7-1-324 - Debt cancellation agreements and debt suspension agreements.
7-1-324. Debt cancellation agreements and debt suspension agreements.
(1) As used in this section:
(a) "Class of depository institution" means a class consisting of:
(i) banks;
(ii) credit unions;
(iii) industrial banks;
(iv) savings and loan associations; or
(v) wholly owned subsidiaries of a depository institution listed in this Subsection (1)(a).
(b) "Debt cancellation agreement" is as defined in Section 31A-21-109.
(c) "Debt suspension agreement" is as defined in Section 31A-21-109.
(2) Subject to the other provisions of this section, the commissioner may by rule, made inaccordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
(a) authorize any member of a class of depository institution that is subject to thejurisdiction of the department to issue:
(i) a debt cancellation agreement; or
(ii) a debt suspension agreement; and
(b) regulate the issuance of a debt cancellation agreement or a debt suspension agreementissued in this state by a member of a class of depository institution.
(3) (a) Any rule adopted by the commissioner under this section as applied to a class ofdepository institution shall be substantially similar to any federal regulation applying to the sameclass of depository institution.
(b) Any rule adopted by the commissioner applicable to a class of depository institutiondescribed in this Subsection (3)(b) shall be substantially similar to any federal regulationapplicable to a bank if no federal regulation authorizes or regulates the issuance of a debtcancellation agreement or debt suspension agreement for that class of depository institution.
(4) (a) An out-of-state depository institution may issue a debt cancellation agreement ordebt suspension agreement in this state if:
(i) the home state of the out-of-state depository institution authorizes and regulates theissuance of a debt cancellation agreement or debt suspension agreement by the out-of-statedepository institution; and
(ii) subject to Subsection (4)(b), the out-of-state depository institution complies withregulations from the out-of-state depository institution's home state that regulate the issuance of adebt cancellation agreement or a debt suspension agreement.
(b) Notwithstanding Subsection (4)(a), an out-of-state depository institution described inSubsection (4)(a) shall comply with rules adopted by the commissioner under this section thatregulate the issuance of a debt cancellation agreement or a debt suspension agreement in thisstate by the class of depository institution to which the out-of-state depository institution belongsif the regulations of the out-of-state depository institution's home state do not provide at least thesame level of protection with respect to a debt cancellation agreement or debt suspensionagreement as the rules adopted by the commissioner under this section with respect to the sameclass of depository institution:
(i) for the safety and soundness of the depository institution; and
(ii) for consumer protections for the borrowers of the depository institution.
Amended by Chapter 382, 2008 General Session