reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 6. General Provisions › 32-2-608. Criminal liabilities

32-2-608. Criminal liabilities.
(1) A person who knowingly and purposefully violates any provision of this chapter or any rule or order under this chapter shall upon conviction be fined not more than $5,000 or imprisoned not more than 10 years, or both. However, if the person has been previously convicted of a felony in any way involving financial institutions, the person shall be imprisoned for not less than 1 year.
(2) The commissioner may refer evidence that may be available concerning violations of this chapter or of any rule or order under this chapter to the attorney general or the proper prosecuting attorney, who may in the prosecutor's discretion, with or without a reference, institute the appropriate criminal proceedings under this chapter.
(3) The provisions of this chapter do not limit the power of the state to punish any person for any conduct that constitutes a crime.
History: En. Sec. 5, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 7. Department Responsibility › 32-2-702. Payments by mutual associations

32-2-702. Payments by mutual associations.
Each mutual association under the supervision of the department shall pay to the department fees set by the department by rule to recover all of the costs of administering the program for supervision of mutual associations. The department may amend the rule setting the fees on or before June 1 and December 1 of each year. The funds collected must be deposited in the state special revenue fund for the use of the department in its supervision of mutual associations.
History: En. Sec. 7, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 7. Department Responsibility › 32-2-703. Examination -- request of directors

32-2-703. Examination -- request of directors.
If requested in writing, upon the authority of a majority of the board of directors of any mutual association to make an examination of the mutual association, the department shall do so.
History: En. Sec. 8, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 7. Department Responsibility › 32-2-704. Department rulemaking

32-2-704. Department rulemaking.
(1) The department may promulgate reasonable rules and orders concerning bookkeeping and accounting by state mutual associations, including the keeping of reasonable credit information, information in connection with assets, or information in connection with charged-off items.
(2) The department may adopt uniform rules to govern the examination and reports of mutual associations and prescribe the form in which mutual associations report their assets, liabilities, and reserves.
(3) The department may promulgate reasonable rules concerning applications for and determinations on applications for the formation, relocation, closure, and sale of branch mutual associations.
(4) The department may adopt rules, issue orders and declaratory statements, disseminate information, and exercise its discretion to effectuate the purposes, policies, and provisions of this chapter.
History: En. Sec. 9, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 7. Department Responsibility › 32-2-705. Reliance on order -- limit on liability

32-2-705. Reliance on order -- limit on liability.
(1) A person acting in good faith reliance on a rule, order, or declaratory statement issued by the division is not subject to any criminal, civil, or administrative liability for the action if a subsequent decision by a court of competent jurisdiction invalidates the rule, order, or declaratory statement.
(2) In the case of an order or declaratory statement that is not of general application, only the person to whom the order or declaratory statement was issued is entitled to rely on it unless a third person is dealing with material facts or circumstances that are substantially the same as those on which the order or declaratory statement was based.
History: En. Sec. 10, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 7. Department Responsibility › 32-2-706. Reports to department

32-2-706. Reports to department.
(1) A mutual association shall make to the department regular call reports at least four times each year according to the form that may be prescribed by the department, verified by oath or affirmation of the president, vice president, or cashier of the mutual association, and attested by the signature of at least two of the directors other than the subscribing officer.
(2) Each call report must exhibit in detail and under appropriate schedules the resources and liabilities of the mutual association at the close of business on any past day specified by the department. The past day specified by the department, under the provisions of this section, must be the day designated by the comptroller of the currency of the United States for reports of national banking associations.
(3) The call report must be transmitted to the department within 30 days after the past day specified under subsection (2). A mutual association's successful and timely electronic transmittal of its call report to the applicable federal regulatory authority satisfies the mutual association's obligation to transmit the report to the department. The original signature page of the mutual association's call report that complies with subsection (1) must be permanently retained by the mutual association and available for the department's review.
History: En. Sec. 11, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 7. Department Responsibility › 32-2-707. Special reports to department

32-2-707. Special reports to department.
In addition to the information obtained from the call report required by 32-2-706, the department may also require a mutual association to furnish a special report in writing, verified as required by 32-2-706, if in its judgment the special report is necessary to inform it fully of the actual financial condition and affairs of the mutual association.
History: En. Sec. 12, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 7. Department Responsibility › 32-2-710. Confidentiality -- penalties

