reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 1. General Application › 30-10-102. Policy

30-10-102. Policy.
Parts 1 through 3 of this chapter shall be construed to:
(1) protect the investor, persons engaged in securities transactions, and the public interest;
(2) promote uniformity among the states; and
(3) encourage, promote, and facilitate capital investment in Montana.
History: En. Sec. 3, Ch. 251, L. 1961; R.C.M. 1947, 15-2003; amd. Sec. 1, Ch. 322, L. 1983.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 1. General Application › 30-10-106. Proof of exemption

30-10-106. Proof of exemption.
In any proceeding under parts 1 through 3 of this chapter, the burden of proving an exemption or an exception from a definition is upon the person claiming it.
History: En. Sec. 25, Ch. 251, L. 1961; R.C.M. 1947, 15-2025.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 1. General Application › 30-10-110. Scope

30-10-110. Scope.
(1) Sections 30-10-201(1), 30-10-202, 30-10-301(1), 30-10-303, and 30-10-307 apply to persons who sell or offer to sell when an offer to sell is made in this state or an offer to buy is made and accepted in this state.
(2) Sections 30-10-201(1), 30-10-301(1), and 30-10-303 apply to persons who buy or offer to buy when an offer to buy is made in this state or an offer to sell is made and accepted in this state.
(3) For the purpose of this section, an offer to sell or buy is made in this state, whether or not either party is then present in this state, when the offer either originates from this state or is directed by the offeror to this state and received at the place to which it is directed or at any post office in this state in the case of a mailed offer.
(4) For the purpose of this section, an offer to buy or sell is accepted in this state when acceptance is communicated to the offeror in this state and acceptance has not previously been communicated to the offeror, orally or in writing, outside this state. Acceptance is communicated to the offeror in this state, whether or not either party is then present in this state, when the offeree directs it to the offeror in this state, reasonably believing the offeror to be in this state, and it is received at the place to which it is directed or at any post office in this state in the case of a mailed acceptance.
(5) An offer to sell or to buy is not made in this state when:
(a) the publisher circulates or there is circulated on the publisher's behalf in this state any bona fide newspaper or other publication of general, regular, and paid circulation that is:
(i) not published in this state; or
(ii) published in this state but has had more than two-thirds of its circulation outside this state during the past 12 months; or
(b) a radio or television program originating outside this state is received in this state.
(6) Sections 30-10-201(3), 30-10-301(2) and (3), and 30-10-303, as far as investment advisers and investment adviser representatives are concerned, apply when any act instrumental in effecting prohibited conduct is done in this state, whether or not either party is then present in this state.
(7) Any security given or delivered with or as a bonus on account of any purchase of securities or any other thing is considered to constitute part of the subject of the purchase and to have been offered and sold for value. A purported gift of assessable stock is considered to involve an offer and sale. Each sale or offer of a warrant or right to purchase or subscribe to another security of the same or another issuer, as well as each sale or offer of a security that gives the holder a present or future right or privilege to convert into another security of the same or another issuer, is considered to include an offer of the other security.
History: En. Sec. 1, Ch. 285, L. 1985; amd. Sec. 2, Ch. 269, L. 1987; amd. Sec. 136, Ch. 42, L. 1997; amd. Sec. 4, Ch. 533, L. 1997.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 1. General Application › 30-10-115. Deposits to general fund -- exceptions

30-10-115. Deposits to general fund -- exceptions.
(1) Except as provided in subsection (2), all fees and miscellaneous charges received by the commissioner pursuant to parts 1 through 3 of this chapter must be deposited in the general fund.
(2) (a) All notice filing fees collected under 30-10-209(1)(d) and examination costs collected under 30-10-210 must be deposited in the state special revenue fund in an account to the credit of the state auditor's office. The funds allocated by this subsection (2)(a) to the state special revenue account may be used only to defray the expenses of the state auditor's office in discharging its administrative and regulatory powers and duties in relation to notice filing under 30-10-209(1)(d) and examinations.
(b) Any fees in excess of the amount required for the purposes listed in subsection (2)(a) must be deposited in the general fund.
(c) On or after July 1, 2019, 3% of the total fees collected annually under 30-10-209(1)(b) must be deposited in the securities restitution assistance fund provided for in 30-10-1004. The remainder must be deposited in the general fund. On or after July 1, 2027, all fees collected annually under 30-10-209(1)(b) must be deposited in the general fund.
History: En. Sec. 2, Ch. 385, L. 1985; amd. Sec. 4, Ch. 351, L. 1989; amd. Sec. 1, Ch. 462, L. 1993; amd. Sec. 64, Ch. 51, L. 1999; amd. Sec. 6, Ch. 472, L. 1999; amd. Sec. 1, Ch. 469, L. 2005; amd. Sec. 3, Ch. 227, L. 2011; amd. Sec. 1, Ch. 66, L. 2013; amd. Sec. 6, Ch. 151, L. 2017; amd. Sec. 13, Ch. 6, Sp. L. November 2017; amd. Sec. 1, Ch. 404, L. 2021.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 1. General Application › 30-10-119. Records

