reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 1. General Provisions › 32-3-102. Purposes -- definitions

32-3-102. Purposes -- definitions.
(1) The purposes of a credit union are to:
(a) encourage thrift among its members;
(b) create a source of credit at a fair and reasonable rate of interest; and
(c) provide an opportunity for the credit union's members to use and control their own money in order to improve their economic and social condition.
(2) For the purposes of this chapter, unless the context requires otherwise, the following definitions apply:
(a) "Credit union" means a cooperative, nonprofit association incorporated under the laws of this state pursuant to this chapter for the purposes described in subsection (1).
(b) "Immediate family" means a spouse, a child, a sibling, a parent, a grandparent, or a grandchild and includes stepparents, stepchildren, stepsiblings, and adoptive relationships.
(c) "Membership shares" means a fee paid to the credit union to be a member. The fee is held by the credit union and may be invested by the credit union. The fee must be set in the bylaws of the credit union.
(d) "Official" means a member of the board of directors, supervisory committee, or credit committee of the credit union and includes individuals elected by the board of directors to serve as executive officers described in 32-3-408.
(e) "Shares" means a balance of funds, minus membership shares, held by a credit union and established in accordance with standards specified by the credit union. The term includes general references to shares as well as share accounts, share certificates, share draft accounts, custodial accounts, individual retirement accounts, payable on death accounts, trust accounts, money market accounts, share checking accounts, and business share accounts.
History: En. 14-602 by Sec. 2, Ch. 38, L. 1975; R.C.M. 1947, 14-602; amd. Sec. 1, Ch. 317, L. 2015.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 1. General Provisions › 32-3-103. Use of name exclusive

32-3-103. Use of name exclusive.
(1) The name of any credit union organized under this chapter must include the phrase "credit union". A credit union may not adopt a name either identical to the name of any other credit union doing business in this state or so similar as to be misleading or to cause confusion.
(2) A person, other than a credit union organized under the provisions of this chapter or of any other credit union act or an organization or corporation whose membership or ownership is primarily limited to credit unions or credit union organizations, may not use a name or title containing the words "credit union" or any derivation of the words "credit union", and the person may not represent that the person is a credit union and may not conduct business as a credit union.
(3) A person who violates a provision of this section shall be fined not more than $500 or imprisoned not more than 1 year, or both, and may be permanently enjoined from further violation of the provisions of this section.
History: En. 14-606 by Sec. 6, Ch. 38, L. 1975; R.C.M. 1947, 14-606; amd. Sec. 1, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 1. General Provisions › 32-3-104. Office facilities

32-3-104. Office facilities.
(1) A credit union may change its place of business within this state upon written notice to the department of administration.
(2) A credit union may share office space with one or more credit unions and contract with any person or corporation to provide facilities or personnel.
(3) A credit union may maintain, upon prior written notice to the department, additional offices at locations other than its principal place of business if the purpose of maintaining the additional offices is to furnish service to its members.
(4) The department shall approve any additional office unless a compelling reason for disapproval is found by the department. Competition with other financial institutions is not a sufficiently compelling reason for disapproval.
(5) If the department disapproves an additional office, the credit union must be afforded an opportunity for a hearing according to Title 2, chapter 4, part 6. The purpose of the hearing is to determine whether a compelling reason exists for disapproval of the additional office.
History: En. 14-607 by Sec. 7, Ch. 38, L. 1975; R.C.M. 1947, 14-607; amd. Sec. 1, Ch. 140, L. 1981; amd. Sec. 2, Ch. 274, L. 1981; amd. Sec. 83, Ch. 483, L. 2001.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 1. General Provisions › 32-3-105. Fiscal year

32-3-105. Fiscal year.
The fiscal year of each credit union organized under this chapter shall end on December 31.
History: En. 14-608 by Sec. 8, Ch. 38, L. 1975; R.C.M. 1947, 14-608.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 1. General Provisions › 32-3-106. Establishment of a student financial institution

32-3-106. Establishment of a student financial institution.
Credit unions may establish a school financial institution, as defined in 32-1-115 and in accordance with 32-1-115.
History: En. 14-675 by Sec. 75, Ch. 38, L. 1975; R.C.M. 1947, 14-675; amd. Sec. 5, Ch. 340, L. 2003; amd. Sec. 28, Ch. 75, L. 2019.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 2. Regulation › 32-3-201. Department of administration

