Mont. Code Ann. § 32-1-538 — MT Code / Title 32 / Chapter 1 / Part 5 / Section 32-1-538
32-1-538 Disposition of assets remaining after payment of claims
Status: in_force

32-1-538 . Disposition of assets remaining after payment of claims. (1) Except as provided in subsection (4), when the department has paid to each depositor and creditor of the bank whose claims have been approved and allowed as provided in this chapter the amount due on them or made satisfactory adjustment of them and has made provisions for unclaimed and unpaid deposits and disputed claims and deposits and has paid all the expenses of liquidation, it shall file a report of its administration of the trust with the clerk of the district court of the county in which the bank is located. If there are remaining assets on hand, the department may apply to the judge of that court for an order authorizing it to surrender the remaining assets, together with all the stationery, correspondence, books, and records kept by the bank while it was a going concern, to the directors of the bank in office at the time of closing it, as trustees for stockholders, or to some other person, if any, designated as trustee by a majority of the stockholders. The report and petition must be set for hearing upon notice that the court may direct. Upon hearing and approval of the report and account and the surrender of the assets as directed, the department is discharged from all further liability or responsibility in connection with the assets and affairs of the bank. The court may, if requested, require the trustees to give bond in an amount the court may fix, conditioned for the faithful performance of their duties. The trustee or trustees shall complete the liquidation of any remaining assets and may sell and dispose of real and personal property as rapidly as possible and shall distribute the proceeds among the stockholders as their rights may appear or dispose of the proceeds in some other manner as the stockholders by majority action direct. The court may upon request of a majority of the stockholders order the department to close up the trust as provided in subsection (2).

(2) If the assets of the bank are insufficient for making payments in full to the depositors and creditors of the bank, then, when the department has liquidated all available assets and disbursed them as provided by law, the department shall file a final report of its liquidation of the bank with the clerk of court of the county in which the bank is located. Upon notice that the court may order, the report must be set for hearing before the court and, if found correct and all funds accounted for, the court shall approve it. The department may at the same time and in the report make application to the district court of the county in which the bank is located for an order directing the closing of the trust, and upon entry of the order closing the trust, the department is discharged from all further liability or responsibility in connection with the assets and affairs of the bank. The charter of the bank must be forfeited and all the stationery, correspondence, books, and records kept by the bank while it was a going concern and considered by the department to be of no value may be destroyed. However, correspondence or records may not be destroyed until 10 years after the date the bank ceased to be a going concern.

(3) On application for orders as provided in this section, the bank must be made a party by notice issued on order of the court or judge and served in a manner the court directs and applications authorized by this section may be heard at any time upon not less than 5 days' posted or served notice of the hearing.

(4) If the federal deposit insurance corporation is appointed as the liquidating agent, the reporting and district court approval requirements of subsections (1) through (3) do not apply.
Mont. Code Ann. § 32-2-811 — MT Code / Title 32 / Chapter 2 / Part 8 / Section 32-2-811
32-2-811 Failure to commence business
Status: in_force

32-2-811 . Failure to commence business. (1) Any mutual association that fails to commence business as a financial institution within 1 year after receiving a certificate of authorization forfeits that certificate and shall cease all activities. The commissioner shall certify to the secretary of state that the certificate of authority has been forfeited so that the mutual association's articles of incorporation may be terminated by the secretary of state.

(2) On forfeiture, the contributors of initial capital deposits of the mutual association are entitled to the return of any amounts they have paid to the institution, and all expenses incurred in the organization must be borne by the original organizers who were named in the application for permission to organize.
Mont. Code Ann. § 32-5-309 — MT Code / Title 32 / Chapter 5 / Part 3 / Section 32-5-309
32-5-309 Advertising -- limitations
Status: in_force

32-5-309 . Advertising -- limitations. No person shall advertise, display, distribute, broadcast, or televise or permit to be displayed, advertised, distributed, broadcasted, or televised, in any manner whatsoever, any false, misleading, or deceptive statement or representation with regard to the rates, terms, or conditions of loans.
Mont. Code Ann. § 32-3-105 — MT Code / Title 32 / Chapter 3 / Part 1 / Section 32-3-105
32-3-105 Fiscal year
Status: in_force

32-3-105 . Fiscal year. The fiscal year of each credit union organized under this chapter shall end on December 31.
Mont. Code Ann. § 32-2-940 — MT Code / Title 32 / Chapter 2 / Part 9 / Section 32-2-940
32-2-940 False statement to obtain loan
Status: in_force

32-2-940 . False statement to obtain loan. A person who makes a statement, knowing it to be false, for the purpose of obtaining for that person or for any other person, firm, corporation, or association a loan of money from a mutual association or for the purpose of gaining an extension of time for the payment of any debt due the mutual association shall be punished by a fine of not more than $1,000 or by imprisonment in the county jail for not more than 1 year, or both.
Mont. Code Ann. § 32-2-1204 — MT Code / Title 32 / Chapter 2 / Part 12 / Section 32-2-1204
32-2-1204 Temporary cease and desist order -- grounds for issuance -- effective date -- injunctive relief
Status: in_force

32-2-1204 . Temporary cease and desist order -- grounds for issuance -- effective date -- injunctive relief. (1) (a) Whenever the department determines that any violation or threatened violation or any unsafe or unsound practice specified in the notice of charges served on the institution pursuant to 32-2-1202 (1) or the continuation is likely to cause insolvency or substantial dissipation of assets or earnings of the institution or is likely to otherwise seriously prejudice the interests of its depositors, the department may issue a temporary order requiring the institution to cease and desist from the violation or practice.

(b) The order must contain a statement of the facts constituting the alleged violation or unsafe or unsound practice.

(c) The order is effective upon service of the order on the institution and, unless set aside, limited, or suspended by a court in proceedings authorized by subsection (2), remains effective and enforceable until the completion of the administrative proceedings pursuant to the notice of charges, until the department dismisses the charges specified in the notice, or until a cease and desist order that is issued against the institution after the hearing becomes effective.

(2) Within 14 days after the institution has been served with a temporary cease and desist order, the institution may apply to the district court for the county in which the home office of the institution is located for an injunction setting aside, limiting, or suspending the enforcement, operation, or effectiveness of the order pending the completion of the administrative proceedings held pursuant to the notice of charges served on the institution under 32-2-1202 (1). The court has jurisdiction to issue the injunction.
Mont. Code Ann. § 32-1-379 — MT Code / Title 32 / Chapter 1 / Part 3 / Section 32-1-379
32-1-379 Bank acquisition or control -- disapproval by department -- change of officers
Status: in_force

32-1-379 . Bank acquisition or control -- disapproval by department -- change of officers. (1) The department may disapprove the acquisition of a bank within 30 days after the filing of a complete application pursuant to 32-1-378 .

(2) The department may have an extended period, not exceeding an additional 15 days from the period allowed in subsection (1), to disapprove the acquisition if:

(a) the poor financial condition of any acquiring party may jeopardize the financial stability of the bank or may prejudice the interests of the bank depositors, borrowers, or shareholders;

(b) the plan or proposal of the acquiring party to liquidate the bank, sell its assets, merge it with any person, or make any other major change in its business or corporate structure or management is not fair and reasonable to the bank's depositors, borrowers, or stockholders or is not in the public interest;

(c) the banking and business experience and the integrity of any acquiring party that would control the operation of the bank indicate that approval would not be in the interest of the bank's depositors, borrowers, or shareholders;

(d) the information provided by the application is insufficient for the department to make a determination;

(e) there has been insufficient time to verify the information provided and conduct an examination of the qualifications of the acquiring party; or

(f) the acquisition would not be in the public interest.

(3) An acquisition may be made before expiration of the disapproval period if the department issues written notice of intent not to disapprove the action.

(4) (a) The department shall set forth the basis for disapproval of any proposed acquisition in writing and shall provide a copy of the findings and order to the applicants and to the bank involved.

(b) The findings and order may not be disclosed to any other party and may not be subject to public disclosure under 32-1-234 unless either the findings, order, or both are appealed pursuant to the Montana Administrative Procedure Act.

(5) Whenever a change in control occurs, each party to the transaction shall notify the department within 10 business days of any changes or replacements of its chief executive officer or any director that occurs in the next 12-month period and provide a statement of the past and present business and professional affiliations of the new chief executive officer or director.
Mont. Code Ann. § 32-1-708 — MT Code / Title 32 / Chapter 1 / Part 7 / Section 32-1-708
32-1-708 Limited application of insurance law -- exemption
Status: in_force

32-1-708 . Limited application of insurance law -- exemption. (1) Nothing in this part exempts a common trust fund or any fiduciary thereof from the requirements of Title 33 if such common trust fund or fiduciary is used for insurance purposes.

(2) The establishment and maintenance of common trust funds under this part are exempt from the provisions of Title 30, chapter 10.
Mont. Code Ann. § 32-1-494 — MT Code / Title 32 / Chapter 1 / Part 4 / Section 32-1-494
32-1-494 Destruction or reproduction "in regular course of business" defined
Status: in_force

32-1-494 . Destruction or reproduction "in regular course of business" defined. Destruction in the regular course of business shall include destruction at any time after making such reproductions. Reproductions made in the regular course of business shall include reproductions made at any time prior to the destruction of the original, in each case, if done in good faith and without intent to defraud.
Mont. Code Ann. § 32-3-1013 — MT Code / Title 32 / Chapter 3 / Part 10 / Section 32-3-1013
32-3-1013 Removal of directors, officers, employees -- hearing
Status: in_force

32-3-1013 . Removal of directors, officers, employees -- hearing. (1) A director, an officer, or an employee of a credit union who is found by the department of administration, after examination, to be negligent, dishonest, reckless, or incompetent or to have violated the provisions of this part must be removed from office by the supervisory committee of the credit union on the written order of the department.

(2) If the directors neglect or refuse to remove the director, officer, or employee and any losses accrue to the credit union by reason of the negligence, dishonesty, recklessness, or incompetency of the director, officer, or employee, the department's written order is conclusive evidence of the negligence of the directors' failure to act as required in subsection (1) in any action brought against the board of directors by a member of the credit union for recovery of losses.

(3) If the supervisory committee refuses to remove the director, officer, or employee on order of the department, the supervisory committee may file a request for hearing pursuant to the Montana Administrative Procedure Act.
Mont. Code Ann. § 32-9-150 — MT Code / Title 32 / Chapter 9 / Part 1 / Section 32-9-150
32-9-150 Unique identifier for mortgage brokers, mortgage lenders, mortgage servicers, mortgage loan originators, and registered mortgage loan originators
Status: in_force

32-9-150 . Unique identifier for mortgage brokers, mortgage lenders, mortgage servicers, mortgage loan originators, and registered mortgage loan originators. (1) Each licensed mortgage broker, mortgage lender, mortgage servicer, and mortgage loan originator shall post the mortgage broker's, mortgage lender's, mortgage servicer's, or mortgage loan originator's unique identifier in a conspicuous place within the office where the licensee principally transacts business.

(2) The department shall provide a link to the consumer access portion of the NMLS on the department's website. (See part compiler's comment regarding contingent suspension.)
Mont. Code Ann. § 32-1-109 — MT Code / Title 32 / Chapter 1 / Part 1 / Section 32-1-109
32-1-109 Definitions
Status: in_force

32-1-109 . Definitions. As used in this chapter, unless the context requires otherwise, the following definitions apply:

(1) "Acquire" means:

(a) the direct or indirect purchase or exchange of stock;

(b) the direct or indirect purchase of assets and liabilities; or

(c) a merger.

(2) "Acquiring party" means the person acquiring control of a bank through the purchase of stock.

(3) "Affiliate" has the meaning given in 12 U.S.C. 1841(k).

(4) "Bank holding company" means a bank holding company or a financial holding company registered under the federal Bank Holding Company Act of 1956, as amended, regardless of where the entity is located or has its headquarters.

(5) "Branch" means:

(a) in the case of a bank, a banking house, other than the main banking house, maintained and operated by a bank doing business in the state and at which deposits are received, checks are paid, or money is lent. The term does not include a satellite terminal as defined in 32-6-103 , an interactive teller machine as defined in this section, a loan production office, or the office of an affiliated depository institution acting as an agent under 12 U.S.C. 1828.

(b) in the case of a trust company, any office at which trust services are provided.

(6) "Capital", "capital stock", and "paid-in capital" mean that fund for which certificates of stock are issued to stockholders.

(7) "Consolidate" and "merge" mean the same thing and may be used interchangeably in this chapter.

(8) "Control" means:

(a) ownership of, authority over, or power to vote, directly or indirectly, 25% or more of any class of voting security;

(b) authority in any manner over the election of a majority of directors; or

(c) power to exercise, directly or indirectly, a controlling influence over management and policies.

(9) "Demand deposits" means all deposits, the payment of which can legally be required when demanded.

(10) "Department" means the department of administration provided for in Title 2, chapter 15, part 10.

(11) "Depository institution" means a bank or savings association organized under the laws of a state or the United States.

(12) "Division" means the division of banking and financial institutions of the department.

(13) "Doing business in this state" means located in this state or having a physical branch bank location in this state.

(14) "Headquarters" means the state in which the activities of a bank holding company or a company controlling the bank holding company are principally conducted within the meaning of the federal Bank Holding Company Act of 1956, as amended.

(15) "Insured depository institution" means a bank or savings association in which the deposits are insured by the federal deposit insurance corporation.

(16) "Interactive teller machine" means an automated, unstaffed banking facility owned or operated by, or operated exclusively for, a bank that is equipped to enable existing customers to initiate an interactive session with remotely located bank personnel. Customers must also be able to perform core banking transactions at the machine without the involvement of bank personnel and must have the sole discretion to initiate or terminate interactive sessions with bank personnel.

(17) "Loan production office" means a staffed facility, other than a branch, that provides lending-related services to the public, including loan information and applications.

(18) "Located in this state" means:

(a) in the case of a bank, that the bank is either organized under the laws of this state or is a federally chartered bank whose organizational certificate identifies an address in this state as the principal place at which the business of the federally chartered bank is conducted; and

(b) in the case of a bank holding company, that the entity, partnership, or trust is organized under the laws of this state.

(19) "Main banking house" means the designated principal place of business of a bank.

(20) "Net earnings" means the excess of the gross earnings of a bank over expenses and losses chargeable against those earnings during any 1 year.

(21) "Principal shareholder" means a person who directly or indirectly owns or controls, individually or through others, more than 10% of any class of voting stock.

(22) "Profit and loss account" or "profit and loss" means that account carried on the books of the bank into which all earnings accounts and recoveries are closed, thus exhibiting "gross earnings", and against which all loss and other disbursement items are charged, revealing "net earnings", which are then properly closed to "undivided profits accounts" or "undivided profits", out of which dividends are paid and reserves set aside.

(23) "Regional banking organization" means a bank organized in this state that is owned by an entity with consolidated total assets between $10 billion and $50 billion and that has subsidiaries operating in one or more states but not nationwide.

(24) "Savings association" means a savings association or savings bank organized under the laws of the United States or a building and loan association, savings and loan association, or similar entity organized under the laws of a state.

(25) (a) "Service provider" means an individual or person that provides one or more of the following services to a depository institution:

(i) data processing services;

(ii) activities supporting financial services, including but not limited to lending, funds transfer, fiduciary activities, trading activities, and deposit taking;

(iii) internet-related services, including but not limited to web services and electronic bill payments, mobile applications, system and software development and maintenance, and security monitoring; and

(iv) activities related to the business of banking.

(b) The term does not include:

(i) an individual or person that provides telecommunications service, internet access service, internet transport services, voice over internet protocol service, or other internet protocol-enabled service; or

(ii) a general audience internet or communications platform.

(26) "Shell bank" means a bank organized solely for the purpose of, and that does not conduct any banking business prior to, acquiring control of, merging with, or acquiring all or substantially all of the assets of an existing bank or savings association.

(27) "Subsidiary" means a company 25% or more of whose voting shares or equity interests are owned and controlled by a bank.

(28) "Surplus" means a fund paid in or created under this chapter by a bank from its net earnings or undivided profits that, when set apart and designated as surplus, is not available for the payment of dividends and cannot be used for the payment of expenses or losses so long as the bank has undivided profits.

(29) "Tier 1 leverage ratio" means the ratio of tier 1 capital to average total assets as defined in 12 CFR 324.10(b)(4).

(30) "Time deposits" means all deposits, the payment of which cannot legally be required within 7 days.

(31) "Undivided profits" means the credit balance of the profit and loss account of a bank.
Mont. Code Ann. § 32-2-806 — MT Code / Title 32 / Chapter 2 / Part 8 / Section 32-2-806
32-2-806 Incorporation
Status: in_force

32-2-806 . Incorporation. The proposed articles of incorporation must be presented to the department, together with an application in writing in the form prescribed by the department, for a certificate authorizing the proposed corporation to transact the business specified in the articles of incorporation within this state.
Mont. Code Ann. § 32-3-809 — MT Code / Title 32 / Chapter 3 / Part 8 / Section 32-3-809
32-3-809 Contracts and written agreements
Status: in_force

32-3-809 . Contracts and written agreements. Services, facilities, personnel, or equipment shared with any party must be supported by a written contract or agreement that specifies the duties and responsibilities of each party and that fully supports and documents the allocation of service fees and expenses.
Mont. Code Ann. § 32-3-405 — MT Code / Title 32 / Chapter 3 / Part 4 / Section 32-3-405
32-3-405 Vacancies
Status: in_force

32-3-405 . Vacancies. (1) The board of directors shall fill any vacancies occurring in the board within 60 days. An individual appointed to fill a vacancy shall serve until successors elected at the next annual meeting have qualified or as provided in the bylaws.

(2) The board shall also fill vacancies in the credit and supervisory committees within 60 days or as provided in the bylaws.
Mont. Code Ann. § 32-3-507 — MT Code / Title 32 / Chapter 3 / Part 5 / Section 32-3-507
32-3-507 Liens
Status: in_force

32-3-507 . Liens. The credit union has a lien on the shares and accumulated dividends or interest of a member in the member's individual, joint, or trust account for any sum past due the credit union from the member or for any loan endorsed by the member.
Mont. Code Ann. § 32-3-604 — MT Code / Title 32 / Chapter 3 / Part 6 / Section 32-3-604
32-3-604 Security -- real property loans
Status: in_force

32-3-604 . Security -- real property loans. (1) In addition to generally accepted types of security, the endorsement of a note by a surety, comaker, or guarantor or pledge of shares, in a manner consistent with the laws of this state, must be considered security within the meaning of this chapter. The adequacy of any security is subject to the lending policies established by the board of directors.

