Utah Code 7-1-806. Money market funds arranging with bank to honor two-party instruments — Discouraging payment of interest to two persons on funds in transit — Pyramiding and similar schemes as misdemeanors
Attorney's Note
Under the Utah Code, punishments for crimes depend on the classification. In the case of this section:| Class | Prison | Fine |
|---|---|---|
| class C misdemeanor | up to 90 days | up to $750 |
Terms Used In Utah Code 7-1-806
- Bank: means a person authorized under the laws of this state, another state, or the United States to accept deposits from the public. See Utah Code 7-1-103
- Commissioner: means the Commissioner of Financial Institutions. See Utah Code 7-1-103
- Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
- State: means , unless the context demands otherwise:(33)(a) a state;(33)(b) the District of Columbia; or(33)(c) the territories of the United States. See Utah Code 7-1-103
- United States: includes each state, district, and territory of the United States of America. See Utah Code 68-3-12.5
Nothing in this act shall be construed to prevent money market funds from making arrangements with banks to honor two party checks, drafts, or other instruments.
The commissioner shall exert his influence to discourage banks, money market funds and other programs in Utah and throughout the United States from paying interest to two persons at the same time on funds in the process of transfer.
The process or the practice referred to as pyramiding or any similar process or practice as defined by the commissioner, and such definition is approved by the governor, shall be prohibited within this state and persons found guilty of these schemes shall be found guilty of a class C misdemeanor. This does not preclude more serious punishment under federal law.
Money market funds, similar funds and bank regulated institutions shall cooperate with the commissioner to stop these practices.