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H.B. 42

             1     

TRADE AND BUSINESS NAME AMENDMENTS

             2     
1999 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Afton B. Bradshaw

             5      AN ACT RELATING TO CORPORATIONS AND PARTNERSHIPS; EXEMPTING
             6      DEPOSITORY INSTITUTIONS FROM CERTAIN CORPORATE NAME REQUIREMENTS;
             7      AMENDING PROVISIONS RELATED TO DISTINGUISHING NAMES; AND MAKING
             8      TECHNICAL CORRECTIONS.
             9      This act affects sections of Utah Code Annotated 1953 as follows:
             10      AMENDS:
             11          16-10a-401, as last amended by Chapters 43 and 86, Laws of Utah 1998
             12          48-2a-102, as last amended by Chapters 43 and 86, Laws of Utah 1998
             13          48-2b-106, as last amended by Chapters 43 and 86, Laws of Utah 1998
             14      Be it enacted by the Legislature of the state of Utah:
             15          Section 1. Section 16-10a-401 is amended to read:
             16           16-10a-401. Corporate name.
             17          (1) The name of a corporation:
             18          (a) except for the name of a depository institution as defined in Section 7-1-103 , must
             19      contain:
             20          (i) the word:
             21          (A) "corporation";
             22          (B) "incorporated"; or
             23          (C) "company";
             24          (ii) the abbreviation:
             25          (A) "corp.";
             26          (B) "inc."; or
             27          (C) "co."; or


             28          (iii) words or abbreviations of like import to the words or abbreviations listed in
             29      Subsections (1)(a)(i) and (ii) in another language;
             30          (b) may not contain language stating or implying that the corporation is organized for a
             31      purpose other than that permitted by:
             32          (i) Section 16-10a-301 ; and [its]
             33          (ii) the corporations's articles of incorporation;
             34          (c) without the written consent of the United States Olympic Committee, may not contain
             35      the words:
             36          (i) "Olympic";
             37          (ii) "Olympiad"; or
             38          (iii) "Citius Altius Fortius"; and
             39          (d) without the written consent of the State Board of Regents issued in accordance with
             40      Section 53B-5-114 , may not contain the words:
             41          (i) "university";
             42          (ii) "college"; or
             43          (iii) "institute."
             44          (2) Except as authorized by Subsections (3) and (4), the name of a corporation must be
             45      distinguishable, as defined in Subsection (5), upon the records of the division from:
             46          (a) the name of any domestic corporation incorporated in or foreign corporation authorized
             47      to transact business in this state;
             48          (b) the name of any domestic or foreign nonprofit corporation incorporated or authorized
             49      to transact business in this state;
             50          (c) the name of any domestic or foreign limited liability company formed or authorized
             51      to transact business in this state;
             52          (d) the name of any limited partnership formed or authorized to transact business in this
             53      state;
             54          (e) any name reserved or registered with the division for a corporation, limited liability
             55      company, or general or limited partnership, under the laws of this state; and
             56          (f) any business name, fictitious name, assumed name, trademark, or service mark
             57      registered by the division.
             58          (3) (a) A corporation may apply to the division for authorization to file its articles of


