reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 4. Development Corporation Act › Part 2. Organization › 32-4-208. Stock ownership and limitations

32-4-208. Stock ownership and limitations.
Notwithstanding any rule at common law or any provision of any general or special law or any provision in their respective charters, agreements of association, articles of organization, or trust indentures:
(1) all persons, domestic corporations organized for the purpose of carrying on business within this state, including without implied limitation any public utility companies and insurance and casualty companies and foreign corporations licensed to do business in the state, and trusts are hereby authorized to acquire, purchase, hold, sell, assign, transfer, mortgage, pledge, or otherwise dispose of any bonds, securities, or other evidences of indebtedness created by, or the shares of the capital stock of, the corporation and, while owners of said stock, to exercise all the rights, powers, and privileges of ownership, including the right to vote thereon, all without the approval of any regulatory authority of the state;
(2) all financial institutions are hereby authorized to become members of the corporation by making loans to the corporation as provided herein;
(3) a financial institution which does not become a member of the corporation shall not be permitted to acquire any share of the capital stock of the corporation;
(4) each financial institution which becomes a member of the corporation is hereby authorized to acquire, purchase, hold, sell, assign, transfer, mortgage, pledge, or otherwise dispose of any bonds, securities, or other evidences of indebtedness created by, or the shares of the capital stock of, the corporation and, while owners of said stock, to exercise all the rights, powers, and privileges of ownership, including the right to vote thereon, all without the approval of any regulatory authority of the state.
History: En. Sec. 9, Ch. 128, L. 1969; R.C.M. 1947, 15-2609; amd. Sec. 3, Ch. 91, L. 1987.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 4. Development Corporation Act › Part 3. Operation and Regulation › 32-4-301. Powers of stockholders

32-4-301. Powers of stockholders.
(1) The stockholders of the corporation have the following powers of the corporation:
(a) to determine the number of and elect directors as provided in 32-4-206;
(b) to make, amend, and repeal bylaws;
(c) to amend the articles of incorporation as provided in 32-4-205;
(d) to exercise other powers of the corporation as may be conferred on the stockholders by the bylaws.
(2) As to all matters requiring action by the stockholders of the corporation and except as otherwise provided in this chapter, the matters require the affirmative vote of a majority of the votes to which the stockholders present or represented at the meeting are entitled.
(3) Each stockholder has one vote, in person or by proxy, for each share of capital stock held by the stockholder.
History: En. Sec. 7, Ch. 128, L. 1969; R.C.M. 1947, 15-2607; amd. Sec. 4, Ch. 91, L. 1987; amd. Sec. 1052, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 4. Development Corporation Act › Part 3. Operation and Regulation › 32-4-303. Withdrawal of membership

32-4-303. Withdrawal of membership.
(1) Membership in the corporation shall be for the duration of the corporation, provided that, upon written notice given to the corporation 2 years in advance, a member may withdraw from membership in the corporation at the expiration date of such notice.
(2) A member shall not be obligated to make any loans to the corporation pursuant to calls made subsequent to the withdrawal of said member.
History: En. Sec. 11, Ch. 128, L. 1969; R.C.M. 1947, 15-2611.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 4. Development Corporation Act › Part 3. Operation and Regulation › 32-4-304. Surplus

32-4-304. Surplus.
Each year the corporation shall set apart as earned surplus not less than 10% of its net earnings for the preceding fiscal year until such surplus shall be equal in value to 50% of the amount paid in on the capital stock then outstanding. Whenever the amount of surplus established herein shall become impaired, it shall be built up again to the required amount in the manner provided for its original accumulation. Net earnings and surplus shall be determined by the board of directors, after providing for such reserves as said directors deem desirable, and the directors' determination made in good faith shall be conclusive on all persons.
History: En. Sec. 12, Ch. 128, L. 1969; R.C.M. 1947, 15-2612; amd. Sec. 4, Ch. 320, L. 1983.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 4. Development Corporation Act › Part 3. Operation and Regulation › 32-4-305. Deposit of funds

32-4-305. Deposit of funds.
(1) The corporation shall not deposit any of its funds in any banking institution unless such institution has been designated as a depository by a vote of a majority of the directors present at an authorized meeting of the board of directors, exclusive of any director who is an officer or director of the depository so designated.
(2) The corporation shall not receive money on deposit.
History: En. Sec. 13, Ch. 128, L. 1969; R.C.M. 1947, 15-2613.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 4. Development Corporation Act › Part 3. Operation and Regulation › 32-4-306. Control -- supervision -- reports

32-4-306. Control -- supervision -- reports.
The corporation is subject to the examination of the department of administration and shall make reports of its condition not less than annually to the department. The department shall make copies of the reports available to the commissioner of insurance and to the governor. The corporation shall also file an annual statement required by Title 35.
History: En. Sec. 14, Ch. 128, L. 1969; amd. Sec. 87, Ch. 431, L. 1975; R.C.M. 1947, 15-2614; amd. Sec. 2, Ch. 274, L. 1981; amd. Sec. 99, Ch. 483, L. 2001.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 1. General Provisions › 32-5-101. Short title