32-2-710. Confidentiality -- penalties.
(1) (a) Reports and statement under 32-2-701, 32-2-703, and 32-2-707 are confidential. Except for information made public by the federal deposit insurance corporation or another federal mutual association authority's publicly accessible website, any information contained in the reports and statements is confidential. Except as provided in subsection (1)(b), confidential information may not be disclosed to persons who are not officially associated with the department and must be used by the department only to further its official duties.
(b) The department may exchange information with federal financial institution regulatory agencies and with the financial regulatory departments of other states. The department may furnish reports of its examination findings under 32-2-701 and 32-2-703 to a federal home loan bank, as defined in the Federal Home Loan Bank Act of 1932, 12 U.S.C. 1422. The department may furnish information to the legislative auditor for use in pursuit of official duties. A prosecuting official may obtain the information by court order.
(2) Any knowledge or information gained or discovered by the department in pursuance of its powers or duties is confidential information of the department. The information may not, except as provided in subsection (1)(b), be disclosed to any person not officially associated with the department. The information must be used by the department only to further its official duties.
(3) An employee or agent of the department who violates this section or willfully makes a false official report as to the condition of a mutual association must be removed from office and is guilty of a felony. Upon conviction, the person shall be fined an amount not exceeding $1,000, be imprisoned in a state correctional facility for a term not exceeding 5 years, or both.
History: En. Sec. 13, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 7. Department Responsibility › 32-2-711. Prohibited practices

32-2-711. Prohibited practices.
(1) It is unlawful for any person to knowingly and purposefully:
(a) make any material false statement of facts, statement of accounts, or report to the department; or
(b) make any false entries in the books of the mutual association.
(2) It is unlawful for any person to knowingly exhibit false documents with the intent to deceive any person authorized to examine a mutual association.
(3) Violations of this section are punishable as provided in 32-2-608.
History: En. Sec. 14, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-801. Formation

32-2-801. Formation.
(1) Five or more individuals who are residents of this state may, with the approval of the commissioner, incorporate a mutual association.
(2) The persons proposing to incorporate a mutual association shall apply for approval to incorporate by submitting the application in a form prescribed by the commissioner, which must be under oath and include all of the following plus any additional information that the department may require by rule as necessary or appropriate in the particular instance for the protection of depositors, borrowers, or members and the public interest:
(a) the proposed articles of incorporation and bylaws set forth in 32-2-805 through 32-2-807;
(b) an application for reservation of a name in accordance with 35-14-402, if reservation is desired by the incorporators and has not been previously filed; and
(c) information to demonstrate the proposed mutual association will satisfy the following requirements:
(i) a persuasive showing that there is a reasonable public necessity and demand for a new mutual association at the proposed location;
(ii) that the mutual association will be managed by persons of good moral character and financial integrity who have sufficient management experience to ensure that the mutual association will be operated safely and soundly;
(iii) a persuasive showing that the new mutual association will have sufficient volume of business to ensure solvency and that establishment of the new mutual association organized under the laws of this state will be in the public interest;
(iv) the proposed minimum amount of initial capital contribution to be deposited, which must be set by the commissioner;
(v) an application fee, which must be set by the department by rule; and
(vi) Any other information the commissioner requires by rule or in a specific application.
History: En. Sec. 16, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-802. Notice of acceptance of application

32-2-802. Notice of acceptance of application.
If the department determines that a completed application has been received, it shall issue a notice of acceptance of application to the applicant.
History: En. Sec. 17, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-803. Notice of proposed incorporation

32-2-803. Notice of proposed incorporation.
(1) (a) Within 10 days after receipt from the department of a notice of acceptance of an application, the applicant shall publish notice of the proposed incorporation in a newspaper of general circulation in the county where the mutual association's initial main office is to be located. The applicant shall publish the notice once a week for 2 weeks and furnish a certified copy of the affidavit of publication to the department.
(b) The notice shall specify the name of the proposed mutual association, its location, the amount of the proposed capital, the names of the incorporators, the address of the commissioner, and the date by which comments on the application must be filed with the commissioner, which is 30 days after the date of the first publication of the notice.
(2) If any comments on the application are filed with the commissioner within the 30-day period prescribed in subsection (1), the commissioner shall determine whether the comments are relevant to the requirements for incorporation of the mutual association and, if so, investigate the comments in the manner the commissioner considers appropriate.
History: En. Sec. 18, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-804. Department investigation