(2) A credit union that is subject to the provisions of this part may not require a borrower, as a condition of obtaining or maintaining a loan secured by real property, to provide insurance on improvements to real property in an amount that exceeds the reasonable replacement value of the improvements.
Mont. Code Ann. § 32-1-464 — MT Code / Title 32 / Chapter 1 / Part 4 / Section 32-1-464
32-1-464 Fraud by director, officer, agent, or employee
Status: in_force

32-1-464 . Fraud by director, officer, agent, or employee. A director, executive officer, agent, or employee of a bank is guilty of a felony if that person:

(1) knowingly receives or takes possession of any bank property, except in payment for a just demand, and with intent to defraud:

(a) fails to make or to cause or direct to be made a full and true entry of the receipt or possession in its books and account; or

(b) concurs in failing to make any material entry in its books and account;

(2) knowingly concurs in making or publishing any written report, exhibit, or statement of its affairs or pecuniary condition containing any material statement that is false; or

(3) having the custody or control of its books, willfully refuses or neglects to make a proper entry in the books of that bank as required by law, to exhibit them, or allow them to be inspected and extracts to be taken from them by the department.
Mont. Code Ann. § 32-1-902 — MT Code / Title 32 / Chapter 1 / Part 9 / Section 32-1-902
32-1-902 Notice of charges -- hearing -- cease and desist order -- effective date
Status: in_force

32-1-902 . Notice of charges -- hearing -- cease and desist order -- effective date. (1) If the director has reasonable cause to believe that any institution is engaging or has engaged or is about to engage in an unsafe or unsound practice in conducting the business of such institution or is violating, has violated, or is about to violate a law or rule, the director may issue and serve upon the institution a notice of charges in respect thereof. The notice shall contain a statement of the facts constituting the alleged unsafe or unsound practice or violation and shall fix a time and place at which a hearing will be held to determine whether an order to cease and desist therefrom should issue against the institution.

(2) The hearing may not be earlier than 30 days or later than 60 days after service of the notice unless an earlier or a later date is set by the director at the request of the institution. Unless the institution appears at the hearing by a duly authorized representative, it shall be considered to have consented to the issuance of the cease and desist order. In the event of such consent or if upon the record made at any such hearing the director finds that any unsafe or unsound practice or violation specified in the notice of charges has been established by the preponderance of the evidence, the director may issue and serve upon the institution an order to cease and desist from any such practice or violation. By provisions which may be mandatory or otherwise, the order may require the institution and its board members, officers, employees, and agents to cease and desist from such practice or violation and to take affirmative action to correct the conditions resulting from any such practice or violation.

(3) A cease and desist order becomes effective at the expiration of 45 days after the service of the order upon the institution, except in the case of an order issued upon consent which is effective at the time specified therein, and remains effective and enforceable as provided therein, except to the extent it is stayed, modified, terminated, or set aside by the action of the director or a reviewing court.
Mont. Code Ann. § 32-2-828 — MT Code / Title 32 / Chapter 2 / Part 8 / Section 32-2-828
32-2-828 Branches
Status: in_force

32-2-828 . Branches. (1) A mutual association may establish and maintain branches as provided in 32-2-827 and this section. The formation and operation of a branch in this state by a mutual association organized under the laws of this state require the prior approval of the department. A mutual association organized under the laws of this state may establish, acquire, or operate a branch or loan production office outside of this state if approved by the department and if permitted by the laws of the jurisdiction where the branch or office is to be located.

(2) A branch may offer all services and conduct all business authorized to be offered or conducted by the mutual association.

(3) A mutual association authorized to do mutual association business in this state may use a satellite terminal, as defined in 32-6-103 , at any location permitted by the Montana Electronic Funds Transfer Act.

(4) A mutual association located in this state may provide services for other mutual associations located in this state, whether or not those mutual associations are affiliates.

(5) With the prior approval of the appropriate federal regulator and state chartering authority, a mutual association that is not organized under the laws of this state may establish and operate a de novo branch in this state under the same terms that would apply to a mutual association organized under the laws of this state seeking approval from the department to establish and operate a de novo branch in this state.
Mont. Code Ann. § 32-3-301 — MT Code / Title 32 / Chapter 3 / Part 3 / Section 32-3-301
32-3-301 Organization procedure
Status: in_force

32-3-301 . Organization procedure. (1) Any seven or more residents of this state who are of legal age and who have a common bond, as described in 32-3-304 , may organize a credit union and become charter members of the credit union by complying with this section.

(2) The subscribers shall execute articles of incorporation that conform to the applicable Montana corporation law and shall agree to the terms of the articles. The articles must state:

(a) the name, which must include the words "credit union" and which must conform with the provisions of 32-3-103 , and the location where the proposed credit union is to have its principal place of business;

(b) that the existence of the credit union is perpetual;

(c) the par value of the shares of the credit union, which must be in $5 multiples of not less than $5 or more than $50;

(d) that the credit union is organized under this chapter for the purposes set forth in the articles;

(e) the names and addresses of the subscribers to the articles of incorporation and the value of shares subscribed to by each, which may be not less than $5; and

(f) that the credit union may exercise incidental powers that are necessary or requisite to enable it to carry on effectively the business for which it is incorporated and those powers that are inherent in the credit union as a legal entity.

(3) The subscribers shall prepare and adopt bylaws for the general government of the credit union, consistent with this chapter, and forward the bylaws as provided in subsection (5).

(4) The subscribers shall select at least five qualified persons who agree to serve on the board of directors and at least three qualified persons who agree to serve on the supervisory committee. A signed agreement to serve in these capacities until the first annual meeting or until the election of their successors, whichever is later, must be executed by the parties. This agreement must be submitted to the department of administration.

(5) (a) The subscribers shall forward the articles of incorporation and the bylaws to the department. The department may issue a certificate of approval if the articles and the bylaws are in conformity with this chapter and if the department is satisfied that the proposed operation is favorable to the success of the credit union and that the standing of the proposed organizers gives assurance that the credit union's affairs will be properly administered. The department shall return to the applicants or their representatives an approved copy of the bylaws and the articles, which must be preserved in the permanent files of the credit union, or provide a written reason if the application is denied.

(b) The articles of incorporation must be filed with the secretary of state who, upon payment of the fees for filing the articles, shall issue a certificate of incorporation.

(6) The subscribers for a credit union charter may not transact any business until formal approval of the charter has been received.

(7) If the department denies a certificate of approval, the subscribers may request a hearing under the Montana Administrative Procedure Act, Title 2, chapter 4.
Mont. Code Ann. § 32-2-951 — MT Code / Title 32 / Chapter 2 / Part 9 / Section 32-2-951
32-2-951 Definitions -- reproductions of mutual association records -- admissibility in evidence -- cost recovery
Status: in_force

32-2-951 . Definitions -- reproductions of mutual association records -- admissibility in evidence -- cost recovery. (1) For the purposes of this section, the following definitions apply:

(a) "Electronic storage" or "electronically stored" means the recording, storage, retention, maintenance, and reproduction of documents using microfiche, data processing, computers, or other electronic process that correctly and legibly stores and reproduces documents.

(b) "Mutual association records" includes any document, paper, letter, book, map, photograph, sound or video recording, magnetic tape, electronic storage medium, or other information-recording medium used in a mutual association's normal course of business.

(2) (a) A photographic, photostatic, miniature photographic copy, or reproduction of any kind, including electronic or computer-generated data that has been electronically stored and is capable of being converted into written form, must be considered an original record for all purposes and must be treated as an original record in all courts and administrative agencies for the purposes of admissibility in evidence.

(b) A facsimile, exemplification, or certified copy of any reproduction referred to in subsection (2)(a) must, for all purposes, be considered a facsimile, exemplification, or certified copy of the original record.

(3) Except as provided in subsection (7), mutual associations are authorized to make, at any time, photographic or photostatic copies or microfilm reproductions of any records or documents, including photographic enlargements and prints of microfilms, to be preserved, stored, used, and employed in carrying out business.

(4) In an action or proceeding in which mutual association records may be called in question or be demanded of a mutual association or any officer or employee of a mutual association, a showing that the records have been destroyed in the regular course of business is a sufficient excuse for the failure to produce the records.

(5) Upon the showing required in subsection (4), secondary evidence of the form, text, and contents of the original records, including photostatic, photographic, or microfilm reproductions, photographic enlargements, and prints of microfilm reproductions, when made in the regular course of business, is admissible in evidence in any court of competent jurisdiction or in any administrative proceeding.

(6) Any photostatic, photographic, or microfilm reproductions, including enlargements of the microfilm reproductions, made in the regular course of business of any original files, records, books, cards, tickets, deposit slips, or memoranda that were in existence on July 1, 1951, are admissible in evidence as proof of the form, text, and content of the originals that were destroyed in the regular course of business.

(7) A mutual association may, as a condition of providing mutual association records to a third party in response to a subpoena or another legal procedure or request, charge and collect the actual costs incurred in locating, reproducing, and providing the mutual association records.
Mont. Code Ann. § 32-6-101 — MT Code / Title 32 / Chapter 6 / Part 1 / Section 32-6-101
32-6-101 Short title
Status: in_force

32-6-101 . Short title. This chapter shall be known and may be cited as the "Montana Electronic Funds Transfer Act".
Mont. Code Ann. § 32-3-1004 — MT Code / Title 32 / Chapter 3 / Part 10 / Section 32-3-1004
32-3-1004 Penalty for fraud by director, executive officer, agent, or employee
Status: in_force

32-3-1004 . Penalty for fraud by director, executive officer, agent, or employee. (1) The department of administration may impose the penalty described in subsection (2) if a director, an executive officer, an agent, or an employee of a credit union:

(a) (i) knowingly receives or takes possession of any credit union property, except in payment for a just demand; and

(ii) with the intent to defraud fails to make or to cause or direct to be made a full and true entry of the receipt or possession in its books and accounts or concurs in failing to make a material entry in its books and account;

(b) knowingly concurs in making or publishing a written report, exhibit, or statement of its affairs or pecuniary condition containing any material statement that is false; or

(c) having the custody or control of the credit union's books, willfully refuses or neglects to make a proper entry in the credit union's books as required by law, to exhibit the books, or to allow the books to be inspected and allow extracts to be taken from the books by the department.

(2) An individual who is found guilty or pleads guilty to a charge under subsection (1) may be imprisoned in a state correctional facility for a term not exceeding 5 years or be fined by the department an amount not to exceed $10,000, or both.
Mont. Code Ann. § 32-9-123 — MT Code / Title 32 / Chapter 9 / Part 1 / Section 32-9-123
32-9-123 Surety bond requirement -- notice of legal action
Status: in_force

32-9-123 . Surety bond requirement -- notice of legal action. (1) (a) A mortgage loan originator must be covered by a surety bond in accordance with this section. If a mortgage loan originator is an employee of a licensed mortgage lender or mortgage broker, the surety bond of the licensed mortgage lender or mortgage broker may be used in lieu of a mortgage loan originator's surety bond.

(b) The bond must run to the state of Montana as obligee and must run first to the benefit of the borrower and then to the benefit of the state and any person who suffers loss by reason of the obligor's or its loan originator's violation of any provision of this part or rules adopted under this part. The department shall use the proceeds of the surety bonds to reimburse borrowers, the department, or bona fide third parties who successfully demonstrate a financial loss because of an act of a mortgage broker, mortgage lender, mortgage servicer, or mortgage loan originator that violates any provision of this part.

(2) (a) An entity licensed as a mortgage broker, mortgage lender, and mortgage servicer is required to maintain one surety bond for each entity license.

(b) The amount of the required surety bond must be calculated by combining the annual loan production amounts for all persons originating residential mortgage loans and for all business locations of the mortgage broker or mortgage lender and must be in the following amount:

(i) $25,000 for a combined annual loan production that does not exceed $50 million a year;

(ii) $50,000 for annual loan production of more than $50 million but not exceeding $100 million a year; or

(iii) $100,000 for annual loan production of more than $100 million a year.

(c) The amount of the required surety bond for a mortgage servicer must be calculated on the mortgage servicer's total unpaid principal balance of residential mortgage loans as of December 31. The amount of the surety bond must be in the following amount:

(i) $75,000 for an unpaid principal balance that does not exceed $25 million a year;

(ii) $150,000 for an unpaid principal balance of more than $25 million but not exceeding $100 million a year;

(iii) $250,000 for an unpaid principal balance of more than $100 million but not exceeding $500 million a year; or

(iv) $350,000 for an unpaid principal balance of more than $500 million a year.

(3) A mortgage broker, mortgage lender, mortgage servicer, or mortgage loan originator shall give notice to the department through the NMLS within 15 days of the mortgage broker, mortgage lender, mortgage servicer, or mortgage loan originator obtaining knowledge of the initiation of an investigation or the entry of a judgment in a criminal or civil action. The notice must be given if the investigation or the legal action is in any state and involves a mortgage broker, a mortgage lender, a mortgage servicer, a mortgage loan originator, or anyone having an ownership interest in a mortgage broker entity, mortgage lender entity, or mortgage servicer entity. In the case of a legal action, the notice must include a copy of the criminal or civil judgment.

(4) (a) An obligor shall give written notice to the department through the NMLS of any action that may be brought against it by any creditor or borrower when the action:

(i) is brought under this part;

(ii) involves a claim against the bond filed with the department for the purposes of compliance with this section; or

(iii) involves a claim for damages in excess of $20,000 for a mortgage broker or mortgage loan originator or $200,000 for a mortgage lender or mortgage servicer.

(b) An obligor shall give written notice to the department through the NMLS of any judgment that may be entered against it by any creditor or any borrower or prospective borrower.

(c) The written notice must provide details sufficient to identify the action or judgment and must be submitted within 30 days after the commencement of any action or within 30 days after the entry of any judgment.

(5) A corporate surety shall, within 10 days after it pays any claim or judgment to any claimant, give written notice to the department of the payment with details sufficient to identify the claimant and the claim or judgment paid. Whenever the principal sum of a required bond is reduced by one or more recoveries or payments on the bond, the obligor shall furnish a new or additional bond so that the total or aggregate principal sum of the bond or bonds equals the sum required under this section or the obligor shall furnish an endorsement duly executed by the corporate surety reinstating the bond to the required principal sum.

(6) A bond filed with the department or with the NMLS for the purpose of compliance with this section may not be canceled by the obligor or the corporate surety except upon written notice to the department through the NMLS. The cancellation may not take effect until 30 days after receipt by the department of the notice. The cancellation is effective only with respect to any occurrence after the effective date of the cancellation. (See part compiler's comment regarding contingent suspension.)
Mont. Code Ann. § 32-1-903 — MT Code / Title 32 / Chapter 1 / Part 9 / Section 32-1-903
32-1-903 Informal conferences -- time for application
Status: in_force

32-1-903 . Informal conferences -- time for application. Within 15 days after service of the notice of charges, either the institution or department may request an informal conference to discuss the charges and the possible disposition of the charges without a formal hearing process. The conference must be carried out in accordance with the provisions of 2-4-603 . Upon a proper showing, the director may withdraw charges and proceedings for a cease and desist order.
Mont. Code Ann. § 32-2-818 — MT Code / Title 32 / Chapter 2 / Part 8 / Section 32-2-818
32-2-818 Requirements of state mutual association
Status: in_force

32-2-818 . Requirements of state mutual association. A mutual association must have its qualified thrift investments:

(1) equal or exceed 50% of its portfolio assets; and

(2) continue to equal or exceed 50% of its assets on a monthly average basis in 9 out of every 12 months.
Mont. Code Ann. § 32-1-448 — MT Code / Title 32 / Chapter 1 / Part 4 / Section 32-1-448
32-1-448 Payments to foreign administrator
Status: in_force

32-1-448 . Payments to foreign administrator. Any bank doing business in this state may pay any money remaining to the credit of a deceased depositor or deliver any personal property in its possession belonging to such deceased depositor to an administrator or executor of such depositor duly appointed and qualified in another state, provided no demand therefor shall have been previously made by an administrator or executor appointed in any county of this state, and such payment shall discharge the bank making the same from its liability on account of such deposit.
Mont. Code Ann. § 32-1-411 — MT Code / Title 32 / Chapter 1 / Part 4 / Section 32-1-411
32-1-411 Extent assets may be pledged
Status: in_force

32-1-411 . Extent assets may be pledged. No bank, banker, or bank officer shall, except as otherwise authorized by law, pledge or hypothecate as collateral security for money borrowed its assets in a ratio exceeding 1 1/2 times the amount borrowed (except as otherwise authorized by the department).
Mont. Code Ann. § 32-2-917 — MT Code / Title 32 / Chapter 2 / Part 9 / Section 32-2-917
32-2-917 Deposit in name of minor
Status: in_force

32-2-917 . Deposit in name of minor. Whenever a deposit is made in a mutual association by or in the name of a minor, the deposit must be held for the exclusive right and benefit of the minor and free from the control or lien of all other persons, except creditors, and must be paid, with any interest due, to the person in whose name the deposit was made. The receipt of the minor is a sufficient release or discharge for the deposit to the mutual association.
Mont. Code Ann. § 32-1-491 — MT Code / Title 32 / Chapter 1 / Part 4 / Section 32-1-491
32-1-491 Destruction of records
Status: in_force

32-1-491 . Destruction of records. (1) Banks are required to preserve or keep their records of customer accounts for at least 8 years after January 1 of the year following the time that the records are made. However, records showing unpaid balances in favor of depositors of a bank may not be destroyed. Liability may not accrue against a bank destroying any records, except records of which destruction is forbidden by this section, after the expiration of the time provided in this section.

(2) The department shall adopt rules providing for retention schedules for bank records other than those records listed in subsection (1).
Mont. Code Ann. § 32-2-908 — MT Code / Title 32 / Chapter 2 / Part 9 / Section 32-2-908
32-2-908 Investments of financial institutions
Status: in_force

32-2-908 . Investments of financial institutions. (1) Notwithstanding other provisions of the law, it is lawful for a mutual association operating under the laws of this state to invest the funds or money in its custody or possession, eligible for investment, in:

(a) debentures issued by the federal housing administrator and in obligations of national mortgage associations; and

(b) United States government obligations, either directly or in the form of securities of or other interests in an open-end or closed-end management type investment company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C. 80a-1 through 80a-64, as amended, if:

(i) the portfolio of the investment company or investment trust is limited to United States government obligations and repurchase agreements fully collateralized by United States government obligations; and

(ii) the investment company or investment trust takes delivery of the collateral for any repurchase agreement, either directly or through an authorized custodian.

(2) The department shall publish a list of the permissible type of investments in United States government obligations as provided in subsection (1).
Mont. Code Ann. § 32-1-468 — MT Code / Title 32 / Chapter 1 / Part 4 / Section 32-1-468
32-1-468 Removal of directors, officers, or employees -- hearing
Status: in_force

32-1-468 . Removal of directors, officers, or employees -- hearing. (1) A director, officer, or employee of a bank who is found by the department, after examination, to be negligent, dishonest, reckless, or incompetent or to have violated 32-1-325 , 32-1-464 , 32-1-472 , or 32-1-473 must be removed from office by the board of directors of the bank on the written order of the department. If the directors neglect or refuse to remove the director, officer, or employee and any losses accrue to the bank by reason of the negligence, dishonesty, recklessness, or incompetency of the director, officer, or employee, the written order of the department is conclusive evidence of the negligence of the directors failing to act as provided in this section in any action brought against the board of directors by a depositor or creditor for recovery of losses.

(2) If the board of directors refuses to remove the director, officer, or employee on order of the department, the board of directors may file a request for hearing pursuant to the Montana Administrative Procedure Act.
Mont. Code Ann. § 32-7-122 — MT Code / Title 32 / Chapter 7 / Part 1 / Section 32-7-122
32-7-122 Investigations by department -- desist order -- injunctions or other actions
Status: in_force

32-7-122 . Investigations by department -- desist order -- injunctions or other actions. (1) The department may investigate, upon complaint or otherwise, if it appears that:

(a) an escrow business is conducting its business in an unsafe and injurious manner or in violation of this part or any rule promulgated pursuant to this part; or

(b) a person is engaging in the escrow business without being licensed under the provisions of this part.

