Pub. 4 2016 Issue 2

Issue 2. 2016 3 5 14 ©2016 Utah Bankers Association | The newsLINK Group, LLC. All rights reserved. Utah Banker is published quarterly each year by The newsLINK Group, LLC for the Utah Bankers Association and is the official publication for this association. The information contained in this publication is intended to provide general information for review and consideration. The contents do not constitute legal advice and such not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your specific circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the Utah Bankers Association, its board of directors, or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Utah Banker is a collective work and as such some articles are submitted by authors that are independent of the Utah Bankers Association. While the Utah Bankers Association encourages a first print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior permission. For further information, please contact the publisher at: 855.747.4003. UBA Board of Directors 2015/2016 CHAIRMAN Jill M.Taylor Regional President,Consumer and Small Business KeyBank Salt Lake City,UT VICE CHAIRMAN CraigA.White President & CEO Utah Independent Bank Beaver,UT 2NDVICE CHAIRMAN Ron Ostler Chairman Comenity Capital Bank Salt Lake City,UT IMMEDIATE PAST CHAIRMAN Kelvin L.Anderson President & CEO Optum Bank Salt Lake City,UT COMMUNITY BANKADVISORY CHAIR Brad R.Baldwin President & CEO First Utah Bank Salt Lake City,UT REGIONAL BANKADVISORY CHAIR Dee O'Donnell Utah Regional President Wells Fargo Salt Lake City,UT INDUSTRIAL BANKADVISORY CHAIR Donald Poulton President/CEO Medallion Bank Salt Lake City,UT PRESIDENT Howard M.Headlee President Utah BankersAssociation Salt Lake City,UT BOARD MEMBERS RichardT.Beard President and CEO,People’s Utah Bancorp CEO,Bank ofAmerican Fork American Fork,UT MichaelA.Fosmark President,Leasing & Equipment Finance Celtic Bank Salt Lake City,UT Robert Garinger President & CEO American Express Centurion Bank NewYork City,NY Kay B.Hall EVP,CFO Zions Bank Salt Lake City,UT K. John Jones President & CEO First National Bank Layton,UT Richard Lake President Merrick Bank South Jordan,UT Damon G.Miller Utah Market President U.S.Bank Salt Lake City,UT MarkW.Packard Senior ExecutiveVice President Central Bank Springville,UT Erich Sontag President, Intermountain Banking AmericanWest Bank South Jordan,UT Katie Spratling President Holladay Bank &Trust Salt Lake City,UT Frank K.Stepan Executive Director Morgan Stanley Bank Salt Lake City,UT M.Craig Zollinger Utah President & CEO JPMorgan Chase Salt Lake City,UT 4 The Bottom Line: The Future of Banking By Howard Headlee, President 5 Washington Update: Putting Customers in Homes —Despite Washington Bankers are a resilient bunch. By Rob Nichols, President and CEO, American Bankers Association 6 Beware Simplistically Defining Membership Interests in LLCs As collateral for a loan, lenders sometimes take a security interest in the ownership interests of a borrower – which means, in many transactions, lenders take a security in- terest in the ownership interests of a limited liability company (LLC). By Landon A. Hardcastle 9 Compliance Corner: Arbitration Consternation: The CFPB Proposes New Ban on Mandatory Arbitration Clauses On May 5, the Consumer Financial Pro- tection Bureau dealt another blow to the financial services industry. By Victoria E. Stephen 10 The 108th Annual Utah Bankers Association Convention The 108th Annual Utah Bankers Associa- tion Convention was held at the Sun Valley Resort in beautiful Sun Valley, Idaho June 26-29. 11 40 Year Service Awards Six bankers were honored with 40 Year Service awards at the 108th Annual UBA Convention held in Sun Valley on June 28, 2016. 12 LeeAnne B. Linderman is 2016 UBA Distinguished Banker, Receives Award at Utah Bankers Association Annual Convention The Utah Bankers Association has bestowed its highest honor, “The Distinguished Banker Award,” on LeeAnne B. Linderman, Execu- tive Vice President of Enterprise Retail Bank- ing for Zions Bancorporation, in recognition of her active leadership in Utah’s and the nation’s banking industry and her exception- al community service. 13 Craig White Elected To Head the Utah Bankers Association; Bankers Elect New Officers and Directors The Utah Bankers Association has elected new officers and board members for 2016- 17. The new Chair of the UBA is Craig White, President & CEO of Utah Independent Bank in Beaver, Utah. 14 Education Corner: UBA Successfully Wraps Up First Sessions of New Development Programs Congratulations to first-time graduates of two of the UBA’s new development programs, designed to help build a strong future for the banking industry in Utah by cultivating upcoming leaders. 16 Assess Your Examination Process: Tell us the Good, Bad, and Ugly! Bankers operate in a highly regulated envi- ronment, and regulatory exam-inations are a necessary ingredient for maintaining a safe and sound finan-cial system. By Scott Polakoff, Executive Vice President, and Stephen Brown Klinger Director, FinPro Inc. 18 Bank Kudos 23 Bankers on the Move 24 UBA Associate Members