             59      incorporation under, or to register or reserve, a name that is not distinguishable upon its records
             60      from one or more of the names described in Subsection (2).
             61          (b) The division shall approve the application filed under Subsection (3)(a) if:
             62          (i) the other person whose name is not distinguishable from the name under which the
             63      applicant desires to file, or which the applicant desires to register or reserve:
             64          (A) consents to the filing, registration, or reservation in writing; and
             65          (B) submits an undertaking in a form satisfactory to the division to change its name to a
             66      name that is distinguishable from the name of the applicant; or
             67          (ii) the applicant delivers to the division a certified copy of the final judgment of a court
             68      of competent jurisdiction establishing the applicant's right to make the requested filing in this state
             69      under the name applied for.
             70          (4) A corporation may make a filing under the name, including the fictitious name, of
             71      another domestic or foreign corporation that is used or registered in this state if:
             72          (a) the other corporation is incorporated or authorized to transact business in this state; and
             73          (b) the filing corporation:
             74          (i) has merged with the other corporation; or
             75          (ii) has been formed by reorganization of the other corporation.
             76          (5) (a) A name is distinguishable from other names, trademarks, and service marks on the
             77      records of the division if it:
             78          (i) contains one or more different letters or numerals; or
             79          (ii) has a different sequence of letters or numerals from the other names on the division's
             80      records.
             81          (b) Differences which are not distinguishing are:
             82          (i) the words or abbreviations of the words:
             83          (A) "corporation";
             84          (B) "company";
             85          (C) "incorporated";
             86          (D) "limited partnership";
             87          (E) "L.P.";
             88          (F) "limited";
             89          (G) "ltd.";


             90          (H) "limited liability company";
             91          (I) "limited company";
             92          (J) "L.C."; or
             93          (K) "L.L.C.";
             94          (ii) the presence or absence of the words or symbols of the words "the," "and," or "a";
             95          (iii) differences in punctuation and special characters;
             96          (iv) differences in capitalization; [or]
             97          (v) for a corporation incorporated in or authorized to do business in this state on or after
             98      May 4, 1998, differences between singular and plural forms of words; or
             99          (vi) differences in whether the letters or numbers immediately follow each other or are
             100      separated by one or more spaces if:
             101          (A) the sequence of letters or numbers is identical; and
             102          (B) the corporation is incorporated in or authorized to do business in this state on or after
             103      May 3, 1999.
             104          (c) The director of the division has the power and authority reasonably necessary to
             105      interpret and efficiently administer this section and to perform the duties imposed on the division
             106      by this section.
             107          (6) A name that implies that the corporation is an agency of this state or of any of its
             108      political subdivisions, if it is not actually such a legally established agency or subdivision, may not
             109      be approved for filing by the division.
             110          (7) (a) The requirements of Subsection (1)(d) do not apply to a corporation incorporated
             111      in or authorized to do business in this state on or before May 4, 1998, until December 31, 1998.
             112          (b) On or after January 1, 1999, any corporation incorporated in or authorized to do
             113      business in this state shall comply with the requirements of Subsection (1)(d).
             114          Section 2. Section 48-2a-102 is amended to read:
             115           48-2a-102. Name.
             116          (1) The name of each limited partnership as set forth in its certificate of limited
             117      partnership:
             118          (a) shall contain the terms:
             119          (i) "limited partnership";
             120          (ii) "limited";


             121          (iii) "L.P."; or
             122          (iv) "Ltd.";
             123          (b) may not contain the name of a limited partner unless:
             124          (i) it is the name of a general partner;
             125          (ii) it is the corporate name of a corporate general partner; or
             126          (iii) the business of the limited partnership had been carried on under that name before the
             127      admission of that limited partner;
             128          (c) may not contain:
             129          (i) the words:
             130          (A) "association";
             131          (B) "corporation"; or
             132          (C) "incorporated";
             133          (ii) any abbreviation of a word listed in this Subsection (1)(c); or
             134          (iii) any word or abbreviation that is of like import to the words listed in Subsection
             135      (1)(c)(i) in any other language;
             136          (d) without the written consent of the United States Olympic Committee, may not contain
             137      the words:
             138          (i) "Olympic";
             139          (ii) "Olympiad"; or
             140          (iii) "Citius Altius Fortius"; and
             141          (e) without the written consent of the State Board of Regents issued in accordance with
             142      Section 53B-5-114 , may not contain the words:
             143          (i) "university";
             144          (ii) "college"; or
             145          (iii) "institute."
             146          (2)(a) A person or entity other than a limited partnership formed or registered under this
             147      title may not use in its name in this state any of the terms:
             148          (i) "limited";
             149          (ii) "limited partnership";
             150          (iii) "Ltd."; or
             151          (iv) "L.P."


