Utah § 7-1-308 - Suspension or removal of director or officer -- Grounds -- Procedure for issuance of order.

Full text of Utah Utah Code § 7-1-308 — Suspension or removal of director or officer -- Grounds -- Procedure for issuance of order., with citation guidance and answers to common questions.

§ 7-1-308. Suspension or removal of director or officer -- Grounds -- Procedure for issuance of order.

Effective 5/7/2025
7-1-308. Suspension or removal of director or officer -- Grounds -- Procedure for issuance of order.

(1)

(a)

If the commissioner has determined that any officer or director of an institution or other person under the jurisdiction of the department has:

(i)	violated any law, rule, regulation, or a cease and desist order which has become final;

(ii)	engaged or participated in any unsafe or unsound practice in the conduct of the affairs of the institution or other person;

(iii)

committed or engaged in any act, omission, or practice which constitutes a breach of the person's fiduciary duty as an officer or director;

(iv)	been charged in any information, indictment, or complaint authorized by a county attorney, a district attorney, or the attorney general of the state relative to a violation of this title; or

(v)	been charged with the commission of or participation in a crime involving dishonesty or breach of trust; and

(b)

if the commissioner determines that:

(i)

the institution or other person under the jurisdiction of the department has suffered or will suffer substantial financial loss or other damage due to such actions and that such action may impair the safety and soundness of the institution or other person or prejudice in any manner the interests of the depositors, members, creditors, or shareholders; or

(ii)

the director or officer has received financial gain by reason of any breach of fiduciary duty,the commissioner may, after notice and opportunity for hearing, serve upon such director or officer a written notice of suspension or removal of the individual from office or prohibition from further participation in the conduct of the affairs of the institution or other person.

(2)

If the commissioner deems it necessary for the protection of an institution or other person under the jurisdiction of the department or the interests of its depositors, members, creditors, or shareholders, the commissioner may, by written notice served upon the officer or director, suspend that officer or director from office or prohibit the officer or director from further participation in any manner in the conduct of the affairs of the institution or other person. The suspension or prohibition is effective upon service of the notice and, unless stayed by a court, shall remain in effect until the commissioner dismisses the charges specified in the notice, or, if an order of removal or prohibition is issued against the officer or director, until the effective date of that order.

Amended by Chapter 302, 2025 General Session

Source: official Utah text · Last verified 2026-08-27

Frequently Asked Questions About Utah § 7-1-308

What does Utah Code § 7-1-308 cover?

Section 7-1-308 ("Suspension or removal of director or officer -- Grounds -- Procedure for issuance of order.") 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 § 7-1-308?

A common citation format is "Utah Code § 7-1-308" (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 § 7-1-308 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.

Sources & Verification

Official text of § 7-1-308 at the Utah source

Not legal advice. Verify against the official source and consult a licensed attorney in Utah.