Any depository institution may, at its main office or at any branch, act as an agent of any other depository institution that is a subsidiary of the same depository institution holding company in conducting the activities authorized under this section.
Terms Used In Utah Code 7-1-716
Branch: means a place of business of a financial institution, other than its main office, at which deposits are received and paid. See Utah Code 7-1-103
Depository institution: means a bank, savings and loan association, savings bank, industrial bank, credit union, or other institution that:
(a)
holds or receives deposits, savings, or share accounts;
(b)
issues certificates of deposit; or
(c)
provides to its customers other depository accounts that are subject to withdrawal by checks, drafts, or other instruments or by electronic means to effect third party payments. See Utah Code 7-1-103
Depository institution holding company: means :
(i)
a person other than an individual that:
(A)
has control over a depository institution; or
(B)
becomes a holding company of a depository institution under Section 7-1-703; or
(ii)
a person other than an individual that the commissioner finds, after considering the specific circumstances, is exercising or is capable of exercising a controlling influence over a depository institution by means other than those specifically described in this section. See Utah Code 7-1-103
Home state: means :
(a)
for a state chartered depository institution, the state that charters the institution;
(b)
for a federally chartered depository institution, the state where the institution's main office is located; and
(c)
for a depository institution holding company, the state in which the total deposits of all depository institution subsidiaries are the largest. See Utah Code 7-1-103
Subsidiary: means a business entity under the control of an institution. See Utah Code 7-1-103
(2)
This section applies regardless of whether the affiliate depository institutions have the same home state.
(3)
A depository institution acting as agent for an affiliate depository institution may:
(a)
receive deposits;
(b)
renew time deposits;
(c)
engage in the activities authorized for a loan production office under Section 7-1-715;
(d)
service loans; and
(e)
receive payments on loans and other obligations.
(4)
A depository institution may not do any of the following as an agent on behalf of an affiliate depository institution:
(a)
open or originate deposit, savings, or share accounts;
(b)
evaluate or approve loans;
(c)
disburse loan funds; or
(d)
conduct any activity as an agent that it is prohibited from conducting as a principal under any applicable law.
(5)
A depository institution acting as a principal may not have an affiliate depository institution act as its agent in conducting any activity that:
(a)
the principal depository institution is prohibited from conducting; or
(b)
the agent depository institution would be prohibited from conducting as a principal.
(6)
An agency relationship between affiliates under this section shall be consistent with safe and sound practices and shall comply with all applicable law.
(7)
A depository institution acting as an agent is not considered to be a branch of the affiliate solely because of activities conducted under this section.
