reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 4. Operation and Regulation › 32-1-463. Sale of securities by officer to bank

32-1-463. Sale of securities by officer to bank.
(1) A director, officer, employee, or controlling stockholder of any bank may not, directly or indirectly, for the person's account, for the person, or as the partner or agent of others sell or transfer or cause to be sold or transferred to the bank of which the person is a director, officer, employee, or controlling stockholder any note or bond secured by any mortgage or trust deed on real estate or any contract arising from the sale of real estate, in which the director, officer, employee, or controlling stockholder is personally or financially interested, without a vote of the majority of the board of the bank, duly noted upon the minutes of the meeting at which the transaction is decided upon. The minutes must be signed by a majority of the board.
(2) Any director, officer, employee, or controlling stockholder of any bank who knowingly violates or consents to the violation of this provision is guilty of a felony.
History: En. Sec. 37, Ch. 89, L. 1927; re-en. Sec. 6014.41, R.C.M. 1935; R.C.M. 1947, 5-516; amd. Sec. 1012, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 4. Operation and Regulation › 32-1-464. Fraud by director, officer, agent, or employee

32-1-464. Fraud by director, officer, agent, or employee.
A director, executive officer, agent, or employee of a bank is guilty of a felony if that person:
(1) knowingly receives or takes possession of any bank property, except in payment for a just demand, and with intent to defraud:
(a) fails to make or to cause or direct to be made a full and true entry of the receipt or possession in its books and account; or
(b) concurs in failing to make any material entry in its books and account;
(2) knowingly concurs in making or publishing any written report, exhibit, or statement of its affairs or pecuniary condition containing any material statement that is false; or
(3) having the custody or control of its books, willfully refuses or neglects to make a proper entry in the books of that bank as required by law, to exhibit them, or allow them to be inspected and extracts to be taken from them by the department.
History: En. Sec. 40, Ch. 89, L. 1927; re-en. Sec. 6014.44, R.C.M. 1935; amd. Sec. 16, Ch. 431, L. 1975; amd. Sec. 8, Ch. 71, L. 1977; R.C.M. 1947, 5-519; amd. Sec. 2, Ch. 36, L. 1979; amd. Sec. 81, Ch. 382, L. 1997; amd. Sec. 17, Ch. 163, L. 2005.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 4. Operation and Regulation › 32-1-465. Limit on loans to officer, director, or principal shareholder

32-1-465. Limit on loans to officer, director, or principal shareholder.
(1) Except as provided in subsection (2), a bank may not extend credit to an officer, director, or principal shareholder unless the extension of credit is in an amount that, when aggregated with the amount of all outstanding extensions of credit by that bank to all officers, directors, or principal shareholders, does not exceed the bank's unimpaired capital and unimpaired surplus.
(2) A bank with deposits of less than $100 million may by resolution of its board of directors increase the general limit in subsection (1) to a limit that does not exceed two times the bank's unimpaired capital and unimpaired surplus if:
(a) the board of directors determines that a higher limit is consistent with prudent, safe, and sound banking practices in light of the bank's experience in lending to officers, directors, and principal shareholders and is necessary to attract or retain directors or to prevent restricting the availability of credit in small communities;
(b) the resolution sets forth the facts and reasoning on which the board of directors bases the finding, including the amount of the bank's lending to officers, directors, and principal shareholders as a percentage of the bank's unimpaired capital and unimpaired surplus as of the date of the resolution;
(c) the bank has submitted the resolution to the department; and
(d) the bank meets or exceeds, on a fully phased-in basis, all applicable capital requirements established by the department.
History: En. Sec. 41, Ch. 89, L. 1927; re-en. Sec. 6014.45, R.C.M. 1935; R.C.M. 1947, 5-520; amd. Sec. 3, Ch. 36, L. 1979; amd. Sec. 33, Ch. 395, L. 1993; amd. Sec. 11, Ch. 265, L. 1995.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 4. Operation and Regulation › 32-1-466. Purchase of obligation of bank by officer

32-1-466. Purchase of obligation of bank by officer.
A director, officer, agent, or other employee of any bank may not, directly or indirectly, for the person's own personal benefit, purchase, sell, or be interested in the purchase or sale of any obligation of the bank or of any of the assets of the bank for a sum less than the amount that appears upon the face of the obligation or obligations purchased or sold. Every person violating the provisions of this section shall, in addition to the general penalties of this chapter, forfeit to the state twice the nominal amount or face value of the obligations or assets purchased or sold.
History: En. Sec. 43, Ch. 89, L. 1927; re-en. Sec. 6014.47, R.C.M. 1935; R.C.M. 1947, 5-522; amd. Sec. 1013, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 4. Operation and Regulation › 32-1-467. Loans to managing officer