(2) (a) If it appears to the department, upon sufficient grounds or evidence satisfactory to the department, that an escrow business has engaged in or is about to engage in unlicensed activity or any act or practice in violation of this part or any rule or order issued pursuant to this part or that the assets or capital of any escrow business or company are impaired or the licensee's affairs are in an unsafe condition, the department may summarily order the escrow business to cease and desist from the act or practice or the department may apply to the district court of Lewis and Clark County to enjoin the act or practice and to enforce compliance with this part or for any other appropriate equitable relief.

(b) Upon a proper showing, the court may:

(i) grant a temporary restraining order, followed by a preliminary injunction and a permanent injunction;

(ii) appoint a receiver for the defendant or defendant's assets;

(iii) cancel the licensee's license; and

(iv) order other equitable remedies the court considers necessary and appropriate.

(3) The court may not require the department to post a bond.
Mont. Code Ann. § 32-2-711 — MT Code / Title 32 / Chapter 2 / Part 7 / Section 32-2-711
32-2-711 Prohibited practices
Status: in_force

32-2-711 . Prohibited practices. (1) It is unlawful for any person to knowingly and purposefully:

(a) make any material false statement of facts, statement of accounts, or report to the department; or

(b) make any false entries in the books of the mutual association.

(2) It is unlawful for any person to knowingly exhibit false documents with the intent to deceive any person authorized to examine a mutual association.

(3) Violations of this section are punishable as provided in 32-2-608 .
Mont. Code Ann. § 32-2-804 — MT Code / Title 32 / Chapter 2 / Part 8 / Section 32-2-804
32-2-804 Department investigation
Status: in_force

32-2-804 . Department investigation. (1) The department may gather all available information relative to an application. The department may also make, or cause to be made, any investigations of any individual associated with the applicant as may be warranted under the circumstances, including a full background check and credit check.

(2) The department may use any administrative procedure necessary, including the taking of depositions, discovery, subpoenas, and the production of documents, to investigate an application. The Montana Administrative Procedure Act applies.
Mont. Code Ann. § 32-9-172 — MT Code / Title 32 / Chapter 9 / Part 1 / Section 32-9-172
32-9-172 Mortgage lender net worth requirement
Status: in_force

32-9-172 . Mortgage lender net worth requirement. (1) A mortgage lender shall continuously maintain the minimum net worth required by this section.

(2) A mortgage lender must have a minimum net worth of $250,000 and submit evidence that establishes compliance with this section. Evidence of net worth must include submission of recent financial statements accompanied by a written statement by an independent certified public accountant attesting that the accountant has reviewed the financial statements in accordance with generally accepted accounting principles.

(3) If the net worth of a mortgage lender falls below the minimum net worth set forth in subsection (2), the licensee shall provide a plan, subject to approval of the department, to increase the licensee's net worth to an amount in conformance with this section. Submission of a plan under this section must be made within 30 business days of service of a notice from the department that the licensee is not in compliance with subsection (2). A plan that is not timely submitted or that is not approved by the department may result in denial of the application, issuance of a cease and desist order, license suspension, or license revocation.

(4) Maintenance of the minimum net worth specified under this section is a requirement for continued licensure. Failure to meet or maintain the minimum net worth standards under this part may constitute grounds for the denial of an application, issuance of a cease and desist order, license suspension, or license revocation.
Mont. Code Ann. § 32-4-301 — MT Code / Title 32 / Chapter 4 / Part 3 / Section 32-4-301
32-4-301 Powers of stockholders
Status: in_force

32-4-301 . Powers of stockholders. (1) The stockholders of the corporation have the following powers of the corporation:

(a) to determine the number of and elect directors as provided in 32-4-206 ;

(b) to make, amend, and repeal bylaws;

(c) to amend the articles of incorporation as provided in 32-4-205 ;

(d) to exercise other powers of the corporation as may be conferred on the stockholders by the bylaws.

(2) As to all matters requiring action by the stockholders of the corporation and except as otherwise provided in this chapter, the matters require the affirmative vote of a majority of the votes to which the stockholders present or represented at the meeting are entitled.

(3) Each stockholder has one vote, in person or by proxy, for each share of capital stock held by the stockholder.
Mont. Code Ann. § 32-2-807 — MT Code / Title 32 / Chapter 2 / Part 8 / Section 32-2-807
32-2-807 Bylaws
Status: in_force

32-2-807 . Bylaws. (1) The bylaws must be in conformity with the provisions of this chapter and must be open to inspection by the members at the principal place of business during regular business hours.

(2) The bylaws, among other things, must provide for:

(a) the character and method of conducting the business of the mutual association, with rules governing the addition of members and the amount of the membership fee;

(b) the annual meeting of the members;

(c) the annual election and qualification of directors and the term or period during which the directors shall serve;

(d) the appointment of officers;

(e) the adoption, ratification, and amendment of the bylaws, which may be made either by the members or by the board of directors;

(f) the method of voting at the annual meeting; and

(g) the periodic investigation of the business and condition of the mutual association.

(3) The bylaws and any change or amendment of the bylaws are not effective until first reviewed and approved by the department, and a mutual association may not commence the transaction of business until after the bylaws have been reviewed and approved by the department.
Mont. Code Ann. § 32-9-107 — MT Code / Title 32 / Chapter 9 / Part 1 / Section 32-9-107
32-9-107 Prelicensing education requirements for mortgage loan originators
Status: in_force

32-9-107 . Prelicensing education requirements for mortgage loan originators. (1) An individual seeking a mortgage loan originator's license shall complete at least 20 hours of approved education courses, which must include at least:

(a) 3 hours of training on federal law and regulations;

(b) 3 hours of training in ethics, including instruction on fraud, consumer protection, and fair lending issues; and

(c) 2 hours of training related to lending standards for the nontraditional mortgage product marketplace.

(2) In addition to the training required in subsections (1)(a), (1)(b), and (1)(c), the department may require by rule that applicants complete additional hours of training that are specific to Montana residential mortgage statutes and rules.

(3) The prelicensing education courses that comply with the requirements of subsection (1) and that are approved by the NMLS for any other state must be accepted with respect to the completion of prelicensing education requirements in Montana. (See part compiler's comment regarding contingent suspension.)
Mont. Code Ann. § 32-9-121 — MT Code / Title 32 / Chapter 9 / Part 1 / Section 32-9-121
32-9-121 Records maintenance
Status: in_force

32-9-121 . Records maintenance. (1) Licensees shall maintain books, accounts, records, and copies of residential mortgage loan files and escrow account records that are necessary to enable the department to determine whether a licensee is in compliance with the applicable laws and rules. The materials must be maintained in accordance with generally accepted accounting principles and good business practices. Whenever a licensee's usual business location is outside of this state the licensee shall, at its election, either maintain its books and records at a location in this state or reimburse the department for expenses incurred, including but not limited to staff time, transportation, food, and lodging expenses, relating to an examination or investigation under this part.

(2) A mortgage broker, mortgage lender, or mortgage servicer shall maintain a residential mortgage file for a minimum of 5 years from the date of the last activity pertaining to the file. A mortgage broker, mortgage lender, or mortgage servicer shall maintain trust account or escrow account records for a minimum of 5 years.

(3) An entity that ceases operation as a licensee under the provisions of this part shall:

(a) 30 days prior to the discontinuance of business, notify the department of the physical location where required records will be preserved; and

(b) designate a custodian of records and notify the department of the name, physical address, electronic mail address, and telephone number of the custodian of records. The custodian of records shall preserve records required under this part and allow the department access for examination and investigation purposes upon request of the department.

(4) The department shall adopt rules to control the maintenance, storage, transfer, and destruction of records after a licensee ceases operation. (See part compiler's comment regarding contingent suspension.)
Mont. Code Ann. § 32-2-608 — MT Code / Title 32 / Chapter 2 / Part 6 / Section 32-2-608
32-2-608 Criminal liabilities
Status: in_force

32-2-608 . Criminal liabilities. (1) A person who knowingly and purposefully violates any provision of this chapter or any rule or order under this chapter shall upon conviction be fined not more than $5,000 or imprisoned not more than 10 years, or both. However, if the person has been previously convicted of a felony in any way involving financial institutions, the person shall be imprisoned for not less than 1 year.

(2) The commissioner may refer evidence that may be available concerning violations of this chapter or of any rule or order under this chapter to the attorney general or the proper prosecuting attorney, who may in the prosecutor's discretion, with or without a reference, institute the appropriate criminal proceedings under this chapter.

(3) The provisions of this chapter do not limit the power of the state to punish any person for any conduct that constitutes a crime.
Mont. Code Ann. § 32-4-102 — MT Code / Title 32 / Chapter 4 / Part 1 / Section 32-4-102
32-4-102 Purpose
Status: in_force

32-4-102 . Purpose. (1) The purposes of the corporation shall be to:

(a) promote, stimulate, develop, and advance the business prosperity and economic welfare of the state of Montana and its citizens;

(b) encourage and assist through loans, investments, or other business transactions in the location of new business and industry in this state and to rehabilitate and assist existing business and industry;

(c) stimulate and assist in the expansion of all kinds of business activity which will tend to promote the business development and maintain the economic stability of this state, provide maximum opportunities for employment, encourage thrift, and improve the standards of living of the citizens of this state;

(d) cooperate and act in conjunction with other organizations, public or private, in the promotion and advancement of industrial, commercial, agricultural, and recreational developments in this state; and

(e) provide financing for the promotion, development, and conduct of all kinds of business activity in this state.

(2) In furtherance of such purposes and in addition to the powers conferred on business corporations by the provisions of Title 35 the corporation shall, subject to the restrictions and limitations herein contained, have the additional powers and functions enumerated herein.
Mont. Code Ann. § 32-1-111 — MT Code / Title 32 / Chapter 1 / Part 1 / Section 32-1-111
32-1-111 Attachments prohibited
Status: in_force

32-1-111 . Attachments prohibited. No property owned by any bank organized under the laws of the state of Montana shall be subject to attachment.
Mont. Code Ann. § 32-1-233 — MT Code / Title 32 / Chapter 1 / Part 2 / Section 32-1-233
32-1-233 Special reports to department
Status: in_force

32-1-233 . Special reports to department. (1) In addition to the information obtained from the call report required by 32-1-231 , the department may also require a bank to furnish a special report in writing, verified as required by 32-1-231 , when in its judgment the special report is necessary to inform it fully of the actual financial condition and affairs of the bank. A willfully false statement in the report is perjury and must be punished accordingly.

(2) Each bank shall file a report of service and technology providers containing the information as set forth by the department by rule by July 31 of each year.

(3) A bank shall report an incident that allowed unauthorized access to customer data or interruption of customer services to the department immediately following discovery and without unreasonable delay.
Mont. Code Ann. § 32-4-202 — MT Code / Title 32 / Chapter 4 / Part 2 / Section 32-4-202
32-4-202 Duration
Status: in_force

32-4-202 . Duration. The period of duration of the corporation shall be perpetual.
Mont. Code Ann. § 32-1-454 — MT Code / Title 32 / Chapter 1 / Part 4 / Section 32-1-454
32-1-454 Past-due and doubtful paper
Status: in_force

32-1-454 . Past-due and doubtful paper. Every bank carrying any bad debt or a debt of doubtful value as an asset shall upon the request or demand of the department collect the same or put it in good bankable condition or charge it out of its books.
Mont. Code Ann. § 32-2-808 — MT Code / Title 32 / Chapter 2 / Part 8 / Section 32-2-808
32-2-808 Capital
Status: in_force

32-2-808 . Capital. (1) The capital of a mutual association must be an amount determined by the commissioner based on the amount and character of the anticipated business of the mutual association and the safety of prospective depositors.

(2) As used in this section, "capital" means the initial funding required to organize a mutual association.
Mont. Code Ann. § 32-2-918 — MT Code / Title 32 / Chapter 2 / Part 9 / Section 32-2-918
32-2-918 Demand or time deposits
Status: in_force

32-2-918 . Demand or time deposits. Demand deposits, within the meaning of this chapter, comprise all deposits payable within 7 days and all savings accounts and certificates of deposit that are subject to not less than 7 days' notice before payment.
Mont. Code Ann. § 32-4-101 — MT Code / Title 32 / Chapter 4 / Part 1 / Section 32-4-101
32-4-101 Definitions
Status: in_force

32-4-101 . Definitions. As used in this chapter, the following words and phrases, unless differently defined or described, shall have the meanings and references as follows:

(1) "board of directors"--the board of directors of a corporation created under this chapter;

(2) "corporation"--a Montana development corporation created under this chapter;

(3) "financial institution"--any banking corporation or trust company, building and loan association, insurance company or related corporation, partnership, foundation, or other institution engaged primarily in lending or investing funds;

(4) "loan limit"--for any member, the maximum amount permitted to be outstanding at one time on loans made by such member to the corporation, as determined under the provisions of this chapter;

(5) "member"--any financial institution authorized to do business within this state which shall undertake to lend money to a corporation created under this chapter, upon its call and in accordance with the provisions of this chapter.
Mont. Code Ann. § 32-9-206 — MT Code / Title 32 / Chapter 9 / Part 2 / Section 32-9-206
32-9-206 Financial condition of servicers
Status: in_force

32-9-206 . Financial condition of servicers. (1) A covered institution shall maintain capital and liquidity in compliance with this section.

(2) For the purposes of complying with the capital and liquidity requirements of this section, all financial data must be determined in accordance with generally accepted accounting principles.

(3) A covered institution that meets the federal housing finance agency eligibility requirements for enterprise single-family seller/servicers for capital, net worth ratio, and liquidity, regardless of whether the servicer is approved for GSE servicing, meets the requirements of subsections (1) and (2).

(4) Covered institutions shall maintain written policies and procedures implementing the capital and servicing liquidity requirements as set by the department by rule.

(5) Covered institutions shall maintain sufficient allowable assets for liquidity, in addition to the amounts required for servicing liquidity, to cover normal business operations.

(6) Covered institutions shall have in place sound cash management and business operating plans as set by the department by rule.

(7) Covered institutions shall develop, establish, and implement plans, policies, and procedures for maintaining operating liquidity sufficient for the ongoing needs of the institution. The department shall set further requirements for operating liquidity by rule.
Mont. Code Ann. § 32-9-160 — MT Code / Title 32 / Chapter 9 / Part 1 / Section 32-9-160
32-9-160 Confidentiality
Status: in_force

32-9-160 . Confidentiality. (1) (a) Except as otherwise provided in section 1512 of the Secure and Fair Enforcement for Mortgage Licensing Act, Title V of the Housing and Economic Recovery Act of 2008, Public Law 110-289, the requirements under federal law, the Montana constitution, or Montana law regarding the privacy or confidentiality of any information or material provided to the NMLS and any privilege arising under federal or state law, including the rules of a federal or state court, pertaining to the information or material continue to apply to the information or material after the information or material has been disclosed to the NMLS.

(b) Confidential supervisory information and material may be shared with all state and federal financial services regulatory agencies and with the board of governors of the federal reserve system without the loss of confidentiality protections or the loss of privilege provided by federal law, the Montana constitution, or Montana law.

(2) The department may disclose to a licensee information about a service provider of the licensee.

(3) The department may enter into agreements or sharing arrangements with other governmental agencies, the conference of state bank supervisors, the American association of residential mortgage regulators, or associations representing governmental agencies as established by rule of the department.

(4) Information or material subject to confidentiality or a privilege under subsection (1) is not subject to:

(a) disclosure under a federal or state law governing disclosure to the public of information held by an officer or an agency of the federal government or the respective state; or

(b) subpoena, discovery, or admission into evidence in any private civil action or administrative process unless, with respect to any privilege held by the NMLS concerning the information or material, the person to whom the information or material pertains waives, in whole or in part, that privilege.

(5) Montana law relating to the disclosure of confidential supervisory information or information or material described in subsection (1) that is inconsistent with subsection (1) is superseded by the requirements of section 1512 of the Secure and Fair Enforcement for Mortgage Licensing Act, Title V of the Housing and Economic Recovery Act of 2008, Public Law 110-289.

(6) Confidential supervisory information is not subject to public inspection, subpoena, or discovery.

(7) This section does not apply to information or material relating to the employment history of and publicly adjudicated disciplinary and enforcement actions against mortgage brokers, mortgage lenders, mortgage servicers, and mortgage loan originators included in the NMLS that is available for public access. (See part compiler's comment regarding contingent suspension.)
Mont. Code Ann. § 32-1-370 — MT Code / Title 32 / Chapter 1 / Part 3 / Section 32-1-370
32-1-370 Interstate merger of banks -- interstate agreements
Status: in_force

32-1-370 . Interstate merger of banks -- interstate agreements. (1) A bank located in this state that has been in existence at least 5 years may enter into a merger transaction with a bank not located in this state. Prior approval of the department is required if any merger party is a bank organized under the laws of this state.

(2) Upon merger:

(a) each bank merger party merges into the resulting bank and the separate existence of every merger party except the resulting bank ceases;

(b) title to all real, personal, and mixed property owned by each merger party is vested in the resulting bank without reversion or impairment and without the necessity of any instrument of transfer;

(c) the resulting bank has all of the liabilities, duties, and obligations of each merger party, including obligations as fiduciary, personal representative, administrator, trustee, or guardian; and

(d) the resulting bank has all of the rights, powers, and privileges of each merger party, including appointment to the office of personal representative, administrator, trustee, or guardian under any will or other instrument made prior to the merger and in which a merger party was nominated to the office by the maker of the will or other instrument.

(3) Upon merger, a resulting bank that is organized under the laws of this state:

(a) shall designate and operate one of the prior main banking houses of the merger parties as its main banking house and may maintain and continue to operate the main banking houses of each of the other merger parties as a branch bank;

(b) may maintain the branch banks and other offices previously maintained by the merger parties; and

(c) may establish, acquire, or operate additional branch banks at any location where any bank that is a party to the merger could have established, acquired, or operated a branch bank under applicable federal or state law as if that bank had not been a party to the merger.

(4) A resulting bank organized under the laws of this state that intends to establish, acquire, or operate a branch bank under subsection (3)(c) must receive prior approval from the department as provided for in 32-1-372 , whether or not the branch bank is to be located within or outside of this state.

(5) A resulting bank organized under federal law or the laws of another state shall simultaneously provide the department with copies of all applications or notices filed with any federal or other state regulatory agency, including applications seeking to establish, acquire, or operate additional branch banks within this state based on circumstances applicable to banks organized under the laws of this state included in subsection (3)(c).

(6) With respect to interstate banking authorized in subsection (1), the department may enter into agreements with other states establishing the division of supervisory responsibilities between the state in which a bank is organized and the state or states in which branch banks may be located.

(7) Upon merger, the resulting bank, including all depository institutions that are affiliates of the resulting bank, may not directly or indirectly control more than 30% of the total amount of deposits of insured depository institutions and credit unions located in this state.
Mont. Code Ann. § 32-1-909 — MT Code / Title 32 / Chapter 1 / Part 9 / Section 32-1-909
32-1-909 Board of directors -- lack of quorum -- temporary board members
Status: in_force

32-1-909 . Board of directors -- lack of quorum -- temporary board members. If at any time because of the suspension or removal of one or more board members pursuant to this part the board of directors of an institution has less than a quorum of board members not so suspended or removed, all powers and functions vested in or exercisable by the board shall vest in and be exercisable by the board members not so suspended or removed until such time as there is a quorum of the board members. If all of the board members have been suspended or removed, the director shall appoint persons to serve temporarily as board members, pending the termination of the suspensions or removals or until such time as their successors are duly elected and take office.
Mont. Code Ann. § 32-9-141 — MT Code / Title 32 / Chapter 9 / Part 1 / Section 32-9-141
32-9-141 Investigations by department -- subpoenas -- oaths -- examination of witnesses and evidence
Status: in_force

32-9-141 . Investigations by department -- subpoenas -- oaths -- examination of witnesses and evidence. (1) For the purposes of this part, the department or the department's authorized representatives must be given free access to the offices and places of business and files of all licensees and their service providers. The department may investigate any matter, upon complaint or otherwise, if it appears that a person has engaged in or offered to engage in any act or practice that is in violation of any provision of this part or any rule adopted or order issued by the department pursuant to this part.

