7-3-21. Stock ownership by banks.

267 words·~1 min read·/ut/title-7/chapter-3/7-3-21

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

Effective 5/13/2014

(1)A bank may purchase, own and hold, and sell or otherwise dispose of:

(a)shares of the Federal Reserve Bank of the Twelfth Federal Reserve District;

(b)the stock of a corporation organized under the laws of the United States for purposes similar to those of the federal reserve banks or the Federal Deposit Insurance Corporation;

(c)shares of the Federal National Mortgage Association;

(d)the stock of a safe deposit company;

(e)the stock of a corporation owning the banking house in which any place of business of the bank is located;

(f)the stock of a bank service corporation performing services for the bank;

(g)the stock of a corporation acquired by the bank in satisfaction of or on account of debts previously contracted in the course of the bank's business;

(h)the stock of a foreign banking corporation;

(i)the stock of a corporation authorized under Title IX of the Housing and Urban Development Act of 1968;

(j)the stock of the Government National Mortgage Association authorized under 12 U.S.C. Sec. 1716 et seq.;

(k)the stock of a charitable foundation;

(l)the stock of a community development corporation;

(m)the stock of bankers' banks; and

(n)the stock of an agricultural credit corporation.

(2)A bank may invest in a small business investment company to the same extent allowed federally chartered banks.

(3)Unless expressly authorized by this chapter, a bank may not purchase or own the stock of any other corporation except in a fiduciary capacity.

Amended by Chapter 97 , 2014 General Session