7-2-19 - Suspension of payments by institution -- Order of commissioner -- Approval of governor -- Period effective -- Exempt payments -- Operation during suspension -- Modification of orders -- Adopt - Utah Statutes

7-2-19. Suspension of payments by institution -- Order of commissioner --Approval of governor -- Period effective -- Exempt payments -- Operation duringsuspension -- Modification of orders -- Adoption of rules and regulations.
(1) The commissioner, whenever in his opinion the action is necessary in the publicinterest, may, if the governor approves, order such institutions as are subject to his supervision tosuspend the payment in any manner of their respective liabilities to their depositors and othercreditors, except as hereinafter provided.
(2) The order shall become effective upon notice, and shall continue in full force andeffect until rescinded or modified by him. No such order shall be issued for an initial period ofmore than 60 days, but any such order may, if the governor approves, be extended from time totime for further periods not exceeding 60 days each.
(3) Nothing contained in this chapter shall affect the right of the institutions to pay currentoperating expenses and other liabilities incurred during a period of suspension.
(4) Whenever in the opinion of the commissioner conditions warrant such action, he may,if the governor approves, authorize the issuance of clearing house certificates, post notes or otherevidences of indebtedness, either during a period of suspension, or during such longer period ashe may prescribe, and during a period of suspension, he may permit the suspended institution toreceive deposits and may authorize any such institution to pay any part of its liabilities, or of anyclass thereof, payment of which has been suspended.
(5) He may, if the governor approves, at any time, by order, modify or rescind any or allprevious orders made by him under authority of this chapter.
(6) The commissioner may, if the governor approves, prescribe such rules and regulationsas he considers necessary in order to carry out the provisions of this chapter, and an order may beissued on such terms and conditions as may be incorporated in the order.

Enacted by Chapter 16, 1981 General Session