Utah Code 7-1-715. Loan production offices — Application and procedure for approval
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(1) With the prior approval of the commissioner, a depository institution may establish one or more loan production offices.
Terms Used In Utah Code 7-1-715
- Branch: means a place of business of a financial institution, other than its main office, at which deposits are received and paid. See Utah Code 7-1-103
- Commissioner: means the Commissioner of Financial Institutions. See Utah Code 7-1-103
- Contract: A legal written agreement that becomes binding when signed.
- Department: means the Department of Financial Institutions. See Utah Code 7-1-103
- Depository institution: means a bank, savings and loan association, savings bank, industrial bank, credit union, or other institution that:(8)(a) holds or receives deposits, savings, or share accounts;(8)(b) issues certificates of deposit; or(8)(c) provides to its customers other depository accounts that are subject to withdrawal by checks, drafts, or other instruments or by electronic means to effect third party payments. See Utah Code 7-1-103
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- 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- Property: includes both real and personal property. See Utah Code 68-3-12.5
(2) A loan production office shall be staffed and accessible to the public.(3) A loan production office may:(3)(a) solicit loans on behalf of its depository institution;(3)(b) assemble credit information;(3)(c) make property inspections and appraisals;(3)(d) secure title information;(3)(e) prepare applications for loans;(3)(f) solicit investors to purchase loans from the depository institution;(3)(g) seek to have these investors contract with a depository institution for servicing the loans; and(3)(h) engage in other activities in the nature of acting as an agent for the parent depository institution in facilitating the production of loans.(4) A loan production office may not do any of the following:(4)(a) accept deposits;(4)(b) originate deposit, savings, or share accounts;(4)(c) pay checks;(4)(d) approve loans; or(4)(e) disburse loan funds.(5) A loan processed by a loan production office may only be approved at the main office or approved branch of the depository institution, except a loan production office may make a recommendation, subject to independent analysis and approval by the depository institution.(6) Funds from a loan processed by a loan production office may only be disbursed at the main office or approved branch of the depository institution, or at the office of an independent third party, such as a title company or escrow agent.(7) Although a loan production office is not considered a branch, the establishment of a loan production office is subject to the prior approval of the commissioner in the manner provided in Section 7-1-708 for the establishment of a branch office.(8) Each depository institution with operating loan production offices in Utah as of June 1, 1994, shall file an initial registration with the department stating the location of each loan production office on or before July 15, 1994. All subsequent applications for a loan production office require prior approval of the commissioner.(9) If the commissioner determines that it is in the public interest, the department may examine the books and records of the office at the per diem charge established in Section 7-1-401.