32-5-101. Short title.
This chapter may be cited as the "Montana Consumer Loan Act".
History: En. Sec. 1, Ch. 283, L. 1959; R.C.M. 1947, 47-201.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 1. General Provisions › 32-5-102. Definitions

32-5-102. Definitions.
For the purposes of this chapter, the following definitions apply:
(1) "Balloon payment" means any repayment option in which the borrower is required to repay the entire amount of any outstanding balance as of a specific date or at the end of a specified term and the aggregate amount of the required minimum periodic payments would not fully amortize the outstanding balance by the specific date or at the end of the loan term.
(2) (a) "Consumer loan" means credit offered or extended to an individual primarily for personal, family, or household purposes, including loans for personal, family, or household purposes that are not primarily secured by a mortgage, deed of trust, trust indenture, or other security interest in real estate.
(b) Consumer loans do not include:
(i) deferred deposit loans provided for in Title 31, chapter 1, part 7; or
(ii) residential mortgage loans as defined in 32-9-103.
(3) "Department" means the department of administration provided for in Title 2, chapter 15, part 10.
(4) "Interest" means the compensation allowed by this chapter for the use, forbearance, or detention of money.
(5) "License" means a license provided for by this chapter.
(6) "Licensee" means the person holding a license.
(7) "Person" means individuals, partnerships, associations, corporations, and all legal entities.
History: En. Sec. 2, Ch. 283, L. 1959; amd. Sec. 1, Ch. 233, L. 1971; amd. Sec. 1, Ch. 172, L. 1975; amd. Sec. 110, Ch. 431, L. 1975; R.C.M. 1947, 47-202; amd. Sec. 1, Ch. 216, L. 1979; amd. Sec. 2, Ch. 274, L. 1981; amd. Sec. 1, Ch. 424, L. 1981; amd. Sec. 1, Ch. 140, L. 1983; amd. Sec. 1, Ch. 374, L. 1997; amd. Sec. 100, Ch. 483, L. 2001; amd. Sec. 7, Ch. 178, L. 2003; amd. Sec. 6, Ch. 221, L. 2003; amd. Sec. 1, Ch. 372, L. 2007; amd. Sec. 2, Ch. 317, L. 2011; amd. Sec. 1, Ch. 173, L. 2013; amd. Sec. 5, Ch. 278, L. 2013.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 1. General Provisions › 32-5-103. Engaging in business of making consumer loans restricted

32-5-103. Engaging in business of making consumer loans restricted.
(1) Except as provided in subsection (5), a person may not engage in the business of making consumer loans in any amount and contract for, charge, or receive directly or indirectly on or in connection with any loan any compensation, whether for interest, fees, other consideration, or expense, except as provided in and authorized by this chapter.
(2) A licensee may sell its business and assets to a bank, building and loan association, savings and loan association, trust company, credit union, credit association, development credit corporation, other licensee, financial holding company, or bank holding company organized pursuant to state or federal statutory authority and subject to supervision, control, or regulation by an agency of the state of Montana or an agency of the federal government. All contracts for loans and all other contracts entered into by the licensee pursuant to the provisions of this chapter that are sold and transferred to an acquiring organization continue to be governed by the provisions of this chapter.
(3) The provisions of subsection (1) apply to any person who seeks to evade its applications by any device, subterfuge, or pretense.
(4) Any loan made or collected in violation of subsection (1) by a person other than a licensee or a person exempt under subsection (5) is void, and the person does not have the right to collect, receive, or retain any principal, interest, fees, or other charges.
(5) The following are not required to comply with the provisions of this chapter:
(a) a bank, building and loan association, savings and loan association, trust company, or credit union; or
(b) a person who:
(i) makes fewer than four consumer loans a year with the person's own funds;
(ii) does not represent that the person is a licensee; and
(iii) complies with the provisions of Title 31, chapter 1, part 1.
History: En. Sec. 4, Ch. 283, L. 1959; amd. Sec. 2, Ch. 233, L. 1971; amd. Sec. 2, Ch. 172, L. 1975; R.C.M. 1947, 47-204; amd. Sec. 2, Ch. 216, L. 1979; amd. Sec. 2, Ch. 424, L. 1981; amd. Sec. 1, Ch. 103, L. 1983; amd. Sec. 2, Ch. 140, L. 1983; amd. Sec. 1, Ch. 168, L. 1985; amd. Sec. 2, Ch. 406, L. 1985; amd. Sec. 1, Ch. 18, L. 1993; amd. Sec. 2, Ch. 374, L. 1997; amd. Sec. 1, Ch. 270, L. 1999; amd. Sec. 16, Ch. 404, L. 1999; amd. Sec. 21, Ch. 455, L. 2001; amd. Sec. 2, Ch. 125, L. 2005; amd. Sec. 2, Ch. 372, L. 2007; amd. Sec. 2, Ch. 173, L. 2013; amd. Sec. 6, Ch. 278, L. 2013; amd. Sec. 1, Ch. 101, L. 2017.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 1. General Provisions › 32-5-104. Repealed

32-5-104. Repealed.
Secs. 22, 24(1), Ch. 372, L. 2007.
History: En. Sec. 9, Ch. 424, L. 1981.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 2. Licensure Requirements › 32-5-201. License and renewal application fees

