7-3-28 - Capital notes or debentures. - Utah Statutes

7-3-28. Capital notes or debentures.
(1) Any bank, with the prior written approval of the commissioner and the authorizationby resolution of its board of directors may issue its convertible or nonconvertible capital notes ordebentures. The issuance may be in the amounts, for the term, and contain provisions as may beapproved by the commissioner.
(2) All such notes or debentures shall be subordinated to the claims of depositors andother creditors.
(3) The total amount of outstanding capital notes or debentures of any bank may notexceed such limitations as the commissioner may by regulation prescribe for the protection ofdepositors. The limitations prescribed may not be more restrictive than those prescribed fornational banks.
(4) The amount of such outstanding capital notes or debentures not maturing within oneyear shall be added to the capital of the issuing bank for the purpose of determining the maximumamount that may be loaned to a single borrower by such bank as provided in this chapter.
(5) The commissioner may prescribe regulations for the protection of the bank'sdepositors and shareholders as, in the judgment of the commissioner, will effectuate the purposesof this section.

Amended by Chapter 8, 1983 General Session