Utah § 7-17-3 - Lender to pay interest -- Exceptions -- Service charges prohibited.
Full text of Utah Utah Code § 7-17-3 — Lender to pay interest -- Exceptions -- Service charges prohibited., with citation guidance and answers to common questions.
§ 7-17-3. Lender to pay interest -- Exceptions -- Service charges prohibited.
7-17-3.
Lender to pay interest -- Exceptions -- Service charges prohibited.
(1)
Except as provided in Subsection (2), each lender requiring the establishment or continuance of a reserve account in connection with an existing or future real estate loan shall, on a yearly basis as of December 31, calculate and credit to the account interest on the average daily balance of funds deposited in the account at a rate equal to:
(a)
5-1/2%;
(b)
the average of the 11th District monthly weighted average cost of funds index as calculated and published by the Federal Home Loan Bank of San Francisco during the calendar year, less 1-1/2 percentage points; or
(c)
the statement savings rate or share account rate offered to the public for accounts of like size by the depository institution holding the reserve account.
a reserve account required by a governmental insurer or guarantor of the loan as a condition of insurance or guaranty;
(b)
a reserve account maintained in connection with a real estate loan in an original principal amount exceeding 80% of the lender's appraised value of the property at the time the loan is made, until the principal balance of the loan is paid down to 80% of the lender's appraised value at the time of the loan; or
(c)
payment of interest or other compensation to the borrower if this payment is prohibited by federal law or regulations.
(3)
A lender may not require or impose a service charge for the administration of a reserve account.
Section 7-17-3 ("Lender to pay interest -- Exceptions -- Service charges prohibited.") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Utah § 7-17-3?
A common citation format is "Utah Code § 7-17-3" (Utah). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Utah law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.
How does Utah § 7-17-3 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.
