7-8-20 - 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 by anyindustrial bank to any person outstanding at any one time may not exceed 15% of the industrialbank's total capital.
(2) Subsection (1) does not apply to an extension of credit that is subject to, or expresslyexempted from, a federal statute or federal regulation limiting the amount of total loans andcredit that may be extended to any person or group of persons.
(3) The commissioner may by rule:
(a) exempt from Subsection (1) any class of loans or class of extensions of credit that areadequately secured or are not otherwise a risk to the safe and sound operation of an industrialbank;
(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 executiveofficers; and
(f) prescribe other actions necessary to interpret and implement this section.
(1) Except as provided in this section, the total loans and extensions of credit by anyindustrial bank to any person outstanding at any one time may not exceed 15% of the industrialbank's total capital.
(2) Subsection (1) does not apply to an extension of credit that is subject to, or expresslyexempted from, a federal statute or federal regulation limiting the amount of total loans andcredit that may be extended to any person or group of persons.
(3) The commissioner may by rule:
(a) exempt from Subsection (1) any class of loans or class of extensions of credit that areadequately secured or are not otherwise a risk to the safe and sound operation of an industrialbank;
(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 executiveofficers; and
(f) prescribe other actions necessary to interpret and implement this section.
Amended by Chapter 92, 2004 General Session