30-10-119. Records.
(1) A broker-dealer or investment adviser shall provide access to or copies of records that are relevant to the suspected or attempted financial exploitation of a vulnerable person to the department of public health and human services provided for in 2-15-2201 and to law enforcement, either as part of a referral to the department or to law enforcement or on request of the department or law enforcement pursuant to an investigation. The records may include historical records as well as records relating to the most recent transaction that may constitute financial exploitation of the vulnerable person.
(2) All records made available pursuant to this section are confidential information as defined in 2-6-1002.
(3) Nothing in this section limits or otherwise impedes the authority of the commissioner to access or examine the books and records of broker-dealers and investment advisers as otherwise provided by law.
History: En. Sec. 4, Ch. 84, L. 2017.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 2. Registration › 30-10-202. Registration of securities

30-10-202. Registration of securities.
It is unlawful for any person to offer or sell any security in this state, except securities exempt under 30-10-104 or when sold in transactions exempt under 30-10-105, unless:
(1) the security is registered by notification, coordination, or qualification under parts 1 through 3 of this chapter; or
(2) for a federal covered security, the security has been filed with the commissioner pursuant to 30-10-211 and the fee prescribed in 30-10-209 has been paid.
History: En. Sec. 7, Ch. 251, L. 1961; R.C.M. 1947, 15-2007; amd. Sec. 2, Ch. 279, L. 1981; amd. Sec. 6, Ch. 533, L. 1997.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 2. Registration › 30-10-208. Consent to service of process -- manner of service

30-10-208. Consent to service of process -- manner of service.
(1) Every applicant for registration as a broker-dealer, investment adviser, salesperson, or investment adviser representative under parts 1 through 3 of this chapter and every issuer that proposes to register and offer a security in this state through any person acting on an agency basis in the common-law sense shall file with the commissioner, in a form that the commissioner prescribes, an irrevocable consent appointing the commissioner and the commissioner's successors in office to be the attorney of the applicant to receive service of any lawful process in any noncriminal suit, action, or proceeding against the applicant or the applicant's successor, executor, or administrator that arises under parts 1 through 3 of this chapter or any rule or order under parts 1 through 3 of this chapter after the consent has been filed, with the same force and validity as if served personally on the person filing the consent.
(2) Service may be made by leaving a copy of the process in the office of the commissioner, but it is not effective unless:
(a) the plaintiff, who may be the commissioner, in a suit, action, or proceeding instituted by the plaintiff, sends timely notice of the service and a copy of the process by certified or registered mail to the defendant or respondent at the defendant's or respondent's last address on file with the commissioner; and
(b) the plaintiff's affidavit of compliance with this section is filed in the case on or before the return day of the process, if any, or within any further time that the court allows.
History: En. Sec. 15, Ch. 251, L. 1961; amd. Sec. 1, Ch. 105, L. 1963; R.C.M. 1947, 15-2015; amd. Sec. 4, Ch. 2, L. 1991; amd. Sec. 4, Ch. 162, L. 1993; amd. Sec. 902, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 2. Registration › 30-10-210. Examination costs

30-10-210. Examination costs.
(1) An issuer, broker-dealer, or investment adviser who is examined in connection with a registration under parts 1 through 3 of this chapter shall reimburse the commissioner or any of the commissioner's authorized agents, officers, or employees for actual travel expenses, a reasonable living expense allowance, and a per diem as compensation of examiners, which are necessarily incurred on account of the examination, upon presentation of a detailed account of the charges and expenses by the commissioner or pursuant to the commissioner's written authorization; however, reimbursement of expenses may not be required for routine examinations performed in connection with an application for registration. A person may not pay and an examiner may not accept additional emolument on account of an examination.
(2) The commissioner shall deposit examination costs collected under this section in the special revenue account provided for in 30-10-115. The commissioner may give written authorization for payment of the examination costs referred to in subsection (1) by the person examined directly to the examiner.
(3) If an issuer, broker-dealer, or investment adviser fails to pay the charges and expenses referred to in subsection (1), the charges and expenses must be paid out of the funds of the commissioner in the same manner as other disbursements of those funds. The amount paid is a first lien upon all of the assets and property in this state of the issuer, broker-dealer, or investment adviser and may be recovered by suit by the attorney general on behalf of the state of Montana and restored to the appropriate fund. Failure of the issuer, broker-dealer, or investment adviser to pay the charges and expenses also works a forfeiture of the right to do business in this state under parts 1 through 3 of this chapter.
History: En. Sec. 24, Ch. 251, L. 1961; amd. Sec. 71, Ch. 147, L. 1963; R.C.M. 1947, 15-2024(2); amd. Sec. 5, Ch. 351, L. 1979; amd. Sec. 7, Ch. 279, L. 1981; amd. Sec. 4, Ch. 249, L. 1989; amd. Sec. 8, Ch. 472, L. 1999.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 2. Registration › 30-10-211. Federal covered securities