32-1-467. Loans to managing officer.
(1) A bank may extend credit to a managing officer of the bank:
(a) in any amount to finance the education of the managing officer's children;
(b) in any amount to finance the purchase, construction, maintenance, or improvement of a residence of the managing officer if the extension of credit is secured by a first lien on the residence and the residence is:
(i) owned by the managing officer; or
(ii) expected to be owned by the managing officer after the extension of credit; and
(c) for any other purpose not specified in subsections (1)(a) and (1)(b) if the aggregate amount of loans to that individual under this subsection (1) does not exceed at any one time the greater of 2.5% of the bank's capital and unimpaired surplus or $25,000. However, in no event may the aggregate amount of loans to the individual exceed $100,000.
(2) The department may adopt rules to address loans made before October 1, 1993, and to define capital and unimpaired surplus for purposes of 32-1-465 and this section.
History: En. Sec. 45, Ch. 89, L. 1927; re-en. Sec. 6014.49, R.C.M. 1935; R.C.M. 1947, 5-524; amd. Sec. 34, Ch. 395, L. 1993; amd. Sec. 1, Ch. 17, Sp. L. November 1993.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 4. Operation and Regulation › 32-1-468. Removal of directors, officers, or employees -- hearing

32-1-468. Removal of directors, officers, or employees -- hearing.
(1) A director, officer, or employee of a bank who is found by the department, after examination, to be negligent, dishonest, reckless, or incompetent or to have violated 32-1-325, 32-1-464, 32-1-472, or 32-1-473 must be removed from office by the board of directors of the bank on the written order of the department. If the directors neglect or refuse to remove the director, officer, or employee and any losses accrue to the bank by reason of the negligence, dishonesty, recklessness, or incompetency of the director, officer, or employee, the written order of the department is conclusive evidence of the negligence of the directors failing to act as provided in this section in any action brought against the board of directors by a depositor or creditor for recovery of losses.
(2) If the board of directors refuses to remove the director, officer, or employee on order of the department, the board of directors may file a request for hearing pursuant to the Montana Administrative Procedure Act.
History: En. Sec. 109, Ch. 89, L. 1927; re-en. Sec. 6014.120, R.C.M. 1935; amd. Sec. 170, Ch. 431, L. 1975; R.C.M. 1947, 5-1036; amd. Sec. 82, Ch. 382, L. 1997; amd. Sec. 18, Ch. 163, L. 2005; amd. Sec. 24, Ch. 75, L. 2019.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 4. Operation and Regulation › 32-1-471. Penalty for unlawful hypothecation of property received

32-1-471. Penalty for unlawful hypothecation of property received.
Any officer or employee of any bank doing business in this state who, except in the manner authorized by law or the contract of the parties, pledges or in any way alienates any notes, stocks, bonds, mortgages, securities, or any other property coming into the officer's or employee's hands or into the possession of the bank as collateral, for safekeeping or in any other manner, and to which the bank has not acquired full title, is guilty of theft and upon conviction shall be punished as for other felonies.
History: En. Sec. 113, Ch. 89, L. 1927; re-en. Sec. 6014.124, R.C.M. 1935; amd. Sec. 42, Ch. 359, L. 1977; R.C.M. 1947, 5-1040; amd. Sec. 1014, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 4. Operation and Regulation › 32-1-472. Concealing actions from directors

32-1-472. Concealing actions from directors.
Any officer or employee of any bank who intentionally conceals from the directors of such corporation, or committee thereof where the directors have delegated authority to a committee to pass on loans and discounts, any discount or loan made by and in behalf of the corporation or from its assets between the regular meetings of its board of directors or committee, the purchase of any security, the sale of any of its securities, or any guarantee, repurchase agreement, or any other agreement whereby the corporation is obligated, during the same period, is guilty of a misdemeanor and on conviction must be imprisoned in the county jail for not more than 12 months for each offense and may also be fined not more than $500, at the discretion of the court.
History: En. Sec. 114, Ch. 89, L. 1927; re-en. Sec. 6014.125, R.C.M. 1935; R.C.M. 1947, 5-1041.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 4. Operation and Regulation › 32-1-473. Theft of funds by directors, officers, or employees

32-1-473. Theft of funds by directors, officers, or employees.
A director, officer, or employee of a bank who fraudulently appropriates or abstracts or misapplies any of the money, funds, credits, or property of the bank when owned by it or held in trust or who issues or puts forth any certificate of deposit, draws any order or bill of exchange, makes any acceptance, assigns any note, bond, draft, bill of exchange, mortgage, judgment, or decree with intent to injure or defraud the bank or any person or corporation or to deceive any officer of the bank, any other person, or anyone appointed to examine the affairs of the bank or any other person who with like intent, aids or abets any director, officer, or employee in the violation of this section is guilty of theft and upon conviction shall be imprisoned in the state prison for a period of not to exceed 20 years or be fined an amount not to exceed $50,000, or both.
History: En. Sec. 117, Ch. 89, L. 1927; re-en. Sec. 6014.128, R.C.M. 1935; amd. Sec. 43, Ch. 359, L. 1977; R.C.M. 1947, 5-1044; amd. Sec. 7, Ch. 198, L. 1981; amd. Sec. 83, Ch. 382, L. 1997; amd. Sec. 19, Ch. 163, L. 2005.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 4. Operation and Regulation › 32-1-474. False statement to obtain loan