32-5-201. License and renewal application fees.
(1) (a) Each place of business operated under this chapter must be licensed. Licenses are nontransferable and nonassignable. The same person may obtain an additional license for each business location upon compliance with this chapter.
(b) Applications for a license or renewal must be in the form and submitted in the manner prescribed by the department.
(c) A licensee may move the licensee's place of business from one place to another upon advance notice to the department in the manner the department directs.
(d) The license application fee and license renewal fee are $500 and are nonrefundable. The license year is the calendar year. All consumer loan licenses issued under this chapter expire on December 31.
(2) The department's share of all licensing and examination fees collected pursuant to this chapter must be deposited into the state special revenue fund for the use of the department in its supervision function.
(3) The department may direct that fees charged under subsection (1)(d) be remitted to the department through a nationwide licensing system.
History: Ap. p. Sec. 6, Ch. 283, L. 1959; amd. Sec. 112, Ch. 431, L. 1975; Sec. 47-206, R.C.M. 1947; Ap. p. Sec. 5, Ch. 283, L. 1959; amd. Sec. 3, Ch. 233, L. 1971; amd. Sec. 3, Ch. 172, L. 1975; amd. Sec. 172, Ch. 431, L. 1975; Sec. 47-205, R.C.M. 1947; R.C.M. 1947, 47-205(part), 47-206; amd. Sec. 3, Ch. 216, L. 1979; amd. Sec. 3, Ch. 424, L. 1981; amd. Sec. 3, Ch. 140, L. 1983; amd. Sec. 6, Ch. 600, L. 1985; amd. Sec. 3, Ch. 372, L. 2007; amd. Sec. 3, Ch. 173, L. 2013.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 2. Licensure Requirements › 32-5-202. Issuance or denial of license or license renewal

32-5-202. Issuance or denial of license or license renewal.
(1) Upon submission of a completed application and payment of all required fees, a license or renewal must be issued if the department determines that:
(a) the character and general fitness of the applicant warrant the belief that the business will be operated lawfully and fairly within the provisions of this chapter;
(b) the applicant has not had a financial services license revoked by a regulatory agency in any jurisdiction;
(c) there are no outstanding civil judgments against the applicant for fraud in relation to providing consumer financial services; and
(d) the application does not contain material misstatements of fact or material omissions of fact.
(2) The department may enter an order denying the license or license renewal application subject to issuance and service of notice and opportunity for an administrative hearing as provided in 32-5-207(2).
History: En. Sec. 7, Ch. 283, L. 1959; amd. Sec. 113, Ch. 431, L. 1975; R.C.M. 1947, 47-207; amd. Sec. 4, Ch. 372, L. 2007; amd. Sec. 4, Ch. 173, L. 2013; amd. Sec. 4, Ch. 23, L. 2015.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 2. Licensure Requirements › 32-5-203. Conduct of other business in same office

32-5-203. Conduct of other business in same office.
A licensee may conduct the business of making consumer loans under this chapter within any office, room, or place of business in which any other business for which a license under this chapter is not required is solicited or engaged in or in association or conjunction with the business. "Other business" may include making loans not primarily for personal, family, or household purposes, unless the department finds, after a hearing, that the other business is of a nature that the conduct tends to conceal evasion of this chapter or of the rules made under this chapter. If the department finds concealment or evasion, it shall order the licensee in writing to desist from the conduct.
History: En. Sec. 8, Ch. 283, L. 1959; amd. Sec. 172, Ch. 431, L. 1975; R.C.M. 1947, 47-208; amd. Sec. 3, Ch. 374, L. 1997.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 2. Licensure Requirements › 32-5-204. Repealed

32-5-204. Repealed.
Sec. 15, Ch. 173, L. 2013.
History: En. Sec. 9, Ch. 283, L. 1959; amd. Sec. 172, Ch. 431, L. 1975; amd. Sec. 35, Ch. 71, L. 1977; R.C.M. 1947, 47-209; amd. Sec. 5, Ch. 372, L. 2007.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 2. Licensure Requirements › 32-5-205. Surrender of license

32-5-205. Surrender of license.
A license may be surrendered on conditions of the department consistent with the protocols of a nationwide licensing system for license surrender. The license surrender does not affect the licensee's civil, administrative, or criminal liability for acts committed prior to the surrender.
History: En. Sec. 21, Ch. 283, L. 1959; amd. Sec. 172, Ch. 431, L. 1975; R.C.M. 1947, 47-221; amd. Sec. 5, Ch. 173, L. 2013.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 2. Licensure Requirements › 32-5-206. Termination of license not to affect preexisting contract

32-5-206. Termination of license not to affect preexisting contract.
No revocation, surrender, or expiration of any license shall impair or affect the obligation of any preexisting lawful contract.
History: En. Sec. 22, Ch. 283, L. 1959; R.C.M. 1947, 47-222.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 2. Licensure Requirements › 32-5-207. Notice of violation -- administrative hearing -- penalties -- liability