30-10-211. Federal covered securities.
(1) An issuer is required to file the following documents with respect to a federal covered security provided for in section 18(b)(2) of the Securities Act of 1933:
(a) documents that are part of a current federal registration statement filed with the securities and exchange commission or amendments to a current registration statement filed with the securities and exchange commission;
(b) a consent to the service of process signed by the issuer and payment of the fee required in 30-10-209; and
(c) annual or periodic reports of the value of the federal covered securities offered or sold in this state.
(2) The issuer of a federal covered security under 18(b)(4)(D) of the Securities Act of 1933 is required to file within 15 days after the first sale in this state a notice on a form prescribed by the commissioner and a consent to service of process and is required to pay the notice filing fee prescribed in 30-10-209.
(3) The commissioner may require the filing of any document filed with the securities and exchange commission under the Securities Act of 1933, with respect to a federal covered security under section 18(b)(3) or (4) of the Securities Act of 1933, and may require payment of the notice filing fee prescribed in 30-10-209.
(4) The commissioner may issue a cease and desist order suspending the offer and sale of a federal covered security if the commissioner finds that the order is in the public interest and there is a failure to comply with any requirement of this section.
(5) The commissioner may waive any of the provisions of this section.
History: En. Sec. 12, Ch. 533, L. 1997; amd. Sec. 4, Ch. 156, L. 2003.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 3. Offenses, Penalties, and Immunities › 30-10-302. Misleading filings

30-10-302. Misleading filings.
It is unlawful for any person to knowingly make or cause to be made, in any document filed with the commissioner or in any proceeding under parts 1 through 3 of this chapter, any statement which is, at the time and in the light of the circumstances under which it is made, false or misleading in any material respect.
History: En. Sec. 17, Ch. 251, L. 1961; R.C.M. 1947, 15-2017.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 3. Offenses, Penalties, and Immunities › 30-10-303. Unlawful representation concerning registration or exemption

30-10-303. Unlawful representation concerning registration or exemption.
(1) The fact that an application for registration under 30-10-201(6), a notice filing under 30-10-211 or 30-10-327, or a registration statement under 30-10-203, 30-10-204, or 30-10-205 has been filed or the fact that a person or security is effectively registered or a complete notice filing has been made does not constitute a finding by the commissioner that any document filed under parts 1 through 3 of this chapter is true, complete, and not misleading.
(2) The fact that an application for registration or a notice filing has been filed or a person or security is effectively registered or a complete notice filing has been made as provided in subsection (1) or the fact that an exemption or exception is available for a person, security, or transaction does not mean that the commissioner has passed in any way upon the merits of, qualifications of, or recommended or given approval to, any person, security, or transaction. It is unlawful to make or cause to be made to any prospective purchaser, customer, or client any representation inconsistent with this section.
History: En. Sec. 18, Ch. 251, L. 1961; R.C.M. 1947, 15-2018; amd. Sec. 6, Ch. 351, L. 1979; amd. Sec. 11, Ch. 533, L. 1997; amd. Sec. 3, Ch. 286, L. 2013; amd. Sec. 3, Ch. 318, L. 2015.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 3. Offenses, Penalties, and Immunities › 30-10-306. Criminal liabilities

30-10-306. Criminal liabilities.
(1) A person who willfully violates any provision of parts 1 through 3 of this chapter except 30-10-302, who willfully violates any rule or order under parts 1 through 3 of this chapter, or who willfully violates 30-10-302 knowing the statement made to be false or misleading in any material respect shall upon conviction be fined not more than $5,000 or imprisoned not more than 10 years, or both. However, if the person convicted has been previously convicted of a felony in any way involving securities, imprisonment for not less than 1 year is mandatory.
(2) A person who willfully violates 30-10-301 with knowledge that the violation would affect a vulnerable person shall upon conviction be fined not more than $20,000 or imprisoned not more than 20 years, or both.
(3) An indictment or information may not be returned under parts 1 through 3 of this chapter more than 8 years after the alleged violation. However, the time limitation period may be extended allowing commencement of a prosecution within 1 year after the date the commissioner or other prosecuting officer becomes aware of the violation.
(4) The commissioner may refer evidence that may be available concerning violations of parts 1 through 3 of this chapter or of any rule or order under parts 1 through 3 of this chapter to the attorney general or the proper prosecuting attorney, who may in the prosecutor's discretion, with or without a reference, institute the appropriate criminal proceedings under parts 1 through 3 of this chapter.
(5) Parts 1 through 3 of this chapter do not limit the power of the state to punish any person for any conduct that constitutes a crime.
History: En. Sec. 21, Ch. 251, L. 1961; R.C.M. 1947, 15-2021; amd. Sec. 1, Ch. 394, L. 1981; amd. Sec. 903, Ch. 56, L. 2009; amd. Sec. 3, Ch. 28, L. 2015.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 3. Offenses, Penalties, and Immunities › 30-10-308. Judicial review of orders