32-1-474. False statement to obtain loan.
A person who makes a statement, knowing it to be false, for the purpose of obtaining for that person or for any other person, firm, corporation, or association a loan of money from any bank or for the purpose of gaining an extension of time for the payment of any debt due the bank shall be punished by a fine of not more than $1,000 or by imprisonment in the county jail for not more than 1 year, or both.
History: En. Sec. 118, Ch. 89, L. 1927; re-en. Sec. 6014.129, R.C.M. 1935; R.C.M. 1947, 5-1045; amd. Sec. 1015, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 4. Operation and Regulation › 32-1-481. Bank holidays

32-1-481. Bank holidays.
In addition to emergency closings authorized by 32-1-561 through 32-1-565, a bank in the state of Montana may remain closed and refrain from doing business on those legal holidays designated in 1-1-216.
History: En. Sec. 10, Pol. C. 1895; re-en. Sec. 10, Rev. C. 1907; amd. Sec. 1, Ch. 21, L. 1921; re-en. Sec. 10, R.C.M. 1921; Cal. Pol. C. Secs. 10-11; re-en. Sec. 10, R.C.M. 1935; amd. Sec. 1, Ch. 209, L. 1955; amd. Sec. 1, Ch. 6, L. 1965; amd. Sec. 1, Ch. 89, L. 1969; amd. Sec. 6, Ch. 32, L. 1971; amd. Sec. 1, Ch. 16, L. 1974; R.C.M. 1947, 19-107(part); amd. Sec. 1, Ch. 264, L. 1979; amd. Sec. 1, Ch. 435, L. 1983.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 4. Operation and Regulation › 32-1-482. Transaction on holidays

32-1-482. Transaction on holidays.
Nothing in any law of this state shall in any manner whatsoever affect the validity of, or render void or voidable, the payment, certification, or acceptance of a check or other negotiable instrument or any other transaction by a bank in this state because done or performed during any time other than regular banking hours or on a legal holiday, provided that nothing shall be construed herein to compel any bank in this state, which by law or custom is entitled to close at 12 noon on any Saturday or for the whole or part of any legal holiday, to keep open for transaction of business or to perform any of the acts or transactions aforesaid on any Saturday after such hour or on any legal holiday except at its option.
History: En. Sec. 115, Ch. 89, L. 1927; re-en. Sec. 4016.126, R.C.M. 1935; R.C.M. 1947, 5-1042.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 4. Operation and Regulation › 32-1-483. Closing on Saturdays authorized -- Saturday treated as holiday

32-1-483. Closing on Saturdays authorized -- Saturday treated as holiday.
Any bank as defined in 32-1-102 and any national bank or national banking association incorporated or organized under the laws of the United States of America and any federal reserve bank may, at its election, remain closed and refrain from the transaction of any business on Saturdays. Any Saturday on which any such bank remains closed shall be, with respect to such bank, a holiday and not a business day. Any act authorized, required, or permitted to be performed on a Saturday at or by or with respect to any bank including any national bank or national banking association and any federal reserve bank may be performed on the next succeeding business day, and no liability or loss of any rights of any kind shall result from such closing on Saturday or from the nonopening of any bank for the transaction of business on any Saturday under the authority of 32-1-483 through 32-1-485.
History: En. Sec. 1, Ch. 124, L. 1955; amd. Sec. 23, Ch. 71, L. 1977; R.C.M. 1947, 5-1055.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 4. Operation and Regulation › 32-1-484. Banking hours and business days

32-1-484. Banking hours and business days.
A bank may provide for its banking hours or business days by giving reasonable notice to the public and providing a copy of the notice to the department.
History: En. Sec. 2, Ch. 124, L. 1955; R.C.M. 1947, 5-1056; amd. Sec. 35, Ch. 395, L. 1993.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 4. Operation and Regulation › 32-1-485. Interest payable at bank on Saturday -- how paid

32-1-485. Interest payable at bank on Saturday -- how paid.
Where, by the terms of any note or obligation, interest is payable to a bank on any Saturday upon which a bank is closed pursuant to the authority of 32-1-483 through 32-1-485, interest payable to such bank on any such Saturday may be paid in the amount due on such Saturday on the next succeeding business day with the same effect as if paid to such bank on such Saturday.
History: En. Sec. 3, Ch. 124, L. 1955; R.C.M. 1947, 5-1057.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 4. Operation and Regulation › 32-1-491. Destruction of records

32-1-491. Destruction of records.
(1) Banks are required to preserve or keep their records of customer accounts for at least 8 years after January 1 of the year following the time that the records are made. However, records showing unpaid balances in favor of depositors of a bank may not be destroyed. Liability may not accrue against a bank destroying any records, except records of which destruction is forbidden by this section, after the expiration of the time provided in this section.
(2) The department shall adopt rules providing for retention schedules for bank records other than those records listed in subsection (1).
History: En. Sec. 1, Ch. 77, L. 1951; R.C.M. 1947, 5-1050; amd. Sec. 1, Ch. 314, L. 1983; amd. Sec. 84, Ch. 382, L. 1997; amd. Sec. 20, Ch. 163, L. 2005.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 4. Operation and Regulation › 32-1-493. Admissibility of copies in evidence -- exception when original available