32-3-201. Department of administration.
(1) The department of administration shall administer the laws of this state relating to credit unions. The department may appoint or employ special assistants, deputies, examiners, or other employees that are necessary for the purpose of administering or enforcing this chapter.
(2) The department may adopt rules for the administration of this chapter and may establish chartering, supervisory, and examination fees. Fees collected must be deposited in the state special revenue fund for the use of the department in its supervision function.
(3) The department shall adopt rules prescribing the minimum amount of surety bond coverage and casualty, liability, and fire insurance required of credit unions in relation to their assets or to the money and other personal property involved or their exposure to risk.
(4) The department may enter into agreements with other states establishing the division of supervisory responsibilities between the state in which a credit union is organized and the state or states in which the credit union's branches may be located.
History: En. 14-609 by Sec. 9, Ch. 38, L. 1975; R.C.M. 1947, 14-609; amd. Sec. 5, Ch. 600, L. 1985; amd. Sec. 84, Ch. 483, L. 2001; amd. Sec. 4, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 2. Regulation › 32-3-202. Reports

32-3-202. Reports.
(1) Credit unions organized under this chapter shall report to the department of administration annually on or before February 1 on forms supplied by the department for that purpose. Additional reports may be required.
(2) A fine of $5 for each day a report is in arrears must be levied against the offending credit union unless it is excused for cause by the department.
History: En. 14-610 by Sec. 10, Ch. 38, L. 1975; R.C.M. 1947, 14-610; amd. Sec. 5, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 2. Regulation › 32-3-203. Examinations

32-3-203. Examinations.
(1) The department of administration shall examine or cause to be examined each credit union on a schedule determined by the department. Each credit union and all of its officers and agents shall give representatives of the department full access to all books, papers, securities, records, and other sources of information under their control. For the purpose of the examination, the representatives may subpoena witnesses, administer oaths, compel the giving of testimony, and require the submission of documents.
(2) A report of the examination must be forwarded to the executive officer of each credit union promptly after completion. The report must contain comments relative to the management of the affairs of the credit union and also as to the general condition of its assets. Within 60 days after the receipt of the report, the directors and committee members shall meet to consider matters contained in the report.
(3) In lieu of making an examination of a credit union, the department may accept an audit report of the condition of the credit union made by an auditor approved by the department. The cost of the audit must be borne by the credit union.
History: En. 14-611 by Sec. 11, Ch. 38, L. 1975; R.C.M. 1947, 14-611; amd. Sec. 2, Ch. 274, L. 1981; amd. Sec. 85, Ch. 483, L. 2001; amd. Sec. 1, Ch. 64, L. 2003; amd. Sec. 6, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 2. Regulation › 32-3-204. Records

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.
History: En. 14-612 by Sec. 12, Ch. 38, L. 1975; R.C.M. 1947, 14-612; amd. Sec. 1, Ch. 25, L. 2001; amd. Sec. 221(1), Ch. 483, L. 2001; amd. Sec. 7, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 2. Regulation › 32-3-206. Authorized activities of credit unions

32-3-206. Authorized activities of credit unions.
Upon written application to the department of administration, a credit union may engage in any activity in which a credit union could engage if it were operating as a federal chartered credit union at the time the authority is granted. The activities include but are not limited to the power to do any act and to own, possess, and carry as assets property including stocks, bonds, or other debentures that, at the time the authority is granted, are authorized under federal laws and regulations for transactions by federal credit unions and are not subject to any restrictions contained elsewhere in Montana law. However, the department may not charter a credit union not having a common bond of membership as defined in 32-3-304. The department shall approve an activity if it finds that the activity fosters competitive equality between state and federal credit unions and prevents adverse effects on members of state-chartered credit unions. If the department disapproves an activity, the credit union must be given an opportunity for a hearing pursuant to Title 2, chapter 4, part 6, to determine whether a compelling reason exists for denying approval of the activity for which the credit union applied.
History: En. 14-676 by Sec. 76, Ch. 38, L. 1975; R.C.M. 1947, 14-676; amd. Sec. 1, Ch. 522, L. 1985; amd. Sec. 12, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 2. Regulation › 32-3-207. Confidentiality -- penalties

