7-7-30 - Investment in property used in conduct of business -- Investment in manner not prohibited by law. - Utah Statutes

7-7-30. Investment in property used in conduct of business -- Investment in mannernot prohibited by law.
(1) An association may invest in such real property or interest therein as the directorsmay deem necessary or convenient for the conduct of the business of the association, which forthe purposes of this chapter may include the stock of a wholly owned subsidiary corporationhaving as its exclusive activity the ownership and management of such property or interests, butthe amount so invested may not exceed 10% of the assets of the association, except that thecommissioner may authorize a greater amount to be so invested if he finds that the investmentspromote the viability and stability of the associations of this state. An association may invest areasonable amount in property such as furniture, fixtures, and equipment for use in carrying onits own business.
(2) Every association may invest its assets in a manner not expressly prohibited by law ifthe investments are made in the exercise of the judgment and care under the circumstances thenprevailing which men of prudence, discretion, and intelligence exercise in the management oftheir own affairs not in regard to speculation but in regard to the permanent disposition of theirfunds, considering the probable income as well as the probable safety of their capital. Theaggregate of investments held under this subsection and not permitted by any other section of thischapter may not exceed 5% of the assets of the association.

Amended by Chapter 378, 2010 General Session