32-1-493. Admissibility of copies in evidence -- exception when original available.
Any photostatic or photographic or microfilm reproductions (including enlargements of the latter) of any original records or files of any bank, whether in the form of an entry or entries in a book or any other form of record, shall be admissible in evidence in any court of competent jurisdiction in proof of an act, transaction, occurrence, or event when shown to be made in the regular course of business of the bank. But nothing contained in 32-1-491 through 32-1-495 shall be construed to authorize the use of secondary evidence in administrative or court proceedings when original records are in existence and available for use in accord with the rules of evidence.
History: En. Sec. 3, Ch. 77, L. 1951; R.C.M. 1947, 5-1052.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 4. Operation and Regulation › 32-1-494. Destruction or reproduction "in regular course of business" defined

32-1-494. Destruction or reproduction "in regular course of business" defined.
Destruction in the regular course of business shall include destruction at any time after making such reproductions. Reproductions made in the regular course of business shall include reproductions made at any time prior to the destruction of the original, in each case, if done in good faith and without intent to defraud.
History: En. Sec. 4, Ch. 77, L. 1951; R.C.M. 1947, 5-1053.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 4. Operation and Regulation › 32-1-495. Application

32-1-495. Application.
The provisions of 32-1-491 through 32-1-495 shall be applicable to all records in existence on February 23, 1951, and to all records originating after said date and shall apply to all banks organized under the laws of the state of Montana and also to all national banks located in the state of Montana, as far as applicable to such national banks.
History: En. Sec. 5, Ch. 77, L. 1951; R.C.M. 1947, 5-1054.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 5. Dissolution, Closing, and Liquidation › 32-1-501. Dissolution and disincorporation

32-1-501. Dissolution and disincorporation.
Commercial banks, savings banks, trust companies, and investment companies may be dissolved in the manner provided by the laws of this state applicable to the dissolution of other corporations. However, a bank or trust company may, upon a vote of two-thirds of its stockholders at a special meeting called for that purpose in accordance with its bylaws, voluntarily quit business and liquidate upon the payment of its debts, exclusive of liability to stockholders, or upon agreement with all of its creditors to a plan of liquidation. A bank or trust company that wishes to voluntarily liquidate shall apply to the department for permission to liquidate and, in addition to complying with the laws of this state governing the liquidation of corporations, shall comply in all respects with the requirements or rules of the department governing voluntary dissolution. The board of directors of a bank or trust company whose stockholders have voted to place it in voluntary liquidation shall appoint a liquidating agent to wind up the affairs of the bank or trust company. The liquidating agent, on authority of the board of directors, may execute deeds for the transfer of real property and do all things necessary to carry out the proper liquidation of the bank or trust company. Nothing in this section prevents the department from taking charge at any time when in its opinion the interest of creditors or stockholders is not being protected. The decision of the department in these matters is controlling.
History: En. Sec. 20, Ch. 89, L. 1927; amd. Sec. 2, Ch. 145, L. 1931; amd. Sec. 1, Ch. 10, L. 1935; re-en. Sec. 6014.24, R.C.M. 1935; amd. Sec. 10, Ch. 431, L. 1975; R.C.M. 1947, 5-301; amd. Sec. 86, Ch. 382, L. 1997; amd. Sec. 22, Ch. 163, L. 2005.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 5. Dissolution, Closing, and Liquidation › 32-1-502. Grounds for closing bank

32-1-502. Grounds for closing bank.
(1) When it appears to the department that:
(a) a bank has willfully violated its charter or a law of this state;
(b) a bank has willfully violated a general rule of the department, made in accordance with law;
(c) the capital of a bank is impaired or for any reason is below the amount required by law and has not been made good after notice, as provided by law, or, without that notice, in the event a majority of the board of directors of the bank notifies the department in writing that the impairment cannot be made good;
(d) a bank cannot meet or has failed to meet its liabilities as they become due in the regular course of business;
(e) a bank's reserve has fallen below the amount required by law and it has failed to make good that reserve within 30 days after being requested to do so by the department or, without that notice, if a majority of the directors, in writing, notifies the department that the reserve cannot be made good within 30 days or if it is continually allowing its reserve to fall below the required amount;
(f) a bank is conducting business in an unsafe and unauthorized manner or is in an unsafe or unsound condition;
(g) a bank refused to submit its papers, books, and concerns to the inspection of the department; or
(h) an officer of a bank has refused to be examined under oath regarding the affairs, business, or concerns of any bank insofar as they relate to solvency or matters having to do with the supervision by the department; then the department may, in its discretion, close the bank and take possession of all the books, records, assets, and business of every description of the bank and hold them and retain possession of them until the bank is authorized by the department to resume business or its affairs are liquidated as provided in this chapter, and it shall do so in cases where a bank comes into its possession voluntarily or in the manner provided by law.
(2) The powers and authority conferred on the department by this section, except in cases of voluntary surrender, are discretionary and not mandatory. As long as the department acts in good faith, the department and its employees and agents may not be held liable civilly or criminally or upon their official bonds for action taken under this section or for any failure to act under it.
History: En. Sec. 121, Ch. 89, L. 1927; re-en. Sec. 6014.131, R.C.M. 1935; amd. Sec. 43, Ch. 431, L. 1975; R.C.M. 1947, 5-1101.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 5. Dissolution, Closing, and Liquidation › 32-1-503. Bank insolvent when