32-3-207. Confidentiality -- penalties.
(1) (a) Any report of examination issued under 32-3-203, any report made by a credit union under 32-3-202, and any other credit union documentation maintained by the department of administration, other than those reports that are required to be published, must be considered confidential information. Except as provided in subsection (1)(b), confidential information may not be imparted to persons who are not officially associated with the department, and the information contained in the reports and statements may be used by the department only in the furtherance of its official duties.
(b) The department may exchange information with federal credit union regulatory agencies, with a federal reserve bank, and with the financial regulatory departments of other states. The department may furnish reports of its examination findings under 32-3-203 to a federal home loan bank, as defined in the Federal Home Loan Bank Act of 1932, 12 U.S.C. 1422. The department may furnish information to the legislative auditor for use in pursuit of official duties. A prosecuting official may obtain the information by court order.
(2) Any knowledge or information gained or discovered by the department in pursuance of its powers or duties is confidential information of the department. The information may not, except as provided in subsection (1)(b), be imparted to any person not officially associated with the department. The information may be used by the department only in the furtherance of its official duties.
(3) An employee or agent of the department who violates this section or willfully makes a false official report as to the condition of a credit union is guilty of a felony and must be removed from office. Upon conviction, the person shall be fined an amount not exceeding $1,000, be imprisoned in a state correctional facility for a term not exceeding 5 years, or both.
History: En. Sec. 11, Ch. 237, L. 2003; amd. Sec. 2, Ch. 68, L. 2019.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 2. Regulation › 32-3-211. Conservatorship

32-3-211. Conservatorship.
(1) In conjunction with a suspension order or if the department of administration's examination has been obstructed or impeded, the department may appoint itself or appoint any other competent person as conservator to immediately take possession and control of the business and assets of a credit union. The conservator, representing the best interest of the credit union members, must be vested with the full power of management of the credit union.
(2) Not later than 15 days after the date on which the conservator takes possession and control of the business and assets of a credit union pursuant to subsection (1), the credit union may apply to the appropriate court for an order requiring the department to show cause why the department or the designated conservator should not be enjoined from continuing possession and control.
(3) Except as provided in subsection (2), the conservator may maintain possession and control of the business and assets of the credit union and may operate the credit union until:
(a) the department permits the credit union's officials to continue business subject to any terms and conditions the department imposes; or
(b) the credit union is involuntarily merged or involuntarily liquidated in accordance with the provisions of 32-3-205.
(4) The department may appoint any agents considered necessary to assist the conservator in carrying out the duties of the conservator under this section.
(5) All expenses incurred by the conservator in exercising the authority of that office under this section with respect to a credit union must be paid out of the assets of the credit union, except that the department may waive all or a part of the expenses.
History: En. Sec. 9, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 2. Regulation › 32-3-212. Involuntary merger

32-3-212. Involuntary merger.
The department of administration may initiate the involuntary merger of a credit union that is insolvent or in danger of insolvency with any other credit union or may authorize a credit union to purchase any of the assets of or assume any of the liabilities of any other credit union that is insolvent or in danger of insolvency if the department is satisfied that:
(1) an emergency requiring expeditious action exists with respect to a credit union that is insolvent or in danger of insolvency;
(2) other alternatives are not reasonably available; and
(3) the public interest would best be served by approval of the merger, purchase, or assumption.
History: En. Sec. 10, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 2. Regulation › 32-3-215. Out-of-state credit unions

32-3-215. Out-of-state credit unions.
(1) A credit union chartered under the laws of another state or territory of the United States may conduct business as a credit union in this state with the approval of the department of administration, provided that credit unions incorporated under this chapter are allowed to do business in the other state or territory under conditions similar to these provisions.
(2) Before granting approval to do business in this state, the department must find that an out-of-state credit union:
(a) is a credit union organized under laws similar to this chapter;
(b) is financially solvent;
(c) has account insurance comparable to that required for credit unions incorporated under this chapter;
(d) is examined and supervised by a regulatory agency of the state in which it is organized; and
(e) needs to conduct business in this state to adequately serve its members in this state.
(3) An out-of-state credit union may not conduct business in this state unless it:
(a) complies with the consumer protection statutes and rules applicable to credit unions incorporated under this chapter;
(b) agrees to furnish the department with a copy of the examination report conducted by its regulatory agency or to submit to an examination by the department; and
(c) designates and maintains an agent for the service of process in this state.
(4) The department may revoke the approval of an out-of-state credit union conducting business in this state if the department finds that:
(a) the credit union no longer meets the requirements of subsection (2);
(b) the credit union has violated the laws of this state or lawful rules or orders issued by the department;
(c) the credit union has engaged in a pattern of unsafe or unsound credit union practices;
(d) continued operation by the credit union is likely to have a substantially adverse impact on the financial, economic, or other interests of residents of this state; or
(e) the credit union is prohibited from operating in its own home state.
History: En. Sec. 2, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 2. Regulation › 32-3-216. Conducting business outside this state

