reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 5. Shares and Accounts › 32-3-507. Liens

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.
History: En. 14-645 by Sec. 45, Ch. 38, L. 1975; R.C.M. 1947, 14-645; amd. Sec. 1048, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 5. Shares and Accounts › 32-3-508. Dormant accounts

32-3-508. Dormant accounts.
When administering member accounts that are dormant, unclaimed, or abandoned, a credit union shall comply with the Uniform Unclaimed Property Act provided for in Title 70, chapter 9, part 8.
History: En. 14-646 by Sec. 46, Ch. 38, L. 1975; R.C.M. 1947, 14-646; amd. Sec. 31, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 5. Shares and Accounts › 32-3-509. Reduction in shares

32-3-509. Reduction in shares.
(1) Whenever the losses of any credit union, resulting from a depreciation in value of its loans or investments or otherwise, exceed its undivided earnings and reserve fund so that the estimated value of its assets is less than the total amount due the shareholders, the credit union may by a majority vote of the entire membership order a reduction in the shares of each of its shareholders to divide the loss proportionately among the members.
(2) If the credit union thereafter realizes from such assets a greater amount than was fixed by the order of reduction, such excess shall be divided proportionately among the shareholders whose assets were reduced, but only to the extent of such reduction.
History: En. 14-647 by Sec. 47, Ch. 38, L. 1975; R.C.M. 1947, 14-647.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 5. Shares and Accounts › 32-3-510. Withdrawals

32-3-510. Withdrawals.
Shares may be withdrawn for payment to the account holder or to third parties in such manner and in accordance with such procedures as may be established by the board of directors.
History: En. Sec. 8, Ch. 522, L. 1985.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 6. Loans and Insurance › 32-3-601. Repealed

32-3-601. Repealed.
Sec. 14, Ch. 317, L. 2015.
History: En. 14-648 by Sec. 48, Ch. 38, L. 1975; R.C.M. 1947, 14-648; amd. Sec. 6, Ch. 275, L. 1981; amd. Sec. 1, Ch. 9, L. 1983; amd. Sec. 32, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 6. Loans and Insurance › 32-3-602. Loan application

32-3-602. Loan application.
Every application for a loan must be made upon a form prescribed by the credit union. The application must state the security, if any, offered. Each loan must be evidenced by a written document or electronic data capable of being converted into written form.
History: En. 14-649 by Sec. 49, Ch. 38, L. 1975; R.C.M. 1947, 14-649; amd. Sec. 5, Ch. 25, L. 2001; amd. Sec. 33, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 6. Loans and Insurance › 32-3-603. Loan limit

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.
History: En. 14-650 by Sec. 50, Ch. 38, L. 1975; R.C.M. 1947, 14-650.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 6. Loans and Insurance › 32-3-604. Security -- real property loans

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.
History: En. 14-651 by Sec. 51, Ch. 38, L. 1975; R.C.M. 1947, 14-651; amd. Sec. 34, Ch. 237, L. 2003; amd. Sec. 2, Ch. 324, L. 2009.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 6. Loans and Insurance › 32-3-605. Installments

32-3-605. Installments.
A member may receive a loan in installments or in one sum and may pay the whole or any part of the loan on any day on which the office of the credit union is open for business.
History: En. 14-652 by Sec. 52, Ch. 38, L. 1975; R.C.M. 1947, 14-652; amd. Sec. 1049, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 6. Loans and Insurance › 32-3-606. Line of credit

32-3-606. Line of credit.
Upon their own motion or upon application by a member, the credit committee or credit manager may approve a line of credit in advance, and advances may be granted to each member within the limit of such extension of credit. Where a line of credit has been approved, no additional loan applications are required as long as the aggregate obligation does not exceed the limit of such extension of credit.
History: En. 14-653 by Sec. 53, Ch. 38, L. 1975; R.C.M. 1947, 14-653.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 6. Loans and Insurance › 32-3-607. Other loan programs