(2) The department may issue subpoenas to compel the attendance of witnesses and the production of documents, papers, books, records, and other evidence before it in any matter over which it has jurisdiction, control, or supervision pertaining to this part. The department may administer oaths and affirmations to a person whose testimony is required.

(3) If a person refuses to obey a subpoena or to give testimony or produce evidence as required by the subpoena, a judge of the district court of Lewis and Clark County or the county in which the licensed premises are located may, upon application and proof of the refusal, issue a subpoena or subpoena duces tecum for the witness to appear before the department to give testimony and produce evidence as may be required. The clerk of court shall then issue the subpoena, as directed, under the seal of the court, requiring the person to whom it is directed to appear at the time and place designated in the subpoena.

(4) If a person served with a subpoena refuses to obey the subpoena or to give testimony or produce evidence as required by the subpoena, the department may proceed under the contempt provisions of Title 3, chapter 1, part 5.

(5) Failure to comply with the requirements of a court-ordered subpoena is punishable pursuant to 45-7-309 .
Mont. Code Ann. § 32-3-608 — MT Code / Title 32 / Chapter 3 / Part 6 / Section 32-3-608
32-3-608 Loans to officials
Status: in_force

32-3-608 . Loans to officials. (1) (a) Except as provided in subsection (1)(b), a credit union may make loans to its officials if:

(i) the loan complies with the requirements of this chapter with respect to loans to other borrowers and is not on terms more favorable than those extended to other borrowers; and

(ii) the loan or aggregate of loans to any one official that exceeds $20,000 plus pledged shares is reported to the board of directors. Loans to officials may not exceed an aggregate of 20% of unimpaired capital of the credit union.

(b) Employees other than officials may receive loans more favorable than those extended to other borrowers, including low-interest or no-interest loans.

(2) A credit union may permit directors, loan officers, the credit manager, and members of its supervisory and credit committees to act as comakers, guarantors, or endorsers of loans to other members. If the loan standing alone or when added to any outstanding loan or loans to the comaker, guarantor, or endorser exceeds $20,000, a report to the board of directors is required.
Mont. Code Ann. § 32-4-302 — MT Code / Title 32 / Chapter 4 / Part 3 / Section 32-4-302
32-4-302 Membership -- limitation and apportionment of loans by members
Status: in_force

32-4-302 . Membership -- limitation and apportionment of loans by members. Any financial institution may request membership in the corporation by making application to the board of directors on such form and in such manner as said board of directors may require, and membership shall become effective upon acceptance of such application by the board. The application for membership will specify the loan limit which shall be subject to call of the corporation, but in no case shall the amount so specified exceed the limit provided for in this chapter. Each member of the corporation shall make loans to the corporation as and when called upon by it to do so on such terms and other conditions as shall be approved from time to time by the board of directors, subject to the following conditions:

(1) All loan limits shall be established at the thousand-dollar amount nearest the amount computed in accordance with the provisions of this section.

(2) No loan to the corporation shall be made if immediately thereafter the total amount of the obligations of the corporation to its members would exceed 10 times the amount then paid in on the outstanding capital stock of the corporation.

(3) The total amount outstanding on loans to the corporation made by any member at any one time, when added to the amount of the investment in the capital stock of the corporation then held by such member, shall not exceed:

(a) 20% of the total amount then outstanding on loans to the corporation by all members, including in said total amount outstanding amounts validly called for loan but not yet loaned;

(b) the following limit, to be determined on the basis of the member's balance sheet at the close of its 1982 fiscal year and then redetermined periodically with the concurrence of the member:

(i) 3% of the capital and surplus of commercial banks and trust companies;

(ii) 1/4 of 1% of the total outstanding loans made by a building and loan association;

(iii) 2% of the capital and unassigned surplus of stock insurance companies; and

(iv) such comparable limits as may be approved by the board of directors of the corporation for other financial institutions.

(4) The board of directors, on the request of any financial institution applying for membership and with the approval of one-half of the members that are the same type of financial institution as the applicant, may authorize a different loan limit than that set forth in subsection (3)(b).

(5) Subject to subsection (3)(a) of this section, each call made by the corporation shall be prorated among the members of the corporation in substantially the same proportion that the adjusted loan limit of each member bears to the aggregate of the adjusted loan limits of all members. The adjusted loan limit of a member shall be the amount of such member's loan limit, reduced by the balance of outstanding loans made by such member to the corporation and the investment in capital stock of the corporation held by such member at the time of such call.

(6) All loans to the corporation by a member shall be evidenced by bonds, debentures, notes, or other evidences of indebtedness of the corporation, which shall be freely transferable at all times and which shall bear interest at a rate of not less than 1/4 of 1% in excess of the rate of interest determined by the board of directors to be the prime rate prevailing at the time.
Mont. Code Ann. § 32-4-203 — MT Code / Title 32 / Chapter 4 / Part 2 / Section 32-4-203
32-4-203 Certificate of incorporation
Status: in_force

32-4-203 . Certificate of incorporation. Before the articles of incorporation may become effective, the secretary of state shall issue a certificate that verifies that a copy of the articles containing the required statement of facts has been filed in the secretary of state's office. Upon issuance of the certificate, the persons signing the articles, their associates, and their successors and assigns become a body politic and corporate, by the name specified in the articles of incorporation, subject to amendment and dissolution as provided in this chapter. The incorporators have the authority to and shall perform the acts and things as required by the provisions of this chapter, as set forth in 32-4-201 .
Mont. Code Ann. § 32-2-706 — MT Code / Title 32 / Chapter 2 / Part 7 / Section 32-2-706
32-2-706 Reports to department
Status: in_force

32-2-706 . Reports to department. (1) A mutual association shall make to the department regular call reports at least four times each year according to the form that may be prescribed by the department, verified by oath or affirmation of the president, vice president, or cashier of the mutual association, and attested by the signature of at least two of the directors other than the subscribing officer.

(2) Each call report must exhibit in detail and under appropriate schedules the resources and liabilities of the mutual association at the close of business on any past day specified by the department. The past day specified by the department, under the provisions of this section, must be the day designated by the comptroller of the currency of the United States for reports of national banking associations.

(3) The call report must be transmitted to the department within 30 days after the past day specified under subsection (2). A mutual association's successful and timely electronic transmittal of its call report to the applicable federal regulatory authority satisfies the mutual association's obligation to transmit the report to the department. The original signature page of the mutual association's call report that complies with subsection (1) must be permanently retained by the mutual association and available for the department's review.
Mont. Code Ann. § 32-2-907 — MT Code / Title 32 / Chapter 2 / Part 9 / Section 32-2-907
32-2-907 No certificate of deposit to be issued for borrowed money
Status: in_force

32-2-907 . No certificate of deposit to be issued for borrowed money. A mutual association may not issue its certificate of deposit for the purpose of borrowing money or make partial payments on any certificate of deposit.
Mont. Code Ann. § 32-9-207 — MT Code / Title 32 / Chapter 9 / Part 2 / Section 32-9-207
32-9-207 Corporate governance of servicers
Status: in_force

32-9-207 . Corporate governance of servicers. Covered institutions shall establish and maintain corporate governance standards as set by the department by rule. The standards must include internal and external audits and risk management.
Mont. Code Ann. § 32-2-831 — MT Code / Title 32 / Chapter 2 / Part 8 / Section 32-2-831
32-2-831 Agreement of purchase and sale
Status: in_force

32-2-831 . Agreement of purchase and sale. (1) The selling and purchasing mutual associations shall enter into an agreement that must contain:

(a) all of the terms and conditions of the sale;

(b) proper provision for the assumption, payment, transfer, or retention of all of the liabilities of the selling mutual association as to the branch assets and business sold; and

(c) proper provision for the assumption, payment, transfer, or retention of the purchasing mutual association of all fiduciary obligations of the branch or branch business sold.

(2) The agreement for purchase and sale of a state mutual association must be authorized and approved by the department. The agreement of purchase and sale of a national savings association must be in accordance with the laws applicable to national savings associations.
Mont. Code Ann. § 32-6-303 — MT Code / Title 32 / Chapter 6 / Part 3 / Section 32-6-303
32-6-303 Unauthorized transactions -- liability
Status: in_force

32-6-303 . Unauthorized transactions -- liability. (1) A customer whose account is debited by an electronic funds transfer without the customer's authorization is not liable for the amount of the transaction, and the amount must be recredited to the customer's account as provided under 32-6-302 unless:

(a) the financial institution has provided the customer with a unique identification device for initiating electronic funds transfer requests and transactions are made as a result of the theft or loss of that device, in which case the customer is liable for the first $50 of any consequent transactions made prior to the time the financial institution is notified of the loss or theft; or

(b) the financial institution has provided the customer with a unique identification device for initiating, in conjunction with a personal identification number separate from the device, electronic funds transfer requests and the customer attaches the personal identification number to the device by writing or otherwise or in any way makes the number readily available for discovery in connection with the theft or loss of the device and transactions are made as a result of the theft or loss of the device, in which case the customer is liable for one-half the value of all consequent transactions made until the financial institution is notified of the theft or loss.

(2) A customer who willingly gives the customer's unique identification device and personal identification number to another is presumed to have authorized any electronic funds transfers requested by the other person.

(3) A merchant who makes electronic funds transfer services available on the merchant's premises is liable for the amount of an unauthorized electronic funds transfer requested from the premises only if the merchant:

(a) or the merchant's agent is negligent in requiring a user of electronic funds transfer services to furnish adequate self-identification;

(b) fails to retain a physical record of the transaction for 1 year following the transaction; or

(c) breaches the warranty required by subsection (4).

(4) A merchant operating a point-of-sale terminal shall warrant to the financial institution or the department that an order for an electronic funds transfer emanating from the terminal is part of a commercial transaction in which the customer receives goods or services of commensurate value.

(5) The liability for any unauthorized or erroneous electronic funds transfer that does not fall upon a customer or a merchant under this section falls upon the financial institution that carries out the transfer.
Mont. Code Ann. § 32-7-124 — MT Code / Title 32 / Chapter 7 / Part 1 / Section 32-7-124
32-7-124 Hearings -- penalties
Status: in_force

32-7-124 . Hearings -- penalties. (1) The department may impose a civil penalty not to exceed $1,000 for each violation if the department finds, after providing a 14-day written notice of alleged violations and opportunity for administrative hearing, that any person, any licensee, or any officer, agent, employee, or representative of the person or licensee, whether licensed or unlicensed, has:

(a) violated any of the provisions of this part;

(b) failed to comply with the rules or orders promulgated by the department;

(c) failed or refused to make required reports to the department;

(d) furnished false information to the department; or

(e) operated without a required license.

(2) The department may issue an order requiring restitution to parties and reimbursement of the department's costs of bringing an administrative action. In addition, the department may issue an order revoking, conditioning, or suspending the right of the licensee, directly or through another, to engage in escrow business activities in this state.

(3) All hearing schedules and orders must be mailed to the person or licensee by certified mail to the address for which the license was issued or, in the case of an unlicensed business, to the last-known address of record.

(4) For purposes of this part, the department is considered to have complied with the requirements of law concerning service of process by sending by common courier with tracking capability any notice required under this part, postage prepaid and addressed to:

(a) the last-known address of the licensee's registered agent for service of process on file with the department;

(b) the last-known address of the licensee on file with the department for an in-state licensee; or

(c) the last-known address of an unlicensed person.

(5) In a judicial action, suit, or proceeding arising under this part or any administrative rule adopted pursuant to this part between the department and a licensee who does not maintain a physical office in this state, venue is in the district court of Lewis and Clark County.

(6) The provisions of the Montana Administrative Procedure Act, Title 2, chapter 4, part 6, apply to a contested case brought under this part.
Mont. Code Ann. § 32-2-1003 — MT Code / Title 32 / Chapter 2 / Part 10 / Section 32-2-1003
32-2-1003 When mutual association insolvent
Status: in_force

32-2-1003 . When mutual association insolvent. A mutual association is insolvent within the meaning of this chapter when its capital is absorbed in losses and the remaining assets are not sufficient to pay and discharge its contracts, debts, and engagements.
Mont. Code Ann. § 32-1-374 — MT Code / Title 32 / Chapter 1 / Part 3 / Section 32-1-374
32-1-374 Conversion of national bank to state bank
Status: in_force

32-1-374 . Conversion of national bank to state bank. (1) A national bank may convert to a state bank on the consent in writing of the owners of two-thirds of the capital stock of the bank and with the approval of the department. The stockholders shall make, execute, and acknowledge articles of incorporation as required by the laws of the state of Montana and shall set forth in the articles of incorporation the written consent of the stockholders. When the articles and the department approval are filed as provided by law, the bank is converted under this chapter, and all assets, real and personal, of the national bank are vested in and become the property of the converted state bank, subject to all liabilities of the national bank not liquidated before the conversion.

(2) The cashier of the bank shall:

(a) publish notice of the change once a week for 4 consecutive weeks in the newspaper that the directors select;

(b) send a printed notice by mail or otherwise to all nonvoting or dissenting stockholders; and

(c) notify the department that the bank has decided to become a corporation under the laws of Montana.
Mont. Code Ann. § 32-1-215 — MT Code / Title 32 / Chapter 1 / Part 2 / Section 32-1-215
32-1-215 Special examinations and fees -- report within 120 days
Status: in_force

32-1-215 . Special examinations and fees -- report within 120 days. Special examinations may be made of a bank, trust company, investment company, building and loan association, or credit union when in the judgment of the department it is considered necessary, and the special examination shall be charged for at a rate that equals the department's actual costs for examiner wages and travel expenses. All special examination fees or charges shall be paid at the conclusion of the examination, and the moneys collected by the department shall be paid to the state treasurer for the credit of the state special revenue fund for the use of the department in its examination function. The department shall submit in writing to the examined bank a report of the examination's findings no later than 120 days after the completion of the examination.
Mont. Code Ann. § 32-1-447 — MT Code / Title 32 / Chapter 1 / Part 4 / Section 32-1-447
32-1-447 Giving security for deposit prohibited -- exceptions
Status: in_force

32-1-447 . Giving security for deposit prohibited -- exceptions. It is unlawful for any bank to pledge, mortgage, or hypothecate to any depositor any of its real or personal property as security for any deposit, and any pledge, mortgage, or hypothecation made in violation thereof is unenforceable. This provision does not apply to any deposits of money of the United States, public funds deposited in accordance with the provisions of any depository act of this state or the United States, or bankruptcy estate funds or deposits, including deposits of receivers or trustees in bankruptcy, deposited under the direction and supervision of a court of record of the state of Montana or of the United States.
Mont. Code Ann. § 32-4-305 — MT Code / Title 32 / Chapter 4 / Part 3 / Section 32-4-305
32-4-305 Deposit of funds
Status: in_force

32-4-305 . Deposit of funds. (1) The corporation shall not deposit any of its funds in any banking institution unless such institution has been designated as a depository by a vote of a majority of the directors present at an authorized meeting of the board of directors, exclusive of any director who is an officer or director of the depository so designated.

(2) The corporation shall not receive money on deposit.
Mont. Code Ann. § 32-1-506 — MT Code / Title 32 / Chapter 1 / Part 5 / Section 32-1-506
32-1-506 Assessment on capital stock to make good impairment
Status: in_force

32-1-506 . Assessment on capital stock to make good impairment. (1) When the department determines that an impairment of capital exists in a bank, the department may notify the board of directors of the bank by written notice that the impairment exists, stating the amount of the impairment in dollars and percentage of the capital stock. The department may order the board to make good the impairment within 90 days from date of the notice.

(2) The board of directors shall, upon receipt of notice, convene and pass a resolution reciting the receipt of the notice of impairment and calling a special meeting of the stockholders of the bank in the manner provided in their bylaws.

(3) The stockholders at the meeting shall pass a resolution reciting the facts of receipt of notice from the department, notice of impairment, and notice of meeting and assessing themselves by assessing the stock of record. Payment of the assessment must be made within the time limit specified by the department in the notice of impairment.

(4) If there is any stock remaining on which the assessment is not paid as provided in this section, the stock or a part of the stock that is necessary to pay the assessment must be sold by the board of directors, acting through the cashier or secretary of the bank, at public or private sale, as appears best for all concerned, not less than 30 days after the day fixed for payment of assessment.

(5) Notice of the time and place of the sale must be given by common courier with tracking capability to the stockholders by the board through the bank's cashier or secretary at least 14 days prior to the sale.

(6) A sale of stock as provided in this section causes an absolute cancellation of the outstanding certificate or certificates evidencing the stock sold and makes them void in the hands of the stockholder or the stockholder's assigns or pledgees.

(7) The bank shall issue a new certificate:

(a) to the purchaser for the number of shares purchased; and

(b) to the stockholder of record. The new certificate must be delivered to the purchaser, stockholder, or any pledgee or assignee of the stock for the remaining shares, if any.

(8) The record of the original certificate sold must be marked canceled on the records of the bank, and that record is prima facie evidence of the regularity of the proceedings for the sale of the stock.

(9) If a bank fails to make good its capital impairment on demand of the department, as provided in this section, the department may immediately take charge of that bank and proceed to liquidate it as in the case of insolvency.

(10) If the stock does not sell for enough to pay the assessment that is owed, the board of directors may sue in the name of the corporation to collect the deficiency from the stockholder of record whose stock has been sold for the assessment.
Mont. Code Ann. § 32-1-451 — MT Code / Title 32 / Chapter 1 / Part 4 / Section 32-1-451
32-1-451 Statement of capital, resources, and liabilities
Status: in_force

32-1-451 . Statement of capital, resources, and liabilities. A bank or officer of a bank may not advertise in any manner or publish any statement of the capital authorized or subscribed unless the bank or officer advertises and publishes in connection with the advertisement the amount of capital actually paid up. A bank may not publish a statement of its resources or liabilities in connection with those of any other bank unless the statement shows the resources and liabilities of each bank separately.
Mont. Code Ann. § 32-1-485 — MT Code / Title 32 / Chapter 1 / Part 4 / Section 32-1-485
32-1-485 Interest payable at bank on Saturday -- how paid
Status: in_force

32-1-485 . Interest payable at bank on Saturday -- how paid. Where, by the terms of any note or obligation, interest is payable to a bank on any Saturday upon which a bank is closed pursuant to the authority of 32-1-483 through 32-1-485 , interest payable to such bank on any such Saturday may be paid in the amount due on such Saturday on the next succeeding business day with the same effect as if paid to such bank on such Saturday.
Mont. Code Ann. § 32-5-301 — MT Code / Title 32 / Chapter 5 / Part 3 / Section 32-5-301
32-5-301 Fees charged to consumers
Status: in_force

32-5-301 . Fees charged to consumers. (1) A licensee may contract for and receive interest on the principal amount of any loan. The interest, excluding the fees authorized in subsections (3) and (4), may not exceed 36% a year.

