7-7-12. Inspection of books and records -- Confidentiality -- Communication
between members or stockholders.
(1) Every member, stockholder, or borrower of an association shall have the right to
inspect, upon paying any costs of retrieval or reproduction and upon reasonable notice and during
regular business hours:
(a) the books and records of the association which do not contain any confidential
information relating to a loan, savings account, or voting rights of another member, stockholder,
or borrower; and
(b) such books and records of the association as pertain to the member's, stockholder's, or
borrower's own loan, savings account, or the determination of the member's, stockholder's, or
borrower's voting rights.
(2) Except as provided in Subsection (1), the right of inspection and examination of the
books, accounts, and records shall be limited to:
(a) the commissioner and supervisor, or their duly authorized representatives;
(b) persons authorized to act for the association;
(c) any federal or state instrumentality or agency authorized to inspect or examine the
books and records of an insured association;
(d) the Office of Thrift Supervision, the Federal Deposit Insurance Corporation, or their
successor agencies; and
(e) any person acting under authority of a court of competent jurisdiction.
(3) Except as otherwise stated in this section, the books and records pertaining to the
accounts, loans, and voting rights of savers, borrowers, members, and stockholders shall be kept
confidential by the association, its directors, officers, and employees, and by the commissioner,
the supervisor, and their examiners and representatives, unless disclosure is expressly or
impliedly authorized by the saver, borrower, member, or stockholder.
(4) Each member or stockholder of an association has the right to communicate with
other members or stockholders of the same association with reference to any question pending or
to be presented for consideration at a meeting of the members or stockholders. A member or
stockholder, in order to communicate with other members or stockholders, shall submit to the
association a request, subscribed by the member or stockholder, which includes:
(a) the member's or stockholder's full name and address;
(b) the nature and extent of the member's or stockholder's interest in the association at
the time the member's or stockholder's application for communication is made;
(c) a statement of the reasons for and purposes of the communication and that the
communication is not for any reason other than the business welfare of the association;
(d) a copy of the communication; and
(e) if the communication concerns a question to be raised at a meeting of the members or
stockholders of the association, the date of the meeting at which the matter will be presented.
(5) Within ten days after receipt of the request referred to in Subsection (4) the
association shall notify the requesting member or stockholder of:
(a) the approximate number of the members or stockholders and the estimated amount of
the reasonable costs and expenses of mailing the communication; or
(b) its determination to refuse the request and the specific reasons for its refusal,
including its determination whether or not the request has been made for a proper purpose.
(6) Unless the association has refused the request referred to in Subsection (5), the
association shall, within seven days after receipt of the sum specified by it under this Subsection
(6) and sufficient copies of the communication, mail the communication to all its members or
stockholders.
(7) If a request referred to in Subsection (4) is refused by an association, the requesting
member or stockholder may submit the member's or stockholder's request and the refusal of the
request to the supervisor for review. The supervisor may issue an order denying the request or, if
the supervisor finds the request is not for any reason other than the business welfare of the
association and is in all other respects proper, granting the request and directing the association
to mail the communication to all its members or stockholders in accordance with the provisions
of Subsections (5) and (6).
(8) Insofar as the provisions of this section are not inconsistent with federal law, this
section shall apply to a federal association whose home offices are located in this state, and to the
members or stockholders of that federal association except that any review of a refusal by an
association under Subsection (5) shall be tendered to the Office of Thrift Supervision or
successor federal agency in the case of a federal association.
Amended by Chapter 306, 2007 General Session
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Last revised: Thursday, May 28, 2009