Utah Admin. Code R339-4-3 - Authority to Issue Capital Notes or Debentures
(1) Any industrial loan corporation may, with
the approval of the stockholders owning two-thirds of the voting stock of the
institution, or without the approval if it is authorized by its articles of
incorporation, and if it has demonstrated sound performance and efficient
management, apply to the commissioner for permission to issue convertible or
non-convertible capital notes or debentures, subordinated to the claims of all
certificates of deposit, deposits and savings accounts and all other
creditors.
(2) The commissioner may
grant approval for the issuance of subordinated capital notes or debentures in
the amounts and under the terms and conditions as he shall deem appropriate,
provided that:
(a) All relevant provisions and
conditions of Rule R331-5 issued by the department have been complied with;
and
(b) The principal amount of the
subordinated capital notes or debentures outstanding at any time shall not
exceed 50% of the capital of the industrial loan corporation; and
(c) The new issue of subordinated capital
notes or debentures have a weighted average maturity of not less than seven
years; and
(d) Subordinated capital
notes or debentures shall not be used as collateral for loans or extensions of
credit made by the industrial loan corporation.
Notes
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