period, plus additions thereto made during the period (less amountspreviously withdrawn and noticed for withdrawal, which for earnings purposes shall be deductedfrom the latest previous additions thereto) computed at the declared rate for the time the fundshave been invested, determined as next provided. The date of investment shall be the date ofactual receipt by the association of an account or an addition to an account, except that if theboard of directors shall so determine, accounts in one or more classifications or additions theretoreceived by the association on or before a date not later than the 20th day of the month (unless theday determined is not a business day, in which case it shall be the next succeeding business day)shall receive earnings as if invested on the first day of the month in which the payments werereceived. If the board shall make this determination, it also shall determine that payments receivedafter the determination date shall either (1) receive earnings as if invested on the first day of thenext succeeding month or (2) receive earnings from the date of actual receipt by the association.The board of directors, by resolution, may determine that earnings may not be paid on designatedsavings accounts (1) from which withdrawals may be made on demand or by negotiable andtransferable order or authorization, or (2) which have a withdrawal value of a specified amount,or (3) which are intended to be closed within a specified period less than 24 months from the dateon which the savings account is opened, or (4) which are established for the purpose ofaccumulating funds to pay taxes or insurance premiums, or both, in connection with a loan, to theextent permitted by the provisions of the Interest on Mortgage Loan Reserve Accounts Act,Sections 7-17-1 through 7-17-10. The directors shall determine by resolution the method ofcalculating the amount of any earnings on any savings account classification as herein provided,and the time or times when earnings are to be declared, paid, or credited.

Amended by Chapter 8, 1983 General Session