32-5-207. Notice of violation -- administrative hearing -- penalties -- liability.
(1) If the department has probable cause to believe that a licensed or unlicensed person has violated this chapter, a rule promulgated under this chapter, or an order issued by the department or has made a material misrepresentation to the department by act or omission, the department may issue a notice stating the alleged violation to the person.
(2) (a) The notice referred to in subsection (1) must comply with 2-4-601 and must include a statement that the person has an opportunity to request an administrative hearing under the Montana Administrative Procedure Act within 14 days of the date that the department's notice was mailed to the person.
(b) The department's notice must be sent by certified mail to a licensee's address of record with the department or to an unlicensed person at an address for the person known to the department.
(c) The department has complied with the service of process upon mailing the notice by certified mail as provided in subsection (2)(b).
(3) If a person served with a notice under this section admits to or does not contest having violated or is found after an administrative hearing to have violated a provision of this chapter, a rule promulgated under this chapter, or an order issued by the department or to have made a material misrepresentation to the department by act or omission, the department may impose a civil penalty of not more than $1,000 for each violation and may order restitution to borrowers and reimbursement of the department's costs in bringing an administrative action. The department may suspend or revoke the right of a person or licensee, directly or through an officer, agent, employee, or representative, to operate as a licensee or to engage in the business of making consumer loans.
(4) The department's remedies specified in this chapter are cumulative.
(5) A revocation or suspension of a license does not relieve the licensee from civil, administrative, or criminal liability for acts committed prior to the revocation or suspension of the license.
(6) All civil penalties collected pursuant to this section must be deposited in the state general fund.
History: En. Sec. 23, Ch. 283, L. 1959; amd. Sec. 116, Ch. 431, L. 1975; R.C.M. 1947, 47-223; amd. Sec. 6, Ch. 372, L. 2007; amd. Sec. 6, Ch. 173, L. 2013; amd. Sec. 5, Ch. 23, L. 2015.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 2. Licensure Requirements › 32-5-208. Reinstatement

32-5-208. Reinstatement.
The department may reinstate any revoked license if there is not a fact or condition existing at the time of reinstatement that would have justified the department in refusing originally to issue the license. In any case in which the license has been revoked for cause, an application may not be made for issuance of a new license or the reinstatement of a revoked license for a period of 6 months from the date of revocation.
History: En. Sec. 24, Ch. 283, L. 1959; amd. Sec. 172, Ch. 431, L. 1975; R.C.M. 1947, 47-224; amd. Sec. 7, Ch. 372, L. 2007.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 2. Licensure Requirements › 32-5-209. Department authorized to participate in nationwide licensing system for purposes of licensing consumer loan licensees -- rulemaking

32-5-209. Department authorized to participate in nationwide licensing system for purposes of licensing consumer loan licensees -- rulemaking.
(1) The department may participate in a nationwide licensing system for licensing purposes under this chapter and may require consumer loan licensees to apply for licensure on applications approved by the nationwide licensing system.
(2) The department may establish rules that are necessary to comply with the nationwide licensing system protocols and procedures pertaining to applications, fees, renewal dates, amending or surrendering a license, and submission of reports necessary for participation in the nationwide licensing system.
(3) The department's portion of the licensing fees collected through the nationwide licensing system must be deposited into the department's account in the state special revenue fund for use in the administration of this part.
History: En. Sec. 13, Ch. 173, L. 2013.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 3. Operation of Business -- Restrictions and Requirements › 32-5-302. Installment and balloon payments

32-5-302. Installment and balloon payments.
(1) Except as provided in subsection (4), if the loan contract requires installment payments, the contract must provide that principal and interest be payable at approximately equal periodic intervals, except that payment dates may be omitted to accommodate borrowers with seasonal incomes.
(2) An installment contracted for may not be substantially larger than any preceding installment. If a loan contract provides for monthly installment payments, the first installment must be payable at any time within 45 days of the date of the making of the loan.
(3) A licensee may not enter into any loan contract in which a borrower agrees to pay principal or interest in one lump sum unless the payment is due not less than 45 days from the date of the making of the loan and not more than 1 year from the date of the making of the loan.
(4) Loans with a balloon payment are permissible so long as all installment payments cover at least the interest that has accrued since the previous installment payment.
History: En. Sec. 11, Ch. 283, L. 1959; amd. Sec. 4, Ch. 233, L. 1971; amd. Sec. 36, Ch. 71, L. 1977; R.C.M. 1947, 47-211; amd. Sec. 5, Ch. 424, L. 1981; amd. Sec. 1, Ch. 150, L. 1991; amd. Sec. 4, Ch. 198, L. 1993; amd. Sec. 4, Ch. 374, L. 1997; amd. Sec. 9, Ch. 372, L. 2007; amd. Sec. 8, Ch. 173, L. 2013.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 3. Operation of Business -- Restrictions and Requirements › 32-5-303. Borrower to receive copy of contract or statement of contents