30-10-308. Judicial review of orders.
Any person aggrieved by a final order of the commissioner is entitled to judicial review as provided in Title 2, chapter 4, part 7.
History: En. Sec. 23, Ch. 251, L. 1961; R.C.M. 1947, 15-2023; amd. Sec. 5, Ch. 227, L. 2011.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 3. Offenses, Penalties, and Immunities › 30-10-309. Securities restitution

30-10-309. Securities restitution.
(1) The commissioner may, after conducting a hearing pursuant to 30-10-305, require a person found to have committed a violation of 30-10-301 to make restitution for all financial losses sustained by any person as a result of the violation. The commissioner may further require a person found to have violated 30-10-301 to pay 10% annual interest on the amount of restitution from the date of the violation, reasonable attorney fees, and costs associated with bringing the administrative action.
(2) An amount required to be paid under this section is in addition to all other penalties imposed by law. If a person fails to pay an amount referred to in this section, the amount required to be paid is a lien upon all of the assets and property of the person in this state and may be recovered by suit by the commissioner and remitted to the person ordered to receive restitution.
(3) The commissioner or a person awarded restitution may bring suit in a court of competent jurisdiction to recover the sums awarded, attorney fees, and costs incurred in obtaining a judgment.
(4) Failure of a person to pay any amount ordered under this section constitutes a forfeiture of the right to do business in this state.
History: En. Sec. 4, Ch. 390, L. 1997.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 3. Offenses, Penalties, and Immunities › 30-10-310. Reporting requirements

30-10-310. Reporting requirements.
(1) A broker-dealer, investment adviser, investment adviser representative, or other person who has reason to believe fraud has occurred shall report the suspected fraud to the commissioner within 60 days of discovery of the occurrence.
(2) A broker-dealer shall make complete disclosure of all employment-related information required to be reported to the national association of securities dealers pursuant to rules and related explanatory materials of that association.
(3) A broker-dealer, investment adviser, investment adviser representative, or other person is not liable for any civil claim, including counterclaims, third-party claims, or cross-claims, related to reporting or providing information or otherwise cooperating with an investigation of fraud under this chapter unless the complainant shows by clear and convincing evidence that:
(a) the party knew at the time that the statement was made that the statement was false in any material respect; or
(b) the party acted in reckless disregard as to the statement's truth or falsity.
History: En. Sec. 5, Ch. 390, L. 1997; amd. Sec. 1, Ch. 267, L. 1999.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 3. Offenses, Penalties, and Immunities › 30-10-315. Requirements for securities fraud actions -- definition

30-10-315. Requirements for securities fraud actions -- definition.
(1) In any private action arising under this part, if the plaintiff alleges that the defendant made an untrue statement or omitted a material fact necessary in order to make the statements made, in light of the circumstances in which they were made, not misleading, the complaint must specify each statement alleged to have been misleading and the reason or reasons why the statement is misleading. If an allegation regarding the statement or omission is made on information and belief, the complaint must state with particularity all facts on which that belief is based.
(2) In any private action arising under this part in which the plaintiff may recover money damages only on proof that the defendant acted with a particular state of mind, the complaint must, with respect to each act or omission alleged to violate this part, state with particularity facts giving rise to a strong inference that the defendant acted with the required state of mind.
(3) In any private action arising under this part, the court shall on the motion of any defendant, dismiss the complaint if the requirements of subsections (1) and (2) are not met.
(4) (a) In any private action arising under this part, all discovery and other proceedings must be stayed during the pendency of any motion to dismiss unless the court finds, upon the motion of any party, that particularized discovery is necessary to preserve evidence or to prevent undue prejudice to that party.
(b) During the pendency of any stay of discovery pursuant to this subsection (4), unless otherwise ordered by the court, any party to the action with actual notice of the allegations contained in the complaint shall treat all documents, data compilations, including electronically recorded or stored data, and tangible objects that are in the custody or control of the party and that are relevant to the allegations as if they were the subject of a continuing request for production of documents from an opposing party under the Montana Rules of Civil Procedure.
(5) A party aggrieved by the willful failure of an opposing party to comply with subsection (4) may apply to the court for an order awarding appropriate sanctions.
(6) In any private action arising under this part, the plaintiff has the burden of proving that the act or omission of the defendant alleged to violate this title caused the loss for which the plaintiff seeks to recover damages.
(7) As used in 30-10-316 through 30-10-323 and this section, "private action arising under this part" means an action against a person referred to in 30-10-319(2).
History: En. Sec. 1, Ch. 468, L. 1997.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 3. Offenses, Penalties, and Immunities › 30-10-316. Sanctions