32-3-216. Conducting business outside this state.
(1) A credit union chartered under this chapter may conduct business outside of this state in other states or territories where it is permitted to conduct business as a credit union, under conditions substantially similar to the provisions of this chapter.
(2) If another state or territory's credit union laws or regulations allow credit unions operating in that state or territory to exercise additional powers not allowed in this state, the credit union conducting business outside this state may request permission from the department of administration to exercise those additional powers while operating in that state.
(3) Upon request for approval to exercise a power not allowed in this state, submitted by certified mail, return receipt requested, the department shall respond with a determination in not more than 60 days. For good cause shown within the 60-day period, the department may extend the response period for an additional 30 days. If a response is not received within 60 days or 90 days, as applicable, the requesting credit union may exercise the power.
History: En. Sec. 3, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 3. Organization, Membership, and Dissolution › 32-3-302. Form of articles and bylaws

32-3-302. Form of articles and bylaws.
In order to simplify the organization of credit unions, the department of administration shall prepare a form of articles of incorporation and a form of bylaws, consistent with this chapter, that may be used by credit union incorporators for their guidance. The articles of incorporation and bylaws must be available without charge to persons desiring to organize a credit union.
History: En. 14-604 by Sec. 4, Ch. 38, L. 1975; R.C.M. 1947, 14-604; amd. Sec. 2, Ch. 274, L. 1981; amd. Sec. 88, Ch. 483, L. 2001; amd. Sec. 14, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 3. Organization, Membership, and Dissolution › 32-3-303. Amendments

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.
History: En. 14-605 by Sec. 5, Ch. 38, L. 1975; amd. Sec. 32, Ch. 71, L. 1977; R.C.M. 1947, 14-605; amd. Sec. 2, Ch. 274, L. 1981; amd. Sec. 89, Ch. 483, L. 2001; amd. Sec. 15, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 3. Organization, Membership, and Dissolution › 32-3-304. Membership defined

32-3-304. Membership defined.
(1) The membership of a credit union shall be limited to and consist of the subscribers to the articles of incorporation and such other persons within the common bond set forth in the bylaws as have been duly admitted members, have paid the required entrance fee or membership fee, or both, have subscribed for one or more shares and have paid the initial installment thereon, and have complied with such other requirements as the articles of incorporation or bylaws specify.
(2) Credit union membership may include groups having a common bond of similar occupation, association, or interests or groups within a well-defined neighborhood, community, or rural district or employees of a common employer and members of the immediate family of such persons.
History: En. 14-615 by Sec. 15, Ch. 38, L. 1975; R.C.M. 1947, 14-615; amd. Sec. 1, Ch. 107, L. 1981.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 3. Organization, Membership, and Dissolution › 32-3-305. Societies -- associations

32-3-305. Societies -- associations.
(1) Societies and partnerships composed primarily of individuals who are eligible for membership and corporations whose stockholders are composed primarily of such individuals may be admitted to membership in the same manner and under the same conditions as individuals.
(2) No loan may be made to any member society, partnership, or corporation in an aggregate amount that is in excess of 5% of the credit union's shares and retained earnings. Total loans to member societies, partnerships, and corporations is limited to an aggregate amount of 15% of the credit union's shares and retained earnings.
History: En. 14-616 by Sec. 16, Ch. 38, L. 1975; R.C.M. 1947, 14-616; amd. Sec. 2, Ch. 522, L. 1985.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 3. Organization, Membership, and Dissolution › 32-3-306. Other credit unions

