No. 36874 (5-year Review): Rule R331-23. Lending Limits for Banks, Industrial Loan Corporations  

  • DAR File No.: 36874
    Filed: 09/28/2012 08:32:08 AM

    NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

    Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

    Section 7-1-301 confers rulemaking powers and duties to the commissioner with respect to institutions, persons, or businesses subject to the jurisdiction of the department. Section 7-3-19 authorizes limitations on loans and extensions of credit. Section 7-8-20 lists limitations on loans to one borrower, the exceptions, and the rules.

    Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

    No supporting or opposing written comments have been received by the agency concerning this rule.

    Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

    The rule is intended to prevent one person from borrowing an unduly large amount of a given bank's or industrial loan corporation's funds, thereby exposing the bank's or industrial loan corporation's depositors, creditors, and stockholders to excessive risk and should be continued.

    The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

    Financial Institutions
    AdministrationRoom 201
    324 S STATE ST
    SALT LAKE CITY, UT 84111-2393

    Direct questions regarding this rule to:

    Authorized by:

    Edward Leary, Commissioner

    Effective:

    09/28/2012


Document Information

Effective Date:
9/28/2012
Publication Date:
10/15/2012
Filed Date:
09/28/2012
Agencies:
Financial Institutions,Administration
Authorized By:
Edward Leary, Commissioner
DAR File No.:
36874
Related Chapter/Rule NO.: (1)
R331-23. Lending Limits for Banks, Industrial Loan Corporations.