7-1-324. Debt cancellation agreements and debt suspension agreements.
(1) As used in this section: "Class of depository institution" means a class consisting of: banks; credit unions; industrial banks; or wholly owned subsidiaries of a depository institution listed in this Subsection. (1)(a) "Debt cancellation agreement" is as defined in Section. 31A-21-109 "Debt suspension agreement" is as defined in Section. 31A-21-109
(2) Subject to the other provisions of this section, the commissioner may by rule, made in accordance with: Title 63G, Chapter 3, Utah Administrative Rulemaking Act authorize any member of a class of depository institution that is subject to the jurisdiction of the department to issue: a debt cancellation agreement; or a debt suspension agreement; and regulate the issuance of a debt cancellation agreement or a debt suspension agreement issued in this state by a member of a class of depository institution.
(3) Any rule adopted by the commissioner under this section as applied to a class of depository institution shall be substantially similar to any federal regulation applying to the same class of depository institution. Any rule adopted by the commissioner applicable to a class of depository institution described in this Subsectionshall be substantially similar to any federal regulation applicable to a bank if no federal regulation authorizes or regulates the issuance of a debt cancellation agreement or debt suspension agreement for that class of depository institution. (3)(b)
(4) An out-of-state depository institution may issue a debt cancellation agreement or debt suspension agreement in this state if: the home state of the out-of-state depository institution authorizes and regulates the issuance of a debt cancellation agreement or debt suspension agreement by the out-of-state depository institution; and subject to Subsection, the out-of-state depository institution complies with regulations from the out-of-state depository institution's home state that regulate the issuance of a debt cancellation agreement or a debt suspension agreement. (4)(b) Notwithstanding Subsection, an out-of-state depository institution described in Subsectionshall comply with rules adopted by the commissioner under this section that regulate the issuance of a debt cancellation agreement or a debt suspension agreement in this state by the class of depository institution to which the out-of-state depository institution belongs if the regulations of the out-of-state depository institution's home state do not provide at least the same level of protection with respect to a debt cancellation agreement or debt suspension agreement as the rules adopted by the commissioner under this section with respect to the same class of depository institution: (4)(a) (4)(a) for the safety and soundness of the depository institution; and for consumer protections for the borrowers of the depository institution.