Title 7, Financial Institutions Act

7-3-15. Dividends allowed -- Surplus requirements. (1) The board of directors of a bank may declare a cash or stock dividend out of the net profits of the bank after providing for all expenses, losses, interest, and taxes accrued or due from the bank, as it shall judge expedient.…

7-3-18. Real estate acquisition, holding, and conveyance. A bank may purchase, hold, and convey real estate, other than bank premises, only for those purposes and in a manner prescribed by commissioner by regulation. Such regulations may not be more restrictive than the laws and …

7-3-19. Limitations on loans and extensions of credit. (1) The total loans and extensions of credit, including credit exposure to a derivative transaction, by a bank to a person outstanding at one time and not fully secured, as determined in a manner consistent with Subsection (2…

7-3-2. Restrictions on conduct of banking business. (1) The establishment or operation in this state of private or partnership banks is expressly prohibited. (2) An institution may establish or maintain a main office or branch in this state at which to conduct banking business on…

7-3-20. Bank acquiring, holding, or accepting as collateral its own stock. (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 …

7-3-21. Stock ownership by banks. (1) A bank may purchase, own and hold, and sell or otherwise dispose of: (a) shares of the Federal Reserve Bank of the Twelfth Federal Reserve District; (b) the stock of a corporation organized under the laws of the United States for purposes sim…

7-3-22. Certificates and evidences of deposit binding -- Issuance of items intended to circulate as money prohibited. All certificates or evidences of deposit made by the proper officers of any bank bind the bank with or without its corporate seal affixed. No bank shall issue any…

7-3-24. Certification of check. It shall be unlawful for any bank to certify any check drawn upon the bank unless the person drawing the check has on deposit with the bank at the time the check is certified an amount of money equal to the amount specified in the check.

7-3-25. Bad debts. All demand and matured debts due to any bank on which interest is past due and has not been paid for a period of six months, unless they are well secured and in process of collection, are considered bad debts and shall be charged off to the reserve for loan los…

7-3-26. Overdraft as asset. An overdraft of more than 90 days' standing may not be allowed as an asset of a bank, unless amply secured and in the process of collection.

7-3-28. Capital notes or debentures. (1) Any bank, with the prior written approval of the commissioner and the authorization by resolution of its board of directors may issue its convertible or nonconvertible capital notes or debentures. The issuance may be in the amounts, for th…

7-3-3. "Banking business" defined -- Credit card banks -- Insurance of deposit accounts. (1)(a) Except as provided under Subsection (1)(b), a person is considered to be conducting a banking business and is a bank subject to the provisions of this title that are applicable to bank…

7-3-3.2. Securities business permitted -- Activities conducted by subsidiary -- Disclosure statements required. (1) A bank has all necessary and incidental powers to engage in the business of purchasing, selling, underwriting, and dealing in securities, whether as a principal for…

7-3-30. Board of directors to manage business -- Residency of directors. The business and affairs of a corporation conducting a banking business shall be managed by its board of directors. Directors are not required to be residents of this state or shareholders of the corporation…

7-3-31. Oath of bank directors. When a person is appointed or elected to be a director of a bank, that person shall take an oath promising to diligently carry out the duties required of a director, to honestly administer the affairs of the bank, and not to knowingly violate or wi…

7-3-32. Meetings of board of directors -- Reports -- Records -- Loans to officers, directors and principal shareholders. (1) In this section "principal shareholder" means any officer, director, or person who directly or indirectly owns, controls, or has the power to vote more tha…

7-3-33. Examination of affairs by board of directors -- Purposes -- Frequency -- Report filed in bank records. (1) Except as otherwise expressly provided in this chapter, it shall be the duty of the board of directors of every bank to examine or cause to be examined fully the boo…

7-3-34. Contents of examination report of board of directors -- Failure to make and file report as misdemeanor. The report required by Subsection 7-3-33(3) shall contain a statement of the assets and liabilities of the bank as shown by its books, and any deductions for the assets…

7-3-35. Examinations in lieu of directors' examination -- Report filed with board minutes. (1) With the approval of the commissioner, and under rules and regulations prescribed by the commissioner, any examination made during an 18-month period by the department, the applicable f…

7-3-36. Loans to officers, directors and stockholders. A bank may lend its funds or extend credit to any executive officer or director of the bank or to any person who directly or indirectly owns, controls, or has the power to vote 10% or more of any class of voting securities of…

7-3-39. Shareholders' right to examine bank records -- Records as to a particular customer. Every shareholder of a bank shall have the right to examine the books and records of the bank as provided in Sections 16-10a-1601 through 16-10a-1604. Access to records pertaining solely t…