32-5-303. Borrower to receive copy of contract or statement of contents.
(1) At the time a loan is made, there must be delivered to the borrower or borrowers the disclosures required by the federal Consumer Credit Protection Act and the federal Truth in Lending Act, 15 U.S.C. 1601, et seq., and a copy of the loan contract or a written statement showing in clear and distinct terms:
(a) the name and address of the lender and of one of the borrowers or a maker of the loan;
(b) the date of the loan contract;
(c) the description or schedule of payments;
(d) the principal amount of the loan excluding interest;
(e) the rate and amount of interest as provided in the contract;
(f) the amount collected or paid out for each kind of insurance, if any;
(g) the amount collected or paid out for filing and other fees as allowed in this chapter;
(h) the collateral or security for the loan including all other accommodation or other joint makers or comakers; and
(i) that the borrower may prepay the loan in whole or in part without penalty at any time during a licensee's regular business hours.
(2) Compliance with the disclosure requirements of the Truth in Lending Act, 15 U.S.C. 1601, et seq., does not constitute authorization to enlarge or modify the interest or the fees that may be charged under 32-5-301.
History: En. Sec. 12, Ch. 283, L. 1959; amd. Sec. 172, Ch. 431, L. 1975; R.C.M. 1947, 47-212(part); amd. Sec. 6, Ch. 424, L. 1981; amd. Sec. 4, Ch. 406, L. 1985; amd. Sec. 10, Ch. 372, L. 2007; amd. Sec. 9, Ch. 173, L. 2013.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 3. Operation of Business -- Restrictions and Requirements › 32-5-304. Receipts -- return of note

32-5-304. Receipts -- return of note.
Every licensee shall:
(1) give to the borrower a plain, dated, and complete receipt for every payment made in cash on account of any loan at the time the payment is made;
(2) endorse indelibly on a loan ledger or card or maintain a record by reliable electronic means of the amount and date of each payment made by the borrower; and
(3) upon repayment of the loan in full, mark indelibly every obligation and security signed by the borrower with the word "paid" or "canceled" or otherwise memorialize satisfaction of the obligation and release any mortgage, restore any pledge, and cancel and return to the borrower any note and any assignment given to the licensee within 10 days after the repayment. Reconveyance of a deed of trust must be in accordance with 71-1-307 through 71-1-309. The canceled note and canceled assignment or other instrument clearly identifying the note or assignment and stating that it has been paid in full must be mailed to the borrower at the borrower's last-known address unless returned to the borrower in person.
(4) maintain records in accordance with 32-5-307.
History: En. Sec. 12, Ch. 283, L. 1959; amd. Sec. 172, Ch. 431, L. 1975; R.C.M. 1947, 47-212(part); amd. Sec. 1, Ch. 84, L. 1981; amd. Sec. 1053, Ch. 56, L. 2009; amd. Sec. 10, Ch. 173, L. 2013.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 3. Operation of Business -- Restrictions and Requirements › 32-5-305. Confessions of judgment -- incomplete instruments forbidden

32-5-305. Confessions of judgment -- incomplete instruments forbidden.
A licensee may not:
(1) take any confession of judgment from the borrower or any power of attorney running to the licensee or to any third person to confess judgment for the borrower or to appear for the borrower in a judicial proceeding, except that this subsection does not prohibit a borrower from personally and voluntarily confessing judgment after the borrower's loan is in default;
(2) take any note or promise to pay that does not disclose the amount of the loan, a schedule of payments or a description of the schedule of payments, and the agreed interest and fees to be charged. The note or promise may not contain blanks that are left to be filled in after execution. The disclosures required by this subsection are not required on a certificate of title to a motor vehicle, on a policy or certificate of insurance, or on customary powers in connection with bonds or stocks that may be pledged as collateral.
(3) take any instrument in which blanks are left to be filled in after the loan is made.
History: En. Sec. 13, Ch. 283, L. 1959; R.C.M. 1947, 47-213; amd. Sec. 11, Ch. 372, L. 2007; amd. Sec. 11, Ch. 173, L. 2013.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 3. Operation of Business -- Restrictions and Requirements › 32-5-307. Records to be kept

32-5-307. Records to be kept.
Each licensee shall keep or make available in each licensed office the books, accounts, and records that the department requires and that are necessary to enable the department to determine whether the licensee is complying with this chapter and with the rules promulgated under this chapter. The licensee shall preserve the records for at least 2 years after making the final entry on any loan recorded in the records.
History: En. Sec. 17, Ch. 283, L. 1959; amd. Sec. 172, Ch. 431, L. 1975; R.C.M. 1947, 47-217; amd. Sec. 5, Ch. 374, L. 1997.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 3. Operation of Business -- Restrictions and Requirements › 32-5-308. Annual report

32-5-308. Annual report.
(1) A licensee shall file an annual report by the date and in the manner prescribed by the department covering the licensee's consumer loan activity in this state during the preceding calendar year.
(2) The report must contain the information prescribed by the department. The department may require information that is consistent with the protocols of a nationwide licensing system as provided in 32-5-209.
History: En. Sec. 18, Ch. 283, L. 1959; amd. Sec. 115, Ch. 431, L. 1975; R.C.M. 1947, 47-218; amd. Sec. 1, Ch. 64, L. 2005; amd. Sec. 13, Ch. 372, L. 2007; amd. Sec. 5, Ch. 96, L. 2013; amd. Sec. 12, Ch. 173, L. 2013.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 3. Operation of Business -- Restrictions and Requirements › 32-5-309. Advertising -- limitations