32-3-306. Other credit unions.
Any credit union organized under this chapter may permit membership of any other credit union organized under this chapter or other laws.
History: En. 14-617 by Sec. 17, Ch. 38, L. 1975; R.C.M. 1947, 14-617.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 3. Organization, Membership, and Dissolution › 32-3-307. Limited-income persons

32-3-307. Limited-income persons.
Existing credit unions may include within their field of membership limited-income persons, as defined by the department of administration, for whom credit union services are otherwise unavailable.
History: En. 14-618 by Sec. 18, Ch. 38, L. 1975; R.C.M. 1947, 14-618; amd. Sec. 2, Ch. 274, L. 1981; amd. Sec. 90, Ch. 483, L. 2001; amd. Sec. 16, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 3. Organization, Membership, and Dissolution › 32-3-308. Members who leave field

32-3-308. Members who leave field.
Members who leave the field of membership may be permitted to retain their membership in the credit union as a matter of general policy of the board of directors.
History: En. 14-619 by Sec. 19, Ch. 38, L. 1975; R.C.M. 1947, 14-619.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 3. Organization, Membership, and Dissolution › 32-3-309. Liability of members

32-3-309. Liability of members.
The members of the credit union shall not be personally or individually liable for the payment of its debts.
History: En. 14-620 by Sec. 20, Ch. 38, L. 1975; R.C.M. 1947, 14-620.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 3. Organization, Membership, and Dissolution › 32-3-310. Meetings of members

32-3-310. Meetings of members.
(1) The annual meeting and any special meetings of the members of the credit union must be held at the time, place, and in the manner indicated by the bylaws.
(2) At all meetings a member has only one vote, irrespective of the member's shareholdings. A member may not vote by proxy, but a member may vote by absentee ballot or mail ballot if the bylaws of the credit union so provide.
(3) A society, association, partnership, or corporation having membership in the credit union may be represented and have its vote cast by one of its members or shareholders, provided that the person has been fully authorized by the organization's governing body.
(4) The board of directors may establish a minimum age, not greater than 18 years of age, as a qualification of eligibility to vote at meetings of the members or to hold office, or both.
History: En. 14-621 by Sec. 21, Ch. 38, L. 1975; R.C.M. 1947, 14-621; amd. Sec. 17, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 3. Organization, Membership, and Dissolution › 32-3-322. Merger

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.
History: En. 14-666 by Sec. 66, Ch. 38, L. 1975; R.C.M. 1947, 14-666; amd. Sec. 2, Ch. 274, L. 1981; amd. Sec. 92, Ch. 483, L. 2001; amd. Sec. 19, Ch. 237, L. 2003; amd. Sec. 4, Ch. 317, L. 2015.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 3. Organization, Membership, and Dissolution › 32-3-323. Conversion of charter

32-3-323. Conversion of charter.
(1) A credit union chartered under the laws of this state may be converted to a credit union chartered under the laws of any other state or under the laws of the United States, subject to regulations issued by the department of administration.
(2) A credit union chartered under the laws of the United States or of any other state may convert to a credit union chartered under the laws of this state. To effect a conversion, a credit union shall comply with all the requirements of the jurisdiction under which it was originally chartered and the requirements of the department and file proof of compliance with the department.
History: En. 14-667 by Sec. 67, Ch. 38, L. 1975; R.C.M. 1947, 14-667; amd. Sec. 2, Ch. 274, L. 1981; amd. Sec. 93, Ch. 483, L. 2001; amd. Sec. 20, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 4. Operation and Officers › 32-3-402. Incidental powers

32-3-402. Incidental powers.
A credit union may exercise such incidental powers as are granted corporations organized under the laws of this state, including those that are necessary to enable it to promote and carry on most effectively its purposes.
History: En. 14-614 by Sec. 14, Ch. 38, L. 1975; R.C.M. 1947, 14-614.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 4. Operation and Officers › 32-3-403. Election or appointment of officials

