Utah Code 4-30-110. Custodial accounts for trust funds
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(1)
Terms Used In Utah Code 4-30-110
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Equal: means , with respect to biological sex, of the same value. See Utah Code 68-3-12.5
- Fiduciary: A trustee, executor, or administrator.
- Livestock: means cattle, sheep, goats, swine, horses, mules, poultry, domesticated elk as defined in Section
4-39-102 , or any other domestic animal or domestic furbearer raised or kept for profit. See Utah Code 4-1-109 - Person: means a natural person or individual, corporation, organization, or other legal entity. See Utah Code 4-1-109
(1)(a) Each payment that a livestock buyer makes to a livestock market selling on commission is a trust fund.
(1)(b) Funds deposited into custodial accounts are trust funds.
(2) Each livestock market engaged in selling livestock on a commission or agency basis shall establish and maintain a separate bank account designated as “custodial account for shippers’ proceeds,” or some similar identifying designation, to disclose that the depositor is acting as a fiduciary and that the funds in the account are trust funds.
(3)
(3)(a) The livestock market shall deposit into its custodial account before the close of the next business day after the livestock is sold:
(3)(a)(i) the proceeds that have been collected from the sale of the livestock; and
(3)(a)(ii) an amount equal to the proceeds receivable from the sale of livestock that are due from:
(3)(a)(ii)(A) the livestock market;
(3)(a)(ii)(B) any owner, officer, or employee of the livestock market; and
(3)(a)(ii)(C) any buyer to whom the livestock market has extended credit.
(3)(b) The livestock market shall thereafter deposit into the custodial account all proceeds collected until the account has been reimbursed in full and shall, before the close of the seventh day following the sale of livestock, deposit an amount equal to all the remaining proceeds receivable regardless of whether the proceeds have been collected by the livestock market.
(4) The custodial account shall be drawn on only:
(4)(a) for payment of the net proceeds to the consignor or shipper, or to any person that the livestock market knows is entitled to payment;
(4)(b) to pay lawful charges against the consignment of livestock which the market agency shall, in its capacity as agent, be required to pay; and
(4)(c) to obtain any sums due the livestock market as compensation for its services.
(5)
(5)(a) Each livestock market shall keep accounts and records that will disclose at all times the handling of funds in the custodial account.
(5)(b) Accounts and records shall at all times disclose the name of the consignors and the amount due and payable to each from funds in the custodial account.
(6) The custodial account shall be established and maintained in a bank whose deposits are insured by the Federal Deposit Insurance Corporation.