32-5-309. Advertising -- limitations.
No person shall advertise, display, distribute, broadcast, or televise or permit to be displayed, advertised, distributed, broadcasted, or televised, in any manner whatsoever, any false, misleading, or deceptive statement or representation with regard to the rates, terms, or conditions of loans.
History: En. Sec. 19, Ch. 283, L. 1959; R.C.M. 1947, 47-219.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 3. Operation of Business -- Restrictions and Requirements › 32-5-310. Wage assignments -- limitations

32-5-310. Wage assignments -- limitations.
(1) Subject to the limitations in subsection (2), wage assignments, which include salary, wages, commissions, and other compensation for services, are permitted and any loan made subject to a wage assignment must be considered a loan secured by the wage assignment. The amount by which the assignment exceeds the amount of the consideration actually paid, for the purposes of regulation under this chapter, may not be considered interest on the loan and must be credited to the borrower. Transactions subject to the provisions of this section are governed by and are subject to the provisions of this chapter.
(2) Any assignment to a licensee or for the benefit of a licensee of salary, wages, commissions, or other compensation for services may not exceed 10% of the salary, wages, commissions, or other compensation owing at the time of the notice to the debtor's employer or that is subsequently owed. An assignment is not valid unless it is in writing and is signed in person by the borrower or if the borrower is married is signed in person by both husband and wife, provided that written assent of a spouse is not required when husband and wife have been and are living separate and apart when the assignment is made. Notice of the assignment must be given to the debtor's employer only if the debtor defaults in payment of the whole or some part of the loan for which the assignment is security. The notice must be served on the employer or a managing agent of the employer, must be verified by the licensee or the licensee's agent, and must include:
(a) a correct copy of the assignment;
(b) a statement of the amount of the loan and the amount due and unpaid; and
(c) a copy of this section.
(3) The acceptance and honoring of any assignment must be at the option of the employer.
History: En. Sec. 20, Ch. 283, L. 1959; amd. Sec. 37, Ch. 71, L. 1977; R.C.M. 1947, 47-220; amd. Sec. 14, Ch. 372, L. 2007; amd. Sec. 6, Ch. 96, L. 2013.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 3. Operation of Business -- Restrictions and Requirements › 32-5-311. Precomputed interest prohibited

32-5-311. Precomputed interest prohibited.
All consumer loans made or refinanced under this chapter must be made on simple interest, and the interest on consumer loans made or refinanced under this chapter may not be precomputed.
History: En. Sec. 14, Ch. 173, L. 2013.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 3. Operation of Business -- Restrictions and Requirements › 32-5-321. Repealed

32-5-321. Repealed.
Secs. 22, 24(1), Ch. 372, L. 2007.
History: En. Sec. 1, Ch. 341, L. 1979.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 3. Operation of Business -- Restrictions and Requirements › 32-5-322. Repealed

32-5-322. Repealed.
Secs. 22, 24(1), Ch. 372, L. 2007.
History: En. Sec. 2, Ch. 341, L. 1979; amd. Sec. 3, Ch. 168, L. 1985; amd. Sec. 5, Ch. 406, L. 1985.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 3. Operation of Business -- Restrictions and Requirements › 32-5-323. Repealed

32-5-323. Repealed.
Secs. 22, 24(1), Ch. 372, L. 2007.
History: En. Sec. 3, Ch. 341, L. 1979.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 3. Operation of Business -- Restrictions and Requirements › 32-5-324. Repealed

32-5-324. Repealed.
Secs. 22, 24(1), Ch. 372, L. 2007.
History: En. Sec. 4, Ch. 341, L. 1979.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 4. Enforcement › 32-5-401. Department -- powers and duties -- adoption of rules

32-5-401. Department -- powers and duties -- adoption of rules.
(1) All powers and duties of regulation and supervision conferred by this chapter are vested in the department. The department shall adopt rules necessary to carry out the intent and purposes of this chapter.
(2) All rules adopted under this chapter are binding on all persons and enforceable by the department as provided in this chapter.
History: En. Sec. 3, Ch. 283, L. 1959; amd. Sec. 111, Ch. 431, L. 1975; R.C.M. 1947, 47-203; amd. Sec. 15, Ch. 372, L. 2007.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 4. Enforcement › 32-5-402. Investigations by department -- subpoenas -- oaths -- examination of witnesses and evidence