32-1-503. Bank insolvent when.
A bank is insolvent within the meaning of this chapter when all of its capital, surplus, and undivided profits are absorbed in losses and the remaining assets are not sufficient to pay and discharge its contracts, debts, and engagements.
History: En. Sec. 88, Ch. 89, L. 1927; re-en. Sec. 6014.99, R.C.M. 1935; R.C.M. 1947, 5-1015.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 5. Dissolution, Closing, and Liquidation › 32-1-504. Deposits in insolvent bank

32-1-504. Deposits in insolvent bank.
(1) Except as otherwise provided by the Uniform Commercial Code, whenever any bank shall be insolvent in the manner described and set forth in this chapter, such bank shall not accept or receive on deposit any money, bank bills or notes, United States treasury notes or currency, or other notes, bills, or drafts circulating as money or currency or transact any other business in connection with its operations, except as trustee for the depositors and parties transacting business with them, and it or they shall keep all such deposits of money, bills or notes, or United States treasury notes or currency, or other notes, bills, or drafts circulating as money or currency separate and apart from the general assets of the bank from and after the date of the accrual of such insolvency. When such impairment or insolvency has been made good, such deposits received in trust may be transferred to the general assets of the bank on and by written consent of the department.
(2) In the event such insolvency be not made good, then any and all such trust deposits shall be returned to the depositors making them.
(3) Any officer, director, cashier, manager, member, partner, or managing partner thereof who shall knowingly accept or receive, be accessory to, or permit or connive at the receiving or accepting of such trust deposits, except in the manner hereinbefore set forth in this section, shall be deemed guilty of a felony and upon conviction thereof shall be punished by a fine not exceeding $10,000 or imprisonment in the state prison not exceeding 5 years or by both fine and imprisonment.
History: En. Sec. 70, Ch. 89, L. 1927; re-en. Sec. 6014.74, R.C.M. 1935; amd. Sec. 11-102, Ch. 264, L. 1963; amd. Sec. 170, Ch. 431, L. 1975; R.C.M. 1947, 5-803.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 5. Dissolution, Closing, and Liquidation › 32-1-505. Penalty for receiving deposits when insolvent or for making false statements

32-1-505. Penalty for receiving deposits when insolvent or for making false statements.
(1) Any officer, agent, or clerk of any bank, knowing such bank to be insolvent, who receives money, bank bills, notes of the United States, or currency or other bills or drafts circulating as money or currency, except in the manner set forth in 32-1-504; subscribes or makes any false statements or entries in the books of such bank; knowingly subscribes or exhibits any false paper with the intent to deceive any person authorized to examine as to the condition of such bank; or willfully subscribes or makes false reports is subject to imprisonment in the state prison for a term not exceeding 5 years, a fine not exceeding $50,000, or both.
(2) Any person or the members of any partnership or banking association who willfully or knowingly receive deposits, money, or commercial papers circulating as money, when such person, partnership, or banking association is insolvent, or who subscribe or make any false statement or entries in the books of any such bank or who knowingly subscribe or exhibit any false papers with the intention of deceiving any person authorized to examine the condition of any bank provided for in this chapter or who willfully subscribe or make false reports to the department shall be guilty of a felony and shall be punishable by imprisonment in the state prison for a term not exceeding 5 years, by a fine not exceeding $50,000, or by both such fine and imprisonment.
History: (1)En. Sec. 69, Ch. 89, L. 1927; re-en. Sec. 6014.73, R.C.M. 1935; amd. Sec. 16, Ch. 71, L. 1977; Sec. 5-802, R.C.M. 1947; (2)En. Sec. 87, Ch. 89, L. 1927; re-en. Sec. 6014.98, R.C.M. 1935; amd. Sec. 170, Ch. 431, L. 1975; Sec. 5-1014, R.C.M. 1947; R.C.M. 1947, 5-802, 5-1014; amd. Sec. 7, Ch. 198, L. 1981.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 5. Dissolution, Closing, and Liquidation › 32-1-507. Power of closed banks to borrow money from governmental agencies