             152          (b) Notwithstanding Subsection (2)(a):
             153          (i) a foreign corporation whose actual name includes the word "limited" or "Ltd." may use
             154      its actual name in this state if it also uses:
             155          (A) "corporation";
             156          (B) "incorporated"; or
             157          (C) any abbreviation of a word listed in this Subsection (2)(b)(i);
             158          (ii) a limited liability company may use in its name in this state the terms:
             159          (A) "limited";
             160          (B) "limited company";
             161          (C) "L.C.";
             162          (D) "L.L.C.";
             163          (E) "LC"; or
             164          (F) "LLC"; and
             165          (iii) a limited liability partnership may use the terms "limited liability partnership,"
             166      "L.L.P.," or "LLP" in the manner allowed in Section 48-1-45 .
             167          (3) Except as authorized by Subsection (4), the name of a limited partnership must be
             168      distinguishable as defined in Subsection (5) upon the records of the division from:
             169          (a) the name of any limited partnership formed or authorized to transact business in this
             170      state;
             171          (b) the corporate name of any corporation incorporated or authorized to transact business
             172      in this state;
             173          (c) any limited partnership name reserved under this chapter;
             174          (d) any corporate name reserved under Title 16, Chapter 10a, Utah Revised Business
             175      Corporation Act;
             176          (e) any fictitious name adopted by a foreign corporation or limited partnership authorized
             177      to transact business in this state because its real name is unavailable;
             178          (f) any corporate name of a not-for-profit corporation incorporated or authorized to
             179      transact business in this state; and
             180          (g) any assumed business name, trademark, or service mark registered by the division.
             181          (4) (a) A limited partnership may apply to the division for approval to file its certificate
             182      under, or to reserve, a name that is not distinguishable upon the division's records from one or


             183      more of the names described in Subsection (3).
             184          (b) The division shall approve of the name for which application is made under Subsection
             185      (4)(a) if:
             186          (i) the other person whose name is not distinguishable from the name under which the
             187      applicant desires to file:
             188          (A) consents to the filing in writing; and
             189          (B) submits an undertaking in a form satisfactory to the division to change its name to a
             190      name that is distinguishable from the name of the applicant; or
             191          (ii) the applicant delivers to the division a certified copy of the final judgment of a court
             192      of competent jurisdiction establishing the applicant's right to use in this state the name for which
             193      the application is made.
             194          (5) A name is distinguishable from other names, trademarks, and service marks registered
             195      with the division if it contains one or more different letters or numerals from other names upon the
             196      division's records.
             197          (6) The following differences are not distinguishing:
             198          (a) the terms:
             199          (i) "corporation";
             200          (ii) "incorporated";
             201          (iii) "company";
             202          (iv) "limited partnership";
             203          (v) "limited";
             204          (vi) "L.P."; or
             205          (vii) "Ltd.";
             206          (b) an abbreviation of a word listed in Subsection (6)(a);
             207          (c) the presence or absence of the words or symbols of the words "the," "and," "a," or
             208      "plus";
             209          (d) differences in punctuation and special characters;
             210          (e) differences in capitalization; [or]
             211          (f) for a limited partnership that is formed in or registered as a foreign limited partnership
             212      in this state on or after May 4, 1998, differences between singular and plural forms of words; or
             213          (g) differences in whether the letters or numbers immediately follow each other or are