32-3-607. Other loan programs.
(1) A credit union may participate in loans to credit union members jointly with other credit unions, corporations, or financial organizations.
(2) A credit union may participate in guaranteed loan programs of the federal and state government.
(3) A credit union may purchase the conditional sales contracts, notes, and similar instruments of its members.
History: En. 14-654 by Sec. 54, Ch. 38, L. 1975; R.C.M. 1947, 14-654.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 6. Loans and Insurance › 32-3-608. Loans to officials

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.
History: En. 14-655 by Sec. 55, Ch. 38, L. 1975; R.C.M. 1947, 14-655; amd. Sec. 2, Ch. 365, L. 1997; amd. Sec. 35, Ch. 237, L. 2003; amd. Sec. 12, Ch. 317, L. 2015.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 6. Loans and Insurance › 32-3-609. Insurance for members -- debt cancellation and suspension programs

32-3-609. Insurance for members -- debt cancellation and suspension programs.
(1) A credit union may purchase or make available insurance for its members in amounts related to their respective ages, shares, or loan balances or to any combination of them.
(2) A credit union may, upon application to and approval by the department of administration pursuant to 32-3-206, offer debt cancellation and suspension programs. Debt cancellation or suspension programs offered pursuant to this subsection are not insurance products subject to the provisions of Title 33. The department shall adopt rules to implement this subsection that must be substantially equivalent to or more stringent than federal laws, regulations, and regulatory guidelines that are applicable to debt cancellation or suspension programs offered by federal credit unions.
History: En. 14-656 by Sec. 56, Ch. 38, L. 1975; R.C.M. 1947, 14-656; amd. Sec. 2, Ch. 138, L. 2011.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 6. Loans and Insurance › 32-3-610. Liability insurance for officers

32-3-610. Liability insurance for officers.
A credit union may purchase and maintain insurance on behalf of any person who is or was a director, officer, employee, or agent of the credit union or who is or was serving at the request of the credit union as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise against any liability asserted against such person and incurred by such person in any such capacity or arising out of such person's status as such, whether or not the credit union would have the power to indemnify such person against such liability.
History: En. 14-657 by Sec. 57, Ch. 38, L. 1975; R.C.M. 1947, 14-657.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 6. Loans and Insurance › 32-3-611. Share insurance

32-3-611. Share insurance.
(1) Each credit union shall maintain insurance on its share accounts under the provisions of Title II of the Federal Credit Union Act or through a legally constituted insurance plan approved by the commissioner of insurance and the department of administration.
(2) A credit union may not begin operation or transact any business until proof that it has obtained insurance under the provisions of Title II of the Federal Credit Union Act or under an approved insurance plan has been furnished to the department.
(3) A credit union operating in violation of this section is subject to an order of suspension as provided for in 32-3-205.
(4) Subject to the provisions of 32-3-207, the department shall make available reports of condition and examination reports to the national credit union administration or any official of an insurance plan and may accept any report of examination made on behalf of the national credit union administration or insurance plan official. The department may appoint the national credit union administration or any official of an insurance plan as liquidating agent of an insured credit union.
History: En. 14-658 by Sec. 58, Ch. 38, L. 1975; R.C.M. 1947, 14-658; amd. Sec. 7, Ch. 36, L. 1979; amd. Sec. 2, Ch. 274, L. 1981; amd. Sec. 7, Ch. 522, L. 1985; amd. Sec. 95, Ch. 483, L. 2001; amd. Sec. 36, Ch. 237, L. 2003; amd. Sec. 22, Ch. 3, L. 2019.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 7. Investments and Reserves › 32-3-701. Investment of funds -- rulemaking