30-10-316. Sanctions.
(1) In any private action arising under this part, upon final adjudication of the action, the court shall include in the record specific findings regarding compliance by each party and each attorney representing any party with each requirement of Rule 11 of the Montana Rules of Civil Procedure as to any complaint, responsive pleading, or dispositive motion.
(2) If the court makes a finding under subsection (1) that a party or attorney violated any requirement of Rule 11 of the Montana Rules of Civil Procedure as to any complaint, responsive pleading, or dispositive motion, the court shall impose sanctions on the party or attorney in accordance with Rule 11. Prior to making a finding that any party or attorney has violated Rule 11, the court shall give the party or attorney notice and an opportunity to respond.
(3) (a) Subject to subsections (3)(b) and (3)(c), for the purposes of subsection (2), the court shall adopt a presumption that the appropriate sanction:
(i) for failure of any responsive pleading or dispositive motion to comply with any requirement of Rule 11 is an award to the opposing party of the reasonable attorney fees and other expenses incurred as a direct result of the violation; and
(ii) for substantial failure of any complaint to comply with any requirement of Rule 11 is an award to the opposing party of the reasonable attorney fees and other expenses incurred in the action.
(b) The presumption described in subsection (3)(a) may be rebutted only upon proof by the party or attorney against whom sanctions are to be imposed that:
(i) the award of attorney fees and other expenses will impose an unreasonable burden on that party or attorney and would be unjust and the failure to make an award would not impose a greater burden on the party in whose favor sanctions are to be imposed; or
(ii) the violation of Rule 11 was de minimis.
(c) If the party or attorney against whom sanctions are to be imposed meets its burden under subsection (3)(b), the court shall award the sanctions that the court considers appropriate pursuant to Rule 11.
History: En. Sec. 2, Ch. 468, L. 1997.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 3. Offenses, Penalties, and Immunities › 30-10-317. Defendant's right to written interrogatories

30-10-317. Defendant's right to written interrogatories.
In any private action arising under this part in which the plaintiff may recover money damages, the court shall, when requested by a defendant, submit to the jury a written interrogatory on the issue of each defendant's state of mind at the time the alleged violation occurred.
History: En. Sec. 3, Ch. 468, L. 1997.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 3. Offenses, Penalties, and Immunities › 30-10-318. Limitation on damages

30-10-318. Limitation on damages.
(1) The provisions of this section limit any damages otherwise available under this part.
(2) Except as provided in subsection (3), in any private action arising under this part in which the plaintiff seeks to establish damages by reference to the market price of a security that is traded in a national securities market, the award of damages to the plaintiff may not exceed the difference between the purchase or sale price paid or received, as appropriate, by the plaintiff for the subject security and the mean trading price of that security during the 90-day period beginning on the date on which the information correcting the misstatement or omission that is the basis for the action is disseminated to the market.
(3) In any private action arising under this part in which the plaintiff seeks to establish damages by reference to the market price of a security that is traded on a national securities market, if the plaintiff sells or repurchases the subject security prior to the expiration of the 90-day period described in subsection (2), the plaintiff's damages may not exceed the difference between the purchase or sale price paid or received, as appropriate, by the plaintiff for the security and the mean trading price of the security during the period beginning immediately after dissemination of information correcting the misstatement or omission and ending on the date on which the plaintiff sells or repurchases the security.
(4) For purposes of this section, the mean trading price of a security must be an average of the daily trading price of that security, determined as of the close of the market each day during the 90-day period referred to in subsection (2).
History: En. Sec. 4, Ch. 468, L. 1997.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 3. Offenses, Penalties, and Immunities › 30-10-320. Prohibition of referral fees

30-10-320. Prohibition of referral fees.
A broker, dealer, or person associated with a broker or dealer, may not solicit or accept, directly or indirectly, remuneration for assisting an attorney in obtaining the representation of any person in any private action under this part or under the Securities Act of 1933, 15 U.S.C. 77a, et seq.
History: En. Sec. 6, Ch. 468, L. 1997.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 3. Offenses, Penalties, and Immunities › 30-10-321. Prosecution of persons aiding violations

30-10-321. Prosecution of persons aiding violations.
For purposes of any action brought by the commissioner under 30-10-304, 30-10-305, or 30-10-306, for violations of 30-10-301 through 30-10-303, any person that knowingly provides substantial assistance to another person in violation of a provision of this part or of any rule or regulation issued under this part must be considered to be in violation of that provision to the same extent as the person to whom the assistance is provided.
History: En. Sec. 7, Ch. 468, L. 1997.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 3. Offenses, Penalties, and Immunities › 30-10-322. Loss causation

