Utah Administrative Code
Topic - Financial Institutions
Title R337 - Credit Unions
Rule R337-4 - Establishment of "Credit Union Service Organizations"
Section R337-4-3 - Establishment and Approval of a Credit Union Service Organization
Current through Bulletin 2024-06, March 15, 2024
(1) A credit union by action of its board of directors may establish or invest in, or both, a credit union service organization authorized to engage in the services specified in this rule if:
(2) The total investments in, or loans to all service organizations shall not exceed 5% of the capital and surplus of the credit union.
(3) The services performed by the credit union service organization are limited primarily to stockholder credit unions and their members or members of credit unions contracting with the credit union service organization. However, for member business loans and loans and extensions of credit, the credit union service organization shall only serve members.
(4) To establish a credit union service organization, a credit union shall file an application with the commissioner identifying the services the credit union service organization will provide.
The application shall contain pro forma statements or other information sufficient to determine:
(5) The commissioner shall approve or disapprove the application within 30 days after accepting it as complete. If the commissioner does not approve or disapprove an application within this time, it is considered approved. A credit union service organization approved prior to the effective date of the 2002 rule change need not reapply for authorization.
(6) A credit union may not change the type of services engaged in by the credit union service organization or engage in new services without providing 30 days written notice to the commissioner.
(7) The commissioner may at any time, based upon supervisory, legal, or safety and soundness reasons, limit the services engaged in by the credit union service organization.
(8) The credit union service organization shall comply with all relevant and applicable state and local laws and ordinances for the specific services offered.
(9) A credit union may establish or invest in, or both, a credit union service organization to provide services not set forth in this rule upon approval of the commissioner obtained pursuant to R337-4-3(4) and (5).
(10) A credit union service organization may provide services not set forth in this rule upon approval of the commissioner obtained pursuant to R337-4-3(4) and (5).