32-1-507. Power of closed banks to borrow money from governmental agencies.
(1) Except as provided in subsection (2), after applying to and obtaining the approval of the department and the district court of the county in which the bank or trust or investment company is located, the liquidating agents of closed banks may borrow money from an agency of the federal government on behalf of commercial banks, savings banks, trust companies, and investment companies closed and in liquidation. As security for the loan the liquidating agent may pledge or mortgage assets and properties for the purpose of paying depositors or creditors in part or in full.
(2) If the federal deposit insurance corporation is appointed as the liquidating agent, the reporting and district court approval requirements of subsection (1) do not apply.
History: En. Sec. 1, Ch. 3, Ex. L. 1933; re-en. Sec. 6015.1, R.C.M. 1935; amd. Sec. 62, Ch. 431, L. 1975; amd. Sec. 26, Ch. 71, L. 1977; R.C.M. 1947, 5-1126; amd. Sec. 36, Ch. 395, L. 1993.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 5. Dissolution, Closing, and Liquidation › 32-1-508. Corporate existence -- ceases when

32-1-508. Corporate existence -- ceases when.
The charters and the corporate existence of banks shall cease automatically and become nonexistent upon the completion of liquidation of the affairs of said bank, whether accomplished voluntarily or through legal process. For the purposes of this section, a bank's affairs shall be considered liquidated and completed when all of its property of every kind has been sold or applied toward the payment of its obligations and the corporation is left without property in existence or in reasonable expectancy.
History: En. Sec. 106, Ch. 89, L. 1927; re-en. Sec. 6014.117, R.C.M. 1935; R.C.M. 1947, 5-1033.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 5. Dissolution, Closing, and Liquidation › 32-1-509. Taxes on banks which have ceased to do business

32-1-509. Taxes on banks which have ceased to do business.
Whenever any bank ceases to do business as a bank, no taxes shall be levied or collected in accordance with the laws governing the assessment of banks but its property shall be assessed in accordance with the laws governing the assessment of similar property of private corporations.
History: En. Sec. 95, Ch. 89, L. 1927; re-en. Sec. 6014.106, R.C.M. 1935; R.C.M. 1947, 5-1022.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 5. Dissolution, Closing, and Liquidation › 32-1-510. Penalty for maliciously declaring bank insolvent

32-1-510. Penalty for maliciously declaring bank insolvent.
If, as a result of malice or for personal gain, an employee or agent of the department declares a bank insolvent, the employee or agent is subject to a fine not exceeding $1,000 or imprisonment in the county jail not exceeding 1 year, or both, and shall forfeit the employee's or agent's office.
History: En. Sec. 122, Ch. 89, L. 1927; re-en. Sec. 6014.132, R.C.M. 1935; amd. Sec. 44, Ch. 431, L. 1975; R.C.M. 1947, 5-1102; amd. Sec. 1017, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 5. Dissolution, Closing, and Liquidation › 32-1-511. Bank may be placed in department's possession

32-1-511. Bank may be placed in department's possession.
A bank may place its affairs and assets under the control and in the possession of the department by posting a notice on the front door of the bank indicating that it is in the possession of the department. The notice shall be signed by a majority of the directors in office of the bank. Immediately upon the posting of the notice by a bank, it shall notify the department of its action.
History: En. Sec. 123, Ch. 89, L. 1927; re-en. Sec. 6014.133, R.C.M. 1935; amd. Sec. 45, Ch. 431, L. 1975; R.C.M. 1947, 5-1103.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 5. Dissolution, Closing, and Liquidation › 32-1-512. Effect of posting notice

32-1-512. Effect of posting notice.
The posting of the notice by the directors of a bank or of a like notice by the department is sufficient to place all assets and property of the bank, of whatever nature and wherever located, in possession of the department and operates as a bar to an attachment or other legal proceedings against the bank or its assets. No valid lien or claim can be acquired or created, or transfer or assignment made in any manner, binding or affecting any of the assets of the bank after the posting of the notice or after taking possession of a bank by the department without its consent.
History: En. Sec. 124, Ch. 89, L. 1927; re-en. Sec. 6014.134, R.C.M. 1935; amd. Sec. 46, Ch. 431, L. 1975; R.C.M. 1947, 5-1104.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 5. Dissolution, Closing, and Liquidation › 32-1-513. Taking possession of bank -- notice

32-1-513. Taking possession of bank -- notice.
On taking possession of the assets and business of the bank, the department shall, in addition to posting notice on the front door of the bank, also notify, personally, by mail or by wire, all corresponding banks and all persons or corporations known to be in possession of any of the estate of the bank.
History: En. Sec. 125, Ch. 89, L. 1927; re-en. Sec. 6014.135, R.C.M. 1935; amd. Sec. 47, Ch. 431, L. 1975; R.C.M. 1947, 5-1105; amd. Sec. 37, Ch. 395, L. 1993.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 5. Dissolution, Closing, and Liquidation › 32-1-514. Resumption after closing

