Utah § 7-8-5 - Acquisition of own stock restricted -- Capital requirements.

Full text of Utah Utah Code § 7-8-5 — Acquisition of own stock restricted -- Capital requirements., with citation guidance and answers to common questions.

§ 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 its own capital stock, unless taking the shares as collateral or purchasing them is necessary to prevent loss upon a debt previously contracted in good faith.
(b) All shares of stock acquired under this Subsection (1) by the industrial bank through any purchase, foreclosure, judgment, or otherwise shall be sold within 12 months from the date of 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 minimum amount of capital required by its federal deposit insurer.
(b) The commissioner may require a greater amount of capital if the commissioner determines 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

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

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Frequently Asked Questions About Utah § 7-8-5

What does Utah Code § 7-8-5 cover?

Section 7-8-5 ("Acquisition of own stock restricted -- Capital requirements.") 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 § 7-8-5?

A common citation format is "Utah Code § 7-8-5" (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 § 7-8-5 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.