Utah Code 7-1-716. Affiliate depository institutions acting as agents — Notification required
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(1) Any depository institution may, at its main office or at any branch, act as an agent of any other depository institution that is a subsidiary of the same depository institution holding company in conducting the activities authorized under this section.
Terms Used In Utah Code 7-1-716
- 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
- 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
- Depository institution holding company: means :
(9)(a)(i) a person other than an individual that:(9)(a)(i)(A) has control over a depository institution; or(9)(a)(i)(B) becomes a holding company of a depository institution under Section 7-1-703; or(9)(a)(ii) a person other than an individual that the commissioner finds, after considering the specific circumstances, is exercising or is capable of exercising a controlling influence over a depository institution by means other than those specifically described in this section. See Utah Code 7-1-103- Home state: means :
(14)(a) for a state chartered depository institution, the state that charters the institution;(14)(b) for a federally chartered depository institution, the state where the institution's main office is located; and(14)(c) for a depository institution holding company, the state in which the total deposits of all depository institution subsidiaries are the largest. 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- Subsidiary: means a business entity under the control of an institution. See Utah Code 7-1-103
(2) This section applies regardless of whether the affiliate depository institutions have the same home state.(3) A depository institution acting as agent for an affiliate depository institution may:(3)(a) receive deposits;(3)(b) renew time deposits;(3)(c) engage in the activities authorized for a loan production office under Section 7-1-715;(3)(d) service loans; and(3)(e) receive payments on loans and other obligations.(4) A depository institution may not do any of the following as an agent on behalf of an affiliate depository institution:(4)(a) open or originate deposit, savings, or share accounts;(4)(b) evaluate or approve loans;(4)(c) disburse loan funds; or(4)(d) conduct any activity as an agent that it is prohibited from conducting as a principal under any applicable law.(5) A depository institution acting as a principal may not have an affiliate depository institution act as its agent in conducting any activity that:(5)(a) the principal depository institution is prohibited from conducting; or(5)(b) the agent depository institution would be prohibited from conducting as a principal.(6) An agency relationship between affiliates under this section shall be consistent with safe and sound practices and shall comply with all applicable law.(7) A depository institution acting as an agent is not considered to be a branch of the affiliate solely because of activities conducted under this section. - Depository institution holding company: means :