2006 Utah Code - 7-3-19 — Limitations on loans and extensions of credit.

     7-3-19.   Limitations on loans and extensions of credit.
     (1) The total loans and extensions of credit by any bank to any person outstanding at one time and not fully secured, as determined in a manner consistent with Subsection (2), by collateral having a market value at least equal to the amount of the loan or extension of credit may not exceed 15% of the amount of the bank's total capital.
     (2) (a) The total loans and extensions of credit by a bank to a person outstanding at one time and fully secured by readily marketable collateral having a market value, as determined by reliable and continuously available price quotations, at least equal to the amount of the funds outstanding may not exceed 10% of the total capital of the bank.
     (b) The limitation of Subsection (2)(a) is separate from and in addition to the limitation described in Subsection (1).
     (3) (a) The limitations contained in Subsections (1) and (2) are subject to exceptions the commissioner may prescribe by rule.
     (b) A rule made under this section may not be inconsistent with law and regulations applicable to loan restrictions on national banks.
     (4) (a) The commissioner may, by rule, define the terms "loans and extensions of credit" and "person" as used in this section.
     (b) The definitions described under Subsection (4)(a) may not be inconsistent with those applicable to national banks.

Amended by Chapter 260, 2000 General Session