(2) The following third-party fees may be financed at the borrower's option and included in the principal amount of any loan:

(a) the actual fees paid to a public official or agency of the state for filing, recording, or releasing any instrument securing the loan;

(b) the premium for insurance in lieu of filing or recording any instrument securing the loan to the extent that the premium does not exceed the fees that would otherwise be payable for filing, recording, or releasing any instrument securing the loan;

(c) the premium for any credit insurance;

(d) bona fide fees or charges related to real estate security paid to third parties;

(e) fees or premiums for title examination, title insurance, or similar purposes, including survey;

(f) fees for preparation of a deed, settlement statement, or other documents;

(g) fees for notarizing deeds and other documents;

(h) appraisal fees;

(i) fees for credit reports; and

(j) fees paid to a trustee for release of a trust deed.

(3) (a) If provided for in the contract, a licensee may grant a deferral at any time. A deferral postpones the scheduled due date of the earliest unpaid installment and all subsequent installments as originally scheduled or as previously deferred for a period equal to the agreed-upon deferral period. The deferral period is that period during which an installment is not scheduled to be paid by reason of the deferral.

(b) A licensee may charge an additional fee for each deferral. The fee charged may be the greater of $15 or 5% of the amount currently due, not to exceed $50.

(c) Other fees may not be charged by the lender for any deferrals granted by the lender.

(4) If provided for in the contract, a licensee may charge a fee for any amount past due, whether as a result of a default under the original contract terms or of a default under the terms of an extension agreement. The fee charged may be the greater of $15 or 5% of the amount past due, not to exceed $50. The fee charged for any past-due amount may be charged only once. Other fees may not be charged for any default of the contract by the borrower.

(5) At the borrower's option, a licensee may finance and include in the principal amount of any loan a guaranteed asset protection waiver provided under the Guaranteed Asset Protection Waiver Act as provided in Title 30, chapter 14, part 22.

(6) (a) No other fees or charges may be directly or indirectly contracted for or received by any licensee except those specifically authorized by this chapter. A licensee may not divide into separate parts any contract made for the purpose of or with the effect of obtaining fees in excess of those authorized by this chapter. In addition to other remedies and penalties provided for in this chapter, if any amount in excess of the fees permitted by this chapter is charged, contracted for, or received, the licensee shall forfeit to the borrower a sum that is double the amount that is in excess of the fees authorized by this chapter.

(b) This section does not apply to fees for services rendered in connection with a loan after the loan has been consummated and if the borrower's participation in the services is strictly voluntary.
Mont. Code Ann. § 32-2-1201 — MT Code / Title 32 / Chapter 2 / Part 12 / Section 32-2-1201
32-2-1201 Definitions
Status: in_force

32-2-1201 . Definitions. As used in this part, the following definitions apply:

(1) "Board member" means a member of the board of directors of the institution.

(2) "Cease and desist order that has become final" means a cease and desist order or an order with respect to which:

(a) a timely petition for review of the action has not been filed; or

(b) the action of the court in which a petition for review has been filed is not subject to further review by the courts of the state.

(3) "Institution" means a state mutual association.

(4) "Violation" includes without limitation any action, alone or with others, that causes, counsels, aids, or abets a violation.
Mont. Code Ann. § 32-1-702 — MT Code / Title 32 / Chapter 1 / Part 7 / Section 32-1-702
32-1-702 Application
Status: in_force

32-1-702 . Application. This part shall apply to fiduciary relationships in existence as of July 1, 1955, or thereafter established.
Mont. Code Ann. § 32-1-422 — MT Code / Title 32 / Chapter 1 / Part 4 / Section 32-1-422
32-1-422 Restriction on investment in corporate stock -- rulemaking authority
Status: in_force

32-1-422 . Restriction on investment in corporate stock -- rulemaking authority. (1) Except as provided in subsections (2) and (3), a commercial or savings bank may not purchase or invest its capital or surplus or money of its depositors, or any part of its capital or surplus or money of its depositors, in the capital stock of any corporation unless the purchase or acquisition of capital stock is necessary to prevent loss to the bank on a debt previously contracted in good faith. Any capital stock purchased or acquired to prevent the loss must be sold by the bank within 6 months after purchase or acquisition if the capital stock can be sold for the amount of the claim of the bank against it. All capital stock purchased or acquired must be sold for the best price obtainable by the bank within 1 year after purchase or acquisition; however, if the stock is unmarketable, the stock must be charged off as an investment loss, which is equivalent to the stock's sale. A person or corporation violating any provision of this section shall forfeit to the state twice the nominal amount of the stock.

(2) A bank may acquire and hold for the bank's own account:

(a) up to 20% of the bank's capital and surplus in the capital stock of a bank service corporation organized solely for the purpose of providing services to banks;

(b) up to 20% of the bank's capital and surplus in the capital stock of a bankers' bank;

(c) shares of stock of a federal reserve bank and a federal home loan bank, without limitation of amount; and

(d) shares of stock or financial interests in an affiliate or a subsidiary, the business activities of which are limited to those allowed by law for a bank.

(3) A bank may invest any amount up to the limit established by the department of the bank's unimpaired capital and surplus in shares of stock of:

(a) the federal national mortgage association;

(b) the federal home loan mortgage corporation;

(c) the federal agricultural mortgage corporation; and

(d) other corporations created pursuant to acts of congress to meet the agricultural, housing, health, transit, educational, environmental, or similar needs of the nation when the department determines that the investment is in the public interest.

(4) A bank may, upon written application and approval of the department, make an investment in an amount permitted by the department by rule so long as the investment serves primarily to promote the public welfare, including the welfare of low- and moderate-income families and communities in need of jobs, housing, and public services. A bank may also, with the department's approval, purchase interests in an entity that makes investments for similar public welfare purposes.

(5) The department shall adopt rules to implement this section. The rules pertaining to the investments allowed in subsection (4) may be substantially equivalent to or more stringent than the eleventh power provided for in 12 U.S.C. 24 and the policy guidelines on community development issued by the office of the comptroller of the currency.
Mont. Code Ann. § 32-2-922 — MT Code / Title 32 / Chapter 2 / Part 9 / Section 32-2-922
32-2-922 Calculation of profits
Status: in_force

32-2-922 . Calculation of profits. Interest or commissions unpaid, although due or accrued, on debts owing to any mutual association may not be included in calculation of its profits, unless the mutual association keeps its books on a complete accrual basis. A mutual association that keeps it books on a complete accrual basis shall show on its books accrued interest receivable on notes, bonds, and other investments, unless the accrued interest is past due, and shall carry on its books accrued interest, taxes, and expenses payable.
Mont. Code Ann. § 32-1-432 — MT Code / Title 32 / Chapter 1 / Part 4 / Section 32-1-432
32-1-432 Limitations on loans -- rulemaking
Status: in_force

32-1-432 . Limitations on loans -- rulemaking. (1) (a) The total loans or extensions of credit to a person, partnership, or corporation by a bank, including loans to a partnership and to the members of the partnership, may not exceed 20% of the amount of the unimpaired capital and surplus of that bank.

(b) The discount of bills of exchange drawn in good faith against actual existing values, the discount of bankers, acceptances of other banks, the discount of commercial or business paper actually owned by the person negotiating it and the obligations of the United States, general obligations of any state or of any political subdivision, or obligations issued under authority of the Federal Farm Loan Act may not be considered as money borrowed.

(c) The limitations imposed on total loans and extensions of credit by this section do not apply to loans and investments secured by obligations of the United States having a current market value of 100% of the amount loaned or invested.

(d) Loans or obligations are not subject under this section to any limitation based upon that unimpaired capital and surplus to the extent that they are secured or covered by guaranties, or by commitments or agreements to take over or to purchase them, made by a federal reserve bank or by the United States or a department, bureau, board, commission, or establishment of the United States, including a corporation wholly owned, directly or indirectly, by the United States.

(2) The combined liabilities of the members of a firm, partnership, or unincorporated association to the loaning bank must be included in the liabilities of the firm, partnership, or unincorporated association. The portion of the liabilities of the firm, partnership, or unincorporated association for which a member individually is legally responsible must be included in the liabilities of the member in determining the limitations imposed by this section. In determining the limitation for loans or extensions of credit to a limited partner of a limited partnership, the portions of the liabilities of the limited partnership for which the limited partner is free from liability must be excluded.

(3) When, in the judgment of the department, the liabilities of a corporation or the combined liabilities of a corporation and one or more of its stockholders to a bank are excessive, it shall require the reduction to the limits and within the time it prescribes.

(4) The limitations of this section do not apply to the extent that the loan or extension of credit is secured by pledged deposits in the lending bank.

(5) The limitations of this section do not apply to a loan of funds or an extension of credit made by a bank to another bank if the term of the loan or extension of credit does not exceed 2 business days.

(6) The limitations of this section do not apply to the extent that a loan is covered by a guaranty or by commitments or agreements to take over or purchase the loan made by an agency or board of the state of Montana authorized by law to provide the guaranties, commitments, or agreements.

(7) (a) A state-chartered bank may be exempted from the limitations of this section by applying to the department for a written waiver stipulating that the bank will be subject to the limitations imposed on national banks under 12 U.S.C. 84 and the regulations of the office of the comptroller of the currency.

(b) A written waiver provided to a state-chartered bank in accordance with subsection (7)(a) may not be changed by the bank or revoked by the department for 2 years from the date of issue or for a different period determined by the department by rule.

(8) The department may adopt rules to carry out the purposes of this section, including rules differentiating between discretionary and nondiscretionary contractual commitments and rules specifying the types of derivative transactions in which a bank may engage and setting safety and soundness standards for engaging in derivative transactions.

(9) For purposes of this section, the terms "loan", "extension of credit", and "obligation" include:

(a) all direct or indirect advances of funds to a person on the basis of an obligation of the person to repay the funds;

(b) a liability of a state-chartered bank to advance funds to or on behalf of a person pursuant to a contractual commitment; and

(c) any credit exposure to a person arising from a derivative transaction, as defined in 12 U.S.C. 84(b)(3).
Mont. Code Ann. § 32-9-102 — MT Code / Title 32 / Chapter 9 / Part 1 / Section 32-9-102
32-9-102 License requirement -- registration
Status: in_force

32-9-102 . License requirement -- registration. (1) Unless exempt under 32-9-104 , a person may not regularly engage in the business of a mortgage broker, mortgage lender, mortgage servicer, or mortgage loan originator with respect to any residential mortgage loan unless licensed or registered under the provisions of this part through the NMLS.

(2) A mortgage broker or mortgage lender may not employ or contract with any person required to be licensed under this part if the person is not licensed. (See part compiler's comment regarding contingent suspension.)
Mont. Code Ann. § 32-3-204 — MT Code / Title 32 / Chapter 3 / Part 2 / Section 32-3-204
32-3-204 Records
Status: in_force

32-3-204 . Records. (1) A credit union shall maintain all books, records, accounting systems, and procedures in accordance with rules that the department of administration prescribes. In prescribing rules, the department shall consider the relative size of a credit union and its reasonable capability of compliance.

(2) A credit union is not liable for destroying records after the expiration of the record retention time prescribed by the department.

(3) A photostatic or photographic copy or reproduction of any kind, including electronic or computer-generated data that has been electronically stored and is capable of being converted into written form, of any credit union records is admissible as evidence of transactions with the credit union.
Mont. Code Ann. § 32-2-1015 — MT Code / Title 32 / Chapter 2 / Part 10 / Section 32-2-1015
32-2-1015 Notice to creditors of insolvent mutual association
Status: in_force

32-2-1015 . Notice to creditors of insolvent mutual association. (1) Except as provided in subsection (2), the department shall give notice by advertisement once a week for 2 successive weeks in a newspaper of general circulation in the town or city where the mutual association is located, if there is one, or in another newspaper that is published in the state and designated by the department. The notice must call on all persons who have claims against the mutual association to present them to the department or its authorized agent at a place specified in the notice and to make sworn proof, in a form to be fixed by the department, within the time specified in the notice, not less than 90 days after the date of the first publication. A copy of the notice must be mailed to all persons whose names appear as creditors on the books of the mutual association.

(2) If the federal deposit insurance corporation is appointed as the liquidating agent, the provisions of subsection (1) do not apply and notice to creditors must be given pursuant to federal law.
Mont. Code Ann. § 32-2-823 — MT Code / Title 32 / Chapter 2 / Part 8 / Section 32-2-823
32-2-823 Right of examination by member
Status: in_force

32-2-823 . Right of examination by member. A member of a mutual association incorporated under the laws of this state who is not a director may not inspect the books and records of the mutual association showing its transactions with a customer. A member may inspect the books and records of the mutual association as provided in 35-14-1602 .
Mont. Code Ann. § 32-1-340 — MT Code / Title 32 / Chapter 1 / Part 3 / Section 32-1-340
32-1-340 Conversion of surplus and undivided profits to capital stock
Status: in_force

32-1-340 . Conversion of surplus and undivided profits to capital stock. (1) A bank having a surplus and undivided profits equal to or in excess of 50% of its capital stock may increase its capital stock by the issuance of new stock for a part of that surplus and undivided profits.

(2) The increase may be made by a vote of the stock, either at a regular annual stockholders' meeting or at a meeting called for that purpose in accordance with the bylaws of the corporation.

(3) All increases of capital stock made under this section must be accomplished in a manner conforming to the requirements of this chapter pertaining to surplus of banks when first incorporated.

(4) When a bank has voted to issue any stock as contemplated in this section, it shall certify that action to the department, which shall within 30 days approve or reject the plan. Departmental action is final, and written notice of the action must be given to the bank.
Mont. Code Ann. § 32-1-906 — MT Code / Title 32 / Chapter 1 / Part 9 / Section 32-1-906
32-1-906 Informal conferences -- time for application
Status: in_force

32-1-906 . Informal conferences -- time for application. Within 15 days after service of the notice of charges, either the board member, officer, or other person may request an informal conference to discuss the charges and the possible disposition of the charges without a formal hearing process. The conference must be carried out in accordance with the provisions of 2-4-603 . Upon a proper showing, the director may withdraw charges and proceedings for a cease and desist order.
Mont. Code Ann. § 32-2-916 — MT Code / Title 32 / Chapter 2 / Part 9 / Section 32-2-916
32-2-916 Certified checks
Status: in_force

32-2-916 . Certified checks. (1) Whenever a check drawn on a mutual association is certified by any officer or employee of the mutual association, the amount of the check must be immediately charged against the account of the person, firm, or corporation drawing the check.

(2) It is unlawful for an officer or employee of a mutual association to certify a check drawn on the mutual association, unless at the time the check is certified the person, firm, or corporation drawing the check has on deposit with the mutual association an amount of money subject to the payment of the check equal to the amount specified in the check.

(3) An officer or employee who willfully violates the provisions of this section, reports to any device, or receives any fictitious obligation, directly or indirectly, in order to evade the provisions of this section is subject to the penalties set forth in 32-2-607 (5).
Mont. Code Ann. § 32-3-903 — MT Code / Title 32 / Chapter 3 / Part 9 / Section 32-3-903
32-3-903 Effect of participation in government programs
Status: in_force

32-3-903 . Effect of participation in government programs. The participation by a credit union in any government program providing unemployment, social security, old-age pension, or other benefits shall not be deemed a waiver of the taxation exemption hereby granted.
Mont. Code Ann. § 32-1-377 — MT Code / Title 32 / Chapter 1 / Part 3 / Section 32-1-377
32-1-377 Agreement of purchase and sale
Status: in_force

32-1-377 . Agreement of purchase and sale. (1) The selling and purchasing banks shall enter into an agreement that must contain all the terms and conditions of the sale and that must contain:

(a) proper provision for the assumption, payment, transfer, or retention of all the liabilities of the selling bank as to the branch assets and business sold;

(b) proper provision for the assumption, payment, transfer, or retention of the purchasing bank of all fiduciary obligations of the branch or branch business sold.

(2) The agreement for purchase and sale of a state bank must be authorized and approved by the department. The agreement of purchase and sale of a national bank must be in accordance with the laws applicable to national banks.
Mont. Code Ann. § 32-2-954 — MT Code / Title 32 / Chapter 2 / Part 9 / Section 32-2-954
32-2-954 Application
Status: in_force

32-2-954 . Application. The provisions of 32-2-950 through 32-2-954 are applicable to all records in existence on February 23, 1951, and to all records originating after that date and apply to all mutual associations organized under the laws of the state and to all federal savings associations located in the state, as far as applicable to the federal savings associations.
Mont. Code Ann. § 32-2-930 — MT Code / Title 32 / Chapter 2 / Part 9 / Section 32-2-930
32-2-930 Bonding of employees
Status: in_force

32-2-930 . Bonding of employees. (1) The board of directors of a mutual association shall require bonding for all officers and employees of the mutual association whose duty includes the handling of money, notes, bonds, credits, and cash items and whose duties include bookkeeping or the making of entries in relation to the business of the mutual association and its customers.

(2) The board of directors shall, by order entered on the minute books of the board, designate the officers and employees to be bonded and the amount of bonds to be given. Action related to the personnel, the amount of bonds, and the surety company or sureties is subject to approval by the department, and the bonds must be in a form provided or approved by the department.

(3) The bonds must be approved by the president of the mutual association, and the president's or executive officer's action must be reported to the board of directors.

(4) All bonds required by this section must be kept in the custody of the mutual association subject to inspection by examiners from the department. However, as far as possible, they may not be placed in the custody of the officer or employee for whom the bond is given.
Mont. Code Ann. § 32-2-825 — MT Code / Title 32 / Chapter 2 / Part 8 / Section 32-2-825
32-2-825 Surrender of charter by state mutual association
Status: in_force

32-2-825 . Surrender of charter by state mutual association. (1) Any mutual association that will become a corporation for carrying on the business of a mutual association under the laws of the United States ceases to be a corporation under the laws of this state.

(2) The members of the board of directors last in office when the corporation became a corporation under the laws of the United States continues to be the board of directors of the corporation, with power to take all necessary measures to carry out and perfect the organization by signing the articles of association and the organization certificate and adopting the regulations as may be just and proper and not inconsistent with the acts of congress.

(3) A change from a state mutual association to a federal savings association may not release the mutual association from its obligations to pay and discharge all of the liabilities created by law or incurred by the mutual association before becoming a federal savings association or any tax imposed by the laws of this state up to the date of the mutual association becoming a federal savings association, in proportion to the time that has elapsed since the next preceding payment.
Mont. Code Ann. § 32-1-420 — MT Code / Title 32 / Chapter 1 / Part 4 / Section 32-1-420
32-1-420 Investment by trust fiduciary in management investment company or investment trust
Status: in_force

32-1-420 . Investment by trust fiduciary in management investment company or investment trust. (1) In the absence of an express prohibition in a trust instrument, a trust company fiduciary or the trust division of a financial institution, whether organized under state or federal law, may acquire and retain, invest, and reinvest fiduciary funds in the securities of or other interests in an open-end or closed-end management investment company or investment trust registered under 15 U.S.C. 80a-1 through 80a-64.

(2) The investments authorized in subsection (1) may be made even if the fiduciary or an affiliate of the fiduciary is providing services to a management investment company or investment trust and is receiving compensation as an investment adviser or manager, sponsor, broker, distributor, custodian, transfer agent, or registrar or for a similar service. The fiduciary shall disclose to all current income beneficiaries of the trust the rate, formula, and method of compensation for the services provided.
Mont. Code Ann. § 32-9-128 — MT Code / Title 32 / Chapter 9 / Part 1 / Section 32-9-128
32-9-128 Registration and registered agent of foreign entities -- service of process -- venue
Status: in_force

32-9-128 . Registration and registered agent of foreign entities -- service of process -- venue. (1) A foreign mortgage broker, mortgage lender, or mortgage servicer shall register to do business in this state as a foreign corporation, limited liability company, limited liability partnership, or limited partnership with the secretary of state.

