2011 Utah Code
Title 7 Financial Institutions Act
Chapter 7 Savings and Loan Associations Act
Section 4 Mutual association -- Chair of incorporators -- Surety bond or escrow -- Capital requirements -- Expense fund -- Organization meeting.

7-7-4. Mutual association -- Chair of incorporators -- Surety bond or escrow -- Capital requirements -- Expense fund -- Organization meeting.
(1) The incorporators of a mutual association shall appoint one of their number as chair of the incorporators. This chair shall procure from a surety company or other surety acceptable to the commissioner, a surety bond in an amount at least equal to the amount subscribed by the incorporators plus the expense fund described in Subsection (2). This bond shall name the commissioner as obligee and shall be delivered to him. It shall assure the safekeeping of the funds described, their delivery to the association after the issuance of the certificate of authority and after the bonding of the officers, and, in the event of the failure to complete organization, the return of the amounts collected to the respective subscribers or their assigns, less reasonable expense which shall be deducted from the expense fund. The required surety may be waived by the commissioner if the funds are held in escrow so as to provide similar assurance with regard to the funds. Before a certificate of authority is issued, the incorporators shall pay in cash, to the chairman, as subscriptions to the savings accounts of the proposed association, including that part of the original subscription paid by the chairman. The minimum required capital shall be prescribed by the commissioner by rule. These capital requirements may not be greater than those required by the Office of Thrift Supervision or successor agency for the formation of a federally chartered mutual association.
(2) The incorporators, in addition to their subscriptions to savings accounts, shall create an expense fund in an amount not less than 25% of the minimum amount of savings account subscriptions required to be paid under this chapter. From this expense fund the expense of organizing the association and its operating expenses may be paid until such time as its net income is sufficient to pay such earnings as may be declared and paid or credited to its savings account holders from sources available for payment of earnings. The incorporators and others, before a certificate of authority is issued, shall deposit to the credit of the chairman of the incorporators in cash the amount of the expense fund. The amounts contributed to the expense fund by the incorporators and others do not constitute a liability of the association except as provided by this chapter.
(3) Contributions made by the incorporators and others to the expense fund may be repaid pro rata to the contributors from the net income of the association after provision for statutory reserves and declaration of earnings of not less than 2% on savings accounts. If an association is liquidated before contributions to the expense fund have been repaid, any contributions to the expense fund remaining unexpended, after the payment of expenses of liquidation, all creditors, and the withdrawal value of all savings accounts, shall be repaid to the contributors pro rata. The books of the association shall reflect the expense fund. Contributors to the expense fund shall at the times earnings regularly are distributed to savings account holders be paid earnings on the amounts paid in by them and for that purpose the contributions shall in all respects be considered as savings accounts of the association.
(4) Within 90 days after the corporate existence of an association begins, the directors of the association shall hold an organization meeting and shall adopt bylaws and elect officers under this chapter. At the organization meeting the directors shall take such other action as is appropriate in connection with beginning the transaction of business by the association. The commissioner may extend by order the time within which the organization meeting shall be held.