7-8-3 - Organization -- Authorization to conduct business -- Deposit insurance.
7-8-3. Organization -- Authorization to conduct business -- Deposit insurance.
(1) Subject to Subsection (4), the commissioner may authorize a person described inSubsection (2) to conduct business as an industrial bank.
(2) (a) Each person organized to conduct the business of an industrial bank in this stateshall be organized under:
(i) Title 16, Chapter 10a, Utah Revised Business Corporation Act; or
(ii) in accordance with Section 7-1-810, Title 48, Chapter 2c, Utah Revised LimitedLiability Company Act.
(b) A person may not conduct business as an industrial bank authorized under thischapter to conduct business as an industrial bank in any form of entity other than those providedin Subsection (2)(a).
(3) (a) All rights, privileges, powers, duties, and obligations of a corporation authorizedto conduct business as an industrial bank and its officers, directors, and stockholders shall begoverned by Title 16, Chapter 10a, Utah Revised Business Corporation Act, except as otherwiseprovided in this title.
(b) All rights, privileges, powers, duties, and obligations of a limited liability companyauthorized to conduct business as an industrial bank and its members and managers shall begoverned by Title 48, Chapter 2c, Utah Revised Limited Liability Company Act, except asotherwise provided in this title.
(4) (a) An industrial bank is authorized to receive and hold deposits.
(b) An industrial bank may not conduct business under this chapter as an industrial bankunless the industrial bank obtains insurance from the Federal Deposit Insurance Corporation or asuccessor federal deposit insurance entity for any deposits received or held by the industrial bank.
Amended by Chapter 92, 2004 General Session