32-1-514. Resumption after closing.
After the department has taken possession of a bank, it may permit that bank to resume business upon conditions which may be approved by the department.
History: En. Sec. 126, Ch. 89, L. 1927; re-en. Sec. 6014.136, R.C.M. 1935; amd. Sec. 48, Ch. 431, L. 1975; amd. Sec. 24, Ch. 71, L. 1977; R.C.M. 1947, 5-1106.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 5. Dissolution, Closing, and Liquidation › 32-1-515. Powers of department on closing bank -- court proceedings

32-1-515. Powers of department on closing bank -- court proceedings.
(1) Upon taking the assets and business of a bank into its possession, the department is authorized to collect all money due to the bank and to do other acts necessary to conserve the bank's assets and business. The department shall proceed to liquidate the affairs of the bank.
(2) The department may, except as limited by the terms of this chapter, do any acts necessary or desirable for the protection of the property and assets of the bank, the speedy and economical liquidation of the assets and affairs of the bank, the payment of creditors, or the reopening and resumption of business when that is practicable or desirable.
(3) The department may institute, in its own name or in the name of the bank, legal proceedings it considers expedient for the purposes of subsection (1).
(4) (a) By applying to the district court of the county in which the bank is located or to the judge of that court, the department may obtain an order to sell, compromise, or compound any bad or doubtful debt or claim and to sell and dispose of any assets. The sale may be made to stockholders, officers, directors, or others interested in the bank on consent of the court.
(b) In the court proceedings the bank must be made a party by notice issued on order of the court or judge, in place of summons, and served upon an officer of the bank if there is an officer in the county.
(5) If the federal deposit insurance corporation is appointed as the liquidating agent, subsection (4) does not apply.
History: En. Sec. 127, Ch. 89, L. 1927; re-en. Sec. 6014.137, R.C.M. 1935; amd. Sec. 49, Ch. 431, L. 1975; R.C.M. 1947, 5-1107; amd. Sec. 38, Ch. 395, L. 1993.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 5. Dissolution, Closing, and Liquidation › 32-1-516. Recourse of aggrieved bank -- injunction

32-1-516. Recourse of aggrieved bank -- injunction.
(1) A bank aggrieved by the action of the department in taking possession of its assets or closing its doors may, within 14 days after possession has been taken, apply to the district court of the county in which its principal place of business is located, or to the judge of that court in chambers, to enjoin further proceedings by the department.
(2) The court or the judge in chambers, after notifying the department to appear at a specified time and place to show cause why further proceedings should not be enjoined and after hearing the allegations and proofs of the parties and determining facts, may on the merits dismiss the application or enjoin the department from further proceeding and direct it to surrender the business and assets of the bank.
(3) The application for injunction may be heard at any time after 5 days' notice from the time of service on the department, in the discretion of the court, or at any time prior to then by the consent of the department.
(4) Application shall be made on the verified complaint of the bank, in the form used in civil actions, and a copy of the complaint shall be served on the department with the order to show cause.
(5) The department shall, at least 2 days before the time set for hearing, file with the court and serve upon counsel for plaintiff an answer to the complaint, also in the form used in civil actions. Any questions raised by motion in other actions may be raised in the answer.
(6) On the issues raised by the complaint and answer, the court or the judge at chambers, at the time fixed for showing cause, shall try the matter on the merits by hearing the allegations and proofs of the parties and shall enter judgment, as in the trial of other civil actions.
(7) If the department makes no appearance in the time allowed, the court shall enter its default and proceed to hear the proofs of the plaintiff as in civil actions under similar circumstances and enter judgment accordingly. The judgment entered either after hearing on the merits or by default is a final judgment.
(8) During the pendency of litigation the department shall take that action in relation to the assets of the bank which is necessary to conserve them.
History: En. Sec. 128, Ch. 89, L. 1927; re-en. Sec. 6014.138, R.C.M. 1935; amd. Sec. 50, Ch. 431, L. 1975; R.C.M. 1947, 5-1108; amd. Sec. 10, Ch. 49, L. 2013.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 5. Dissolution, Closing, and Liquidation › 32-1-517. Department may retain bank employees -- liquidating agent's salary and expenses

32-1-517. Department may retain bank employees -- liquidating agent's salary and expenses.
(1) The department may retain those officers or employees of the bank which it considers necessary. It shall require from the agent appointed by it and from those assistants who have charge of any of the assets of the bank that security for the faithful discharge of their duties as it considers proper.
(2) The salary of a liquidating agent and necessary clerical assistance and other expenses incurred by a liquidating agent shall be borne equally and ratably by the bank or banks in process of liquidation under the agent's charge in proportion to the total amount of resources of each of the banks. The funds for those expenses shall be raised by assessing each bank in ratio herein set forth and paying those expenses direct to the persons entitled to them, without depositing any of the funds in the state treasury.
History: En. Sec. 129, Ch. 89, L. 1927; re-en. Sec. 6014.139, R.C.M. 1935; amd. Sec. 51, Ch. 431, L. 1975; R.C.M. 1947, 5-1109.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 5. Dissolution, Closing, and Liquidation › 32-1-518. Compensation of agents and attorneys