(2) A foreign mortgage broker, mortgage lender, or mortgage servicer shall provide the name and address of its registered agent for service of process to the department in order to be licensed in this state and shall notify the department in writing within 5 days of a change in the licensee's registered agent's name or address.

(3) For purposes of this part, the department is considered to have complied with the requirements of law concerning service of process upon sending by common courier with tracking capability any notice required or permitted to a licensee under this part, postage prepaid and addressed to the last-known address of the licensee's registered agent for service of process on file with the department, the last-known address of the licensee on file with the department for an in-state licensee, or in the case of an unlicensed person, the last-known address of the person.

(4) In a judicial action, suit, or proceeding arising under this part or any administrative rule adopted pursuant to this part between the department and a licensee who does not maintain a physical office in this state, venue must be exclusively in Lewis and Clark County. (See part compiler's comment regarding contingent suspension.)
Mont. Code Ann. § 32-3-804 — MT Code / Title 32 / Chapter 3 / Part 8 / Section 32-3-804
32-3-804 Additional rights and powers -- department rules
Status: in_force

32-3-804 . Additional rights and powers -- department rules. (1) Except as limited by this part and rules adopted pursuant to this part, a corporate credit union has all of the rights and powers of any other credit union organized under this chapter and the additional rights and powers specified in this part.

(2) A corporate credit union may, as permitted by rules of the department, make loans to other credit unions and provide correspondent services and other financial services to other credit unions.

(3) A corporate credit union may, as permitted by rules of the department, invest in and grant loans to associations of credit unions, central funds of credit unions, or organizations chartered to provide service to credit unions.

(4) A corporate credit union may, as permitted by rules of the department, borrow and accept money from any source and issue notes or debentures.

(5) A corporate credit union may, as permitted by rules of the department, make reasonable and prudent investments.

(6) The department shall adopt rules governing corporate credit union loans, borrowing, investments, strategic planning, funds management, capital goals, and services. The rules must be in substantial conformance with Title 12, part 704, Code of Federal Regulations.

(7) A corporate credit union may issue membership capital accounts as provided in 32-3-805 .

(8) A corporate credit union may issue paid-in capital and nonmember paid-in capital as provided in 32-3-810 .

(9) A corporate credit union with corporate shareholdings equal to or in excess of 95% of its total assets may, by vote of its board of directors, elect exemption of insurance on share accounts under the provisions of Title II of the Federal Credit Union Act.
Mont. Code Ann. § 32-3-322 — MT Code / Title 32 / Chapter 3 / Part 3 / Section 32-3-322
32-3-322 Merger
Status: in_force

32-3-322 . Merger. (1) Any credit union may, with the approval of the department of administration, merge with another credit union under the existing charter of the other credit union, pursuant to any plan agreed upon by the majority of the board of directors of each credit union joining in the merger and approved by the affirmative vote of a majority of the voting members of the merging credit union.

(2) After agreement by each board of directors and approval by the members of the merging credit union, the president and secretary of the credit union shall execute a certificate of merger, which must set forth all of the following:

(a) the time and place of the meeting of each board of directors at which the plan was agreed upon;

(b) the vote in favor of the adoption of the plan;

(c) a copy of the resolution or other action by which the plan was agreed upon;

(d) the time and place of the meeting of the members at which the plan agreed upon was approved; and

(e) the vote by which the plan was approved by the members.

(3) The certificate and a copy of the agreed-upon plan of merger must be forwarded to the department, certified by the department, and returned to both credit unions within 30 days. A copy of the certificate of merger, the certified plan, and the articles of merger must be filed with the secretary of state by the surviving credit union.

(4) Upon return of the certificate from the department, all property rights and members' interest of the merged credit union vest in the surviving credit union without deed, endorsement, or other instrument of transfer, and all debts, obligations, and liabilities of the merged credit union are considered to have been assumed by the surviving credit union under whose charter the merger was effected. The rights and privileges of the members of the merged credit union remain intact.

(5) This section must be construed, whenever possible, to permit a credit union chartered under any other law to merge with one chartered under this chapter or to permit one chartered under this chapter to merge with one chartered under any other law.
Mont. Code Ann. § 32-3-803 — MT Code / Title 32 / Chapter 3 / Part 8 / Section 32-3-803
32-3-803 Voting representative -- conflict of interest
Status: in_force

32-3-803 . Voting representative -- conflict of interest. (1) Each credit union that is a member of a corporate credit union may designate one person to be its voting representative in the corporate credit union. The person must be designated by the board of directors of the member credit union. The voting representative is eligible to hold office in the corporate credit union as if the person were a member of the corporate credit union.

(2) (a) A director, committee member, officer, agent, or employee may not in any manner participate in the deliberation or determination of any question affecting that person's personal pecuniary interest.

(b) A director, officer, agent, or employee may not in any manner participate in the determination of any matter material in amount, as defined by rule by the department, affecting the pecuniary interest of any corporation, partnership, or association, other than the corporate credit union, in which that person has a direct or indirect interest, except for matters involving payment of dividends to the membership.

(3) The department shall adopt rules implementing this section in substantial conformance with Title 12, part 704, Code of Federal Regulations.
Mont. Code Ann. § 32-1-434 — MT Code / Title 32 / Chapter 1 / Part 4 / Section 32-1-434
32-1-434 Financial institutions authorized to obtain insurance and make loans when approved by federal housing administrator
Status: in_force

32-1-434 . Financial institutions authorized to obtain insurance and make loans when approved by federal housing administrator. Notwithstanding any other provisions of the law of this state restricting the amount of any loan in relation to the value of the real estate and/or restricting the term of any such loan and/or restricting the rate of interest on any such loan, it shall be lawful for any corporation, bank, trust company, insurance company, investment company, and any other financial institution which has been approved as a mortgagee by the federal housing administrator to obtain insurance and to make such loans secured by real estate as the federal housing administrator insures or makes a commitment to insure.
Mont. Code Ann. § 32-2-942 — MT Code / Title 32 / Chapter 2 / Part 9 / Section 32-2-942
32-2-942 Transaction on holiday
Status: in_force

32-2-942 . Transaction on holiday. No law of this state may affect the validity of, or render void or voidable, the payment, certification, or acceptance of a check or other negotiable instrument or any other transaction by a mutual association in this state because it was done or performed during any time other than regular banking hours or on a legal holiday. A mutual association in this state, which by law or custom is entitled to close at 12 noon on any Saturday or for the whole or part of any legal holiday, may not be compelled to remain open for transaction of business or to perform any of the acts or transactions in this section on any Saturday after 12 noon or any legal holiday except at its option.
Mont. Code Ann. § 32-2-941 — MT Code / Title 32 / Chapter 2 / Part 9 / Section 32-2-941
32-2-941 Mutual association holidays
Status: in_force

32-2-941 . Mutual association holidays. In addition to emergency closings authorized by 32-2-1030 through 32-2-1034 , a mutual association in the state may remain closed and refrain from doing business on those legal holidays designated in 1-1-216 .
Mont. Code Ann. § 32-9-151 — MT Code / Title 32 / Chapter 9 / Part 1 / Section 32-9-151
32-9-151 Mortgage call reports
Status: in_force

32-9-151 . Mortgage call reports. (1) Each licensee shall submit to the NMLS reports of condition, which must be in the form and must contain information that the NMLS may require.

(2) Each mortgage loan originator shall ensure that all residential mortgage loans that close as a result of the mortgage loan originator's loan origination activities are included in the report of condition submitted to the NMLS. (See part compiler's comment regarding contingent suspension.)
Mont. Code Ann. § 32-1-565 — MT Code / Title 32 / Chapter 1 / Part 5 / Section 32-1-565
32-1-565 Effect of closing
Status: in_force

32-1-565 . Effect of closing. (1) A day on which a bank or any of its offices is closed during any part of its normal banking hours under 32-1-562 and 32-1-563 with respect to that bank or, if not all of its offices are closed, then with respect to the office or offices which are closed shall be a legal holiday for all purposes with respect to any banking business. No liability or loss of rights of any kind on the part of a bank, or director, officer, or employee thereof, may accrue or result by virtue of a closing authorized by 32-1-562 and 32-1-563 .

(2) The provisions of 32-1-561 through 32-1-565 are in addition to any other law of this state or of the United States authorizing the closing of a bank or excusing the delay by a bank in the performance of its duties and obligations because of emergencies or conditions beyond the bank's control or otherwise.
Mont. Code Ann. § 32-3-703 — MT Code / Title 32 / Chapter 3 / Part 7 / Section 32-3-703
32-3-703 Use of regular reserve account
Status: in_force

32-3-703 . Use of regular reserve account. The regular reserve account belongs to the credit union and must be used to meet losses including, with prior approval of the department of administration, losses from the sale of investments or securities. The regular reserve account may not be used to meet losses resulting from an excess of expenses over income and may not be distributed except on liquidation of the credit union or in accordance with a plan approved by the department.
Mont. Code Ann. § 32-1-606 — MT Code / Title 32 / Chapter 1 / Part 6 / Section 32-1-606
32-1-606 Closed banking institutions empowered to borrow from corporation
Status: in_force

32-1-606 . Closed banking institutions empowered to borrow from corporation. If a banking institution is closed on account of inability to meet the demands of its depositors, by action of the department, by action of its directors, or in the event of its insolvency or suspension, the department or its agent may borrow from the corporation and furnish any of the assets of the institution to the corporation as security for a loan from the corporation. The department may sell to the corporation any part or all of the assets of the institution. The provisions of this section do not limit the power of a banking institution or the department to pledge or sell assets in accordance with any existing law.
Mont. Code Ann. § 32-2-1101 — MT Code / Title 32 / Chapter 2 / Part 11 / Section 32-2-1101
32-2-1101 Definition of savings institution
Status: in_force

32-2-1101 . Definition of savings institution. As used in this part, the term "savings institution" means a mutual association that is organized under the laws of this state.
Mont. Code Ann. § 32-3-808 — MT Code / Title 32 / Chapter 3 / Part 8 / Section 32-3-808
32-3-808 Annual audit
Status: in_force

32-3-808 . Annual audit. (1) The supervisory committee of a corporate credit union shall require an annual opinion audit to be made by an independent, licensed certified public accountant and shall submit the audit report to the board of directors. A summary of the audit report must be submitted to the membership at the next annual meeting.

(2) The auditor's workpapers must be made available for review by state and federal regulatory examiners during any examination conducted by the examiners.

(3) A copy of the audit report and reportable conditions letter, otherwise known as the management letter, must be submitted to the department and the national credit union administration within 30 days after receipt by the board of directors.
Mont. Code Ann. § 32-3-303 — MT Code / Title 32 / Chapter 3 / Part 3 / Section 32-3-303
32-3-303 Amendments
Status: in_force

32-3-303 . Amendments. (1) The articles of incorporation or the bylaws may be amended as provided in the bylaws. Amendments to the articles of incorporation or bylaws must be submitted, by certified mail, return receipt requested, to the department of administration, which shall approve or disapprove the amendments within 60 days.

(2) Amendments become effective upon:

(a) approval in writing by the department, for which a fee may not be charged; and

(b) in the case of articles of incorporation, filing with the secretary of state.

(3) If the department does not approve or disapprove the amendments within the 60-day period, the amendments must be considered approved, except that the department may extend the approval period for an additional 30 days for good cause as stated in a written notice given to the credit union within the original 60-day period.
Mont. Code Ann. § 32-3-321 — MT Code / Title 32 / Chapter 3 / Part 3 / Section 32-3-321
32-3-321 Liquidation
Status: in_force

32-3-321 . Liquidation. (1) A credit union may elect to dissolve voluntarily and liquidate its affairs in the manner prescribed in this section.

(2) The board of directors shall adopt a resolution recommending the credit union be dissolved voluntarily and directing that the question of liquidation be submitted to the members.

(3) Within 14 days after the board of directors decides to submit the question of liquidation to the members, the presiding officer of the board shall notify the department of administration in writing, setting forth the reasons for the proposed action and a plan for liquidation. Within 14 days after the members act on the question of liquidation, the presiding officer of the board shall notify the department in writing as to whether or not the members approved the proposed liquidation.

(4) Depending on the credit union's circumstances, a proposed liquidation plan may or may not require the suspension of payment on shares, withdrawal of shares, transfer of shares to loans and interest, investments of any kind, loans, or other similar financial transactions. On approval of the proposal by the members, all business transactions must be permanently discontinued. Necessary expenses of operation must continue to be paid on authorization of the liquidating agent or committee during the period of liquidation.

(5) For a credit union to enter voluntary liquidation, approval by a majority of the members in writing or by a two-thirds majority of the members present at a regular or special meeting of the members is required. If authorization for liquidation is to be obtained at a meeting of the members, notice in writing must be given to each member at least 14 days prior to the meeting.

(6) If liquidation is approved, the board of directors shall appoint a liquidating agent or committee for the purpose of conserving and collecting assets, closing the affairs of the credit union, and distributing the assets as required by this chapter.

(7) A liquidating credit union shall continue in existence for the purpose of discharging its debts, collecting and distributing its assets, and doing all acts required in order to wind up its business. The liquidating credit union may sue and be sued for the purpose of enforcing debts and obligations until its affairs are fully adjusted.

(8) The liquidating agent or committee shall distribute the assets of the credit union or the proceeds of any disposition of the assets in the sequence described in 32-3-205 (6).

(9) As soon as the liquidating agent or committee determines that all assets from which there is a reasonable expectancy of realization have been liquidated and distributed as set forth in this section, the liquidating agent or committee shall execute a certificate of dissolution on a form prescribed by the department. The form, together with all pertinent records of the liquidating credit union, must be filed with the department and the secretary of state. Upon filing with both entities, the credit union is dissolved.

(10) If the department determines that the liquidating agent or committee has failed to make reasonable progress in the liquidating of the credit union's affairs and distribution of its assets or has violated a provision of this chapter, the department may issue a cease and desist order against the liquidating agent or committee and appoint a new liquidating agent to complete the liquidation under the department's direction and control. The department shall fill any vacancy caused by the resignation, death, illness, removal, desertion, or incapacity to function of the liquidating agent.
Mont. Code Ann. § 32-2-920 — MT Code / Title 32 / Chapter 2 / Part 9 / Section 32-2-920
32-2-920 Giving security for deposit prohibited -- exceptions
Status: in_force

32-2-920 . Giving security for deposit prohibited -- exceptions. (1) It is unlawful for a mutual association to pledge, mortgage, or hypothecate to a depositor any of its real or personal property as security for a deposit, and any pledge, mortgage, or hypothecation made in violation of this section is unenforceable.

(2) This section does not apply to deposits of the money of the United States, public funds deposited in accordance with the provision of a depository act of this state or the United States, or bankruptcy estate funds or deposits, including deposits of receivers or trustees in bankruptcy, deposited under the discretion and supervision of a court of record of Montana or of the United States.
Mont. Code Ann. § 32-4-204 — MT Code / Title 32 / Chapter 4 / Part 2 / Section 32-4-204
32-4-204 Effect of failure to commence business
Status: in_force

32-4-204 . Effect of failure to commence business. If a corporation organized pursuant to this chapter shall fail to begin business within 5 years from the effective date of its articles of incorporation, then said articles shall become null and void.
Mont. Code Ann. § 32-1-483 — MT Code / Title 32 / Chapter 1 / Part 4 / Section 32-1-483
32-1-483 Closing on Saturdays authorized -- Saturday treated as holiday
Status: in_force

32-1-483 . Closing on Saturdays authorized -- Saturday treated as holiday. Any bank as defined in 32-1-102 and any national bank or national banking association incorporated or organized under the laws of the United States of America and any federal reserve bank may, at its election, remain closed and refrain from the transaction of any business on Saturdays. Any Saturday on which any such bank remains closed shall be, with respect to such bank, a holiday and not a business day. Any act authorized, required, or permitted to be performed on a Saturday at or by or with respect to any bank including any national bank or national banking association and any federal reserve bank may be performed on the next succeeding business day, and no liability or loss of any rights of any kind shall result from such closing on Saturday or from the nonopening of any bank for the transaction of business on any Saturday under the authority of 32-1-483 through 32-1-485 .
Mont. Code Ann. § 32-1-508 — MT Code / Title 32 / Chapter 1 / Part 5 / Section 32-1-508
32-1-508 Corporate existence -- ceases when
Status: in_force

32-1-508 . Corporate existence -- ceases when. The charters and the corporate existence of banks shall cease automatically and become nonexistent upon the completion of liquidation of the affairs of said bank, whether accomplished voluntarily or through legal process. For the purposes of this section, a bank's affairs shall be considered liquidated and completed when all of its property of every kind has been sold or applied toward the payment of its obligations and the corporation is left without property in existence or in reasonable expectancy.
Mont. Code Ann. § 32-1-335 — MT Code / Title 32 / Chapter 1 / Part 3 / Section 32-1-335
32-1-335 Purchase or loan of own capital stock prohibited -- exception
Status: in_force

32-1-335 . Purchase or loan of own capital stock prohibited -- exception. A bank may not purchase or invest its capital or surplus or money of its depositors, or any part of either, in shares of its own capital stock or loan its capital or surplus or the money of its depositors, or any part of either, on shares of its own capital stock unless the purchase or loan is necessary to prevent loss to the bank on debts previously contracted in good faith. However, a bank may redeem or otherwise purchase its own capital stock with the prior approval of the department and subject to any conditions that the department may require.
Mont. Code Ann. § 32-6-102 — MT Code / Title 32 / Chapter 6 / Part 1 / Section 32-6-102
32-6-102 Electronic funds transfer systems -- applicability
Status: in_force

32-6-102 . Electronic funds transfer systems -- applicability. (1) The legislature has determined that electronic funds transfer systems are technologies offered by all types of financial depository institutions. These technologies provide the consumer with both convenience and efficiency in making financial transactions. Regulation E of the federal Electronic Fund Transfer Act, 15 U.S.C. 1693, et seq., addresses many of the consumer issues relating to these systems. This chapter applies to financial institutions chartered under the United States Code or Title 32, chapter 1, parts 1 through 5, to the extent that those laws permit.

(2) Financial institutions that are subject to and in compliance with Regulation E of the federal Electronic Fund Transfer Act must be considered to be in compliance with the provisions of this chapter.
Mont. Code Ann. § 32-2-601 — MT Code / Title 32 / Chapter 2 / Part 6 / Section 32-2-601
32-2-601 Short title -- application -- purpose
Status: in_force

32-2-601 . Short title -- application -- purpose. (1) This chapter may be cited as the "Mutual Savings and Loan Association Act".

(2) A corporation that has been incorporated for the purpose of encouraging home ownership and thrift and making substantially all of its loans in qualified thrift investments is known in this chapter as a state mutual association of the department, which shall enforce all laws with respect to it.

(3) This chapter applies to:

(a) all mutual associations specified in 32-2-602 ;

(b) corporations that subject themselves to This chapter; and

(c) persons, partnerships, or corporations who by violating this chapter become subject to the penalties provided in this chapter.

