7-1-301 - Powers and duties of commissioner -- Rulemaking.
7-1-301. Powers and duties of commissioner -- Rulemaking.
Without limiting the other powers, duties, and responsibilities specified in this title, thecommissioner has all the functions, powers, duties, and responsibilities with respect toinstitutions, persons, or businesses subject to the jurisdiction of the department contained in thistitle, including all of the functions, powers, duties, and responsibilities described in Subsections(1) through (15).
(1) The commissioner may govern the administration and operation of the department.
(2) The commissioner may supervise the conduct, operation, management, examination,and statements and reports of examinations of financial institutions and other persons subject tothe jurisdiction of the department.
(3) (a) The commissioner may authorize a state chartered depository institution to engagein any activity it could engage in, and to grant to that institution all additional rights, powers,privileges, benefits, or immunities it would possess, if it were chartered under the laws of theUnited States.
(b) The commissioner may authorize a depository institution chartered by this state toengage in any activity that a Utah branch of an out-of-state depository institution of the sameclass can engage in, and to grant to the Utah institution all additional rights, powers, privileges,benefits, or immunities it needs to engage in the activity.
(c) In granting authority under this Subsection (3), the commissioner shall consider:
(i) the need for competitive equality between institutions chartered by this state andinstitutions operating in this state that are chartered by another state or by the federalgovernment; and
(ii) the adverse effect on shareholders, members, depositors, and other customers offinancial institutions chartered by this state if equal power and protection of those institutions,compared with federally chartered or out-of-state institutions of the same class, are not promptlyavailable.
(4) The commissioner may safeguard the interest of shareholders, members, depositors,and other customers of institutions and other persons subject to the jurisdiction of thedepartment.
(5) (a) The commissioner may establish criteria consistent with this title to be applied ingranting applications for approval of:
(i) a new institution;
(ii) a new branch;
(iii) the relocation of an office or branch;
(iv) a merger;
(v) a consolidation;
(vi) a change in control of an institution or other person subject to the jurisdiction of thedepartment; and
(vii) other applications specified in this title.
(b) The criteria established under Subsection (5)(a) may not be applied to make it moredifficult for a state chartered institution to obtain approval of an application than for a federallychartered institution in the same class to obtain approval from the appropriate federal regulatoryagency or administrator.
(6) (a) The commissioner may protect the privacy of the records of any institution subjectto the jurisdiction of the department pertaining to a particular depositor or other customer of the
institution. Rules adopted under this Subsection (6) shall be consistent with federal laws andregulations applicable to the institution.
(b) Any institution that consents to produce records or that is required to produce recordsin compliance with a subpoena or other order of a court of competent jurisdiction or incompliance with an order obtained pursuant to Sections 7-1-1001 through 7-1-1007 shall bereimbursed for the cost of retrieval and reproduction of the records by the party seeking theinformation. The commissioner may by rule establish the rates and conditions under whichreimbursement is made.
(7) (a) The commissioner may classify all records kept by institutions subject to thejurisdiction of the department and to prescribe the period for which each class of records isretained.
(b) Rules adopted under this Subsection (7) for any class of financial institution shall beconsistent with federal laws and regulations applicable to the class.
(c) Rules made under this Subsection (7) shall provide that:
(i) An institution may dispose of any record after retaining it for the period prescribed bythe commissioner for retention of records of its class. If an institution disposes of a record afterthe prescribed period, the institution has no duty to produce it in any action or proceeding and isnot liable to any person by reason of that disposition.
(ii) Any institution may keep records in its custody in the form of microfilm orequivalent reproduction. Any such reproduction shall have the same force and effect as theoriginal and shall be admissible into evidence as if it were the original.
(d) In adopting rules under this Subsection (7), the commissioner shall take intoconsideration:
(i) actions at law and administrative proceedings in which the production of the recordsmight be necessary or desirable;
(ii) state and federal statutes of limitation applicable to the actions or proceedings;
(iii) the availability from other sources of information contained in these records; and
(iv) other matters the commissioner considers pertinent in formulating rules that requireinstitutions to retain their records for as short a period as commensurate with the interest inhaving the records available of:
(A) customers, members, depositors, and shareholders of the institutions; and
(B) the people of this state.
(8) (a) The commissioner may establish reasonable classes of depository and otherfinancial institutions including separate classes for:
(i) savings and loan associations and related institutions;
(ii) banks and related institutions;
(iii) credit unions; and
(iv) industrial banks.
(b) If the restrictions or requirements the commissioner imposes are not more stringentthan those applicable under federal law or regulation to federally chartered institutions of thesame class, the commissioner may establish the following for each class in a manner consistentwith this title:
(i) eligible classes and types of investments for the deposits and other funds of thosefinancial institutions;
(ii) minimum standards, in amounts sufficient to protect depositors and other creditors,
for the amount and types of capital required to engage in the business conducted by each class orto obtain a license or to establish a branch or additional office of an institution of each class;
(iii) eligible obligations, reserves, and other accounts to be included in the computationof capital;
(iv) minimum liquidity requirements for financial institutions within each class inamounts sufficient to meet the demands of depositors and other creditors for liquid funds;
(v) limitations on the amount and type of borrowings by each class of financialinstitution in relation to the amount of its capital and the character and condition of its assets andits deposits and other liabilities;
(vi) limitations on the amount and nature of loans and extensions of credit to any personor related persons by each class of financial institution in relation to the amount of its capital; and
(vii) limitations on the amount and nature of loans and extensions of credit by a financialinstitution or other person within each class to an executive officer, director, or principalshareholder of:
(A) the institution or other person;
(B) any company of which the institution or other person is a subsidiary;
(C) any subsidiary of the institution or other person;
(D) any affiliate of the institution; and
(E) a company controlled by an executive officer, director, or principal shareholder of theinstitution.
(9) The commissioner may define unfair trade practices of financial institutions and otherpersons subject to the jurisdiction of the department and to prohibit or restrict these practices.
(10) The commissioner may establish reasonable standards to promote the fair andtruthful advertising of:
(a) services offered by a financial institution;
(b) the charges for the services advertised under Subsection (10)(a);
(c) the interest or other compensation to be paid on deposits or any debt instrumentoffered for sale by the institution;
(d) the nature and extent of any:
(i) insurance on deposits;
(ii) savings accounts;
(iii) share accounts;
(iv) certificates of deposit;
(v) time deposit accounts;
(vi) NOW accounts;
(vii) share draft accounts;
(viii) transaction accounts; or
(ix) any evidence of indebtedness issued, offered for sale, offered to sell or sold by anyfinancial institution or other person subject to the jurisdiction of the department; and
(e) the safety or financial soundness of any financial institution or other person subject tothe jurisdiction of the department.
(11) The commissioner may define what constitutes an impairment of capital for eachclass of financial institution or other person subject to the jurisdiction of the department.
(12) The commissioner may designate days on which depository institutions are closed inaccordance with Section 7-1-808.
(13) The commissioner may regulate the issuance, advertising, offer for sale, and sale ofa security to the extent authorized by Section 7-1-503.
(14) The commissioner may require the officers of any institution or other person subjectto the commissioner's jurisdiction to open and keep a standard set of books, computer records, orboth for the purpose of keeping accurate and convenient records of the transactions and accountsof the institution in a manner to enable the commissioner, supervisors, and department examinersto readily ascertain the institution's true condition. These requirements shall be consistent withgenerally accepted accounting principles for financial institutions.
(15) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommissioner may adopt and issue rules consistent with the purposes and provisions of this title,and may revise, amend, or repeal the rules adopted.
Amended by Chapter 3, 2008 General Session
Amended by Chapter 382, 2008 General Session