32-3-701. Investment of funds -- rulemaking.
(1) Funds not used in loans to members may be invested in:
(a) securities, obligations, or other instruments issued by or fully guaranteed as to principal and interest by the United States of America or any agency of the United States government or in any trust established for investing directly or collectively in securities, obligations, or other instruments issued by or fully guaranteed as to principal and interest by the United States government;
(b) general obligations of any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and the several territories organized by congress, or any political subdivisions of entities listed in this subsection (1)(b);
(c) certificates of deposit or passbook type accounts issued by a state or national bank, mutual savings bank, building and loan association, or savings and loan association;
(d) loans to or in shares or deposits of other credit unions;
(e) the capital shares, obligations, or preferred stock issues of any agency or association organized either as a stock company, mutual association, or membership corporation, provided the membership or stockholdings, as the case may be, of the agency or association are primarily confined or restricted to credit unions or organizations of credit unions and provided the purposes for which the agency or association is organized are designed primarily to service or otherwise assist credit union operations;
(f) shares of a cooperative society organized under the laws of this state or of the laws of the United States in the total amount not exceeding 10% of the shares and surplus of the credit union;
(g) loans to any credit union association or corporation, national or state, of which the credit union is a member, except that the investments authorized under this subsection (1)(g) must be limited to 2% of the assets of the credit union.
(2) A credit union may purchase, sell, underwrite, and hold other investment securities that are obligations in the form of bonds, notes, or debentures, as provided in rules adopted by the department. However, a credit union may not purchase, sell, underwrite, or hold investment securities that are derivative transactions.
(3) The department shall adopt rules to implement this section.
History: En. 14-659 by Sec. 59, Ch. 38, L. 1975; R.C.M. 1947, 14-659; amd. Sec. 13, Ch. 317, L. 2015.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 7. Investments and Reserves › 32-3-702. Maintenance of regular reserve account

32-3-702. Maintenance of regular reserve account.
The department of administration may require a credit union to establish and maintain, at a certain level, a regular reserve account as a contingency to address potential losses. The department may rely on standards adopted by the national credit union administration (NCUA) in making any determination to require a credit union to establish a regular reserve account.
History: En. 14-660 by Sec. 60, Ch. 38, L. 1975; R.C.M. 1947, 14-660; amd. Sec. 2, Ch. 64, L. 2003; amd. Sec. 37, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 7. Investments and Reserves › 32-3-703. Use of regular reserve account

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.
History: En. 14-661 by Sec. 61, Ch. 38, L. 1975; R.C.M. 1947, 14-661; amd. Sec. 2, Ch. 274, L. 1981; amd. Sec. 1, Ch. 219, L. 1983; amd. Sec. 96, Ch. 483, L. 2001; amd. Sec. 38, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 7. Investments and Reserves › 32-3-704. Repealed

32-3-704. Repealed.
Sec. 3, Ch. 64, L. 2003; sec. 40, Ch. 237, L. 2003.
History: En. 14-662 by Sec. 62, Ch. 38, L. 1975; R.C.M. 1947, 14-662; amd. Sec. 1, Ch. 4, L. 1991; amd. Sec. 42, Ch. 18, L. 1995.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 7. Investments and Reserves › 32-3-705. Special reserves

32-3-705. Special reserves.
In addition to the regular reserve account, special reserves to protect the interest of members must be established:
(1) when required by regulation; or
(2) when found by the board of directors of the credit union or by the department of administration to be necessary.
History: En. 14-663 by Sec. 63, Ch. 38, L. 1975; R.C.M. 1947, 14-663; amd. Sec. 2, Ch. 274, L. 1981; amd. Sec. 97, Ch. 483, L. 2001; amd. Sec. 39, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 8. Corporate Credit Unions › 32-3-801. Organization

32-3-801. Organization.
A corporate credit union may be organized and operated under this chapter and is subject to all provisions not inconsistent with this part. The credit union shall use the term "corporate" in its official name.
History: En. 14-668 by Sec. 68, Ch. 38, L. 1975; R.C.M. 1947, 14-668; amd. Sec. 1, Ch. 66, L. 1993; amd. Sec. 43, Ch. 18, L. 1995.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 8. Corporate Credit Unions › 32-3-802. Purpose -- membership

32-3-802. Purpose -- membership.
(1) A corporate credit union must be operated primarily for the purpose of serving other credit unions.
(2) Membership in a corporate credit union must include credit unions organized and operating under this chapter or under any other credit union law.
(3) Membership may also include:
(a) officers, directors, committee members, and employees of credit unions; or
(b) organizations and associations of those persons or organizations enumerated in subsections (2) and (3)(a).
(4) The membership of a corporate credit union may not include more than seven natural persons as described in subsection (3)(a).
History: En. 14-669 by Sec. 69, Ch. 38, L. 1975; R.C.M. 1947, 14-669; amd. Sec. 2, Ch. 66, L. 1993.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 8. Corporate Credit Unions › 32-3-803. Voting representative -- conflict of interest

