Utah Code 7-3-19. Limitations on loans and extensions of credit
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(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), 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.
Terms Used In Utah Code 7-3-19
- 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
- Equal: means , with respect to biological sex, of the same value. See Utah Code 68-3-12.5
- Person: means :(27)(a) an individual;(27)(b) a corporation;(27)(c) a limited liability company;(27)(d) a partnership;(27)(e) a trust;(27)(f) an association;(27)(g) a joint venture;(27)(h) a pool;(27)(i) a syndicate;(27)(j) a sole proprietorship;(27)(k) an unincorporated organization; or(27)(l) any form of business entity. See Utah Code 7-1-103(2)(2)(a) 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 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.(2)(b) The limitation of Subsection (2)(a) is separate from and in addition to the limitation described in Subsection (1).(3)(3)(a) The limitations contained in Subsections (1) and (2) are subject to exceptions the commissioner may prescribe by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.(3)(b) A rule made under this section may not be inconsistent with law and regulations applicable to loan restrictions on national banks.(4)(4)(a) The commissioner may, by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, define the following terms as used in this section:(4)(a)(i) “credit exposure to a derivative transaction”;(4)(a)(ii) “derivative”;(4)(a)(iii) “loans and extensions of credit”; and(4)(a)(iv) “person”.(4)(b) The definitions described under Subsection (4)(a) may not be inconsistent with those applicable to national banks.