32-5-402. Investigations by department -- subpoenas -- oaths -- examination of witnesses and evidence.
(1) The department may at any time investigate any transaction with borrowers and may examine the books, accounts, and records to discover violations of this chapter by:
(a) a licensee; or
(b) a person who the department has reason to believe is violating or is about to violate this chapter.
(2) The department or the department's authorized representatives must be given free access to the offices and places of business and files of all licensees. The department may investigate any matter, upon complaint or otherwise, if it appears that a person has engaged in or offered to engage in any act or practice that is in violation of any provision of this chapter or any rule adopted or order issued by the department pursuant to this chapter.
(3) The department may issue subpoenas to compel the attendance of witnesses and the production of documents, papers, books, records, and other evidence before it in any matter over which it has jurisdiction, control, or supervision pertaining to this chapter. The department may administer oaths and affirmations to a person whose testimony is required.
(4) If a person refuses to obey a subpoena or to give testimony or produce evidence as required by the subpoena, a judge of the district court in the county in which the licensed premises are located or in the district court of Lewis and Clark County if no licensed premises are maintained in the state may, upon application and proof of the refusal, issue a subpoena or subpoena duces tecum for the witness to appear before the department to give testimony and produce evidence as may be required. The clerk of court shall then issue the subpoena, as directed, under the seal of the court, requiring the person to whom it is directed to appear at the time and place designated in the subpoena.
(5) If a person served with a subpoena refuses to obey the subpoena or to give testimony or produce evidence as required by the subpoena, the department may proceed under the contempt provisions of Title 3, chapter 1, part 5.
(6) Failure to comply with the requirements of a court-ordered subpoena is punishable pursuant to 45-7-309.
History: En. Sec. 15, Ch. 283, L. 1959; amd. Sec. 6, Ch. 233, L. 1971; amd. Sec. 5, Ch. 172, L. 1975; amd. Sec. 114, Ch. 431, L. 1975; R.C.M. 1947, 47-215; amd. Sec. 5, Ch. 216, L. 1979; amd. Sec. 8, Ch. 424, L. 1981; amd. Sec. 6, Ch. 140, L. 1983; amd. Sec. 16, Ch. 372, L. 2007; amd. Sec. 6, Ch. 23, L. 2015; amd. Sec. 14, Ch. 535, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 4. Enforcement › 32-5-403. Examinations -- cost

32-5-403. Examinations -- cost.
(1) The department may examine the books, accounts, and records of every licensee insofar as they relate to transactions with borrowers under this chapter.
(2) The expenses of the department incurred in the examination of the books, accounts, and records of the licensees must be charged at a rate established by the department by rule. The amount charged must be established to recover all of the costs of the department's supervision program. Each licensee must be billed by the department for the amount charged to the licensee pursuant to this section. If the charge is not paid within 30 days after the mailing of the bill, the license of the licensee may be suspended or revoked.
History: En. Sec. 16, Ch. 283, L. 1959; amd. Sec. 7, Ch. 233, L. 1971; amd. Sec. 172, Ch. 431, L. 1975; R.C.M. 1947, 47-216; amd. Sec. 1, Ch. 368, L. 1983; amd. Sec. 7, Ch. 600, L. 1985; amd. Sec. 17, Ch. 372, L. 2007.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 4. Enforcement › 32-5-404. Repealed

32-5-404. Repealed.
Secs. 22, 24(1), Ch. 372, L. 2007.
History: En. Sec. 26, Ch. 283, L. 1959; amd. Sec. 172, Ch. 431, L. 1975; amd. Sec. 38, Ch. 71, L. 1977; R.C.M. 1947, 47-226.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 4. Enforcement › 32-5-405. Injunctions -- receivers

32-5-405. Injunctions -- receivers.
(1) Whenever the department has reasonable cause to believe that a person is violating or is threatening to violate any provision of this chapter, the department may, in addition to all actions provided for in this chapter and without prejudice to those actions, bring an action in the name of the state against the person to restrain by temporary or permanent injunction or temporary restraining order the use of the unlawful method, act, or practice.
(2) The notice for an action pursuant to subsection (1) must state generally the relief sought and must be served at least 20 days before the hearing of the action in which the relief sought is a temporary or permanent injunction. The notice for a temporary restraining order is governed by 27-19-315.
(3) An action under this section may be brought in the district court in the county in which a person resides or has the person's principal place of business or in the district court of Lewis and Clark County if the person is not a resident of this state or does not maintain a place of business in this state.
(4) A district court may issue temporary or permanent injunctions or temporary restraining orders to restrain and prevent violations of this chapter, and an injunction must be issued without bond to the department.
(5) In addition to all other means provided by law for the enforcement of a restraining order or injunction, the court in which the action is brought may impound and appoint a receiver for the property and business of the defendant, including books, papers, documents, and records pertaining to the property or business or as much of the property or business as the court considers reasonably necessary to prevent violations of this chapter. The receiver, when appointed and qualified, has the powers and duties as to custody, collection, administration, winding up, and liquidation of the property and business that are conferred upon the receiver by the court.
History: En. Sec. 27, Ch. 283, L. 1959; amd. Sec. 172, Ch. 431, L. 1975; R.C.M. 1947, 47-227; amd. Sec. 19, Ch. 372, L. 2007.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 4. Enforcement › 32-5-406. Repealed

32-5-406. Repealed.
Secs. 22, 24(1), Ch. 372, L. 2007.
History: En. Sec. 28, Ch. 283, L. 1959; R.C.M. 1947, 47-228.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 4. Enforcement › 32-5-407. Attorney fees -- bad check fee

32-5-407. Attorney fees -- bad check fee.
(1) If provided in the contract, reasonable attorney fees may be awarded to the party in whose favor final judgment is rendered in any action on a contract entered into pursuant to the provisions of this chapter.
(2) In addition to any other fees authorized by this chapter, a licensee may charge a borrower the greater of $25 or the licensee's actual expense for each check, draft, converted check, electronic funds transfer, or other authorization or order for the payment of money received in payment of a loan, that is dishonored for any reason.
History: En. Sec. 10, Ch. 424, L. 1981; amd. Sec. 4, Ch. 168, L. 1985; amd. Sec. 3, Ch. 270, L. 1999; amd. Sec. 20, Ch. 372, L. 2007; amd. Sec. 7, Ch. 23, L. 2015.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 4. Enforcement › 32-5-408. Cease and desist orders