32-2-804. Department investigation.
(1) The department may gather all available information relative to an application. The department may also make, or cause to be made, any investigations of any individual associated with the applicant as may be warranted under the circumstances, including a full background check and credit check.
(2) The department may use any administrative procedure necessary, including the taking of depositions, discovery, subpoenas, and the production of documents, to investigate an application. The Montana Administrative Procedure Act applies.
History: En. Sec. 19, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-805. Articles of incorporation

32-2-805. Articles of incorporation.
(1) A mutual association's articles of incorporation must contain the following:
(a) the information required by 35-14-202(1);
(b) the name of the city or town and county within the state in which the principal office of the corporation is to be located;
(c) the names and business addresses of the initial incorporators;
(d) the number of the board of directors and the names of those agreed on for the first year; and
(e) the purpose for which the mutual association is formed, which may be set forth by the use of the general terms defined in this chapter, with reference to each line of business in which the proposed corporation desires to engage.
(2) A mutual association may not adopt or use the name of any other mutual association, and the corporation name must comply with 35-14-401(2) through (4) and 32-1-402.
(3) A mutual association may not be organized or incorporated until the articles of incorporation have been reviewed and approved by the department and until the mutual association has obtained a certificate from the department authorizing the proposed corporation to transact the business specified in the articles of incorporation within this state.
(4) A mutual association may not amend or restate its articles of incorporation until its articles of amendment or restatement have been reviewed and approved by the department. A mutual association shall make a true copy of its articles of incorporation and bylaws and all related amendments available to account holders at all times in each office of the mutual association and shall on request and payment of a reasonable copying fee deliver to any account holders a copy of the articles of incorporation and bylaws and related amendments.
History: En. Sec. 20, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-806. Incorporation

32-2-806. Incorporation.
The proposed articles of incorporation must be presented to the department, together with an application in writing in the form prescribed by the department, for a certificate authorizing the proposed corporation to transact the business specified in the articles of incorporation within this state.
History: En. Sec. 21, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-807. Bylaws

32-2-807. Bylaws.
(1) The bylaws must be in conformity with the provisions of this chapter and must be open to inspection by the members at the principal place of business during regular business hours.
(2) The bylaws, among other things, must provide for:
(a) the character and method of conducting the business of the mutual association, with rules governing the addition of members and the amount of the membership fee;
(b) the annual meeting of the members;
(c) the annual election and qualification of directors and the term or period during which the directors shall serve;
(d) the appointment of officers;
(e) the adoption, ratification, and amendment of the bylaws, which may be made either by the members or by the board of directors;
(f) the method of voting at the annual meeting; and
(g) the periodic investigation of the business and condition of the mutual association.
(3) The bylaws and any change or amendment of the bylaws are not effective until first reviewed and approved by the department, and a mutual association may not commence the transaction of business until after the bylaws have been reviewed and approved by the department.
History: En. Sec. 22, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-808. Capital

32-2-808. Capital.
(1) The capital of a mutual association must be an amount determined by the commissioner based on the amount and character of the anticipated business of the mutual association and the safety of prospective depositors.
(2) As used in this section, "capital" means the initial funding required to organize a mutual association.
History: En. Sec. 23, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-810. Certificate of authority to commence business

