Utah Admin. Code R331-23-4 - Combining Loans to Separate Borrowers - General Rule
(1) Loans, extensions of credit and
derivative transactions to one person will be combined where the proceeds of
the loan, extension of credit and derivative transactions are to be used for
the direct benefit of any other person or persons.
(2) Loans, extensions of credit and
derivative transactions to a general partnership, joint venture or association
shall, for purposes of this rule, be considered loans or extensions of credit
jointly and severally to each member of such partnership, joint venture or
association unless the agreement creating the general partnership, joint
venture or association provides otherwise, in which case the loans or
extensions of credit shall be allocated to each member only to the extent
provided for by the terms of any such agreement.
(3) The sum of all loans, extensions of
credit and the credit exposure to a derivative transaction by a bank or
industrial loan corporation outstanding at any one time to a person and all of
its affiliates may not exceed 50% of the bank's or industrial loan
corporation's total capital.
Notes
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