DAR File No. 41608

Financial Institutions, Administration

Rule R331-10

Schedule for Retention or Destruction of Records of Financial Institutions Under the Jurisdiction of the Department of Financial Institutions

Notice of Proposed Rule

(Amendment)

DAR File No.: 41608
Filed: 05/08/2017 01:12:13 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

With the passage of H.B. 40 during the 2017 General Session of the Utah Legislature, persons subject to the jurisdiction of the Department of Financial Institutions under Title 7, Chapter 23, shall keep a record of the information required in Subsection 7-23-201(8)(b) for the time period required by the department by rule. The amendment to this rule provides the time period for retention of those records.

Summary of the rule or change:

The amendment to the rule provides that the information required in Subsection 7-23-201(8)(b) be retained for two years after termination.

Statutory or constitutional authorization for this rule:

• Subsection 7-23-201(8)(b)

Anticipated cost or savings to:

the state budget:

No impact on the state budget as compliance to the rule affects the financial institutions themselves not the department.

local governments:

The rule does not affect local government. Therefore there are no cost or savings to local government.

small businesses:

Persons subject to the jurisdiction of the Department of Financial Institutions under Title 7, Chapter 23, are currently required to comply with this rule and modifications to the rule should have minimal budgetary impact. Persons employing fewer than 50 persons will have added costs of retaining the records. The amount of any cost or savings cannot be estimated as it will vary depending on circumstances.

persons other than small businesses, businesses, or local governmental entities:

Persons subject to the jurisdiction of the Department of Financial Institutions under Title 7, Chapter 23, are currently required to comply with this rule and modifications to the rule should have minimal budgetary impact. Persons will have added costs of retaining the records. The amount of any cost or savings cannot be estimated as it will vary depending on circumstances.

Compliance costs for affected persons:

Persons subject to the jurisdiction of the Department of Financial Institutions under Title 7, Chapter 23, are currently required to comply with this rule and modifications to the rule should have minimal budgetary impact. Persons will have added costs of retaining the records. The amount of any cost or savings cannot be estimated as it will vary depending on circumstances.

Comments by the department head on the fiscal impact the rule may have on businesses:

Persons subject to the jurisdiction of the Department of Financial Institutions under Title 7, Chapter 23, are currently required to comply with this rule and modifications to the rule should have minimal budgetary impact. Persons will have added costs of retaining the records. The amount of any cost or savings cannot be estimated as it will vary depending on circumstances.

Edward Leary, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Financial Institutions
AdministrationRoom 201
324 S STATE ST
SALT LAKE CITY, UT 84111-2393

Direct questions regarding this rule to:

• Paul Allred at the above address, by phone at 801-538-8854, by FAX at 801-538-8894, or by Internet E-mail at pallred@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/03/2017

This rule may become effective on:

07/10/2017

Authorized by:

Edward Leary, Commissioner

R331. Financial Institutions, Administration.

R331-10. Schedule for Retention or Destruction of Records of Financial Institutions Under the Jurisdiction of the Department of Financial Institutions.

R331-10-1. Authority, Scope, and Purpose.

(1) This rule is issued pursuant to Section 7-1-301(7).

(2) This rule establishes a schedule for the retention of records of financial institutions under the jurisdiction of the Department of Financial Institutions. Each financial institution may deem it prudent from a business, legal, or other regulatory reason to retain records not identified in this rule.

(3) It is the purpose of this rule to require the maintenance of appropriate types of records where such records have a high degree of usefulness and prescribe the period for which records of each class are retained.

(4) This rule does not prescribe the method of retention other than that the method selected by each financial institution must ensure the records be readily retrieved in an unaltered state.

 

R331-10-2. Definitions.

Key to Abbreviations:

Figures - Years

 

R331-10-3. Retention of Records.