32-2-810. Certificate of authority to commence business.
(1) A mutual association organized under this chapter may not accept deposits, incur indebtedness, or transact any business other than business that is incidental to its organization until it receives a certificate of authority to commence business issued by the commissioner.
(2) A mutual association organized under this chapter may not commence business until the capital required in its permission to organize has been deposited to the credit of the financial institution in a depository designated by the directors. When the required capital is deposited, a complete list of the capital depositors, with the name, address, occupation, and amount of capital deposited by each, must be filed with the commissioner, and the list must be verified by the president and secretary of the mutual association.
(3) When the mutual association has completed all steps necessary to begin business, the association shall file a report with the commissioner certifying that it has done everything required by the commissioner before it can be authorized to commence business.
(4) Upon receipt of the report referred to in subsection (3), the commissioner shall examine the affairs of the mutual association and determine whether the mutual association has complied with all of the requirements necessary to entitle it to engage in business.
(5) All transactions conducted by a person in violation of this section are void.
History: En. Sec. 25, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-811. Failure to commence business

32-2-811. Failure to commence business.
(1) Any mutual association that fails to commence business as a financial institution within 1 year after receiving a certificate of authorization forfeits that certificate and shall cease all activities. The commissioner shall certify to the secretary of state that the certificate of authority has been forfeited so that the mutual association's articles of incorporation may be terminated by the secretary of state.
(2) On forfeiture, the contributors of initial capital deposits of the mutual association are entitled to the return of any amounts they have paid to the institution, and all expenses incurred in the organization must be borne by the original organizers who were named in the application for permission to organize.
History: En. Sec. 26, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-817. Conversion into federal savings and loan association

32-2-817. Conversion into federal savings and loan association.
(1) Any mutual association eligible to become a federal savings and loan association may convert itself into a federal savings and loan association by following the procedure in subsection (2).
(2) (a) At any regular meeting or special meeting of the members of the mutual association called to consider the action and held in accordance with the laws governing the mutual association, the members, by an affirmative vote of the majority, in person or by proxy, may declare by resolution the determination to convert the state mutual association into a federal savings and loan association.
(b) A copy of the minutes of the meeting of the members verified by the affidavit of the president or vice president and the secretary of the meeting must be filed with the department within 10 days after the meeting. The verified copy of the minutes of the meeting when filed is presumptive evidence of the holding of and action of the meeting.
(c) Within a reasonable time and without any unnecessary delay after the adjournment of the meeting of the members, the mutual association shall take any action necessary to make it a federal savings and loan association. Within 10 days after receipt of the federal charter, the charter must be filed with the department. Upon filing, the mutual association ceases to be a state mutual association and is thereafter a federal savings and loan association.
History: En. Sec. 28, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-818. Requirements of state mutual association

32-2-818. Requirements of state mutual association.
A mutual association must have its qualified thrift investments:
(1) equal or exceed 50% of its portfolio assets; and
(2) continue to equal or exceed 50% of its assets on a monthly average basis in 9 out of every 12 months.
History: En. Sec. 29, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-819. Directors -- meetings -- officers

32-2-819. Directors -- meetings -- officers.
(1) Within 30 days after the corporate existence of a mutual association begins, the directors of the mutual association shall hold an organizational meeting and shall elect officers pursuant to the provisions of this chapter and the bylaws of the mutual association. At the organizational meeting, the directors shall take other action that is appropriate for beginning the transaction of business by the mutual association. The department may extend, by order, the time within which the organizational meeting must be held.
(2) The incorporators of the mutual association shall serve as directors until the first meeting of the members to be held at the time provided for by this chapter or until their successors are elected and qualified, after which the directors will be elected by the members of the mutual association in accordance with the provisions of this chapter and the bylaws of the mutual association.
(3) The directors, unless otherwise provided by the bylaws of the mutual association, shall elect or appoint all officers of the mutual association. The directors, when appointed or elected, shall file with the department their oath of office, as provided in election or appointment of mutual association directors. Meetings of the board of directors must be held at least once each month.
History: En. Sec. 30, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-820. Board of directors -- qualifications, tenure, and vacancies

