7-1-324. Debt cancellation agreements and debt suspension agreements.

463 words·~2 min read·/ut/title-7/chapter-1/7-1-324

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)As used in this section:

(a)"Class of depository institution" means a class consisting of:

(i)banks;

(ii)credit unions;

(iii)industrial banks; or

(iv)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 in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act :

(a)authorize any member of a class of depository institution that is subject to the jurisdiction 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 agreement issued in this state by a member of a class of depository institution.

(a)Any rule adopted by the commissioner under this section as applied to a class of depository institution shall be substantially similar to any federal regulation applying to the same class of depository institution.

(b)Any rule adopted by the commissioner applicable to a class of depository institution described in this Subsection (3)(b) shall be substantially similar to any federal regulation applicable to a bank if no federal regulation authorizes or regulates the issuance of a debt cancellation agreement or debt suspension agreement for that class of depository institution.

(a)An out-of-state depository institution may issue a debt cancellation agreement or debt suspension agreement in this state if:

(i)the home state of the out-of-state depository institution authorizes and regulates the issuance of a debt cancellation agreement or debt suspension agreement by the out-of-state depository institution; and

(ii)subject to Subsection (4)(b) , the out-of-state depository institution complies with regulations from the out-of-state depository institution's home state that regulate the issuance of a debt cancellation agreement or a debt suspension agreement.

(b)Notwithstanding Subsection (4)(a) , an out-of-state depository institution described in Subsection (4)(a) shall comply with rules adopted by the commissioner under this section that regulate the issuance of a debt cancellation agreement or a debt suspension agreement in this state by the class of depository institution to which the out-of-state depository institution belongs if the regulations of the out-of-state depository institution's home state do not provide at least the same level of protection with respect to a debt cancellation agreement or debt suspension agreement as the rules adopted by the commissioner under this section with respect to the same class 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 73 , 2013 General Session