             214      separated by one or more spaces if:
             215          (A) the sequence of letters or numbers is identical; and
             216          (B) the limited partnership is formed in or registered as a foreign limited partnership in this
             217      state on or after May 3, 1999.
             218          (7) The director of the division shall have the power and authority reasonably necessary
             219      to interpret and efficiently administer this section and to perform the duties imposed upon the
             220      division by this section.
             221          (8) A name that implies that the limited partnership is an agency of this state or any of its
             222      political subdivisions, if it is not actually such a legally established agency or subdivision, may not
             223      be approved for filing by the division.
             224          (9) (a) The requirements of Subsection (1)(e) do not apply to a limited partnership that is
             225      formed in or registered as a foreign limited partnership in this state on or before May 4, 1998, until
             226      December 31, 1998.
             227          (b) On or after January 1, 1999, any limited partnership formed in or registered as a foreign
             228      limited partnership in this state shall comply with the requirements of Subsection (1)(e).
             229          Section 3. Section 48-2b-106 is amended to read:
             230           48-2b-106. Name -- Exclusive right.
             231          (1) The name of each limited liability company as set forth in the articles of organization:
             232          (a) shall contain the terms:
             233          (i) "limited company";
             234          (ii) "limited liability company";
             235          (iii) "L.C."; or
             236          (iv) "L.L.C.";
             237          (b) may not contain:
             238          (i) the terms:
             239          (A) "association";
             240          (B) "corporation";
             241          (C) "incorporated";
             242          (D) "limited partnership";
             243          (E) "limited";
             244          (F) "L.P."; or


             245          (G) "Ltd."; or
             246          (ii) words or any abbreviation with a similar meaning to those described in Subsection
             247      (1)(b)(i) in any other language;
             248          (c) without the written consent of the United States Olympic Committee, may not contain
             249      the words:
             250          (i) "Olympic";
             251          (ii) "Olympiad"; or
             252          (iii) "Citius Altius Fortius"; and
             253          (d) without the written consent of the State Board of Regents in accordance with Section
             254      53B-5-114 , may not contain the words:
             255          (i) "university";
             256          (ii) "college"; or
             257          (iii) "institute."
             258          (2) (a) A person or entity, other than a limited liability company formed or registered under
             259      this chapter, may not use in its name in this state any of the terms:
             260          (i) "limited liability company";
             261          (ii) "limited company";
             262          (iii) "L.L.C.";
             263          (iv) "L.C.";
             264          (v) "LLC"; or
             265          (vi) "LC".
             266          (b) Notwithstanding Subsection (2)(a):
             267          (i) a foreign corporation whose actual name includes the word "limited" or "Ltd." may use
             268      its actual name in this state if it also uses:
             269          (A) "corporation";
             270          (B) "incorporated"; or
             271          (C) an abbreviation of the words listed in this Subsection (2)(b)(i); or
             272          (ii) a limited liability partnership may use in its name the terms:
             273          (A) "limited liability partnership";
             274          (B) "L.L.P."; or
             275          (C) "LLP".


             276          (3) Except as authorized by Subsection (4), the name of a limited liability company must
             277      be distinguishable as defined in Subsection (5) upon the records of the division from:
             278          (a) the name of any limited partnership formed or authorized to transact business in this
             279      state;
             280          (b) the name of any limited liability company formed or authorized to transact business
             281      in this state;
             282          (c) the corporate name of any corporation incorporated or authorized to transact business
             283      in the state;
             284          (d) any limited partnership name reserved under this chapter;
             285          (e) any limited liability company name reserved under this chapter;
             286          (f) any corporate name reserved under:
             287          (i) Title 16, Chapter 10a, Utah Revised Business Corporation Act, as amended; or
             288          (ii) Title 16, Chapter 6, Utah Nonprofit Corporation and Cooperative Association Act, as
             289      amended;
             290          (g) any fictitious name adopted by a foreign corporation, limited partnership, or limited
             291      liability company authorized to transact business in this state because its real name is unavailable;
             292          (h) any corporate name of a not-for-profit corporation incorporated or authorized to
             293      transact business in this state; and
             294          (i) any assumed name, trademark, or service mark registered by the division.
             295          (4) (a) A limited liability company may apply to the division for approval to file its articles
             296      of organization under or to reserve a name that is not distinguishable upon the division's records
             297      from one or more of the names described in Subsection (3).
             298          (b) The division shall approve the name for which the company applies under Subsection
             299      (4)(a) if:
             300          (i) the other person whose name is not distinguishable from the name under which the
             301      applicant desires to file:
             302          (A) consents to the filing in writing; and
             303          (B) submits an undertaking in a form satisfactory to the division to change its name to a
             304      name that is distinguishable from the name of the applicant; or
             305          (ii) the applicant delivers to the division a certified copy of the final judgment of a court
             306      of competent jurisdiction establishing the applicant's right to use the name in this state.


