32-1-115. Student financial institution defined -- obligations of minor -- applicability of laws. (1) The term "student financial institution" means a financial institution that:

(a) is located at a school or a location where educational services are provided;

(b) is operated as a financial literacy educational program;

(c) is operated by one or more state-chartered or federally chartered financial institutions, limited to a state or national bank, a state or federal savings and loan association, a trust company, an investment company, or a state or federal credit union;

(d) does not provide services to the general public; and

(e) conducts each program in a manner consistent with safe and sound banking practices and compliant with state law.

(2) To operate a student financial institution, a state-chartered bank, savings and loan association, trust company, investment company, or credit union shall provide written notice to the department.

(3) Establishing a student financial institution does not require a branch application.

(4) With regard to the operation of a student financial institution, the obligations of a minor pertaining to borrowing money, cashing checks, and making deposits have the same force and effect as though they were the obligations of a person over the age of majority.

(5) The provisions of 32-1-102, 32-1-402, 32-3-106, and this section apply to a student financial institution established pursuant to this section, but other provisions of Title 32, chapters 1 through 3, or any other provision of state law that regulates banks, credit unions, other financial institutions, or currency exchanges do not apply.

History: En. Sec. 1, Ch. 340, L. 2003; amd. Sec. 8, Ch. 75, L. 2019.