7-5-111. Lending trust funds to trust company, officer, director, or employee a felony.
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Effective 5/6/2026
7-5-111. Lending trust funds to trust company, officer, director, or employee a felony.
(1)Except as provided in Subsection
(2), a trust company may not lend funds that the trust company holds in a trust account in accordance with this chapter to:
(a)the trust company;
(b)an officer of the trust company;
(c)a director of the trust company; or
(d)an employee of the trust company.
(2)A trust company may lend funds to a person described in Subsection
(1)if:
(a)the instrument creating a trust account authorizes the trust company to lend funds to the person;
(b)a person authorized to grant authorization to the trust company to lend funds to the person grants authorization; or
(c)a court issues an order in accordance with Section 75B-2-802 .
(3)An officer, a director, or an employee is guilty of a third degree felony if the officer, director, or employee:
(a)makes a loan in violation of Subsection
(1); or
(b)receives a loan that violates Subsection
(1).
Renumbered and Amended by Chapter 112 , 2026 General Session