32-3-403. Election or appointment of officials.
(1) The credit union must be directed by a board, consisting of an odd number of at least five directors, to be elected at the annual membership meeting by and from the members. All members of the board shall hold office for terms that the bylaws provide.
(2) The board of directors shall appoint a supervisory committee of at least three members during the organizational meeting. Subsequent appointments must be within 30 days after each annual meeting of the members for terms that the bylaws provide. The bylaws may provide that the board of directors of the credit union serves as the supervisory committee. The duties and powers of the supervisory committee must be established by the department of administration by rule.
(3) The bylaws must provide for either:
(a) a credit committee, to be either appointed by the board of directors or elected by the members; or
(b) a credit manager, to be appointed by the board of directors.
(4) If the bylaws provide for a credit committee, the committee must consist of an odd number of at least three members, who shall serve for terms that the bylaws provide. The bylaws must specify the number of members of the credit committee and the number of credit committee members needed for a quorum.
History: En. 14-622 by Sec. 22, Ch. 38, L. 1975; R.C.M. 1947, 14-622; amd. Sec. 4, Ch. 522, L. 1985; amd. Sec. 3, Ch. 25, L. 2001; amd. Sec. 22, Ch. 237, L. 2003; amd. Sec. 6, Ch. 317, L. 2015.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 4. Operation and Officers › 32-3-404. Record of board and committee members

32-3-404. Record of board and committee members.
Within 30 days after election or appointment, a record of the names and addresses of the members of the board, committees, and all officers of the credit union must be filed with the department of administration on forms provided by the department.
History: En. 14-623 by Sec. 23, Ch. 38, L. 1975; R.C.M. 1947, 14-623; amd. Sec. 2, Ch. 274, L. 1981; amd. Sec. 94, Ch. 483, L. 2001; amd. Sec. 23, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 4. Operation and Officers › 32-3-405. Vacancies

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.
History: En. 14-624 by Sec. 24, Ch. 38, L. 1975; R.C.M. 1947, 14-624; amd. Sec. 7, Ch. 317, L. 2015.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 4. Operation and Officers › 32-3-406. Compensation of officials

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.
History: En. 14-625 by Sec. 25, Ch. 38, L. 1975; R.C.M. 1947, 14-625; amd. Sec. 1044, Ch. 56, L. 2009; amd. Sec. 8, Ch. 317, L. 2015.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 4. Operation and Officers › 32-3-407. Conflicts of interest

32-3-407. Conflicts of interest.
A director, committee member, officer, agent, or employee of the credit union may not in any manner, directly or indirectly, participate in the deliberation upon or the determination of any question affecting the person's pecuniary interest or the pecuniary interest of any corporation, partnership, or association, other than the credit union, in which the person is directly or indirectly interested.
History: En. 14-626 by Sec. 26, Ch. 38, L. 1975; R.C.M. 1947, 14-626; amd. Sec. 1045, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 4. Operation and Officers › 32-3-408. Executive officers

32-3-408. Executive officers.
(1) At their next meeting following each annual meeting of the members, the directors shall elect from their own number:
(a) a presiding officer of the board;
(b) one or more vice presiding officers of the board;
(c) a treasurer; and
(d) a secretary.
(2) The treasurer and the secretary may be the same individual.
(3) The persons so elected must be the executive officers of the corporation.
(4) The terms of the officers must be 1 year or until their successors are chosen and have duly qualified.
(5) The duties of the officers must be prescribed in the bylaws.
(6) The board of directors may employ an officer in charge of operations, whose title must be either president or general manager or president and general manager, or the board of directors may designate the treasurer or an assistant treasurer to act as general manager and be in active charge of the affairs of the credit union.
History: En. 14-627 by Sec. 27, Ch. 38, L. 1975; R.C.M. 1947, 14-627; amd. Sec. 24, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 4. Operation and Officers › 32-3-409. Authority of directors

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.
History: En. 14-628 by Sec. 28, Ch. 38, L. 1975; R.C.M. 1947, 14-628.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 4. Operation and Officers › 32-3-410. Executive committee

32-3-410. Executive committee.
From the persons elected to the board, the board may appoint an executive committee of not less than three directors who may be authorized to act for the board in all respects, subject to such conditions and limitations as are prescribed by the board.
History: En. 14-629 by Sec. 29, Ch. 38, L. 1975; R.C.M. 1947, 14-629.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 4. Operation and Officers › 32-3-411. Meetings of board of directors and committees

