1. (1) Except as provided in Subsection (2), a trust company may not lend funds that the trust company holds in a trust account in accordance with this chapter to:

   1. (a) the trust company;
   2. (b) an officer of the trust company;
   3. (c) a director of the trust company; or
   4. (d) an employee of the trust company.

2. (2) A trust company may lend funds to a person described in Subsection (1) if:

   1. (a) the instrument creating a trust account authorizes the trust company to lend funds to the person;
   2. (b) a person authorized to grant authorization to the trust company to lend funds to the person grants authorization; or
   3. (c) a court issues an order in accordance with Section 75B-2-802.

3. (3) An officer, a director, or an employee is guilty of a third degree felony if the officer, director, or employee:

   1. (a) makes a loan in violation of Subsection (1); or
   2. (b) receives a loan that violates Subsection (1).

Renumbered and Amended by Chapter 112, 2026 General Session