(4) The purpose of this chapter is to provide the state with a sound system of state-chartered mutual associations by providing for and encouraging the development of state-chartered mutual associations while restricting their activities to the extent necessary to protect the interest of depositors. The purpose includes:

(a) the sound conduct of the business of mutual associations;

(b) the conservation of mutual association assets;

(c) the maintenance of adequate reserves against deposits;

(d) the opportunity for mutual associations to compete with other businesses, including but not limited to other financial organizations existing under the laws of this state, other states, the United States, and foreign countries;

(e) the opportunity for mutual associations to serve the citizens of this state;

(f) the opportunity for mutual associations to participate in and promote the economic progress of Montana and the United States; and

(g) the opportunity for the management of mutual associations to exercise business judgment in conducting the affairs of their institutions.

(5) A corporation operated for the purpose of encouraging home ownership and thrift and making substantially all of its loans in qualified thrift investments is known as a mutual association and is under the supervision of the department, which shall enforce all laws with respect to it.

(6) The mutual associations have continual succession and must be organized under the provisions of this chapter.

(7) This chapter does not restrict the activities of mutual associations for the purpose of protecting any person from competition from financial organizations and does not confer any right or cause of action on any competitor.

(8) This section constitutes the standard to be observed by the commissioner of banking and financial institutions in the exercise of authority under this chapter and provides guidelines in the construction and application of this chapter.
Mont. Code Ann. § 32-1-307 — MT Code / Title 32 / Chapter 1 / Part 3 / Section 32-1-307
32-1-307 Amount of capital
Status: in_force

32-1-307 . Amount of capital. The commissioner shall determine the appropriate level of capitalization of the proposed corporation prior to the issuance of the certificate of authorization.
Mont. Code Ann. § 32-6-306 — MT Code / Title 32 / Chapter 6 / Part 3 / Section 32-6-306
32-6-306 Personal identification number -- restrictions
Status: in_force

32-6-306 . Personal identification number -- restrictions. (1) A financial institution may not assign a personal identification number to a customer which is identical to that customer's social security account number, driver's license number, or any other number assigned for other purposes to that customer.

(2) A satellite terminal may not be operated so as to print a customer's personal identification number on the humanly readable receipt furnished at the time of a transaction.
Mont. Code Ann. § 32-1-375 — MT Code / Title 32 / Chapter 1 / Part 3 / Section 32-1-375
32-1-375 Prohibition of acquisition -- exception
Status: in_force

32-1-375 . Prohibition of acquisition -- exception. (1) Notwithstanding any other provision of law, a bank holding company or any other company may not acquire or control an institution in this state that is an "insured bank" as defined in section 3(h) of the Federal Deposit Insurance Act (12 U.S.C. 1813(h)) or any institution eligible to become an insured bank as defined therein if the institution does not both accept demand deposits and engage in the business of making commercial loans.

(2) Nothing in this section prohibits the continued control of a financial institution eligible for insurance under the Federal Deposit Insurance Act by a company that acquired the financial institution prior to March 1, 1987.
Mont. Code Ann. § 32-1-604 — MT Code / Title 32 / Chapter 1 / Part 6 / Section 32-1-604
32-1-604 Subrogation of corporation
Status: in_force

32-1-604 . Subrogation of corporation. Whenever any banking institution shall have been closed as aforesaid and said federal deposit insurance corporation shall pay or make available for payment the insured deposit liabilities of such closed institution, said corporation, whether or not it shall have been appointed agent of the department in the liquidation of such closed banking institution, as herein provided, shall be and become subrogated by operation of law to all rights against such closed banking institution of each owner of a claim for deposit to the extent now or hereafter necessary to enable the federal deposit insurance corporation, under federal law, to make insurance payments available to depositors of closed insured banks.
Mont. Code Ann. § 32-1-1007 — MT Code / Title 32 / Chapter 1 / Part 10 / Section 32-1-1007
32-1-1007 Solicitation of business
Status: in_force

32-1-1007 . Solicitation of business. A foreign trust company may conduct business in Montana only in accordance with rules adopted by the department.
Mont. Code Ann. § 32-1-222 — MT Code / Title 32 / Chapter 1 / Part 2 / Section 32-1-222
32-1-222 Loan production office -- rulemaking authority
Status: in_force

32-1-222 . Loan production office -- rulemaking authority. (1) A bank may:

(a) establish and maintain a loan production office only after approval by the department; or

(b) relocate or close a loan production office after giving notice to its customers and the department.

(2) The department may adopt rules to implement this section.
Mont. Code Ann. § 32-5-409 — MT Code / Title 32 / Chapter 5 / Part 4 / Section 32-5-409
32-5-409 Complaint procedure
Status: in_force

32-5-409 . Complaint procedure. (1) The department shall maintain a list of licensees that is available to interested persons and to the general public. The department shall also establish by rule a procedure under which an aggrieved consumer or any member of the public may file a complaint against a licensee or an unlicensed person who violates any provision of this chapter.

(2) The department, after giving reasonable notice, may hold hearings, subject to the contested case provisions of Title 2, chapter 4, part 6, upon the request of a party to the complaint, make findings of fact or conclusions of law, issue cease and desist orders, refer the matter to the appropriate law enforcement agency for prosecution for a violation of this chapter, seek injunctive or other relief in district court, or suspend or revoke a license granted under this chapter.
Mont. Code Ann. § 32-2-913 — MT Code / Title 32 / Chapter 2 / Part 9 / Section 32-2-913
32-2-913 Federal housing securities eligible collateral
Status: in_force

32-2-913 . Federal housing securities eligible collateral. If collateral must or may be furnished by any state mutual association as security for the deposit of any funds and the collateral must or may be deposited with any official of the state pursuant to state law, mortgages insured and debentures issued by the federal housing administrator are considered eligible collateral for these purposes.
Mont. Code Ann. § 32-2-902 — MT Code / Title 32 / Chapter 2 / Part 9 / Section 32-2-902
32-2-902 Prohibitions on advertising as mutual association -- trade names restricted
Status: in_force

32-2-902 . Prohibitions on advertising as mutual association -- trade names restricted. (1) Except as provided in subsection (4), a person, firm, company, partnership, or corporation, either domestic or foreign, that is not subject to the supervision of the department and not required by the provisions of this chapter to report to the department and that has not received a certificate to do business as a mutual association from the department may not:

(a) except as for a student financial institution, as defined in 32-1-115 , advertise that the person or entity is receiving or accepting money or savings for deposit, investment, or otherwise and issuing notes or certificates of deposit; or

(b) use an office sign at the place where the business is transacted that has on it an artificial or corporate name or other words indicating that:

(i) the place or office is the place or office of a mutual association;

(ii) deposits are received there or payments made on checks; or

(iii) any other form of mutual association business is transacted there.

(2) The person, firm, company, or corporation, domestic or foreign, may not use or circulate letterheads, billheads, blank notes, blank receipts, certificates, circulars, or any written or printed or partly written and partly printed papers that contain an artificial or corporate name or other words indicating that the business is the business of a mutual association.

(3) The person, firm, company, partnership, or corporation or any agent of a foreign corporation not having an established place of business in this state may not solicit or receive deposits or transact business in the manner of a mutual association or in a manner that leads the public to believe that its business is that of a mutual association.

(4) (a) A person, firm, company, partnership, or corporation, domestic or foreign, except for a student financial institution, as defined in 32-1-115 , that is not subject to the supervision of the department and not required by the provisions of this chapter to report to the department and that has not received from the department a certificate to do a mutual association business may not transact business under a name or title that contains the words "mutual savings and loan association", "savings and loan association", "savings and loan", "mutual association", "mutual savings association", "building and loan", or "building and loan association", unless the department has granted a waiver.

(b) The department may grant a waiver to allow the use of a restricted word listed in subsection (4)(a) to a nonprofit organization if:

(i) the organization is not acting as a financial institution; and

(ii) the name used is not likely to mislead a reasonable individual into thinking that the organization is acting as a financial institution.

(5) A person, firm, company, partnership, or corporation, domestic or foreign, violating a provision of this section shall forfeit to the state $500 a day for every day or part of a day during which the violation continues.

(6) Upon suit by the department, the court may issue an injunction restraining the person, firm, company, partnership, or corporation during pendency of the action and permanently from further using those words in violation of the provisions of this section or from further transacting business in a manner that leads the public to believe that its business is that of a mutual association and may enter any other order or decree as equity and justice require.
Mont. Code Ann. § 32-2-809 — MT Code / Title 32 / Chapter 2 / Part 8 / Section 32-2-809
32-2-809 Review of application
Status: in_force

32-2-809 . Review of application. (1) The commissioner shall examine all of the facts connected with the application to determine if all of the requirements of law are met, including but not limited to the following:

(a) the proposed articles of incorporation and bylaws, application for reservation of name, applicable fees, and other items required meet the requirements of this chapter;

(b) the population and economic characteristics of the area to be served afford reasonable promise of adequate support for the proposed mutual association;

(c) the competence, experience, character and fitness, financial resources, and integrity of the proposed directors and officers are to command the confidence of the community and warrant the belief that the business of the proposed mutual association will be honestly and efficiently conducted;

(d) the capital of the proposed mutual association is adequate in relation to the amount and character of the anticipated business of the association and the safety of prospective depositors;

(e) the commissioner is satisfied, based on the investigation conducted pursuant to 32-2-804 and any other facts within the knowledge of the commissioner, that the mutual association is otherwise entitled to commence business; and

(f) the commissioner has received from the federal deposit insurance corporation written confirmation that it has approved the mutual association's application to become an insured state savings association as defined in section 3(h) of the Federal Deposit Insurance Act, 12 U.S.C. 1813(h), as amended, or the mutual association has received satisfactory assurance from the federal deposit insurance corporation that the proposed mutual association will be accepted for insurance if the incorporators comply with certain slated minor requirements imposed by the federal deposit insurance corporation. The minor requirements must be of a type and character that the commissioner determines can be promptly complied with by the incorporators without serious difficulties.

(2) Within 180 days following the date of acceptance of the application, the commissioner shall approve or disapprove the application of the proposed mutual association on the basis of the examination. In giving approval, the commissioner may impose conditions to be met prior to the issuance of a certificate of authority to commence business under this chapter.

(3) If the commissioner approves the application, the commissioner shall notify the applicant of the approval and proceed with the steps to complete the application.

(4) If the commissioner denies the application, the denial must be in writing in the form of findings of fact and conclusions of law and order. The applicant may file an administrative appeal pursuant to the Montana Administrative Procedure Act.

(5) The findings and order may not be disclosed to any other party and may not be subject to public disclosure under 32-2-710 unless the findings of fact and the conclusions of law and order are appealed pursuant to the Montana Administrative Procedure Act.
Mont. Code Ann. § 32-1-536 — MT Code / Title 32 / Chapter 1 / Part 5 / Section 32-1-536
32-1-536 Deposit of funds in department's hands
Status: in_force

32-1-536 . Deposit of funds in department's hands. All funds in the hands of the department belonging to a bank in process of liquidation shall be deposited in the department's name in those banks within the state which may be selected and designated by it and subject to its checks. Those funds are to be preferred and protected as provided in this chapter.
Mont. Code Ann. § 32-2-1205 — MT Code / Title 32 / Chapter 2 / Part 12 / Section 32-2-1205
32-2-1205 Notice of intention to remove board member or officer -- prohibiting participation -- suspension
Status: in_force

32-2-1205 . Notice of intention to remove board member or officer -- prohibiting participation -- suspension. (1) The department may serve on a board member or officer of an institution a written notice of intention to remove the member or officer from office whenever the department has reasonable cause to believe that:

(a) the board member or officer has:

(i) committed any violation of law involving dishonesty or breach of trust;

(ii) violated a cease and desist order that has become final;

(iii) engaged or participated in any unsafe or unsound practice in connection with the institution; or

(iv) committed or engaged in any act, omission, or practice that constitutes a breach of the member's or officer's fiduciary duty as a board member or officer of the institution; and

(b) the institution has suffered or will likely suffer substantial financial loss or other damage or the interest of its depositors could be seriously prejudiced by reason of the violation, practice, or breach of fiduciary duty involving personal dishonesty on the part of the board member or officer.

(2) The department may serve on a board member, officer, or other person of an institution a written notice of intention to remove the individual from office or to prohibit the individual's further participation in any manner in the conduct of the affairs of the institution if:

(a) in the opinion of the department, the board member or officer has, by conduct or practice with respect to another institution or business organization that has resulted in substantial financial loss or other damage to that institution or business organization, evidenced the member's or officer's personal disability and unfitness to continue as a board member or officer of the institution; or

(b) the department has reasonable cause to believe that any other person participating in the conduct of the affairs of the institution has, by conduct or practice with respect to the institution, another institution, or other business organization that has resulted in substantial financial loss or other damage to the institution or business organization, evidenced the person's personal disability and unfitness to participate in the conduct of the affairs of the institution.

(3) A notice of intention to remove a board member, officer, or other person from office or to prohibit the individual's participation in the conduct of the affairs of an institution must contain a statement of the facts constituting grounds for the removal or prohibition and must fix a time and place at which a hearing will be held on the removal or prohibition. The hearing must be held not earlier than 30 days or later than 60 days after the date of service of the notice, unless an earlier or later date is set by the hearings examiner at the request of the individual and for good cause shown.

(4) Unless the board member, officer, or other person appears at the hearing in person or by a duly authorized representative, the individual must be considered to have consented to the issuance of an order of removal or prohibition. In the event of consent or if on the record made at the hearing the hearings examiner finds that any of the grounds specified in the notice have been established by a preponderance of the evidence, the commissioner may issue orders of suspension, removal from office, or prohibition from participation in the conduct of the affairs of the institution, as the commissioner considers appropriate. The order becomes effective 30 days after service on the institution and the individual concerned, except in the case of an order issued on consent, which becomes effective at the time specified in the order. The order remains effective and enforceable until it is stayed, modified, terminated, or set aside by action of a reviewing court.
Mont. Code Ann. § 32-3-416 — MT Code / Title 32 / Chapter 3 / Part 4 / Section 32-3-416
32-3-416 Credit committee or credit manager duties
Status: in_force

32-3-416 . Credit committee or credit manager duties. (1) A credit union may use a credit committee or a credit manager to approve or disapprove loans under conditions the board of directors prescribes.

(2) The credit committee or the credit manager may appoint one or more loan officers with the power to approve loans, subject to limitations or conditions that the board of directors prescribes. The board of directors shall provide an appeal process for applications rejected by loan officers.

(3) If a credit union uses a credit committee, a quorum of the credit committee shall meet as often as required to consider loan applications. A majority of the credit committee members who are present at the meeting at which an application is considered is required for approval of the application.

(4) Credit union policies set by the board of directors may determine the loan size or type of loans that a credit committee or credit manager may approve.
Mont. Code Ann. § 32-1-402 — MT Code / Title 32 / Chapter 1 / Part 4 / Section 32-1-402
32-1-402 When advertising as bank prohibited -- trade names restricted
Status: in_force

32-1-402 . When advertising as bank prohibited -- trade names restricted. (1) Except as provided in subsection (3), a person, domestic or foreign, that is not subject to the supervision of the department and not required by the provisions of this chapter to report to it and that has not received a certificate to do a banking business from the department, may not:

(a) except for a student financial institution, as defined in 32-1-115 , advertise that the person is receiving or accepting money or savings for deposit, investment, or otherwise and issuing notes or certificates of deposit; or

(b) advertise a sign at the place where the business is transacted having on it an artificial or corporate name or other words indicating that:

(i) the place or office is the place or office of a bank or trust company;

(ii) deposits are received there or payments made on checks; or

(iii) any other form of banking business is transacted there.

(2) The person, domestic or foreign, may not use any sign, logo, or marketing message, in any media, or use any written, printed, electronic, or internet-based instrument or material representation whatever directly or indirectly indicating that the business of the person is that of a bank, savings bank, or trust or investment company.

(3) (a) A Montana state-chartered bank or an out-of-state state-chartered bank that seeks to transact business under a name or title that contains the word "bank", "banker", "banking", "savings bank", "saving", "trust company", or "investment company" may do so only on the approval of the department. This section does not prohibit the use of the word "bank" in the name or title of any bank holding company registered with the board of governors of the federal reserve system pursuant to 12 U.S.C. 1844.

(b) The department may grant a waiver to allow the use of a restricted word listed in subsection (3)(a) to a nonprofit organization if:

(i) the organization is not acting as a financial institution; and

(ii) the name used is not likely to mislead a reasonable individual into thinking that the organization is acting as a financial institution.

(4) A person, domestic or foreign, violating a provision of this section shall forfeit to the state $100 a day for every day or part of a day during which the violation continues.

(5) On suit by the department, the court may issue an injunction restraining the person during pendency of the action and permanently from further using those words in violation of the provisions of this section or from further transacting business in a manner that leads the public to believe that its business is that of a bank, savings bank, or trust or investment company and may enter any other order or decree as equity and justice require.
Mont. Code Ann. § 32-2-1217 — MT Code / Title 32 / Chapter 2 / Part 12 / Section 32-2-1217
32-2-1217 Violation of notice or final order -- penalties
Status: in_force

32-2-1217 . Violation of notice or final order -- penalties. Any present or former board member or officer of an institution or any other person against whom an outstanding and effective notice or final order has been served pursuant to 32-2-1205 , 32-2-1207 , or 32-2-1208 is subject to the penalties in 32-2-607 (5) if the individual:

(1) participates in any manner in the conduct of the affairs of the institution;

(2) directly or indirectly solicits, procures, transfers, or attempts to transfer votes or attempts to vote any proxies, consents, or authorizations in respect to any voting rights in the institution; or

(3) without the prior written approval of the commissioner, votes for a board member or serves as a board member, officer, or employee of the institution.
Mont. Code Ann. § 32-3-406 — MT Code / Title 32 / Chapter 3 / Part 4 / Section 32-3-406
32-3-406 Compensation of officials
Status: in_force

32-3-406 . Compensation of officials. (1) An official of the credit union, other than the treasurer or an employee, may not be compensated for service in that position.

(2) For the purposes of this section, the following payments are allowed and are not considered compensation:

(a) necessary expenses incidental to the performance of official business of the credit union; or

(b) reasonable life, health, accident, and similar insurance protection for an official.
Mont. Code Ann. § 32-2-826 — MT Code / Title 32 / Chapter 2 / Part 8 / Section 32-2-826
32-2-826 Membership in federal home loan bank
Status: in_force

32-2-826 . Membership in federal home loan bank. (1) A mutual association may be a member of the federal home loan bank of this federal reserve banking district as far as may be compatible with the constitution of this state and the laws of the United States.

(2) The department, on request of any federal home loan bank, shall furnish that bank any information it may have relative to the finances, manner of business, methods of bookkeeping, and any other information relating to a mutual association that is a member of, seeking to become a member of, a borrower from, or seeking to become a borrower from a federal home loan bank.
Mont. Code Ann. § 32-7-109 — MT Code / Title 32 / Chapter 7 / Part 1 / Section 32-7-109
32-7-109 Application for license -- bond -- issuance
Status: in_force

32-7-109 . Application for license -- bond -- issuance. (1) A person must be licensed pursuant to this part before engaging in an escrow business.

(2) An application for a license must be in the form and submitted in the manner prescribed by the department.

(3) At the time of submitting an application for a license, the applicant shall file with the department a bond in an amount to be set by the department by rule. The bond must be issued by a surety company holding a certificate of authority from the Montana state auditor. The bond must be conditioned on the applicant conducting the escrow business in accordance with the requirements of law. All bonds must be renewed annually.

(4) The department shall grant and issue an escrow business license if:

(a) the department has received the bond and application; and

(b) the applicant has complied with all the application requirements of this part, including any protocols of a nationwide licensing system in which the department participates, and any rules promulgated under this part.

