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[Utah Code Table of Contents]
[TITLE 7. Table of Contents]
7-8-3 Organization under Business Corporation Act - Authorization to conduct business.
(1) Each domestic corporation organized to conduct the business of an industrial loan corporation in this state shall be organized under Title 16, Chapter 10a, Utah Revised Business Corporation Act. All rights, privileges, powers, duties, and obligations of the corporation and its officers, directors, and stockholders shall be governed by Title 16, Chapter 10a, except as otherwise provided in this title.
(2) The commissioner may authorize a domestic corporation
to conduct business as an industrial loan corporation.
1997
7-8-5 Acquisition of own stock restricted - Capital requirements - Deposit insurance.
(1) An industrial loan corporation may not accept as collateral, or be a purchaser of, shares of its own capital stock, unless taking the shares as collateral or purchasing them is necessary to prevent loss upon a debt previously contracted in good faith. All shares of stock acquired under this subsection by the industrial loan corporation through any purchase, foreclosure, judgment, or otherwise shall be sold within 12 months from the date of acquisition. The par value of all the shares held after acceptance or purchase may not exceed 10% of the capital and surplus of the industrial loan corporation.
(2) Each industrial loan corporation accepting or holding deposits shall maintain the minimum amount of capital required by its federal deposit insurer. The commissioner may require a greater amount of capital if he determines that it is necessary to protect the interests of the depositors and other customers of the industrial loan corporation and the public.
(3) An industrial loan corporation may accept or hold
deposits only if its accounts are insured by a federal deposit
insurance agency.
1994
7-8-7 Reports to commissioner.
Each industrial loan corporation shall file reports of
its condition in accordance with Section
7-1-318
.
1994
7-8-11 Dividends.
(1) The board of directors of an industrial loan corporation authorized to accept deposits may declare a dividend out of the net profits of the corporation after providing for all expenses, losses, interest, and taxes accrued or due from the corporation in accordance with this section and subject to Section 7-8-12 .
(2) The corporation shall transfer to a surplus fund at least 10% of its net profits before dividends for the period covered by the dividend, until the surplus reaches 100% of its capital stock.
(3) Any amount paid from the corporation's net earnings
into a fund for the retirement of any debenture capital or
preferred stock for the period covered by the dividend is
considered an addition to its surplus fund if, upon the retirement
of the debenture capital or preferred stock, the amount paid
into the retirement fund for the period may be properly carried
to the surplus fund of the corporation. In this case the
industrial loan corporation shall transfer to the surplus
fund the amount paid into the retirement fund.
1994
7-8-12 Charge off of losses sustained on receivables and operating losses - Replenishment of surplus account.
(1) Losses sustained on receivables by an industrial loan corporation authorized to accept deposits shall be charged first to the corporation's reserve for losses and then to its current income. Operating losses shall be charged first to the corporation's current income, next to undivided profits and then, after undivided profits have been exhausted, to the surplus account.
(2) A charge to the corporation's surplus account shall
be replenished from net profits or capital contributions.
The corporation may declare or pay a dividend only with the
written permission of the commissioner until its surplus
account reaches an amount prescribed by the commissioner
in writing.
1994
7-8-13 Real estate acquisition, holding, and conveyance.
An industrial loan corporation may purchase, hold, and
convey real estate, other than premises used in the conduct
of its business, only for the purposes and in a manner prescribed
by rule.
1994
7-8-14 Investment in property used in conduct of business.
(1) An industrial loan corporation may invest in premises, equipment, and other property used in conducting its own business, as the board of directors may approve by resolution. This property may include:
(a) real property and any interest in real property, furniture, fixtures, and equipment for use in carrying on its own business; and
(b) the stock, bonds, debentures, or other obligations of any subsidiary or affiliate whose exclusive activity is the ownership and management of property used in conducting the industrial loan corporation's business.
(2) The amount of these investments may not exceed 50%
of the industrial loan corporation's total capital, unless
the commissioner approves a higher amount in writing.
1994
7-8-15 Bad debts.
All demand and matured debts due to any industrial loan
corporation on which interest is past due and has not been
paid for a period of six months, unless they are well secured
and in the process of collection, are considered bad debts
and shall be charged off to the profit and loss account.
The corporation shall maintain in its files documentation
to support its evaluation of the security and monthly reports
of its collection efforts and a plan of collection.
1994
7-8-16 Registration of industrial loan corporation holding company - Filing and contents of statement - Exemptions - Rules.
(1) Each industrial loan corporation holding company shall register with the department by filing a registration statement in a form prescribed by the commissioner. The statement shall include:
(a) the name, address, and principal occupation of each officer and director of the registrant;
(b) a statement of financial condition as of a date not more than six months prior to the date of registration;
(c) a certificate of good standing in the state in which the registrant is incorporated; and
(d) evidence that the company is authorized to transact business in this state.
(2) A person may not form an industrial loan corporation holding company, unless it is authorized to do so by the commissioner and is registered with the department as provided in Subsection (1). An applicant for authorization to form a holding company shall file an application in a form prescribed by the commissioner by rule.
(3) The commissioner may exempt an industrial loan corporation holding company in whole or in part from registration if it is:
(a) a bank holding company or savings and loan holding company subject to federal regulation;
(b) a person that is a holding company only because it owns or controls voting shares of an industrial loan corporation or holding company acquired in connection with the underwriting of securities if it holds these shares no longer than 120 days, unless the commissioner approves a longer period to permit their sale on a reasonable basis;
(c) a person exempt from the jurisdiction of the department under Section 7-1-502 ; or
(d) a person exempted in writing by the commissioner or by rule.
(4) The commissioner may adopt rules with respect to industrial
loan corporation holding companies as are necessary to protect
depositors, other creditors, the public, and the financial
system of the state.
1994
7-8-19 Meetings of the board of directors.
A quorum of the board of directors of each industrial
loan corporation shall meet at least once each quarter. Minutes
of each meeting shall be kept by the secretary of the corporation
and maintained at the head office of the corporation.
1994
7-8-20 Limitations on loans to one borrower - Exceptions - Rules.
(1) Except as provided in this section, the total loans and extensions of credit by any industrial loan corporation to any person outstanding at any one time may not exceed 15% of the industrial loan corporation's total capital.
(2) Subsection (1) does not apply to an extension of credit that is subject to, or expressly exempted from, a federal statute or federal regulation limiting the amount of total loans and credit that may be extended to any person or group of persons.
(3) The commissioner may by rule:
(a) exempt from Subsection (1) any class of loans or class of extensions of credit that are adequately secured or are not otherwise a risk to the safe and sound operation of an industrial loan corporation;
(b) define terms and phrases necessary to interpret and implement this section;
(c) adopt standards for aggregating or segregating loans to the same or different persons;
(d) describe records required to be maintained;
(e) require specific actions to be taken by an institution's board of directors or executive officers; and
(f) prescribe other actions necessary to interpret and
implement this section.
1993