30-10-322. Loss causation.
In any private action arising under this part, if any portion or all of the amount recoverable represents other than the depreciation in value of the subject security resulting from a part of the prospectus or oral communication not being true or omitting to state a material fact required to be stated in the prospectus or oral communication or necessary to make the statement not misleading, then that portion or amount is not recoverable with respect to the liability of that person.
History: En. Sec. 8, Ch. 468, L. 1997.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 3. Offenses, Penalties, and Immunities › 30-10-323. Construction

30-10-323. Construction.
Sections 30-10-315 through 30-10-322 may not be considered to create or ratify any implied private right of action or to prevent the commissioner, by rule or regulation, from restricting or otherwise regulating private actions under Montana securities laws.
History: En. Sec. 9, Ch. 468, L. 1997.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 3. Offenses, Penalties, and Immunities › 30-10-325. Operating pyramid promotional scheme unlawful

30-10-325. Operating pyramid promotional scheme unlawful.
(1) A person may not conduct or promote or cause to be conducted or promoted a pyramid promotional scheme.
(2) A person who willfully violates the provisions of subsection (1) shall, for each participant giving consideration, be fined an amount not more than $100,000 or be imprisoned for not more than 10 years, or both.
(3) A person who violates the provisions of subsection (1) shall, for each participant giving consideration, be assessed a civil penalty in an administrative proceeding in an amount not to exceed $10,000.
History: En. Sec. 2, Ch. 74, L. 1999; amd. Sec. 2, Ch. 446, L. 2003.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 3. Offenses, Penalties, and Immunities › 30-10-326. Repealed

30-10-326. Repealed.
Sec. 6, Ch. 286, L. 2013.
History: En. Sec. 3, Ch. 74, L. 1999; amd. Sec. 2, Ch. 322, L. 2001.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 3. Offenses, Penalties, and Immunities › 30-10-327. Multilevel marketing company -- notice of activity -- consent to service

30-10-327. Multilevel marketing company -- notice of activity -- consent to service.
(1) A multilevel marketing company shall file with the commissioner on forms prescribed by the commissioner:
(a) prior to obtaining a participant that is a resident of this state:
(i) a notice that the company intends to operate in this state; and
(ii) an irrevocable consent designating the commissioner as its agent for service of process for any alleged violation of 30-10-325; and
(b) following the initial filing under subsection (1)(a), an annual notice of the company's operations in this state.
(2) The forms in subsection (1) must include, at a minimum:
(a) the names, home or business addresses, dates of birth, and titles of the multilevel marketing company's officers, directors, and trustees;
(b) the multilevel marketing company's corporate name, state of domicile and state of incorporation, and headquarters mailing address, e-mail address, and telephone and telefax numbers; and
(c) a detailed description of the levels of distribution in the multilevel marketing company, the manner of compensating participants, and the compensation structure of the marketing plan.
(3) Compliance with this section does not confer on a multilevel marketing company any license or registration or signify that the state has sanctioned, approved, registered, or endorsed a multilevel marketing company or its sales plan or operation.
(4) A multilevel marketing company or any individual or entity affiliated with a multilevel marketing company may not represent that the multilevel marketing company, individual, or entity is licensed, sanctioned, approved, registered, or endorsed in this state by virtue of compliance with 30-10-325 and this section.
(5) The requirements of subsections (1) and (2) do not apply to a direct selling association member.
History: En. Sec. 1, Ch. 318, L. 2015.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 3. Offenses, Penalties, and Immunities › 30-10-340. Governmental disclosure -- immunity

30-10-340. Governmental disclosure -- immunity.
(1) If a qualified individual, investment adviser, investment adviser representative, or salesperson reasonably believes that financial exploitation of a vulnerable person may have occurred, may have been attempted, or is being attempted, the qualified individual, investment adviser, investment adviser representative, or salesperson may promptly report the suspected exploitation to the commissioner in the manner outlined in the broker-dealer's or investment adviser's policies and procedures for reporting suspected exploitation. If the policies and procedures do not have a manner outlined, the qualified individual, investment adviser, investment adviser representative, or salesperson may report the suspected exploitation directly to the commissioner.
(2) A qualified individual, investment adviser, investment adviser representative, or salesperson who, in good faith and exercising reasonable care, makes a disclosure of information under this section is immune from administrative or civil liability that might otherwise arise from the disclosure or from any failure to notify the vulnerable person or the person's agent of the disclosure.
History: En. Sec. 1, Ch. 84, L. 2017.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 3. Offenses, Penalties, and Immunities › 30-10-341. Third-party disclosure -- immunity