32-2-820. Board of directors -- qualifications, tenure, and vacancies.
(1) The affairs of the mutual association must be managed by a board of directors consisting of no fewer than three persons. At least two-thirds of the board must be residents of this state. Directors need not be members of the corporation unless required by the articles of incorporation or bylaws. A person who has been convicted of a felony may not be elected a director.
(2) (a) The directors must be elected for a term of 1 year at the annual meeting of the members. The annual meeting must be held before April 15 of each calendar year. If the election is not held on the day fixed for the annual meeting, the corporation is not dissolved, but an election may be held at any other time agreeable to the bylaws of the corporation, and the persons elected will hold their office until successors are elected and qualified.
(b) Every director shall take and subscribe an oath that the director will diligently and honestly perform the director's duty in the office and that the director will not knowingly violate or permit a violation of any of the provisions of this chapter. The oaths must be made in duplicate. One copy must be transmitted to and filed with the department, and one copy must be kept on file in the office of the mutual association.
History: En. Sec. 31, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-821. Selection of officers and employees -- minutes of meetings

32-2-821. Selection of officers and employees -- minutes of meetings.
(1) The board of directors of a mutual association shall hold a meeting at least quarterly.
(2) The board of directors may elect a president, one or more vice presidents, a cashier, one or more assistant cashiers, and other officers and employees that the board may from time to time consider to be in the best interest of the mutual association, and the board shall fix their compensation. The president must be chosen from the board of directors.
(3) (a) The board of directors shall keep a correct report of the meetings of the board and of the members. This record of the meetings of the board of directors must be signed, manually or electronically, by the presiding officer and the person responsible for preparing the minutes.
(b) The minutes must be read and approved at the following meeting of the board of directors, and the minutes of the following meeting must show that fact.
(c) A person who makes a material false entry in the record of the board meetings or who makes a material change or alteration of an entry made in the record is subject to removal pursuant to 32-2-936.
History: En. Sec. 32, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-822. Members -- proxies

32-2-822. Members -- proxies.
(1) A depositor of a mutual association is a voting member and has an ownership interest in the mutual association as may be provided in the terms and conditions set forth in the articles of incorporation and bylaws of the mutual association.
(2) The bylaws of a mutual association may provide that all borrowers from the mutual association are members and, if so, must provide for their rights and privileges.
(3) Unless otherwise provided in the articles of incorporation or bylaws, a proxy granted by a depositor to the officers and directors of a mutual association expires on the date specified in the proxy. If no date is specified, the authority granted by the proxy is perpetual.
(4) The written proxy appointment is separate and distinct from any deposit agreement, any loan agreement, or any other agreement, statement, document, or disclosure provided by a mutual association to a depositor.
(5) At least once every year, the board of directors of a mutual association shall, by resolution, cause the secretary of the mutual association to mail to every member of the mutual association a blank form of proxy, and the member may withdraw a former proxy and substitute a new proxy for the former proxy. A proxy continues in force and is binding on the member until the proxy is revoked or another proxy is substituted.
History: En. Sec. 33, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-823. Right of examination by member

32-2-823. Right of examination by member.
A member of a mutual association incorporated under the laws of this state who is not a director may not inspect the books and records of the mutual association showing its transactions with a customer. A member may inspect the books and records of the mutual association as provided in 35-14-1602.
History: En. Sec. 34, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-824. Federal savings association powers extended to state mutual associations

32-2-824. Federal savings association powers extended to state mutual associations.
(1) A mutual association organized under the laws of this state may engage in any activity or business in which the mutual association could engage if it were operating as a federal savings association if the power or activity is not expressly prohibited or limited by the laws of this state and:
(a) if the power or activity is clearly authorized to federal savings associations by federal statute, regulations, or interpretive ruling issued or adopted by a federal banking regulator having jurisdiction over federal savings associations; and
(b) upon application to and approval by the department.
(2) The department may adopt rules to govern the application procedure under this section. The department shall act on an application under this section within 15 days after receipt of the application. The department may, for good cause, extend the time period for processing an application under this section for an additional 15 days. If the department fails to act on the application within 15 days after receipt of the application and does not extend the time period for good cause, the state mutual association may engage in the activity requested without the approval of the department.
History: En. Sec. 35, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-825. Surrender of charter by state mutual association

