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Utah Code Title 7. Financial Institutions Act § 7-1-324. Debt cancellation agreements and debt suspension agreements

Current as of January 01, 2025 | Updated by Findlaw Staff

(1) As used in this section:

(a) “Class of depository institution” means a class consisting of:

(i) banks;

(ii) credit unions;

(iii) industrial banks; or

(iv) wholly owned subsidiaries of a depository institution listed in this Subsection (1)(a).

(b) “Debt cancellation agreement” is as defined in Section 31A-21-109.

(c) “Debt suspension agreement” is as defined in Section 31A-21-109.

(2) Subject to the other provisions of this section, the commissioner may by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:

(a) authorize any member of a class of depository institution that is subject to the jurisdiction of the department to issue:

(i) a debt cancellation agreement; or

(ii) a debt suspension agreement; and

(b) regulate the issuance of a debt cancellation agreement or a debt suspension agreement issued in this state by a member of a class of depository institution.

(3)(a) Any rule adopted by the commissioner under this section as applied to a class of depository institution shall be substantially similar to any federal regulation applying to the same class of depository institution.

(b) Any rule adopted by the commissioner applicable to a class of depository institution described in this Subsection (3)(b) shall be substantially similar to any federal regulation applicable to a bank if no federal regulation authorizes or regulates the issuance of a debt cancellation agreement or debt suspension agreement for that class of depository institution.

(4)(a) An out-of-state depository institution may issue a debt cancellation agreement or debt suspension agreement in this state if:

(i) the home state of the out-of-state depository institution authorizes and regulates the issuance of a debt cancellation agreement or debt suspension agreement by the out-of-state depository institution; and

(ii) subject to Subsection (4)(b), the out-of-state depository institution complies with regulations from the out-of-state depository institution's home state that regulate the issuance of a debt cancellation agreement or a debt suspension agreement.

(b) Notwithstanding Subsection (4)(a), an out-of-state depository institution described in Subsection (4)(a) shall comply with rules adopted by the commissioner under this section that regulate the issuance of a debt cancellation agreement or a debt suspension agreement in this state by the class of depository institution to which the out-of-state depository institution belongs if the regulations of the out-of-state depository institution's home state do not provide at least the same level of protection with respect to a debt cancellation agreement or debt suspension agreement as the rules adopted by the commissioner under this section with respect to the same class of depository institution:

(i) for the safety and soundness of the depository institution; and

(ii) for consumer protections for the borrowers of the depository institution.

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Cite this article: FindLaw.com - Utah Code Title 7. Financial Institutions Act § 7-1-324. Debt cancellation agreements and debt suspension agreements - last updated January 01, 2025 | https://codes.findlaw.com/ut/title-7-financial-institutions-act/ut-code-sect-7-1-324/

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