Utah § 7-3-12 - Prohibited investments and loans.

Full text of Utah Utah Code § 7-3-12 — Prohibited investments and loans., with citation guidance and answers to common questions.

§ 7-3-12. Prohibited investments and loans.

7-3-12.  Prohibited investments and loans.
(1)
(a) Except as provided in Subsection (2), a bank may not make an investment or loan described in Subsection (1)(b) if the aggregate of the investments and loans described in Subsections (1)(b)(i) and (ii) plus any indebtedness incurred by any corporation holding the premises of the bank which is an affiliate of the bank, exceeds the greater of:
(i) the amount of the capital stock and surplus of the bank; or
(ii) 50% of the total capital accounts of the bank.
(b) If an investment or loan will violate Subsection (1)(a), a bank may not:
(i) invest in its own premises including furniture, fixtures and equipment, or in the stock, bonds, debentures, or other obligations of any corporation holding the premises of the bank; or
(ii) make loans to or upon the security of the stock of any corporation holding the bank's premises.
(2) A bank may make an investment or loan prohibited under Subsection (1) with the prior written approval of the commissioner if the bank can demonstrate reasonable need for the investment or loan to the commissioner.


Amended by Chapter 91, 1997 General Session

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

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Frequently Asked Questions About Utah § 7-3-12

What does Utah Code § 7-3-12 cover?

Section 7-3-12 ("Prohibited investments and loans.") 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 § 7-3-12?

A common citation format is "Utah Code § 7-3-12" (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 § 7-3-12 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

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