(5) An escrow business shall immediately notify the department of any material change in the information contained in the application.
Mont. Code Ann. § 32-2-1106 — MT Code / Title 32 / Chapter 2 / Part 11 / Section 32-2-1106
32-2-1106 Closed savings institutions empowered to borrow from corporation
Status: in_force

32-2-1106 . Closed savings institutions empowered to borrow from corporation. (1) If a savings institution is closed on account of the savings institution's inability to meet the demands of its depositors, by action of the department, by action of its directors, or in the event of its insolvency or suspension, the department or the department's agent may borrow from the corporation and furnish any of the assets of the savings institution to the corporation as security for a loan from the corporation. The department may sell to the corporation any part or all of the assets of the savings institution.

(2) The provisions of this section do not limit the power of a savings institution or the department to pledge or sell assets in accordance with any existing law.
Mont. Code Ann. § 32-1-380 — MT Code / Title 32 / Chapter 1 / Part 3 / Section 32-1-380
32-1-380 Rulemaking
Status: in_force

32-1-380 . Rulemaking. The department may adopt rules to implement 32-1-378 and 32-1-379 .
Mont. Code Ann. § 32-9-124 — MT Code / Title 32 / Chapter 9 / Part 1 / Section 32-9-124
32-9-124 Prohibitions -- required disclosure
Status: in_force

32-9-124 . Prohibitions -- required disclosure. (1) A mortgage broker, mortgage lender, mortgage servicer, or mortgage loan originator may not do any of the following:

(a) retain original documents owned by the borrower and submitted in connection with the loan application;

(b) directly or indirectly employ any scheme to defraud or mislead a borrower, a mortgage broker, a mortgage lender, a mortgage servicer, or any other person;

(c) make any misrepresentation or deceptive statement in connection with a residential mortgage loan, including but not limited to interest rates, points, costs at closing, or other financing terms or conditions;

(d) fail to pay a bona fide third party within 30 days after recording of the loan closing documents or within 90 days after completion of the bona fide third-party service, whichever is earlier, unless otherwise agreed by the parties;

(e) accept any fees or compensation in excess of those allowed by state or federal law;

(f) sign a borrower's application or related documents on behalf of or in lieu of another mortgage broker, mortgage lender, or mortgage loan originator;

(g) assist or aid and abet any person in the conduct of business under this part without a valid license as required under this part;

(h) conduct any business covered by the provisions of the Secure and Fair Enforcement for Mortgage Licensing Act, Title V of the Housing and Economic Recovery Act of 2008, Public Law 110-289, without holding a valid license as required under this part;

(i) fail to comply with this part or rules promulgated under this part or fail to comply with any other state or federal laws, including the rules and regulations adopted pursuant to those laws, applicable to any business authorized by or conducted under this part;

(j) fail to account for or deliver to any person any funds, documents, or other thing of value obtained in connection with a mortgage loan that the mortgage broker, mortgage lender, mortgage servicer, or mortgage loan originator is not entitled to retain under the circumstances;

(k) refuse to permit an investigation or examination of the mortgage broker's, mortgage lender's, mortgage servicer's, or mortgage loan originator's books and records or refuse to comply with a department subpoena or subpoena duces tecum;

(l) knowingly withhold, abstract, remove, mutilate, destroy, alter, or keep secret any books, records, computer records, or other information from the department; or

(m) negligently make any false statement or knowingly and willfully make any omission of material fact in connection with any information or reports filed with a government agency or the NMLS or in connection with any investigation conducted by the department or another governmental agency.

(2) Within 3 business days of taking an application, the mortgage loan originator working for a mortgage broker, in addition to other disclosures required by this part and other state and federal laws, shall provide to the borrower a written disclosure as prescribed by the department by rule.

(3) A mortgage broker or mortgage lender may not accept any fees or compensation that were not disclosed as required by state or federal law.

(4) A mortgage broker or mortgage lender may not charge or receive, directly or indirectly, fees for assisting a borrower in obtaining a mortgage until all of the services that the mortgage broker or mortgage lender has agreed to perform for the borrower are completed.

(5) A mortgage broker or mortgage lender may not charge or receive an amount in excess of the amount allowed by federal law. (See part compiler's comment regarding contingent suspension.)
Mont. Code Ann. § 32-2-1024 — MT Code / Title 32 / Chapter 2 / Part 10 / Section 32-2-1024
32-2-1024 Department to file inventory -- report required -- exception
Status: in_force

32-2-1024 . Department to file inventory -- report required -- exception. (1) Except as provided in subsection (2), the department shall, within 90 days after taking charge of an insolvent mutual association, file with the district court having jurisdiction a complete inventory of all of the property and assets of the insolvent mutual association, such as furniture, fixtures, real estate, mortgages, bonds, and notes, secured and unsecured.

(2) The department shall every 6 months, or more often if required by the court, file with the court a report showing the status of the liquidation of the mutual association, the assets that have been liquidated and collected, the amounts and manner of payments made to creditors, the manner in which claims have been handled, and the assets on hand. The report must contain other information the court requires, so that the court and the public may be apprised of the condition of the mutual association and the manner in which it is being liquidated with respect to the collection and sale of assets belonging to the mutual association and the manner in which claims are being paid. The report and account must be set for hearing on the notice the court may require and, if found to be correct, must be approved by the court.
Mont. Code Ann. § 32-2-1207 — MT Code / Title 32 / Chapter 2 / Part 12 / Section 32-2-1207
32-2-1207 Suspension or prohibition effective on service -- stay
Status: in_force

32-2-1207 . Suspension or prohibition effective on service -- stay. (1) (a) With respect to any board member, officer, or other person of an institution to whom notice is sent pursuant to 32-2-1205 , if the department considers it necessary for the protection of the institution or the interests of its depositors that the individual be suspended from office or prohibited from further participation in any manner in the conduct of the affairs of the institution, the department may serve on the individual a written notice suspending the individual from office or prohibiting the individual from further participation in any manner in the conduct of the affairs of the institution.

(b) The notice must contain a statement of the facts constituting grounds for the order and must fix a time, not later than 14 days from the date of the service of the notice, at which a hearing will be held to afford the individual the opportunity to respond.

(c) The suspension or prohibition is effective on service of the notice, and unless stayed by a court in proceedings authorized by subsection (2), remains in effect until:

(i) the completion of the administrative proceedings pursuant to the notice served under 32-2-1204 ;

(ii) the department dismisses the charges specified in the notice; or

(iii) the order of removal or prohibition that is issued against the board member, officer, or other person becomes effective.

(d) Copies of the notice must also be served on the institution of which the individual is a director or officer or in the conduct of whose affairs the individual has participated.

(2) Within 14 days after the hearing provided for in subsection (1), the board member, officer, or other person may apply to the district court for the county in which the home office of the institution is located for a stay of the suspension or prohibition pending the completion of the administrative proceedings pursuant to the notice served on the individual under 32-2-1204 . The court has jurisdiction to stay the suspension or prohibition.
Mont. Code Ann. § 32-3-603 — MT Code / Title 32 / Chapter 3 / Part 6 / Section 32-3-603
32-3-603 Loan limit
Status: in_force

32-3-603 . Loan limit. No loan shall be made to any member in an aggregate amount in excess of 10% of the credit union's total assets.
Mont. Code Ann. § 32-9-116 — MT Code / Title 32 / Chapter 9 / Part 1 / Section 32-9-116
32-9-116 Employment of mortgage loan originator
Status: in_force

32-9-116 . Employment of mortgage loan originator. (1) A mortgage loan originator may transact business for only one employing mortgage broker or one employing mortgage lender licensed in accordance with the provisions of this part.

(2) If the employment of a mortgage loan originator is terminated, the sponsoring mortgage broker or mortgage lender shall remove sponsorship of the mortgage loan originator on the NMLS within 5 business days of the termination. The mortgage loan originator's license must be placed in "Approved-Inactive" status until the license is sponsored by a mortgage broker or mortgage lender. If at the end of the next renewal period the license is not sponsored by a mortgage broker or mortgage lender, it must be automatically placed in "Terminated-Expired" status for failure to renew. The removal of sponsorship of the license of any mortgage loan originator extinguishes the right of the mortgage loan originator to engage in any residential mortgage loan origination activity until NMLS procedures have been followed to sponsor the license. (See part compiler's comment regarding contingent suspension.)
Mont. Code Ann. § 32-1-531 — MT Code / Title 32 / Chapter 1 / Part 5 / Section 32-1-531
32-1-531 Notice to creditors of insolvent bank
Status: in_force

32-1-531 . Notice to creditors of insolvent bank. (1) Except as provided in subsection (2), the department shall give notice by advertisement in a newspaper of general circulation in the town or city in which the bank is situated, if there is one, and, if not, then in some other newspaper published in this state, which the department shall designate, once a week for 2 successive weeks. The notice must call on all persons who have claims against the bank to present them to the department or its authorized agent at a place specified in the notice and to make sworn proof, in a form to be fixed by the department, within the time specified in the notice, not less than 90 days from the date of the first publication. A copy of the notice must be mailed to all persons whose names appear as creditors upon the books of the bank.

(2) If the federal deposit insurance corporation is appointed as the liquidating agent, the provisions of subsection (1) do not apply and notice to creditors must be given pursuant to federal law.
Mont. Code Ann. § 32-2-904 — MT Code / Title 32 / Chapter 2 / Part 9 / Section 32-2-904
32-2-904 Mutual associations -- powers and duties
Status: in_force

32-2-904 . Mutual associations -- powers and duties. (1) A mutual association may:

(a) act as fiscal agent for and receive deposits from the federal government, this state, or any agency or political subdivision of the federal government or this state;

(b) sue and be sued, complain, and defend in any court of law or equity;

(c) have a corporate seal, affixed by imprint, facsimile, or otherwise;

(d) appoint officers and agents as its business requires and allow them suitable compensation;

(e) adopt bylaws not inconsistent with the laws of Montana and the rules adopted under the laws of Montana;

(f) raise capital, which must be unlimited, by accepting payments on savings, demand, or other accounts, as are authorized by statute and rule, and the holders of the accounts or other accounts must, to the extent as may be provided by such rules and regulations, be members of the association and must have the voting rights and other rights as are provided;

(g) issue notes, bonds, debentures or other obligations, or securities, provided by or under any provision of state statute as from time to time is in effect;

(h) provide for redemption of insured accounts;

(i) borrow money without limitation and pledge and otherwise encumber any of its assets to secure its debts;

(j) lend and otherwise invest its funds as authorized by statute and rules;

(k) wind up and dissolve, merge, consolidate, convert, or reorganize;

(l) purchase, hold, and convey real estate and personal property consistent with its objectives, purposes, and powers;

(m) mortgage or lease any real estate and personal property and take the property by gift, devise, or bequest; and

(n) exercise all powers conferred by law.

(2) In addition to the powers listed in subsection (1), the mutual association may have power to do all things reasonably incident to the accomplishment of its express objects and the performance of its express powers.
Mont. Code Ann. § 32-3-409 — MT Code / Title 32 / Chapter 3 / Part 4 / Section 32-3-409
32-3-409 Authority of directors
Status: in_force

32-3-409 . Authority of directors. The board of directors shall have the general direction of the business affairs, funds, and records of the credit union.
Mont. Code Ann. § 32-5-203 — MT Code / Title 32 / Chapter 5 / Part 2 / Section 32-5-203
32-5-203 Conduct of other business in same office
Status: in_force

32-5-203 . Conduct of other business in same office. A licensee may conduct the business of making consumer loans under this chapter within any office, room, or place of business in which any other business for which a license under this chapter is not required is solicited or engaged in or in association or conjunction with the business. "Other business" may include making loans not primarily for personal, family, or household purposes, unless the department finds, after a hearing, that the other business is of a nature that the conduct tends to conceal evasion of this chapter or of the rules made under this chapter. If the department finds concealment or evasion, it shall order the licensee in writing to desist from the conduct.
Mont. Code Ann. § 32-1-218 — MT Code / Title 32 / Chapter 1 / Part 2 / Section 32-1-218
32-1-218 Department to make rules
Status: in_force

32-1-218 . Department to make rules. (1) The department may promulgate reasonable rules and orders concerning bookkeeping and accounting by state banks, including the keeping of reasonable credit information, information in connection with assets, or information in connection with charged-off items.

(2) The department may adopt uniform rules to govern the examination and reports of banks and trust companies and prescribe the form in which banks and trust companies report their assets, liabilities, and reserves.

(3) The department may promulgate reasonable rules concerning applications for and determinations on applications for the formation, relocation, closure, and sale of branch banks and applications for the formation, consolidation, and merger of shell banks.

(4) The department may adopt rules, issue orders and declaratory statements, disseminate information, and exercise its discretion to effectuate the purposes, policies, and provisions of this chapter.
Mont. Code Ann. § 32-1-101 — MT Code / Title 32 / Chapter 1 / Part 1 / Section 32-1-101
32-1-101 Short title -- application -- purpose
Status: in_force

32-1-101 . Short title -- application -- purpose. (1) Parts 1 through 5 of this chapter may be known as the "Bank Act".

(2) The Bank Act is applicable to:

(a) all corporations and persons specified in 32-1-102 ;

(b) corporations that subject themselves to the Bank Act; and

(c) persons, partnerships, or corporations who by violating the Bank Act become subject to the penalties provided in the Bank Act.

(3) (a) The purpose of the Bank Act is to provide Montana with a sound system of state-chartered banks by providing for and encouraging the development of state-chartered banks while restricting their activities to the extent necessary to protect the interests of depositors. The purpose includes:

(i) the sound conduct of the business of banks;

(ii) the conservation of bank assets;

(iii) the maintenance of adequate reserves against deposits;

(iv) the opportunity for banks to compete with other businesses, including but not limited to other financial organizations existing under the laws of this state, other states, the United States, and foreign countries;

(v) the opportunity for banks to serve the citizens of this state;

(vi) the opportunity for banks to participate in and promote the economic progress of Montana and the United States;

(vii) the opportunity for the management of banks to exercise business judgment in conducting the affairs of their institutions; and

(viii) modernization and simplification of the law governing banking by providing that banks have all the rights and powers granted corporations, except as otherwise provided in this chapter.

(b) The Bank Act does not restrict the activities of banks for the purpose of protecting any person from competition from banks and does not confer any right or cause of action upon any competitor.

(c) The purpose contained in this subsection (3) constitutes the standards to be observed by the commissioner of banking and financial institutions in the exercise of authority under the Bank Act and provides guidelines in the construction and application of the Bank Act.
Mont. Code Ann. § 32-1-467 — MT Code / Title 32 / Chapter 1 / Part 4 / Section 32-1-467
32-1-467 Loans to managing officer
Status: in_force

32-1-467 . Loans to managing officer. (1) A bank may extend credit to a managing officer of the bank:

(a) in any amount to finance the education of the managing officer's children;

(b) in any amount to finance the purchase, construction, maintenance, or improvement of a residence of the managing officer if the extension of credit is secured by a first lien on the residence and the residence is:

(i) owned by the managing officer; or

(ii) expected to be owned by the managing officer after the extension of credit; and

(c) for any other purpose not specified in subsections (1)(a) and (1)(b) if the aggregate amount of loans to that individual under this subsection (1) does not exceed at any one time the greater of 2.5% of the bank's capital and unimpaired surplus or $25,000. However, in no event may the aggregate amount of loans to the individual exceed $100,000.

(2) The department may adopt rules to address loans made before October 1, 1993, and to define capital and unimpaired surplus for purposes of 32-1-465 and this section.
Mont. Code Ann. § 32-7-116 — MT Code / Title 32 / Chapter 7 / Part 1 / Section 32-7-116
32-7-116 Statement of account
Status: in_force

32-7-116 . Statement of account. A licensee shall provide a full statement of an escrow account established under an escrow agreement within 14 days of a written request made by a party to the escrow agreement. The statement must state:

(1) credits to principal;

(2) interest earned for the period; and

(3) other information requested.
Mont. Code Ann. § 32-1-376 — MT Code / Title 32 / Chapter 1 / Part 3 / Section 32-1-376
32-1-376 Sale of branch bank
Status: in_force

32-1-376 . Sale of branch bank. Any bank may, with the approval of the department, buy from or sell to another bank, regardless of where either bank is located or doing business, all or substantially all of the business, assets, and liabilities of the selling bank's branch bank or branch banks that are physically located in this state.
Mont. Code Ann. § 32-1-507 — MT Code / Title 32 / Chapter 1 / Part 5 / Section 32-1-507
32-1-507 Power of closed banks to borrow money from governmental agencies
Status: in_force

32-1-507 . Power of closed banks to borrow money from governmental agencies. (1) Except as provided in subsection (2), after applying to and obtaining the approval of the department and the district court of the county in which the bank or trust or investment company is located, the liquidating agents of closed banks may borrow money from an agency of the federal government on behalf of commercial banks, savings banks, trust companies, and investment companies closed and in liquidation. As security for the loan the liquidating agent may pledge or mortgage assets and properties for the purpose of paying depositors or creditors in part or in full.

(2) If the federal deposit insurance corporation is appointed as the liquidating agent, the reporting and district court approval requirements of subsection (1) do not apply.
Mont. Code Ann. § 32-1-435 — MT Code / Title 32 / Chapter 1 / Part 4 / Section 32-1-435
32-1-435 Federal housing securities eligible collateral
Status: in_force

32-1-435 . Federal housing securities eligible collateral. Wherever collateral must or may be furnished by any depository in the state of Montana as security for the deposit of any funds whatsoever or wherever collateral must or may be deposited with any official of the state of Montana pursuant to any statute of this state, mortgages insured and debentures issued by the federal housing administrator shall be considered eligible collateral for such purposes.
Mont. Code Ann. § 32-2-1202 — MT Code / Title 32 / Chapter 2 / Part 12 / Section 32-2-1202
32-2-1202 Notice of charges -- hearing -- cease and desist order -- effective date
Status: in_force

32-2-1202 . Notice of charges -- hearing -- cease and desist order -- effective date. (1) If the department has reasonable cause to believe that any institution is engaging, has engaged, or is about to engage in an unsafe or unsound practice in conducting the business of the institution or is violating, has violated, or is about to violate a law or rule, the department may issue and serve on the institution a notice of charges. The notice must contain a statement of the facts constituting the alleged unsafe or unsound practice or violation and must fix a time and place at which an administrative hearing pursuant to Title 2, chapter 4, part 6, will be held to determine whether an order to cease and desist should be issued against the institution.

(2) The hearing may not be earlier than 30 days or later than 60 days after service of the notice unless an earlier or a later date is set by the hearings examiner at the request of the institution. Unless the institution appears at the hearing by a duly authorized representative, it is considered to have consented to the issuance of the cease and desist order. In the event of consent or if upon the record made at any such hearing the hearings examiner finds that any unsafe or unsound practice or violation specified in the notice of charges has been established by the preponderance of the evidence, the commissioner may issue and serve on the institution an order to cease and desist from the practice or violation. By provisions that may be mandatory or otherwise, the order may require the institution and its board members, officers, employees, and agents to cease and desist from the practice or violation and to take affirmative action to correct the conditions resulting from the practice or violation.

(3) A cease and desist order becomes effective at the expiration of 30 days after the service of the order on the institution, except in the case of an order issued on consent, which is effective at the time specified. The cease and desist order remains effective and enforceable, except to the extent it is stayed, modified, terminated, or set aside by the action of the commissioner or a reviewing court.