7-1-616 - Authority to accept transaction accounts -- Payment of instruments. - Utah Statutes

7-1-616. Authority to accept transaction accounts -- Payment of instruments.
(1) A financial institution may accept or advertise that it accepts transaction accounts onlyif authorized to do so under federal or state law. An institution may submit a written request forthis authority to the commissioner, except that an institution authorized to accept transactionaccounts as of June 1, 1994, does not, in the first instance, need to request or be granted anyadditional authority. The commissioner shall grant the authority if the commissioner finds that:
(a) the institution has adequate capital and reserves in relation to the character andcondition of its assets and its deposit and other liabilities;
(b) the deposits and other accounts held by the institution are insured or guaranteed by anagency of the federal government; and
(c) the management of the institution is qualified to handle transaction accounts.
(2) The commissioner may revoke, limit, or condition an institution's authority to acceptand handle transaction accounts upon a finding that:
(a) the institution no longer meets the criteria set forth in Subsection (1); or
(b) it would be contrary to the public interest and the soundness of the financial system ofthis state to allow the institution to continue to accept or handle transaction accounts withoutlimitation or condition.
(3) One or more depository institutions may, by written agreement, vary the terms ofTitle 70A, Chapters 3 and 4, for the purposes of facilitating the transfer, exchange, and promptpayment of instruments drawn on transaction accounts.

Amended by Chapter 182, 1996 General Session