             307          (5) A name is distinguishable from other names, trademarks, and service marks registered
             308      with the division if it contains one or more different letters or numerals from other names upon the
             309      division's records.
             310          (6) The following differences are not distinguishing:
             311          (a) the terms:
             312          (i) "corporation";
             313          (ii) "incorporated";
             314          (iii) "company";
             315          (iv) "limited partnership";
             316          (v) "limited";
             317          (vi) "L.P.";
             318          (vii) "Ltd.";
             319          (viii) "limited liability company";
             320          (ix) "limited company";
             321          (x) "L.C."; or
             322          (xi) "L.L.C.";
             323          (b) an abbreviation of a word listed in Subsection (6)(a);
             324          (c) the presence or absence of the words or symbols of the words "the," "and," "a," or
             325      "plus";
             326          (d) differences in punctuation and special characters;
             327          (e) differences in capitalization; [or]
             328          (f) for a limited liability company that is formed in or registered as a foreign limited
             329      liability company in this state on or after May 4, 1998, differences between singular and plural
             330      forms of words; or
             331          (g) differences in whether the letters or numbers immediately follow each other or are
             332      separated by one or more spaces if:
             333          (A) the sequence of letters or numbers is identical; and
             334          (B) the limited liability company is formed in or registered as a foreign limited liability
             335      company in this state on or after May 3, 1999.
             336          (7) The director of the division shall have the power and authority reasonably necessary
             337      to interpret and efficiently administer this section and to perform the duties imposed on the


             338      division by this section.
             339          (8) A name that implies that a limited liability company is an agency of this state or any
             340      of its political subdivisions, if it is not actually such a legally established agency or subdivision,
             341      may not be approved for filing by the division.
             342          (9) The exclusive right to a name may be reserved by:
             343          (a) any person intending to:
             344          (i) organize a limited liability company under this chapter; and
             345          (ii) adopt that name;
             346          (b) any limited liability company or any foreign limited liability company registered in this
             347      state intending to adopt that name;
             348          (c) any foreign limited liability company intending to:
             349          (i) register in this state; and
             350          (ii) adopt that name; and
             351          (d) any person intending to:
             352          (i) organize a foreign limited liability company;
             353          (ii) have the company register in this state; and
             354          (iii) adopt that name.
             355          (10) (a) The reservation described in Subsection (9)(a) shall be made by filing with the
             356      division an application executed under penalty of perjury by the applicant to reserve a specified
             357      name.
             358          (b) If the division finds that the name is available for use by a limited liability company
             359      or a foreign limited liability company, it shall reserve the name exclusively for the applicant for
             360      a period of 120 days. The name reservation may be renewed for any number of subsequent periods
             361      of 120 days.
             362          (c) The exclusive right to a reserved name may be transferred to any other person by filing
             363      with the division a notice of the transfer executed under penalty of perjury by the applicant for
             364      whom the name was reserved and specifying the name and address of the transferee.
             365          (11) (a) The requirements of Subsection (1)(d) do not apply to a limited liability company
             366      that is formed in or registered as a foreign limited liability company in this state on or before May
             367      4, 1998, until December 31, 1998.
             368          (b) On or after January 1, 1999, any limited liability company formed in or registered as


             369      a foreign limited liability company in this state shall comply with the requirements of Subsection
             370      (1)(d).




Legislative Review Note
    as of 12-10-98 11:24 AM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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