United States — Utah Act or statute

United States — Utah legislation

Utah Code § 7-1-503

This section restricts who may issue or sell certain securities and who may solicit deposits or investments in accounts or debtor-creditor instruments tied to a financial institution.

Source excerpt

administrative compliancebankingbusiness indebtednesscertificate of authoritycommissioner approvalcreditdefinitiondepartment rules compliancedeposit account solicitationfee paymentfeesfinancial institutionsfinancial servicesinsurance companiesissuer securities offeringissuer securities salesregistration/complianceregulatory approvalregulatory exemptionsecuritiessecurities issuancesecurities regulationtitle/chapter reference

Jurisdiction: United States — Utah
Status: In force
Dates: Legal dates not recorded

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“This section restricts who may issue or sell certain securities and who may solicit deposits or investments in accounts or debtor-creditor instruments tied to a financial institution.”

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Regulation of sale by financial institution of its securities -- Solicitation of deposit accounts restricted -- Violations.

This section restricts who may issue or sell certain securities and who may solicit deposits or investments in accounts or debtor-creditor instruments tied to a financial institution.

Section 7-1-503

Subsection 7-1-503(1)(b)(iii)

a credit union; or

Section 7-1-503(1)(b)(iii)

Subsection 7-1-503(2)(a)(ii)

payment of the fee prescribed in Section 7-1-401 ; and

Section 7-1-503(2)(a)(ii)

Subsection 7-1-503(3)(b)

Subsection (3)(a) does not apply to several listed entities and sale channels, including certain insurance companies, registered brokers or dealers, certain nondepository institutions, and certain out-of-state depository institutions.

Section 7-1-503(3)(b)

Subsection 7-1-503(5)

The provisions of Sections 61-1-21 , 61-1-21.1 , and 61-1-22 apply to violations of this section.

Section 7-1-503(5)

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Showing 41 of 41 provisions

Provision 41

Part 7-1-5

part 7-1-5 Jurisdiction of Department

§ 7-1-503Regulation of sale by financial institution of its securities -- Solicitation of deposit accounts restricted -- Violations.Provision

Source excerpt

This section restricts who may issue or sell certain securities and who may solicit deposits or investments in accounts or debtor-creditor instruments tied to a financial institution.

Regulation of sale by financial institution of its securities -- Solicitation of deposit accounts restricted -- Violations. As used in this section, "security" has the same meaning as in Section 61-1-13 , except that "security" does not include: a certificate of deposit or similar instrument issued by: a bank; a savings and loan association; a credit union; or an industrial bank; a loan participation, letter of credit, or other form of indebtedness incurred in the ordinary course of business by: a bank; a savings and loan association; a credit union; or an industrial bank; or a promissory note or other evidence of indebtedness and the underlying security for it; a lease of personal property; a contract to sell real or personal property; or any other loan or investment sold by a depository institution in the secondary market. A person subject to the jurisdiction of the department may not, directly or indirectly, issue, offer, offer to sell, offer for sale, or sell a security of which it is the issuer without: the prior approval of the commissioner; payment of the fee prescribed in Section 7-1-401 ; and complying with the rules of the department with respect to securities. The commissioner may extend the approval described in Subsection (2)(a)(i) for one or more additional periods not to exceed six months each: if the person described in Subsection (2)(a) makes written application before the expiration of the period of approval; and for good cause shown. A person not otherwise subject to the jurisdiction of the department may not issue, offer to sell, offer for sale, or sell, or otherwise solicit the general public to deposit in an account or to purchase or invest in an instrument creating or evidencing a debtor-creditor relationship, if the account or instrument is represented to be an account with or an instrument issued by a financial institution subject to the jurisdiction of the department, without: the prior approval of the commissioner; payment of the fee prescribed in Section 7-1-401 ; and complying with the rules of the department with respect to securities. Subsection (3)(a) does not apply to: insurance companies that have been issued certificates of authority under Title 31A, Insurance Code ; brokers or dealers registered under: Title 61, Chapter 1, Utah Uniform Securities Act ; or the federal Securities Exchange Act of 1934; or nondepository institutions to the extent that the securities are not offered for sale or sold through or by agents, representatives, officers, or employees of an affiliated Utah depository institution; or out-of-state depository institution with at least one branch in Utah or otherwise offered for sale or sold on its premises. The rules of the department: shall, at a minimum, require registration with the department; and may require the use of an offering circular containing such material information as to the nature of the security and the financial condition of the issuer as the commissioner may require to protect the public interest. The provisions of Sections 61-1-21 , 61-1-21.1 , and 61-1-22 apply to violations of this section.

