No. 29172 (New Rule): R333-13. Rule Designating Applicable Federal Law for Banks Subject to the Jurisdiction of the Department of Financial Institutions

DAR File No.: 29172
Filed: 10/30/2006, 04:50
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

With the passage of S.B. 162, during the 2006 General Session of the Utah Legislature, the department shall by rule ". . . designate which one or more federal laws are applicable to an institution subject to the jurisdiction of the department." (DAR NOTE: S.B. 162 (2006) is found at Chapter 165, Laws of Utah 2006, and was effective 05/01/2006.)

Summary of the rule or change:

The proposed new rule designates which one or more federal laws are applicable to a bank subject to the jurisdiction of the department. The new rule establishes that designated federal law may only be enforced by the department by taking action permitted under Title 7 and the applicable chapters set forth in Section 7-1-325.

State statutory or constitutional authorization for this rule:

Section 7-1-325

Anticipated cost or savings to:

the state budget:

No impact on the state budget as compliance to the rule affects the banks not the department.

local governments:

Local governments are not involved in the regulation of banks and are therefore, not subject to this rule.

other persons:

State-chartered banks are currently required to comply with the designated federal law and compliance to the rule should have minimal budgetary impact.

Compliance costs for affected persons:

State-chartered banks are currently required to comply with the designated federal law and compliance to the rule should have minimal budgetary impact.

Comments by the department head on the fiscal impact the rule may have on businesses:

State-chartered banks are currently required to comply with the designated federal law and compliance to the rule should have minimal budgetary impact. G. Edward Leary, Commissioner

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

Financial Institutions
Banks
324 S STATE ST
SALT LAKE CITY UT 84111-2393

Direct questions regarding this rule to:

Paul Allred at the above address, by phone at 801-538-8854, by FAX at 801-538-8894, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

12/15/2006

This rule may become effective on:

12/22/2006

Authorized by:

Edward Leary, Commissioner

RULE TEXT

R333. Financial Institutions, Banks.

R333-13. Rule Designating Applicable Federal Law for Banks Subject to the Jurisdiction of the Department of Financial Institutions.

R333-13-1. Authority, Scope and Purpose.

(1) This rule is issued pursuant to Section 7-1-325.

(2) Violations of federal law designated by this rule may only be enforced by the department by taking action permitted under Title 7 and the applicable chapters set forth in Section 7-1-325.

(3) This rule designates which one or more federal laws the department may enforce and are applicable to banks subject to the jurisdiction of the department.

 

R333-13-2. Definitions.

(1) "Department" means the Department of Financial Institutions.

(2) "Federal Law" means:

(a) a statute passed by the Congress of the United States; or

(b) a final regulation:

(i) adopted by an administrative agency of the United States government; and

(ii) published in the code of federal regulations or the federal register.

 

R333-13-3. Applicable Federal Law.

In accordance with Section 7-1-325, the following federal laws are applicable to banks subject to the jurisdiction of the department:

(1) Truth in Lending Act, 15 U.S.C. Sec. 1601 et seq., and its implementing federal regulations;

(2) Equal Credit Opportunity Act, 15 U.S.C. Sec. 1691, and its implementing federal regulations;

(3) Truth in Savings Act, 12 U.S.C. Sec. 4301 et seq., and its implementing federal regulations;

(4) Bank Secrecy Act, 12 U.S.C. Sec. 1829b, 12 U.S.C. Sec. 1951 through 1959, and 31 U.S.C. Sec. 5311 through 5332, and its implementing federal regulations;

(5) Federal Deposit Insurance Corporation Improvement Act ("Prompt Corrective Action"), 12 U.S.C. Sec. 1831o, and its implementing federal regulations;

(6) Federal Reserve Act, 12 U.S.C. Sec. 371c through 371c-1 ("Banking affiliates"), made applicable to state nonmember insured institutions through 12 U.S.C. Sec. 1828(j)(i), and its implementing federal regulations;

(7) Federal Reserve Act, 12 U.S.C. Sec. 375a ("Loans to executive officers of banks"), made applicable to state nonmember institutions through 12 U.S.C. Sec. 1828(j)(2), and its implementing federal regulations;

(8) Federal Deposit Insurance Corporation Improvement Act, ("Standards for safety and soundness"), 12 U.S.C. Sec. 1831p-1, and its implementing federal regulations;

(9) Federal Deposit Insurance Corporation Improvement Act, ("Real estate lending standards"), 12 U.S.C. Sec. 1828(o), and its implementing federal regulations;

(10) Real Estate Settlement Procedures Act, 12 U.S.C. Sec. 2601 et seq., and its implementing federal regulations;

(11) Fair Credit Reporting Act, 15 U.S.C. Sec. 1681 et seq., and its implementing federal regulations;

(12) Expedited Funds Availability Act, 12 U.S.C. Sec. 4001 et seq., and its implementing federal regulations;

(13) Electronic Fund Transfers Act, 15 U.S.C. Sec. 1693 et seq., and its implementing federal regulations;

(14) Community Reinvestment Act, 12 U.S.C. Sec. 2901 et seq., and its implementing federal regulations.

 

KEY: financial institutions, federal law

Date of Enactment or Last Substantive Amendment: 2006

Authorizing, and Implemented or Interpreted Law: 7-1-325(2)