32-1-518. Compensation of agents and attorneys.
(1) Except as provided in subsection (2), after notice to the bank and subject to approval by a district court judge of the county in which the bank is located, the compensation of the agents, attorneys, expert accountants, and other assistants appointed by the department and all expenses of liquidation and distribution of a bank whose assets and business have been taken possession of by the department must be fixed by the department. The department shall, upon written request of the judge, supply semiannual statements showing the condition of the bank in process of liquidation. Except in cases of emergency, the compensation paid to attorneys and expert accountants must be fixed and approved before services are rendered. The compensation must be paid out of the funds of the bank in the hands of the department and are a proper charge and lien on the assets of the bank.
(2) If the federal deposit insurance corporation is appointed as the liquidating agent, the reporting and district court approval requirements of subsection (1) do not apply.
History: En. Sec. 130, Ch. 89, L. 1927; re-en. Sec. 6014.140, R.C.M. 1935; amd. Sec. 52, Ch. 431, L. 1975; R.C.M. 1947, 5-1110; amd. Sec. 39, Ch. 395, L. 1993.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 5. Dissolution, Closing, and Liquidation › 32-1-531. Notice to creditors of insolvent bank

32-1-531. Notice to creditors of insolvent bank.
(1) Except as provided in subsection (2), the department shall give notice by advertisement in a newspaper of general circulation in the town or city in which the bank is situated, if there is one, and, if not, then in some other newspaper published in this state, which the department shall designate, once a week for 2 successive weeks. The notice must call on all persons who have claims against the bank to present them to the department or its authorized agent at a place specified in the notice and to make sworn proof, in a form to be fixed by the department, within the time specified in the notice, not less than 90 days from the date of the first publication. A copy of the notice must be mailed to all persons whose names appear as creditors upon the books of the bank.
(2) If the federal deposit insurance corporation is appointed as the liquidating agent, the provisions of subsection (1) do not apply and notice to creditors must be given pursuant to federal law.
History: En. Sec. 131, Ch. 89, L. 1927; re-en. Sec. 6014.141, R.C.M. 1935; amd. Sec. 53, Ch. 431, L. 1975; R.C.M. 1947, 5-1111; amd. Sec. 40, Ch. 395, L. 1993.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 5. Dissolution, Closing, and Liquidation › 32-1-532. Claims -- allowance and rejection

32-1-532. Claims -- allowance and rejection.
(1) Except as provided in subsection (6), the department shall reject or allow all claims in whole or in part and on each claim allowed shall designate the order of its priority.
(2) If a claim is rejected or an order of priority allowed lower than that claimed, notice must be given the claimant personally or by common courier with tracking capability and an affidavit of the service of the notice, which is prima facie evidence of service, must be filed in the office of the department.
(3) The action of the department is final unless an action is brought by the claimant against the bank in the district court of the county in which the bank is located within 90 days after service. An appeal from the department's allowance may also be taken by any party in interest by serving notice on the department, stating the grounds of objection and filing an action in that court within 30 days after allowance.
(4) Within 5 days after the notice, the department shall file in the court and serve on the appellant a copy of the claim and its reasons for allowance.
(5) The court shall, after 5 days' notice of time and place of hearing on the issues raised, hear the proof of the parties and enter judgment reversing, affirming, or modifying the department's action.
(6) If the federal deposit insurance corporation is appointed as the liquidating agent, the provisions of subsections (1) through (5) do not apply and notice to creditors must be given pursuant to federal law.
History: En. Sec. 132, Ch. 89, L. 1927; re-en. Sec. 6014.142, R.C.M. 1935; amd. Sec. 54, Ch. 431, L. 1975; R.C.M. 1947, 5-1112; amd. Sec. 41, Ch. 395, L. 1993; amd. Sec. 26, Ch. 75, L. 2019.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 5. Dissolution, Closing, and Liquidation › 32-1-533. Payment of claims

32-1-533. Payment of claims.
(1) Claims presented to the department prior to the expiration of the time fixed in the notice to creditors and allowed by it shall be paid in the order of priority fixed in this chapter.
(2) Those filed after that expiration and within 1 year of that expiration are entitled, after they have been allowed by the department, to share in the distribution of the assets of the bank only to the extent of the assets undistributed in the hands of the department and available for the payment of claims of their order of priority at the time the claims are filed. As against other claims of the same order of priority on which dividends have been paid, they are entitled to payment in a proportionate amount before further payments are made on those other claims.
(3) All claims filed after the expiration of 1 year following the date fixed in the notice to creditors as the time for presentation of claims are not entitled to be allowed or paid unless all other creditors' claims of any kind, except claims of shareholders based on stock or assessments paid on stock, have been fully paid and a surplus remains in the hands of the department and then only from that surplus.
History: En. Sec. 133, Ch. 89, L. 1927; re-en. Sec. 6014.143, R.C.M. 1935; amd. Sec. 55, Ch. 431, L. 1975; R.C.M. 1947, 5-1113.