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United States — Utah Act or statute

United States — Utah legislation

Utah Code § 7-1-616

A financial institution may accept or advertise transaction accounts only if authorized by federal or state law, and the commissioner has authority to grant, limit, condition, or revoke that authority.

Source excerpt

bank deposits and collectionscommissioner approvalfinancial institution authorizationinstitution authorityinstrument paymentnegotiable instrumentsregulatory authorizationtransaction accounts
Jurisdiction
United States — Utah
Status
In force
Dates
Legal dates not recorded
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01

Purpose and legislative effect

“A financial institution may accept or advertise transaction accounts only if authorized by federal or state law, and the commissioner has authority to grant, limit, condition, or revoke that authority.”

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Subsection 7-1-616(1)(a)

The institution is described as having adequate capital and reserves relative to its assets and liabilities.

Section 7-1-616(1)(a)

Subsection 7-1-616(1)(c)

The management of the institution is qualified to handle transaction accounts.

Section 7-1-616(1)(c)

Subsection 7-1-616(2)(a)

This applies when the institution no longer meets the criteria in Subsection (1).

Section 7-1-616(2)(a)

Subsection 7-1-616(3)

One or more depository institutions may, by written agreement, vary the terms of Title 70A, Chapter 3, Uniform Commercial Code - Negotiable Instruments , and Chapter 4, Uniform Commercial Code - Bank Deposits and Collections , for the

Section 7-1-616(3)

04

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In force source record

Source record from le.utah.gov · Legal dates not recorded

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Showing 9 of 9 provisions

Provision 9

Part 7-1-6

part 7-1-6 Deposit Accounts

§ 7-1-616Authority to accept transaction accounts -- Payment of instruments.Provision

Source excerpt

A financial institution may accept or advertise transaction accounts only if authorized by federal or state law, and the commissioner has authority to grant, limit, condition, or revoke that authority.

Authority to accept transaction accounts -- Payment of instruments. A financial institution may accept or advertise that it accepts transaction accounts only if authorized to do so under federal or state law. An institution may submit a written request for this authority to the commissioner, except that an institution authorized to accept transaction accounts as of June 1, 1994, does not, in the first instance, need to request or be granted any additional authority. The commissioner shall grant the authority if the commissioner finds that: the institution has adequate capital and reserves in relation to the character and condition of its assets and its deposit and other liabilities; the deposits and other accounts held by the institution are insured or guaranteed by an agency of the federal government; and the management of the institution is qualified to handle transaction accounts. The commissioner may revoke, limit, or condition an institution's authority to accept and handle transaction accounts upon a finding that: the institution no longer meets the criteria set forth in Subsection (1) ; or it would be contrary to the public interest and the soundness of the financial system of this state to allow the institution to continue to accept or handle transaction accounts without limitation or condition. One or more depository institutions may, by written agreement, vary the terms of Title 70A, Chapter 3, Uniform Commercial Code - Negotiable Instruments , and Chapter 4, Uniform Commercial Code - Bank Deposits and Collections , for the purposes of facilitating the transfer, exchange, and prompt payment of instruments drawn on transaction accounts.
Section 7-1-616Verify source
§ 7-1-616(1)Subsection 7-1-616(1)Provision

Source excerpt

A financial institution may accept or advertise transaction accounts only if authorized under federal or state law.

A financial institution may accept or advertise that it accepts transaction accounts only if authorized to do so under federal or state law. An institution may submit a written request for this authority to the commissioner, except that an institution authorized to accept transaction accounts as of June 1, 1994, does not, in the first instance, need to request or be granted any additional authority. The commissioner shall grant the authority if the commissioner finds that: the institution has adequate capital and reserves in relation to the character and condition of its assets and its deposit and other liabilities; the deposits and other accounts held by the institution are insured or guaranteed by an agency of the federal government; and the management of the institution is qualified to handle transaction accounts.
Section 7-1-616(1)Verify source
§ 7-1-616(1)(a)Subsection 7-1-616(1)(a)Provision

Source excerpt

The institution is described as having adequate capital and reserves relative to its assets and liabilities.

the institution has adequate capital and reserves in relation to the character and condition of its assets and its deposit and other liabilities;
Section 7-1-616(1)(a)Verify source
§ 7-1-616(1)(b)Subsection 7-1-616(1)(b)Provision

Source excerpt

the deposits and other accounts held by the institution are insured or guaranteed by an agency of the federal government; and

the deposits and other accounts held by the institution are insured or guaranteed by an agency of the federal government; and
Section 7-1-616(1)(b)Verify source
§ 7-1-616(1)(c)Subsection 7-1-616(1)(c)Provision

Source excerpt

The management of the institution is qualified to handle transaction accounts.

the management of the institution is qualified to handle transaction accounts.
Section 7-1-616(1)(c)Verify source
§ 7-1-616(2)Subsection 7-1-616(2)Provision

Source excerpt

The commissioner may revoke, limit, or condition an institution’s authority to accept and handle transaction accounts if the stated findings are made.

The commissioner may revoke, limit, or condition an institution's authority to accept and handle transaction accounts upon a finding that: the institution no longer meets the criteria set forth in Subsection (1) ; or it would be contrary to the public interest and the soundness of the financial system of this state to allow the institution to continue to accept or handle transaction accounts without limitation or condition.
Section 7-1-616(2)Verify source
§ 7-1-616(2)(a)Subsection 7-1-616(2)(a)Provision

Source excerpt

This applies when the institution no longer meets the criteria in Subsection (1).

the institution no longer meets the criteria set forth in Subsection (1) ; or
Section 7-1-616(2)(a)Verify source
§ 7-1-616(2)(b)Subsection 7-1-616(2)(b)Provision

Source excerpt

It states that allowing the institution to keep accepting or handling transaction accounts without limitation or condition would be contrary to the public interest and the soundness of the state's financial system.

it would be contrary to the public interest and the soundness of the financial system of this state to allow the institution to continue to accept or handle transaction accounts without limitation or condition.
Section 7-1-616(2)(b)Verify source
§ 7-1-616(3)Subsection 7-1-616(3)Provision

Source excerpt

One or more depository institutions may, by written agreement, vary the terms of Title 70A, Chapter 3, Uniform Commercial Code - Negotiable Instruments , and Chapter 4, Uniform Commercial Code - Bank Deposits and Collections , for the

One or more depository institutions may, by written agreement, vary the terms of Title 70A, Chapter 3, Uniform Commercial Code - Negotiable Instruments , and Chapter 4, Uniform Commercial Code - Bank Deposits and Collections , for the purposes of facilitating the transfer, exchange, and prompt payment of instruments drawn on transaction accounts.
Section 7-1-616(3)Verify source

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