Section 7-1-503Verify source

§ 7-1-503(1)Subsection 7-1-503(1)Provision

Source excerpt

This section defines “security” by reference to Section 61-1-13, but excludes several listed instruments and transactions.

As used in this section, "security" has the same meaning as in Section 61-1-13 , except that "security" does not include: a certificate of deposit or similar instrument issued by: a bank; a savings and loan association; a credit union; or an industrial bank; a loan participation, letter of credit, or other form of indebtedness incurred in the ordinary course of business by: a bank; a savings and loan association; a credit union; or an industrial bank; or a promissory note or other evidence of indebtedness and the underlying security for it; a lease of personal property; a contract to sell real or personal property; or any other loan or investment sold by a depository institution in the secondary market.

Section 7-1-503(1)Verify source

§ 7-1-503(1)(a)Subsection 7-1-503(1)(a)Provision

Source excerpt

a certificate of deposit or similar instrument issued by: a bank; a savings and loan association; a credit union; or an industrial bank;

Section 7-1-503(1)(a)Verify source

§ 7-1-503(1)(a)(i)Subsection 7-1-503(1)(a)(i)Provision

Source excerpt

Applies to a bank.

a bank;

Section 7-1-503(1)(a)(i)Verify source

§ 7-1-503(1)(a)(ii)Subsection 7-1-503(1)(a)(ii)Provision

Source excerpt

Applies to a savings and loan association.

a savings and loan association;

Section 7-1-503(1)(a)(ii)Verify source

§ 7-1-503(1)(a)(iii)Subsection 7-1-503(1)(a)(iii)Provision

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a credit union; or

Section 7-1-503(1)(a)(iii)Verify source

§ 7-1-503(1)(a)(iv)Subsection 7-1-503(1)(a)(iv)Provision

Source excerpt

an industrial bank;

Section 7-1-503(1)(a)(iv)Verify source

§ 7-1-503(1)(b)Subsection 7-1-503(1)(b)Provision

Source excerpt

a loan participation, letter of credit, or other form of indebtedness incurred in the ordinary course of business by: a bank; a savings and loan association; a credit union; or an industrial bank; or

Section 7-1-503(1)(b)Verify source

§ 7-1-503(1)(b)(i)Subsection 7-1-503(1)(b)(i)Provision

Source excerpt

a bank;

Section 7-1-503(1)(b)(i)Verify source

§ 7-1-503(1)(b)(ii)Subsection 7-1-503(1)(b)(ii)Provision

Source excerpt

Refers to a savings and loan association.

a savings and loan association;

Section 7-1-503(1)(b)(ii)Verify source

§ 7-1-503(1)(b)(iii)Subsection 7-1-503(1)(b)(iii)Provision

Source excerpt

a credit union; or

Section 7-1-503(1)(b)(iii)Verify source

§ 7-1-503(1)(b)(iv)Subsection 7-1-503(1)(b)(iv)Provision

Source excerpt

an industrial bank; or

Section 7-1-503(1)(b)(iv)Verify source

§ 7-1-503(1)(c)Subsection 7-1-503(1)(c)Provision

Source excerpt

a promissory note or other evidence of indebtedness and the underlying security for it; a lease of personal property; a contract to sell real or personal property; or any other loan or investment sold by a depository institution in the

Section 7-1-503(1)(c)Verify source

§ 7-1-503(1)(c)(i)Subsection 7-1-503(1)(c)(i)Provision

Source excerpt

a promissory note or other evidence of indebtedness and the underlying security for it;

Section 7-1-503(1)(c)(i)Verify source

§ 7-1-503(1)(c)(ii)Subsection 7-1-503(1)(c)(ii)Provision

Source excerpt

a lease of personal property;

Section 7-1-503(1)(c)(ii)Verify source

§ 7-1-503(1)(c)(iii)Subsection 7-1-503(1)(c)(iii)Provision

Source excerpt

a contract to sell real or personal property; or

Section 7-1-503(1)(c)(iii)Verify source

§ 7-1-503(1)(c)(iv)Subsection 7-1-503(1)(c)(iv)Provision

Source excerpt

any other loan or investment sold by a depository institution in the secondary market.