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.
History: En. 14-670 by Sec. 70, Ch. 38, L. 1975; R.C.M. 1947, 14-670; amd. Sec. 3, Ch. 66, L. 1993; amd. Sec. 140, Ch. 42, L. 1997; amd. Sec. 3, Ch. 365, L. 1997.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 8. Corporate Credit Unions › 32-3-804. Additional rights and powers -- department rules

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.
History: En. 14-671 by Sec. 71, Ch. 38, L. 1975; amd. Sec. 1, Ch. 111, L. 1977; R.C.M. 1947, 14-671; amd. Sec. 1, Ch. 233, L. 1979; amd. Sec. 2, Ch. 274, L. 1981; amd. Sec. 4, Ch. 66, L. 1993; amd. Sec. 4, Ch. 365, L. 1997.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 8. Corporate Credit Unions › 32-3-805. Membership capital accounts

32-3-805. Membership capital accounts.
(1) A corporate credit union may issue membership capital accounts to members that are available to cover losses that exceed reserves and undivided earnings and paid-in capital.
(2) (a) For purposes of this section, "membership capital account" means a share, deposit, term certificate, adjusted balance, or other account that:
(i) is established, at a minimum, as a 3-year notice account;
(ii) is limited to members;
(iii) is not subject to share insurance coverage by the national credit union share insurance fund or other deposit insurers; and
(iv) in the event of liquidation of the corporate credit union, is payable only after satisfaction of all liabilities of the liquidation estate, including uninsured obligations to shareholders and the national credit union share insurance fund.
(b) Upon written notice of intent to withdraw membership capital, the balance of the account will be frozen with no annual adjustment until the conclusion of the notice period, except in the case of a credit union that is placed into liquidation, is purchased and assumed, or is merged.
(c) Upon notification of intent to withdraw, the amount of the account on notice that may be considered membership capital is reduced by a constant monthly amortization that ensures that the recognition of membership capital is fully amortized at the end of the notice period.
(d) The full balance of a membership capital account that has been placed on notice, not just the remaining nonamortized portion, is available to absorb losses in excess of reserves and undivided earnings and of paid-in capital until the funds are released by the corporate credit union at the conclusion of the notice period.
(3) A membership capital account may not be used to pledge borrowings.
(4) Corporate credit unions that issue membership capital accounts shall disclose the terms and conditions of the account when it is opened and at least annually thereafter.
History: En. Sec. 5, Ch. 66, L. 1993; amd. Sec. 5, Ch. 365, L. 1997.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 8. Corporate Credit Unions › 32-3-806. Fixed assets -- department rules

32-3-806. Fixed assets -- department rules.
(1) A corporate credit union may not invest in fixed assets if the aggregate of those investments would exceed 15% of capital, unless the credit union receives prior written approval from the department and the national credit union administration board.
(2) The department shall adopt rules for the administration of subsection (1) and for governing ownership of fixed assets by a corporate credit union. The rules must be in substantial conformance with Title 12, part 704, Code of Federal Regulations.
History: En. Sec. 6, Ch. 66, L. 1993.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 8. Corporate Credit Unions › 32-3-807. Corporate reserves -- department rules

32-3-807. Corporate reserves -- department rules.
(1) A corporate credit union shall maintain a minimum capital to assets ratio according to rules adopted by the department in substantial conformance with Title 12, part 704, Code of Federal Regulations.
(2) The department shall adopt rules for the administration of subsection (1).
History: En. Sec. 7, Ch. 66, L. 1993; amd. Sec. 6, Ch. 365, L. 1997.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 8. Corporate Credit Unions › 32-3-808. Annual audit

