Utah Administrative Code
Topic - Financial Institutions
Title R333 - Banks
Rule R333-12 - Investment by State-Chartered Banks in Real Property Other Than Bank Premises
Section R333-12-3 - Investment in Real Estate
Universal Citation: UT Admin Code R 333-12-3
Current through Bulletin 2024-06, March 15, 2024
(1) A bank, directly or through a subsidiary, may invest an amount not exceeding 10 percent of the bank's capital stock and surplus in real property or in an entity organized to acquire interests in real property, for the purpose of producing income, for inventory and sale, or other development thereof, and may hold, sell, lease, operate, and otherwise exercise the rights it acquires in any such property if:
(a) the bank has total
capital equal to at least 8% of its total assets as of the date the investment
is made;
(b) no officer, director,
employee, principal stockholder or affiliate has any interest in any property
or entity in which the bank invests; and
(c) no officer, director, employee, principal
stockholder or affiliate receives any compensation for arranging or effecting
the investment by the bank.
(2) The limitations established in Subsection (1) do not apply to real property which the bank may acquire and hold:
(a) in satisfaction of debts previously
contracted;
(b) at sales to
foreclose liens or other security interests claimed by the bank in the
properties acquired; and
(c)
current and former bank premises and property originally acquired for future
use as bank premises.
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