32-5-408. Cease and desist orders.
(1) If the department determines that a person has engaged in or is about to engage in any act or practice constituting a violation of any provision of this chapter or any rule adopted or order issued by the department pursuant to this chapter, the department may issue an order directing the person to cease and desist from continuing the act or practice after issuance and service of a notice and opportunity for an administrative hearing as provided in 32-5-207. The order may apply only to the alleged act or practice constituting a violation of this chapter.
(2) The department may issue a temporary order pending the hearing that:
(a) remains in effect until 14 days after the hearings examiner issues proposed findings of fact and conclusions of law and a proposed order; or
(b) becomes final if the person to whom notice is issued and served does not request a hearing within 14 days after the date on which the notice was sent by certified mail as provided in 32-5-207.
(3) A violation of an order issued pursuant to this section is subject to the penalty provisions of this chapter.
History: En. Sec. 18, Ch. 372, L. 2007; amd. Sec. 8, Ch. 23, L. 2015.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 4. Enforcement › 32-5-409. Complaint procedure

32-5-409. Complaint procedure.
(1) The department shall maintain a list of licensees that is available to interested persons and to the general public. The department shall also establish by rule a procedure under which an aggrieved consumer or any member of the public may file a complaint against a licensee or an unlicensed person who violates any provision of this chapter.
(2) The department, after giving reasonable notice, may hold hearings, subject to the contested case provisions of Title 2, chapter 4, part 6, upon the request of a party to the complaint, make findings of fact or conclusions of law, issue cease and desist orders, refer the matter to the appropriate law enforcement agency for prosecution for a violation of this chapter, seek injunctive or other relief in district court, or suspend or revoke a license granted under this chapter.
History: En. Sec. 21, Ch. 372, L. 2007.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 5. Open-End Loans (Repealed) › 32-5-501. Repealed

32-5-501. Repealed.
Secs. 22, 24(1), Ch. 372, L. 2007.
History: En. Sec. 1, Ch. 218, L. 1981; amd. Sec. 7, Ch. 140, L. 1983; amd. Sec. 5, Ch. 168, L. 1985; amd. Sec. 6, Ch. 406, L. 1985.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 5. Open-End Loans (Repealed) › 32-5-502. Repealed

32-5-502. Repealed.
Secs. 22, 24(1), Ch. 372, L. 2007.
History: En. Sec. 2, Ch. 218, L. 1981.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 5. Open-End Loans (Repealed) › 32-5-503. Repealed

32-5-503. Repealed.
Secs. 22, 24(1), Ch. 372, L. 2007.
History: En. Sec. 3, Ch. 218, L. 1981; amd. Sec. 6, Ch. 374, L. 1997.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 5. Open-End Loans (Repealed) › 32-5-504. Repealed

32-5-504. Repealed.
Secs. 22, 24(1), Ch. 372, L. 2007.
History: En. Sec. 4, Ch. 218, L. 1981.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 5. Open-End Loans (Repealed) › 32-5-505. Repealed

32-5-505. Repealed.
Secs. 22, 24(1), Ch. 372, L. 2007.
History: En. Sec. 5, Ch. 218, L. 1981; amd. Sec. 7, Ch. 374, L. 1997.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 5. Consumer Loan Businesses › Part 5. Open-End Loans (Repealed) › 32-5-506. Repealed

32-5-506. Repealed.
Secs. 22, 24(1), Ch. 372, L. 2007.
History: En. Sec. 6, Ch. 218, L. 1981; amd. Sec. 6, Ch. 168, L. 1985; amd. Sec. 7, Ch. 406, L. 1985; amd. Sec. 4, Ch. 270, L. 1999.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 6. Electronic Funds Transfer Act › Part 1. General Provisions › 32-6-101. Short title

32-6-101. Short title.
This chapter shall be known and may be cited as the "Montana Electronic Funds Transfer Act".
History: En. 5-1701 by Sec. 1, Ch. 503, L. 1977; R.C.M. 1947, 5-1701.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 6. Electronic Funds Transfer Act › Part 1. General Provisions › 32-6-102. Electronic funds transfer systems -- applicability

32-6-102. Electronic funds transfer systems -- applicability.
(1) The legislature has determined that electronic funds transfer systems are technologies offered by all types of financial depository institutions. These technologies provide the consumer with both convenience and efficiency in making financial transactions. Regulation E of the federal Electronic Fund Transfer Act, 15 U.S.C. 1693, et seq., addresses many of the consumer issues relating to these systems. This chapter applies to financial institutions chartered under the United States Code or Title 32, chapter 1, parts 1 through 5, to the extent that those laws permit.
(2) Financial institutions that are subject to and in compliance with Regulation E of the federal Electronic Fund Transfer Act must be considered to be in compliance with the provisions of this chapter.
History: En. 5-1702 by Sec. 2, Ch. 503, L. 1977; R.C.M. 1947, 5-1702; amd. Sec. 12, Ch. 265, L. 1995; amd. Sec. 141, Ch. 42, L. 1997; amd. Sec. 1, Ch. 77, L. 2005.