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.
History: En. Sec. 8, Ch. 66, L. 1993.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 8. Corporate Credit Unions › 32-3-809. Contracts and written agreements

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.
History: En. Sec. 9, Ch. 66, L. 1993.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 8. Corporate Credit Unions › 32-3-810. Paid-in capital defined -- authorized

32-3-810. Paid-in capital defined -- authorized.
(1) "Paid-in capital" means accounts or other interests of a corporate credit union that:
(a) may not exceed reserves and undivided earnings;
(b) may include both member paid-in capital and nonmember paid-in capital;
(c) are available to cover losses that exceed reserves and undivided earnings;
(d) are not insured by the national credit union share insurance fund (NCUSIF) or other share or deposit insurers;
(e) are callable only at the option of the corporate credit union and only if the corporate credit union meets its minimum level of required capital after the funds are called; and
(f) in the event of liquidation of the corporate credit union, are payable only after satisfaction of all liabilities of the liquidation estate, including uninsured share obligations to the shareholders, the NCUSIF, and membership capital holders.
(2) (a) A corporate credit union may issue paid-in capital to its members.
(b) Member paid-in capital must have an initial maturity of 20 years.
(c) A corporate credit union may not condition membership, services or prices for services on a member's ownership of paid-in capital.
(d) When a paid-in capital instrument has a remaining maturity of 5 years, the amount of the instrument that may be considered paid-in capital for the purposes of this part is reduced by a constant monthly amortization that ensures the recognition of paid-in capital is fully amortized when the instrument has a remaining maturity of 3 years.
(e) The terms and conditions of any member paid-in capital instrument must be disclosed to the recorded owner of the instrument at the time the instrument is created and at least annually thereafter.
(3) A corporate credit union may issue nonmember paid-in capital accounts. However, the corporate credit union may only issue the accounts after approval by the department and the national credit union administration (NCUA), and following an evaluation by the NCUA of the strategic purpose and financial impact of issuing the accounts, the corporate credit union's financial condition and management capabilities, the maturity and capital amortization schedules of the paid-in capital instrument; and the participation, voting, acceleration, redemption, or other rights of the holder.
History: En. Sec. 9, Ch. 365, L. 1997.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 9. Taxation › 32-3-901. Taxation

32-3-901. Taxation.
All credit unions organized under this or any other credit union law shall have the same immunity from state and local taxation that federal credit unions have from time to time under the laws of the United States.
History: En. 14-672 by Sec. 72, Ch. 38, L. 1975; R.C.M. 1947, 14-672.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 9. Taxation › 32-3-902. Stock transfer taxes

32-3-902. Stock transfer taxes.
The shares of any credit union shall not be subject to stock transfer taxes, either when issued or when transferred from one member to another.
History: En. 14-673 by Sec. 73, Ch. 38, L. 1975; R.C.M. 1947, 14-673.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 9. Taxation › 32-3-903. Effect of participation in government programs

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.
History: En. 14-674 by Sec. 74, Ch. 38, L. 1975; R.C.M. 1947, 14-674.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 10. Penalties › 32-3-1003. Penalty for false statements or entries to books and records

32-3-1003. Penalty for false statements or entries to books and records.
(1) The department of administration may impose a fine not exceeding $50,000 on a director, an executive officer, an agent, or an employee of a credit union who willfully and knowingly:
(a) makes or subscribes a false statement of facts, statement of account, or report; or
(b) makes a false entry in the books of the credit union or knowingly subscribes or exhibits false papers with the intent to deceive a person authorized to examine the credit union.
(2) The fines must be deposited in the general fund.
History: En. Sec. 1, Ch. 480, L. 2019.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 10. Penalties › 32-3-1004. Penalty for fraud by director, executive officer, agent, or employee

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.
History: En. Sec. 2, Ch. 480, L. 2019.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 10. Penalties › 32-3-1005. Theft of funds

