16-13-5 - Bonds or securities, capital stock of development corporations -- Authority to purchase, hold, or dispose of -- Rights of holders -- Rights of financial institutions.
16-13-5. Bonds or securities, capital stock of development corporations -- Authorityto purchase, hold, or dispose of -- Rights of holders -- Rights of financial institutions.
(1) All persons, firms, partnerships, associations, trusts and domestic and foreigncorporations organized or authorized to do business in this state, including, without impliedlimitation, all financial institutions, public utility corporations and insurance corporations, arehereby authorized to acquire, purchase, hold, sell, assign, transfer, mortgage, pledge, or otherwisedispose of any bonds, securities or other evidences of indebtedness created by a developmentcorporation, and to exercise all the rights, powers and privileges of ownership thereof, all withoutthe approval of any regulatory authority of the state.
(2) All persons, firms, partnerships, associations, trusts, domestic and foreigncorporations organized or authorized to do business in this state, including without impliedlimitation all public utility corporations and insurance corporations, other than financialinstitutions, are hereby authorized to acquire, purchase, hold, sell, assign, transfer, mortgage,pledge, or otherwise dispose of any of the shares of the capital stock of a developmentcorporation, and while owners of said stock to exercise all the rights, powers and privileges ofownership, including the right to vote thereon, all without the approval of any regulatoryauthority of the state.
(3) All financial institutions are hereby authorized to become lenders to developmentcorporations and to make loans to the corporations as provided herein, without the approval ofany regulatory authority of the state.
(4) A financial institution is authorized to acquire, purchase, hold, sell, assign, transfer,mortgage, pledge, or otherwise dispose of, any bonds, securities or other evidences ofindebtedness created by the corporation in accordance with its provisions for the call of loans,and any of the shares of the capital stock of the corporation, and while owners thereof, toexercise all the rights, powers and privileges of ownership, including the right to vote, all withoutapproval of any regulatory authority of the state; provided, that the amount of the capital stock ofthe corporation which may be acquired by any lender pursuant to the authority granted hereinmay not exceed 10% of the loan limit of such lender. The amount of capital stock of thecorporation which any lender is authorized to acquire pursuant to the authority granted herein isin addition to the amount of capital stock in corporations which such lender may otherwise beauthorized to acquire.
Amended by Chapter 378, 2010 General Session