30-10-341. Third-party disclosure -- immunity.
(1) A qualified individual, investment adviser, investment adviser representative, or salesperson who reasonably believes that the financial exploitation of a vulnerable person is occurring, has or may have occurred, is being attempted, or has been or may have been attempted:
(a) may notify:
(i) a federal, state, or local law enforcement agency;
(ii) the department of public health and human services provided for in 2-15-2201 or its local affiliate; or
(iii) the commissioner;
(b) may notify any third party reasonably associated with a vulnerable person. A third party reasonably associated with a vulnerable person includes but is not limited to the following:
(i) a parent, spouse, adult child, sibling, or other known family member or close associate of a vulnerable person;
(ii) an authorized contact provided by a vulnerable person to the qualified individual, investment adviser, investment adviser representative, or salesperson;
(iii) a co-owner, additional authorized signatory, or beneficiary of a vulnerable person's account; and
(iv) an attorney-in-fact, trustee, conservator, guardian, or other fiduciary who has been selected by a vulnerable person, a court, a government agency, or a third party to manage some or all of the financial affairs of the vulnerable person;
(c) may not notify any third party reasonably associated with a vulnerable person of suspected financial exploitation if the qualified individual, investment adviser, investment adviser representative or salesperson believes the third party is, may be, or may have been engaged in the financial exploitation of the vulnerable person.
(2) A qualified individual, investment adviser, investment adviser representative, or salesperson who, in good faith and exercising reasonable care, complies with this section is immune from administrative or civil liability that might otherwise arise from the disclosure.
History: En. Sec. 2, Ch. 84, L. 2017; amd. Sec. 2, Ch. 157, L. 2023.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 3. Offenses, Penalties, and Immunities › 30-10-342. Delaying disbursements -- immunity

30-10-342. Delaying disbursements -- immunity.
(1) A broker-dealer or investment adviser may delay a disbursement from an account of a vulnerable person or an account on which a vulnerable person is a beneficiary if:
(a) the broker-dealer, the investment adviser, or a qualified individual reasonably believes, after initiating an internal review of the requested disbursement and the suspected financial exploitation, that the requested disbursement may result in financial exploitation of the vulnerable person; and
(b) the broker-dealer or investment adviser:
(i) not more than 2 business days after the requested disbursement, provides written notification of the delay and the reason for the delay to all parties authorized to transact business on the account, unless the party is reasonably believed to have engaged in suspected or attempted financial exploitation of the vulnerable person;
(ii) not more than 2 business days after the requested disbursement, notifies the commissioner; and
(iii) continues the internal review of the suspected or attempted financial exploitation of the vulnerable person, as necessary, and reports the investigation's results to the commissioner within 7 business days after the requested disbursement.
(2) A delay of a disbursement authorized under this section expires upon the sooner of:
(a) a determination by the broker-dealer or investment adviser that the disbursement will not result in financial exploitation of the vulnerable person; or
(b) 15 business days after the date on which the broker-dealer or investment adviser first delayed the disbursement, unless the commissioner requests that the broker-dealer or investment adviser extend the delay. If extended, the delay expires no more than 25 business days after the date on which the broker-dealer or investment adviser first delayed the disbursement, unless the delay is terminated sooner by the commissioner or by an order of a court of competent jurisdiction.
(3) A court of competent jurisdiction may enter an order extending the delay of the disbursement beyond the timeframe provided in subsection (2) or may order other protective relief based on a petition of the commissioner, the broker-dealer or investment adviser who initiated the delay under this section, or an interested party.
(4) A broker-dealer or investment adviser who, in good faith and exercising reasonable care, complies with this section is immune from administrative or civil liability that might otherwise arise from the delay in a disbursement in accordance with this section.
History: En. Sec. 3, Ch. 84, L. 2017.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 4. Fiduciary Security Transfers (Repealed) › 30-10-401. Repealed

30-10-401. Repealed.
Sec. 88, Ch. 536, L. 1997.
History: En. Sec. 11, Ch. 101, L. 1963; R.C.M. 1947, 15-662.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 4. Fiduciary Security Transfers (Repealed) › 30-10-402. Repealed

30-10-402. Repealed.
Sec. 88, Ch. 536, L. 1997.
History: En. Sec. 1, Ch. 101, L. 1963; R.C.M. 1947, 15-652.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 4. Fiduciary Security Transfers (Repealed) › 30-10-403. Repealed

30-10-403. Repealed.
Sec. 88, Ch. 536, L. 1997.
History: En. Sec. 2, Ch. 101, L. 1963; R.C.M. 1947, 15-653.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 4. Fiduciary Security Transfers (Repealed) › 30-10-404. Repealed

30-10-404. Repealed.
Sec. 88, Ch. 536, L. 1997.
History: En. Sec. 3, Ch. 101, L. 1963; R.C.M. 1947, 15-654.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 4. Fiduciary Security Transfers (Repealed) › 30-10-405. Repealed

