| (1) |
A bank may not accept as collateral or acquire its own stock except when the taking of the collateral or acquisition of the stock is necessary to prevent loss upon a debt previously contracted in good faith. |
Terms Used In Utah Code 7-3-20
- 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
| (2) |
If a bank acquires stock as permitted under Subsection (1), the bank shall sell the stock within 12 months from the date of the bank’s acquisition. |
| (3) |
The value of all the stock held after acceptance or acquisition may not exceed 10% of the total capital of the bank. |
Amended by Chapter 97, 2014 General Session