Section 7-1-503(1)(c)(iv)Verify source

§ 7-1-503(2)Subsection 7-1-503(2)Provision

Source excerpt

A covered person may not issue, offer, or sell its own security unless the commissioner has approved it, the required fee is paid, and department securities rules are followed.

A person subject to the jurisdiction of the department may not, directly or indirectly, issue, offer, offer to sell, offer for sale, or sell a security of which it is the issuer without: the prior approval of the commissioner; payment of the fee prescribed in Section 7-1-401 ; and complying with the rules of the department with respect to securities. The commissioner may extend the approval described in Subsection (2)(a)(i) for one or more additional periods not to exceed six months each: if the person described in Subsection (2)(a) makes written application before the expiration of the period of approval; and for good cause shown.

Section 7-1-503(2)Verify source

§ 7-1-503(2)(a)Subsection 7-1-503(2)(a)Provision

Source excerpt

Section 7-1-503(2)(a)Verify source

§ 7-1-503(2)(a)(i)Subsection 7-1-503(2)(a)(i)Provision

Source excerpt

the prior approval of the commissioner;

Section 7-1-503(2)(a)(i)Verify source

§ 7-1-503(2)(a)(ii)Subsection 7-1-503(2)(a)(ii)Provision

Source excerpt

payment of the fee prescribed in Section 7-1-401 ; and

Section 7-1-503(2)(a)(ii)Verify source

§ 7-1-503(2)(a)(iii)Subsection 7-1-503(2)(a)(iii)Provision

Source excerpt

complying with the rules of the department with respect to securities.

Section 7-1-503(2)(a)(iii)Verify source

§ 7-1-503(2)(b)Subsection 7-1-503(2)(b)Provision

Source excerpt

The commissioner may extend the approval for additional periods of up to six months each if there is a timely written application and good cause.

The commissioner may extend the approval described in Subsection (2)(a)(i) for one or more additional periods not to exceed six months each: if the person described in Subsection (2)(a) makes written application before the expiration of the period of approval; and for good cause shown.

Section 7-1-503(2)(b)Verify source

§ 7-1-503(2)(b)(i)Subsection 7-1-503(2)(b)(i)Provision

Source excerpt

A person described in Subsection (2)(a) must file a written application before the approval period expires.

if the person described in Subsection (2)(a) makes written application before the expiration of the period of approval; and

Section 7-1-503(2)(b)(i)Verify source

§ 7-1-503(2)(b)(ii)Subsection 7-1-503(2)(b)(ii)Provision

Source excerpt

for good cause shown.

Section 7-1-503(2)(b)(ii)Verify source

§ 7-1-503(3)Subsection 7-1-503(3)Provision

Source excerpt

A person outside the department’s jurisdiction may not market or sell certain deposit-like accounts or debtor-creditor instruments as if they were tied to a regulated financial institution unless required approval, fees, and securities rules are satisfied.

A person not otherwise subject to the jurisdiction of the department may not issue, offer to sell, offer for sale, or sell, or otherwise solicit the general public to deposit in an account or to purchase or invest in an instrument creating or evidencing a debtor-creditor relationship, if the account or instrument is represented to be an account with or an instrument issued by a financial institution subject to the jurisdiction of the department, without: the prior approval of the commissioner; payment of the fee prescribed in Section 7-1-401 ; and complying with the rules of the department with respect to securities. Subsection (3)(a) does not apply to: insurance companies that have been issued certificates of authority under Title 31A, Insurance Code ; brokers or dealers registered under: Title 61, Chapter 1, Utah Uniform Securities Act ; or the federal Securities Exchange Act of 1934; or nondepository institutions to the extent that the securities are not offered for sale or sold through or by agents, representatives, officers, or employees of an affiliated Utah depository institution; or out-of-state depository institution with at least one branch in Utah or otherwise offered for sale or sold on its premises.

Section 7-1-503(3)Verify source

§ 7-1-503(3)(a)Subsection 7-1-503(3)(a)Provision

Source excerpt

A person not otherwise subject to the department’s jurisdiction may not make or solicit certain deposits, sales, or investments in a debtor-creditor instrument if it is represented as tied to a financial institution under the department’s jurisdiction, unless the commissioner approves, the required fee is paid, and department securities rules are followed.

