7-8-5 - Acquisition of own stock restricted -- Capital requirements.
7-8-5. Acquisition of own stock restricted -- Capital requirements.
(1) (a) An industrial bank may not accept as collateral, or be a purchaser of, shares of itsown capital stock, unless taking the shares as collateral or purchasing them is necessary toprevent loss upon a debt previously contracted in good faith.
(b) All shares of stock acquired under this Subsection (1) by the industrial bank throughany purchase, foreclosure, judgment, or otherwise shall be sold within 12 months from the dateof acquisition.
(c) The par value of all the shares held after acceptance or purchase may not exceed 10%of the capital and surplus of the industrial bank.
(2) (a) Each industrial bank accepting or holding deposits shall maintain the minimumamount of capital required by its federal deposit insurer.
(b) The commissioner may require a greater amount of capital if the commissionerdetermines that it is necessary to protect the interests of:
(i) the depositors and other customers of the industrial bank; and
(ii) the public.
Amended by Chapter 92, 2004 General Session