32-3-1005. Theft of funds.
(1) The following conditions are considered theft for which the offender, upon conviction, is to be imprisoned in a state correctional facility for a term not exceeding 20 years and fined by the department of administration an amount not to exceed $50,000:
(a) fraudulent appropriation, misapplication, or theft of the money, funds, credits, or property of a credit union, whether owned by the credit union or held in trust;
(b) fraudulent issuance or putting forth of a share certificate;
(c) fraudulent drawing of an order or bill of exchange;
(d) fraudulent acceptance or assignment of a note, bond, draft, bill of exchange, mortgage, judgment, or decree with intent to injure or defraud the credit union; or
(e) fraudulent attempt to deceive an officer of the credit union or anyone appointed to examine the affairs of the credit union.
(2) This section applies to a credit union director, officer, or employee or any person who with like intent aids or abets any individual listed under this subsection (2) in the actions listed in subsection (1).
History: En. Sec. 3, Ch. 480, L. 2019.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 10. Penalties › 32-3-1008. Concealing actions from directors

32-3-1008. Concealing actions from directors.
(1) An officer or employee of a credit union who intentionally conceals from the directors or a committee of the directors any of the actions under subsection (2) may be charged with a misdemeanor, and upon being found guilty or pleading guilty is subject for each offense to a term of not more than 12 months in the county jail or a fine by the department of administration of not more than $500, or both.
(2) The following actions intentionally concealed from the directors are violations of this chapter:
(a) providing a discount, an extension of credit, or a loan made on behalf of the credit union; or
(b) purchasing a security, selling any of the credit union's securities, or making any guarantee, repurchase agreement, or other agreement obligating the credit union.
History: En. Sec. 4, Ch. 480, L. 2019.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 10. Penalties › 32-3-1009. False statement to obtain or extend loan

32-3-1009. False statement to obtain or extend loan.
An individual may be fined by the department of administration not more than $1,000 for each false statement made:
(1) to obtain for the individual or for another person, a firm, a corporation, or an association a loan of money from a credit union;
(2) to gain an extension of time for the payment of a debt owed to the credit union; or
(3) to extend credit to a customer.
History: En. Sec. 5, Ch. 480, L. 2019.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 10. Penalties › 32-3-1013. Removal of directors, officers, employees -- hearing

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.
History: En. Sec. 6, Ch. 480, L. 2019.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 4. Development Corporation Act › Part 1. General Provisions › 32-4-101. Definitions

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.
History: En. Sec. 2, Ch. 128, L. 1969; R.C.M. 1947, 15-2602; amd. Sec. 1, Ch. 320, L. 1983.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 4. Development Corporation Act › Part 1. General Provisions › 32-4-102. Purpose

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.
History: En. Sec. 1, Ch. 128, L. 1969; R.C.M. 1947, 15-2601.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 4. Development Corporation Act › Part 1. General Provisions › 32-4-103. Credit of state and local governments not pledged

32-4-103. Credit of state and local governments not pledged.
Under no circumstances is the credit of the state, county, or municipal governments or their agencies or authorities pledged under this chapter.
History: En. Sec. 17, Ch. 128, L. 1969; R.C.M. 1947, 15-2617; amd. Sec. 1, Ch. 497, L. 1989.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 4. Development Corporation Act › Part 1. General Provisions › 32-4-104. Application of corporation law

32-4-104. Application of corporation law.
The provisions of Title 35 shall apply to the corporation insofar as they may be applicable and not inconsistent with this chapter.
History: En. Sec. 18, Ch. 128, L. 1969; R.C.M. 1947, 15-2618.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 4. Development Corporation Act › Part 2. Organization › 32-4-203. Certificate of incorporation

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.
History: En. Sec. 4, Ch. 128, L. 1969; R.C.M. 1947, 15-2604; amd. Sec. 1050, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 4. Development Corporation Act › Part 2. Organization › 32-4-204. Effect of failure to commence business

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.
History: En. Sec. 16, Ch. 128, L. 1969; R.C.M. 1947, 15-2616.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 4. Development Corporation Act › Part 2. Organization › 32-4-205. Amendment of articles of incorporation