32-3-411. Meetings of board of directors and committees.
(1) Either the board of directors or the executive committee shall meet each month. The board of directors or the executive committee may meet at other times as necessary.
(2) Unless specifically prohibited by the bylaws, directors and members of the supervisory committee or credit committee may participate in and act at any meeting of the board or the supervisory or credit committee through the use of communications equipment that enables all persons participating in the meeting to communicate with each other. Participation in the meeting in this manner constitutes attendance.
(3) Unless specifically prohibited by the bylaws, any action required by this chapter to be taken at a meeting of the board of directors or a committee or any other action that may be taken at a meeting of the board of directors or a committee may be taken without a meeting if a consent in writing setting forth the action taken is signed by all the directors of the board or the committee members entitled to vote with respect to the subject matter of the action taken. The written consents must be evidenced by one or more written approvals, each of which sets forth the action taken and bears the signature of one or more board directors or committee members. All the approvals evidencing the consent must be delivered to the secretary to be filed in the corporate records of the credit union. The action taken is effective when all the directors or committee members have approved the consent unless the consent specifies a different effective date. A consent signed by all the directors or committee members has the same effect as a unanimous vote and may be stated as a unanimous vote in any document filed with the department under this chapter.
History: En. 14-630 by Sec. 30, Ch. 38, L. 1975; R.C.M. 1947, 14-630; amd. Sec. 25, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 4. Operation and Officers › 32-3-412. Repealed

32-3-412. Repealed.
Sec. 2, Ch. 117, L. 2015.
History: En. 14-631 by Sec. 31, Ch. 38, L. 1975; amd. Sec. 45, Ch. 359, L. 1977; R.C.M. 1947, 14-631; amd. Sec. 5, Ch. 522, L. 1985; amd. Sec. 26, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 4. Operation and Officers › 32-3-413. Repealed

32-3-413. Repealed.
Sec. 14, Ch. 317, L. 2015.
History: En. 14-632 by Sec. 32, Ch. 38, L. 1975; R.C.M. 1947, 14-632.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 4. Operation and Officers › 32-3-414. Repealed

32-3-414. Repealed.
Sec. 14, Ch. 317, L. 2015.
History: En. 14-633 by Sec. 33, Ch. 38, L. 1975; R.C.M. 1947, 14-633; amd. Sec. 27, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 4. Operation and Officers › 32-3-415. Repealed

32-3-415. Repealed.
Sec. 14, Ch. 317, L. 2015.
History: En. 14-634 by Sec. 34, Ch. 38, L. 1975; R.C.M. 1947, 14-634.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 4. Operation and Officers › 32-3-416. Credit committee or credit manager duties

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.
History: En. 14-635 by Sec. 35, Ch. 38, L. 1975; R.C.M. 1947, 14-635; amd. Sec. 1046, Ch. 56, L. 2009; amd. Sec. 9, Ch. 317, L. 2015.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 4. Operation and Officers › 32-3-417. Audits

32-3-417. Audits.
(1) The board of directors or supervisory committee shall make or cause to be made a comprehensive annual audit of the books and affairs of the credit union and shall submit a report of that audit to the board of directors and a summary of that report to the members at the next annual meeting of the credit union. The board or committee shall make or cause to be made any supplementary audits or examinations as it considers necessary or as are required by the department of administration or by the board of directors and submit reports of these supplementary audits to the board of directors.
(2) The board of directors or supervisory committee shall verify the records of the credit union consistent with 12 CFR 715.8 and 12 CFR 741.202.
History: En. 14-636 by Sec. 36, Ch. 38, L. 1975; R.C.M. 1947, 14-636; amd. Sec. 6, Ch. 522, L. 1985; amd. Sec. 28, Ch. 237, L. 2003; amd. Sec. 10, Ch. 317, L. 2015.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 4. Operation and Officers › 32-3-418. Suspension and removal of officials

32-3-418. Suspension and removal of officials.
(1) The supervisory committee by a unanimous vote may suspend any official until the next membership meeting, which must be held not less than 7 or more than 21 days after the suspension. At the meeting, the suspension must be acted upon by the members.
(2) Any member of the supervisory committee may be removed by the board of directors for failure to perform the member's duties in accordance with this chapter, the articles of incorporation, or the bylaws.
History: En. 14-637 by Sec. 37, Ch. 38, L. 1975; R.C.M. 1947, 14-637; amd. Sec. 1047, Ch. 56, L. 2009; amd. Sec. 11, Ch. 317, L. 2015.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 4. Operation and Officers › 32-3-419. Calling of special meeting