Section 7-1-503(3)(a)Verify source

§ 7-1-503(3)(a)(i)Subsection 7-1-503(3)(a)(i)Provision

Source excerpt

the prior approval of the commissioner;

Section 7-1-503(3)(a)(i)Verify source

§ 7-1-503(3)(a)(ii)Subsection 7-1-503(3)(a)(ii)Provision

Source excerpt

payment of the fee prescribed in Section 7-1-401 ; and

Section 7-1-503(3)(a)(ii)Verify source

§ 7-1-503(3)(a)(iii)Subsection 7-1-503(3)(a)(iii)Provision

Source excerpt

Comply with the department’s securities-related rules.

complying with the rules of the department with respect to securities.

Section 7-1-503(3)(a)(iii)Verify source

§ 7-1-503(3)(b)Subsection 7-1-503(3)(b)Provision

Source excerpt

Subsection (3)(a) does not apply to: insurance companies that have been issued certificates of authority under Title 31A, Insurance Code ; brokers or dealers registered under: Title 61, Chapter 1, Utah Uniform Securities Act ; or the federal Securities Exchange Act of 1934; or nondepository institutions to the extent that the securities are not offered for sale or sold through or by agents, representatives, officers, or employees of an affiliated Utah depository institution; or out-of-state depository institution with at least one branch in Utah or otherwise offered for sale or sold on its premises.

Section 7-1-503(3)(b)Verify source

§ 7-1-503(3)(b)(i)Subsection 7-1-503(3)(b)(i)Provision

Source excerpt

This phrase refers to insurance companies that have been issued certificates of authority under Title 31A, Insurance Code.

insurance companies that have been issued certificates of authority under Title 31A, Insurance Code ;

Section 7-1-503(3)(b)(i)Verify source

§ 7-1-503(3)(b)(ii)Subsection 7-1-503(3)(b)(ii)Provision

Source excerpt

Refers to brokers or dealers registered under the Utah Uniform Securities Act or the federal Securities Exchange Act of 1934.

brokers or dealers registered under: Title 61, Chapter 1, Utah Uniform Securities Act ; or the federal Securities Exchange Act of 1934; or

Section 7-1-503(3)(b)(ii)Verify source

§ 7-1-503(3)(b)(ii)(A)Subsection 7-1-503(3)(b)(ii)(A)Provision

Source excerpt

Title 61, Chapter 1, Utah Uniform Securities Act ; or

Section 7-1-503(3)(b)(ii)(A)Verify source

§ 7-1-503(3)(b)(ii)(B)Subsection 7-1-503(3)(b)(ii)(B)Provision

Source excerpt

the federal Securities Exchange Act of 1934; or

Section 7-1-503(3)(b)(ii)(B)Verify source

§ 7-1-503(3)(b)(iii)Subsection 7-1-503(3)(b)(iii)Provision

Source excerpt

nondepository institutions to the extent that the securities are not offered for sale or sold through or by agents, representatives, officers, or employees of an affiliated Utah depository institution; or

Section 7-1-503(3)(b)(iii)Verify source

§ 7-1-503(3)(b)(iv)Subsection 7-1-503(3)(b)(iv)Provision

Source excerpt

out-of-state depository institution with at least one branch in Utah or otherwise offered for sale or sold on its premises.

Section 7-1-503(3)(b)(iv)Verify source

§ 7-1-503(4)Subsection 7-1-503(4)Provision

Source excerpt

The department’s rules must require registration with the department and may require an offering circular with specified information.

The rules of the department: shall, at a minimum, require registration with the department; and may require the use of an offering circular containing such material information as to the nature of the security and the financial condition of the issuer as the commissioner may require to protect the public interest.

Section 7-1-503(4)Verify source

§ 7-1-503(4)(a)Subsection 7-1-503(4)(a)Provision

Source excerpt

At a minimum, registration with the department is required.

shall, at a minimum, require registration with the department; and

Section 7-1-503(4)(a)Verify source

§ 7-1-503(4)(b)Subsection 7-1-503(4)(b)Provision

Source excerpt

The commissioner may require an offering circular with material information about the security and the issuer’s financial condition.

may require the use of an offering circular containing such material information as to the nature of the security and the financial condition of the issuer as the commissioner may require to protect the public interest.

Section 7-1-503(4)(b)Verify source

§ 7-1-503(5)Subsection 7-1-503(5)Provision

Source excerpt

The provisions of Sections 61-1-21 , 61-1-21.1 , and 61-1-22 apply to violations of this section.

Section 7-1-503(5)Verify source

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Utah Code § 7-1-503

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