32-4-205. Amendment of articles of incorporation.
(1) The articles of incorporation may be amended by vote of the stockholders of the corporation, and the amendments require approval by the affirmative vote of two-thirds of the stockholders, provided:
(a) that an amendment that is inconsistent with the general purposes expressed in this chapter or that eliminates or curtails the obligation of the corporation to make reports as provided in 32-4-306 may not be made without amendment of this chapter; and
(b) that an amendment of the articles of incorporation that increases the obligation of a member to make loans to the corporation, makes any change in the principal amount, interest rate, maturity date, or in the security or credit position of any outstanding loan of a member to the corporation, or affects a member's right to withdraw from membership as provided in 32-4-303 may not be made without the consent of each member affected by the amendment.
(2) Within 30 days after any meeting at which amendment of the articles of incorporation has been adopted, articles of amendment signed and sworn to by the president, treasurer, and a majority of the directors, setting forth the amendment and the due adoption of the amendment, must so far as consistent with this chapter be submitted, as prescribed in Title 35, to the secretary of state who shall examine the articles. If the secretary of state finds that the articles conform to the requirements of this chapter, the secretary of state shall so certify and endorse approval on the amended articles. Upon certification and approval, the amended articles of incorporation must be filed in the office of the secretary of state, and an amendment may not take effect until the amended articles of incorporation have been filed as provided in this subsection.
History: En. Sec. 5, Ch. 128, L. 1969; R.C.M. 1947, 15-2605; amd. Sec. 1, Ch. 91, L. 1987; amd. Sec. 1051, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 4. Development Corporation Act › Part 2. Organization › 32-4-206. Board of directors

32-4-206. Board of directors.
(1) The business and affairs of the corporation shall be managed and conducted by a board of directors, a president and treasurer, and other officers and agents as the corporation by its bylaws shall authorize.
(2) The board of directors shall consist of a number, not less than nine, as determined in the first instance by the incorporators and thereafter annually by the stockholders of the corporation, provided that any state, county, or municipal agency or authority that has made a grant or loan to the corporation shall have at least one seat on the board of directors and additional seats representative of its proportional investment in the corporation.
(3) The directors need not be stockholders in the corporation.
(4) The board of directors may exercise all the powers of the corporation except as are conferred by law or by the bylaws of the corporation upon the stockholders and shall choose and appoint all the agents and officers of the corporation and fill all vacancies in the office of director.
(5) The board of directors shall be elected in the first instance by the incorporators and thereafter at each annual meeting of the corporation or, if no annual meeting is held in any year at the time fixed by the bylaws, at a special meeting held in lieu of the annual meeting. At each annual meeting or at each special meeting held in lieu of the annual meeting, the stockholders shall elect the directors. The directors shall hold office until the next annual meeting of the corporation or special meeting held in lieu of the annual meeting after their election and until their successors are elected and qualified, unless sooner removed in accordance with the provisions of the bylaws.
(6) Directors and officers are not responsible for losses unless the losses were occasioned by the willful misconduct of the directors and officers.
History: En. Sec. 6, Ch. 128, L. 1969; R.C.M. 1947, 15-2606; amd. Sec. 2, Ch. 91, L. 1987; amd. Sec. 3, Ch. 497, L. 1989.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 4. Development Corporation Act › Part 2. Organization › 32-4-207. First meeting of corporation

32-4-207. First meeting of corporation.
(1) The first meeting of the corporation shall be called by a notice signed by three or more of the incorporators, stating the time, place, and purpose of the meeting, a copy of which notice shall be mailed or delivered to each incorporator at least 5 days before the day appointed for the meeting. Said first meeting may be held without such notice upon agreement in writing to that effect signed by all the incorporators. There shall be recorded in the minutes of the meeting a copy of said notice or of such unanimous agreement of the incorporators.
(2) At such first meeting the incorporators shall organize by the choice by ballot of a temporary clerk, by the adoption of bylaws, by the election by ballot of directors, and by action upon such other matters within the powers of the corporation as the incorporators may see fit. The temporary clerk shall be sworn and shall make and attest a record of the proceedings. Five of the incorporators shall be a quorum for the transaction of business.
History: En. Sec. 8, Ch. 128, L. 1969; R.C.M. 1947, 15-2608.