32-3-419. Calling of special meeting.
The supervisory committee by a majority vote may call a special meeting of the members to consider any violation of this chapter, the credit union's charter or bylaws, or any practice of the credit union deemed by the supervisory committee to be unsafe or unauthorized.
History: En. 14-638 by Sec. 38, Ch. 38, L. 1975; R.C.M. 1947, 14-638.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 5. Shares and Accounts › 32-3-501. Shares

32-3-501. Shares.
(1) The capital of a credit union consists of the payments by the members on shares.
(2) Shares may be subscribed to, paid for, and transferred in a manner as the bylaws prescribe.
(3) A certificate need not be issued to denote ownership of a share in a credit union.
(4) This chapter does not restrict or prohibit the issuance of shares in any type of account described in Title 72, chapter 6, part 2. However, the party, the beneficiary, or the agent of an account may not vote, obtain loans, hold office, or be required to pay an entrance or membership fee unless the party, beneficiary, or agent is a member of the credit union.
History: En. 14-639 by Sec. 39, Ch. 38, L. 1975; R.C.M. 1947, 14-639; amd. Sec. 132, Ch. 494, L. 1993.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 5. Shares and Accounts › 32-3-502. Dividends

32-3-502. Dividends.
At the intervals and for the periods that the board of directors authorizes and after providing for the required reserves, the board of directors may declare dividends to be paid from the undivided earnings at the rates and upon the classes of shares that the board determines. The dividends must be paid on all shares according to any method of calculation allowed by law.
History: En. 14-640 by Sec. 40, Ch. 38, L. 1975; R.C.M. 1947, 14-640; amd. Sec. 1, Ch. 365, L. 1997; amd. Sec. 4, Ch. 25, L. 2001.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 5. Shares and Accounts › 32-3-503. Thrift accounts

32-3-503. Thrift accounts.
Christmas clubs, vacation clubs, and other thrift accounts may be operated under conditions established by the board of directors.
History: En. 14-641 by Sec. 41, Ch. 38, L. 1975; R.C.M. 1947, 14-641.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 5. Shares and Accounts › 32-3-504. Minors' accounts

32-3-504. Minors' accounts.
Shares may be issued to a minor who may withdraw the shares including the dividends and interest thereon. Share payments made by a minor and withdrawals thereof by the minor shall be valid in all respects. For such purposes a minor is deemed of full age.
History: En. 14-642 by Sec. 42, Ch. 38, L. 1975; R.C.M. 1947, 14-642.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 5. Shares and Accounts › 32-3-505. Joint accounts

32-3-505. Joint accounts.
(1) A member may designate any person or persons to hold shares and thrift club accounts with the member in joint tenancy with the right of survivorship, as a tenant in common, or under any other form of multiple-party account ownership permitted by law and allowed by the credit union. A joint tenant, unless a member in the joint tenant's own right, may not be permitted to vote, obtain loans, or hold office or be required to pay an entrance or membership fee. If a credit union allows more than one joint owner to seek credit union membership through a joint account, the joint account must contain a membership share for each joint owner seeking membership.
(2) Payment of part or all of a joint account to any of the joint owners, to the extent of the payment, discharges the liability to all joint owners.
History: En. 14-643 by Sec. 43, Ch. 38, L. 1975; R.C.M. 1947, 14-643; amd. Sec. 29, Ch. 237, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 3. Credit Unions › Part 5. Shares and Accounts › 32-3-506. Shares in trust

32-3-506. Shares in trust.
(1) Shares may be issued in the name of a revocable trust if the settlor is a member, or shares may be issued in the name of an irrevocable trust if either the settlor or the beneficiary is a member. A beneficiary, unless a member in the beneficiary's own right, may not be permitted to vote, obtain loans, or hold office or be required to pay an entrance or membership fee.
(2) Payment of part or all of the shares described in subsection (1) to a trustee, to the extent of the payment, discharges the liability of the credit union to the trustee and the beneficiary, and the credit union is not obligated to see to the application of the payment.
History: En. 14-644 by Sec. 44, Ch. 38, L. 1975; R.C.M. 1947, 14-644; amd. Sec. 30, Ch. 237, L. 2003; amd. Sec. 144, Ch. 264, L. 2013.