7-8-12 - Charge off of losses sustained on receivables and operating losses -- Replenishment of surplus account. - Utah Statutes

7-8-12. Charge off of losses sustained on receivables and operating losses --Replenishment of surplus account.
(1) (a) Losses sustained on receivables by an industrial bank shall be charged first to theindustrial bank's reserve for losses and then to its current income.
(b) Operating losses shall be charged first to the industrial bank's current income, next toundivided profits and then, after undivided profits have been exhausted, to the surplus account.
(2) A charge to the industrial bank's surplus account shall be replenished from net profitsor capital contributions. The industrial bank may declare or pay a dividend only with the writtenpermission of the commissioner until its surplus account reaches an amount prescribed by thecommissioner in writing.

Amended by Chapter 92, 2004 General Session