Utah § 7-9-58 - Limitations on credit extended by nonexempt credit unions.
Full text of Utah Utah Code § 7-9-58 — Limitations on credit extended by nonexempt credit unions., with citation guidance and answers to common questions.
§ 7-9-58. Limitations on credit extended by nonexempt credit unions.
Effective 5/13/2014 7-9-58.
Limitations on credit extended by nonexempt credit unions.
(1)
(a)
Notwithstanding the other provisions of this chapter, beginning on May 5, 2003, a nonexempt credit union may not:
(i)
(A)
extend a member-business loan;
(B)
renew a member-business loan that is extended before May 5, 2003; or
(C)
extend the maturity date or increase the amount of a member-business loan that is extended before May 5, 2003;
(ii)
originate, participate in, or obtain any interest in a co-lending arrangement, including a loan participation arrangement; or
(iii)
subject to Subsection (2), extend credit that is not a member-business loan if as a result of the extension of credit the total credit that is not a member-business loan that the nonexempt credit union has issued to that member exceeds at any one time $250,000 adjusted as provided in Subsection (1)(b).
(b)
The adjustment described in Subsection (1)(a)(iii) shall be calculated by the commissioner as follows:
(i)
beginning July 1, 2008 and for a calendar year beginning on or after January 1, 2009, the commissioner shall increase or decrease the dollar amount in Subsection (1)(a)(iii) by a percentage equal to the percentage difference between the consumer price index for the preceding calendar year and the consumer price index for calendar year 2007;
(ii)
after the commissioner increases the dollar amount listed in Subsection (1)(a)(iii), the commissioner shall round the dollar amount to the nearest whole dollar;
(iii)
if the percentage difference under Subsection (1)(b)(i) is zero or a negative percentage, the consumer price index increase for the year is zero; and
(iv)
for purposes of this Subsection (1)(b), the commissioner shall calculate the consumer price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
(2)
Notwithstanding Subsection (1)(a)(iii), a nonexempt credit union may extend credit in an amount that exceeds the limits provided in Subsection (1)(a)(iii) to a member if:
(a)
the excess portion of the credit described in Subsection (1)(a)(iii) is fully secured by the member's share or deposit savings in the nonexempt credit union; or
(b)
the credit is extended to a member of the nonexempt credit union:
(i)
for the purpose of:
(A)
paying amounts owed by the member to purchase a one- to four-family dwelling that is the primary residence of that member; or
(B)
refinancing the balance of amounts owed by the member for the purchase of a one- to four-family dwelling that is the primary residence of that member; and
(ii)
the credit extended under this Subsection (2)(b) is less than or equals $1,000,000.
(3)
In accordance with Subsection 7-9-20(7)(d), a credit union service organization may not extend credit to a member of a nonexempt credit union holding an ownership interest in the credit union service organization if it would be a violation of this section for the nonexempt credit union to extend the credit to the member.
(4)
This section may not prevent a nonexempt credit union from servicing a loan extended before May 5, 2003.
Section 7-9-58 ("Limitations on credit extended by nonexempt credit unions.") 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 § 7-9-58?
A common citation format is "Utah Code § 7-9-58" (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 § 7-9-58 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.
