Utah Code 7-1-616. Authority to accept transaction accounts — Payment of instruments
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(1) A financial institution may accept or advertise that it accepts transaction accounts only if authorized to do so under federal or state law. An institution may submit a written request for this authority to the commissioner, except that an institution authorized to accept transaction accounts as of June 1, 1994, does not, in the first instance, need to request or be granted any additional authority. The commissioner shall grant the authority if the commissioner finds that:
Terms Used In Utah Code 7-1-616
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- 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
- Financial institution: means an institution subject to the jurisdiction of the department because of this title. See Utah Code 7-1-103
- Institution: means :(19)(a) a corporation;(19)(b) a limited liability company;(19)(c) a partnership;(19)(d) a trust;(19)(e) an association;(19)(f) a joint venture;(19)(g) a pool;(19)(h) a syndicate;(19)(i) an unincorporated organization; or(19)(j) any form of business entity. See Utah Code 7-1-103
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- State: means , unless the context demands otherwise:
(33)(a) a state;(33)(b) the District of Columbia; or(33)(c) the territories of the United States. See Utah Code 7-1-103- Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
(1)(a) the institution has adequate capital and reserves in relation to the character and condition of its assets and its deposit and other liabilities;(1)(b) the deposits and other accounts held by the institution are insured or guaranteed by an agency of the federal government; and(1)(c) the management of the institution is qualified to handle transaction accounts.(2) The commissioner may revoke, limit, or condition an institution’s authority to accept and handle transaction accounts upon a finding that:(2)(a) the institution no longer meets the criteria set forth in Subsection (1); or(2)(b) it would be contrary to the public interest and the soundness of the financial system of this state to allow the institution to continue to accept or handle transaction accounts without limitation or condition.(3) One or more depository institutions may, by written agreement, vary the terms of Title 70A, Chapter 3, Uniform Commercial Code – Negotiable Instruments, and Chapter 4, Uniform Commercial Code – Bank Deposits and Collections, for the purposes of facilitating the transfer, exchange, and prompt payment of instruments drawn on transaction accounts.