7-8-20 - Limitations on loans to one borrower -- Exceptions -- Rules.
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 anyindustrial bank to any person outstanding at any one time may not exceed 15% of the industrialbank's total capital.
(2) Subsection (1) does not apply to an extension of credit that is subject to, or expresslyexempted from, a federal statute or federal regulation limiting the amount of total loans andcredit 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 areadequately secured or are not otherwise a risk to the safe and sound operation of an industrialbank;
(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 executiveofficers; and
(f) prescribe other actions necessary to interpret and implement this section.
Amended by Chapter 92, 2004 General Session