7-1-806 - Money market funds arranging with bank to honor two-party instruments -- Discouraging payment of interest to two persons on funds in transit -- Pyramiding and similar schemes as misdemeanors - Utah Statutes

7-1-806. Money market funds arranging with bank to honor two-party instruments-- Discouraging payment of interest to two persons on funds in transit -- Pyramiding andsimilar schemes as misdemeanors.
Nothing in this act shall be construed to prevent money market funds from makingarrangements with banks to honor two party checks, drafts, or other instruments.
The commissioner shall exert his influence to discourage banks, money market funds andother programs in Utah and throughout the United States from paying interest to two persons atthe same time on funds in the process of transfer.
The process or the practice referred to as pyramiding or any similar process or practice asdefined by the commissioner, and such definition is approved by the governor, shall beprohibited within this state and persons found guilty of these schemes shall be found guilty of aclass C misdemeanor. This does not preclude more serious punishment under federal law.
Money market funds, similar funds and bank regulated institutions shall cooperate withthe commissioner to stop these practices.

Amended by Chapter 378, 2010 General Session