(1) CORPORATE AND LEGAL

 

TABLE 1

    Regulation S (domestic and international funds

      transfer                                                5

    Annual Disclosures Statements/Annual Reports              2

    Minute books of directors, executive committee

      an other records reflecting corporate governance

      documentation, (e.g., minutes, articles, bylaws,

      stock records)                                         10

    Superceded policies and procedures                        2

    Business licenses                                         1

    Service agreements with vendors                           2

    Litigation documents (after resolution)                   2

    Affidavits                                                2

    Attachments, garnishments                                 6

 

(2) DEPOSITORY PRODUCTS

 

TABLE 2

    Records of checks, drafts and other instruments

      presented for payment or deposit                        6

    Deposit records showing relationship of insurance

      claimants to insurance funds                            1

    Deposit records disclosing a relationship which

      might provide the basis for additional insurance        1

    Records evidencing compliance with Truth in Savings

      Act                                                     2

    Records of purchases and purchasers of bank checks,

      drafts, cashier's checks, money orders, and

      traveler's checks                                       5

    Tax identification numbers of deposit/share/

      transaction accounts                                    5

    Deposit account trial balance records                     5

    Each check, deposit, money order issued or payable

      by bank in excess of $100                               5

    Records of debits to customers' account in excess

      of $100                                                 5

    Records of purchaser of certificate of deposit            5

    Records of tax identification number of any person

      presenting certificate of deposit for payment           5

    Deposit slips and credit tickets in excess of $100        5

    Records of receipts of currency in excess of $10,000

      received from persons outside United States             5

    Cash letters                                              1

    Account documentation, (e.g., signature card,

      resolutions, power of attorney, guardianship)           6

    Stop payment orders (after release)                       1

 

(3) FIDUCIARY

 

TABLE 3

    Safe deposit documentation, (e.g., access records,

      contracts)                                              5

    Records relating to municipal securities dealing:

      copies of filings to any associated person

      following termination of association                    3

    Record of all brokers/dealers selected by bank to

      effect transactions and amount of commission

      paid or allocated each year                             3

    Tax identification number of customers having

      securities                                              5

    Records of securities authority from customer             5

    Records of amounts expended and adjustments made

      to property acquired and held for investment

      or to verify exercise of qualified stock option,

      debts written off, amount of loans outstanding

      with regard to reserves for losses on bad debts

      of financial institutions for last five taxable

      years                                                   6

    Fiduciary authority documentation, (e.g., trust

      agreements, court orders, powers of attorney,

      directives, authorizations)                             6

    Fiduciary account documentation, (e.g., cash and

      asset records, tax returns)                             6

    Fiduciary management committee meeting records            5

    Escrow records (after closing)                            6

    Safekeeping records and receipts                          2

    Fiduciary account documentation, (e.g., chronological

      logs of itemized daily records, account records

      for each customer, order ticket of each buy/sell,

      record of all brokers used                              3

 

(4) LENDING/LEASING

 

TABLE 4

    Lending and leasing documents after closed, (e.g.,

      credit application, appraisal, credit report,

      signatory)                                              6

    Card applications, documentation from date of

      application                                             2

    Open or closed-end credit document files excluding

      card application documentation                          6

 

(5) REGULATORY

 

TABLE 5

    Credit record of transfers of credit more than

      $10,000 to outside the United States                    5

    Credit record of transfers of funds more than

      $10,000 to outside the United States                    5

    Checks or records of drafts in excess of $10,000

      drawn on foreign banks                                  5

    Checks, drafts in excess of $10,000 from bank,

      broker or exchange dealer outside United

      States                                                  5


    Utah Bureau of Criminal Identification report or

      background check (after termination)                    2

 

(6) FINANCIAL

 

TABLE 6

    Escheatment documentation (abandoned deposit

      accounts, unpaid cashier's checks, unpaid

      expense checks)                                         7

    Internal audit reports                                    5

    Investment confirmations, statements, buy and

      sell orders                                             6

    Financial records, (e.g., journals, ledgers,

      statements, source documents)                           7

    Reconcilements, (e.g., General ledger account and

      supporting documentation)                               2

      Notes on contracts payable documentation (after

      closing)                                                2

 

R331-10-4. Exemptions.

The Commissioner of Financial Institutions may make exemptions from any requirement otherwise imposed under this rule and as are consistent with the purposes of this rule.

 

R331-10-5. Reproduction of Records.

Any institution subject to this rule may cause records in its custody to be reproduced by the micro-photographic or other equivalent process. Any reproduction shall have the same force and effect as the original and shall be admissible into evidence as if it were the original.

 

R331-10-6. Relationship to other Laws.

This rule will not pre-empt any other retention requirement longer than that specified herein imposed by any other state or federal statute or rule.

 

KEY: financial institutions

Date of Enactment or Last Substantive Amendment: [October 17, 2000]2017

Notice of Continuation: July 20, 2012

Authorizing, and Implemented or Interpreted Law: 7-1-301(7)