30-10-405. Repealed.
Sec. 88, Ch. 536, L. 1997.
History: En. Sec. 4, Ch. 101, L. 1963; R.C.M. 1947, 15-655.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 4. Fiduciary Security Transfers (Repealed) › 30-10-406. Repealed

30-10-406. Repealed.
Sec. 88, Ch. 536, L. 1997.
History: En. Sec. 5, Ch. 101, L. 1963; R.C.M. 1947, 15-656.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 4. Fiduciary Security Transfers (Repealed) › 30-10-407. Repealed

30-10-407. Repealed.
Sec. 88, Ch. 536, L. 1997.
History: En. Sec. 6, Ch. 101, L. 1963; R.C.M. 1947, 15-657.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 4. Fiduciary Security Transfers (Repealed) › 30-10-408. Repealed

30-10-408. Repealed.
Sec. 88, Ch. 536, L. 1997.
History: En. Sec. 7, Ch. 101, L. 1963; R.C.M. 1947, 15-658.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 4. Fiduciary Security Transfers (Repealed) › 30-10-409. Repealed

30-10-409. Repealed.
Sec. 88, Ch. 536, L. 1997.
History: En. Sec. 8, Ch. 101, L. 1963; R.C.M. 1947, 15-659.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 4. Fiduciary Security Transfers (Repealed) › 30-10-410. Repealed

30-10-410. Repealed.
Sec. 88, Ch. 536, L. 1997.
History: En. Sec. 9, Ch. 101, L. 1963; R.C.M. 1947, 15-660.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 4. Fiduciary Security Transfers (Repealed) › 30-10-411. Repealed

30-10-411. Repealed.
Sec. 88, Ch. 536, L. 1997.
History: En. Sec. 10, Ch. 101, L. 1963; R.C.M. 1947, 15-661.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 9. Montana Living Trust Act › 30-10-902. Purpose

30-10-902. Purpose.
The purpose of this part is to regulate the marketing and sale of living trusts in Montana and to provide civil remedies for fraudulent and deceptive sales practices.
History: En. Sec. 2, Ch. 348, L. 1997.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 9. Montana Living Trust Act › 30-10-903. Definitions

30-10-903. Definitions.
As used in this part, unless the context requires otherwise, the following definitions apply:
(1) (a) "Living trust" means either an irrevocable or a revocable inter vivos trust.
(b) The term does not include an account with a POD designation, as defined in 72-6-201.
(2) "Offer" or "offer to sell" includes an attempt or offer to dispose of a living trust for value or a solicitation of an offer to buy a living trust for value.
(3) "Person" means an individual, corporation, partnership, association, joint-stock company, or unincorporated organization.
(4) "Sale" includes each contract of sale, contract to sell, or disposition of a living trust for value.
History: En. Sec. 3, Ch. 348, L. 1997.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 10. Securities Regulation › Part 9. Montana Living Trust Act › 30-10-904. Licensure -- exemption

30-10-904. Licensure -- exemption.
(1) A person may not offer or sell a living trust in this state unless the person:
(a) is registered as an investment adviser or investment adviser representative under 30-10-201; and
(b) has applied for and been granted a license under this section.
(2) Subsection (1) does not apply to the preparation, acceptance, or discussion of a living trust for an individual client, when the preparation of the living trust is based upon the client's particular financial circumstance, by:
(a) an attorney licensed to practice law in this state;
(b) an employee of a state or national bank with trust powers or a trust corporation; or
(c) a person on behalf of an educational, charitable, or religious institution, when done in conjunction with an attorney licensed to practice law in this state.
(3) In any proceeding under this part, the burden of proving that a person preparing a living trust is excluded from the license requirement is on the person claiming the exclusion.
(4) A person may apply for a license to offer and sell living trusts by filing an application in the form that the state auditor prescribes and paying the fee required in subsection (5).
(5) The state auditor shall issue a license to offer or sell a living trust to a person who:
(a) is registered as an investment adviser or investment adviser representative under 30-10-201;
(b) correctly files an application for the license with the state auditor; and
(c) pays an application fee in the same amount as the amount paid by the person for original registration as an investment adviser or investment adviser representative.
(6) The state auditor may issue an order denying, suspending, or revoking the effectiveness of any pending application or approved license if any provision of this part or any rule, order, or condition imposed by this part has been willfully violated in connection with the offer or sale of a living trust by a person involved in the assembling, drafting, executing, offering, or selling of the living trust.
(7) The license is effective until December 31 following issuance of the license or until another date that the state auditor establishes by rule unless the license is suspended or revoked.
(8) A person may renew a license annually, prior to the termination date of the license, if the person:
(a) is registered as an investment adviser or investment adviser representative under 30-10-201; and
(b) pays a renewal fee in the same amount as the amount paid by the person for annual renewal as an investment adviser or investment adviser representative.
History: En. Sec. 4, Ch. 348, L. 1997.