| (1) |
Terms Used In Utah Code 7-8-5- 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
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Industrial bank: means a corporation or limited liability company conducting the business of an industrial bank under Chapter 8, Industrial Banks. See Utah Code 7-1-103
| (a) |
An industrial bank may not accept as collateral, or be a purchaser of, shares of its own capital stock, unless taking the shares as collateral or purchasing them is necessary to prevent loss upon a debt previously contracted in good faith. |
| (b) |
All shares of stock acquired under this Subsection (1) by the industrial bank through any purchase, foreclosure, judgment, or otherwise shall be sold within 12 months from the date of acquisition. |
| (c) |
The par value of all the shares held after acceptance or purchase may not exceed 10% of the capital and surplus of the industrial bank. |
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| (2) |
| (a) |
Each industrial bank accepting or holding deposits shall maintain the minimum amount of capital required by its federal deposit insurer. |
| (b) |
The commissioner may require a greater amount of capital if the commissioner determines that it is necessary to protect the interests of:
| (i) |
the depositors and other customers of the industrial bank; and |
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Amended by Chapter 92, 2004 General Session
