Utah Code 7-9-45. Insurance of shares and deposits — Security on shares and deposits
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(1) Except as provided in Subsection (2), a credit union subject to the jurisdiction of the department shall obtain and maintain insurance on shares and deposits from the National Credit Union Administration or successor federal deposit insurance agency.
Terms Used In Utah Code 7-9-45
- Administrator: includes "executor" when the subject matter justifies the use. See Utah Code 68-3-12.5
- 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
- Credit union: means a cooperative, nonprofit association incorporated under:(6)(a) Chapter 9, Utah Credit Union Act; or(6)(b) Utah Code 7-1-103
- 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- Deposits: means that portion of the capital paid into the credit union by members on which a specified rate of interest will be paid. See Utah Code 7-9-3
- Equal: means , with respect to biological sex, of the same value. See Utah Code 68-3-12.5
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- National Credit Union Administration: The federal regulatory agency that charters and supervises federal credit unions. (NCUA also administers the National Credit Union Share Insurance Fund, which insures the deposits of federal credit unions.) Source: OCC
- Shares: means that portion of the capital paid into the credit union by members on which dividends may be paid. See Utah Code 7-9-3
- 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
- United States: includes each state, district, and territory of the United States of America. See Utah Code 68-3-12.5
(2) Notwithstanding Subsection 7-1-704(7)(a)(v) and Subsection (1), a credit union may not be required to obtain federal insurance on shares and deposits if:(2)(a) the commissioner approves the credit union’s election not to obtain federal insurance on shares and deposits;(2)(b) as security for the shares and deposits, the credit union maintains securities:(2)(b)(i) that are issued by or directly and unconditionally guaranteed by:(2)(b)(i)(A) the United States; or(2)(b)(i)(B) an agency of the United States;(2)(b)(ii) that are held in an account with a primary reporting dealer that is:(2)(b)(ii)(A) recognized by the Federal Reserve Bank of New York; and(2)(b)(ii)(B) independent of the credit union;(2)(b)(iii) that are held in accordance with Title 70A, Chapter 8, Uniform Commercial Code – Investment Securities; and(2)(b)(iv) in which the department has an express and exclusive security interest; and(2)(c) the aggregate value of the securities described in Subsection (2)(b) is at all times equal to or greater than 1.15 times the aggregate amount of the shares and deposits of the credit union.(3) The commissioner may appoint the administrator of the National Credit Union Administration as liquidating agent of an insured credit union.(4) Failure to comply with this section constitutes grounds for supervisory action under Chapter 2, Possession of Depository Institution by Commissioner, or Chapter 19, Acquisition of Failing Depository Institutions or Holding Companies.