32-2-825. Surrender of charter by state mutual association.
(1) Any mutual association that will become a corporation for carrying on the business of a mutual association under the laws of the United States ceases to be a corporation under the laws of this state.
(2) The members of the board of directors last in office when the corporation became a corporation under the laws of the United States continues to be the board of directors of the corporation, with power to take all necessary measures to carry out and perfect the organization by signing the articles of association and the organization certificate and adopting the regulations as may be just and proper and not inconsistent with the acts of congress.
(3) A change from a state mutual association to a federal savings association may not release the mutual association from its obligations to pay and discharge all of the liabilities created by law or incurred by the mutual association before becoming a federal savings association or any tax imposed by the laws of this state up to the date of the mutual association becoming a federal savings association, in proportion to the time that has elapsed since the next preceding payment.
History: En. Sec. 36, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-826. Membership in federal home loan bank

32-2-826. Membership in federal home loan bank.
(1) A mutual association may be a member of the federal home loan bank of this federal reserve banking district as far as may be compatible with the constitution of this state and the laws of the United States.
(2) The department, on request of any federal home loan bank, shall furnish that bank any information it may have relative to the finances, manner of business, methods of bookkeeping, and any other information relating to a mutual association that is a member of, seeking to become a member of, a borrower from, or seeking to become a borrower from a federal home loan bank.
History: En. Sec. 37, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-828. Branches

32-2-828. Branches.
(1) A mutual association may establish and maintain branches as provided in 32-2-827 and this section. The formation and operation of a branch in this state by a mutual association organized under the laws of this state require the prior approval of the department. A mutual association organized under the laws of this state may establish, acquire, or operate a branch or loan production office outside of this state if approved by the department and if permitted by the laws of the jurisdiction where the branch or office is to be located.
(2) A branch may offer all services and conduct all business authorized to be offered or conducted by the mutual association.
(3) A mutual association authorized to do mutual association business in this state may use a satellite terminal, as defined in 32-6-103, at any location permitted by the Montana Electronic Funds Transfer Act.
(4) A mutual association located in this state may provide services for other mutual associations located in this state, whether or not those mutual associations are affiliates.
(5) With the prior approval of the appropriate federal regulator and state chartering authority, a mutual association that is not organized under the laws of this state may establish and operate a de novo branch in this state under the same terms that would apply to a mutual association organized under the laws of this state seeking approval from the department to establish and operate a de novo branch in this state.
History: En. Sec. 39, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-829. Sale of branch

32-2-829. Sale of branch.
Any mutual association may, with the approval of the department, buy from or sell to another mutual association, regardless of where either mutual association is located or doing business, all or substantially all of the business, assets, and liabilities of the selling mutual association's branch or branches that are physically located in this state.
History: En. Sec. 40, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-830. Loan production office -- rulemaking

32-2-830. Loan production office -- rulemaking.
(1) A mutual association may:
(a) establish and maintain a loan production office only after giving notice to the department; or
(b) relocate or close a loan production office after giving notice to its customers and the department.
(2) The department may adopt rules to implement this section.
History: En. Sec. 15, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 8. Formation and Reorganization › 32-2-831. Agreement of purchase and sale

32-2-831. Agreement of purchase and sale.
(1) The selling and purchasing mutual associations shall enter into an agreement that must contain:
(a) all of the terms and conditions of the sale;
(b) proper provision for the assumption, payment, transfer, or retention of all of the liabilities of the selling mutual association as to the branch assets and business sold; and
(c) proper provision for the assumption, payment, transfer, or retention of the purchasing mutual association of all fiduciary obligations of the branch or branch business sold.
(2) The agreement for purchase and sale of a state mutual association must be authorized and approved by the department. The agreement of purchase and sale of a national savings association must be in accordance with the laws applicable to national savings associations.
History: En. Sec. 41, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 9. Operation and Regulation › 32-2-901. Mutual association advertising before issuance of charter

32-2-901. Mutual association advertising before issuance of charter.
It is unlawful for any individual, firm, or corporation to advertise, publish, or otherwise promulgate that it is engaged in the mutual association business without first having obtained authority from the department. Any person who violates this section is subject to the penalties in 32-2-607(5).
History: En. Sec. 42, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 9. Operation and Regulation › 32-2-903. Penalty for transacting business without certificate

32-2-903. Penalty for transacting business without certificate.
(1) A person, firm, company, partnership, or corporation, domestic or foreign, advertising that the person or entity is receiving or accepting money or savings for deposit, investment, or otherwise and issuing notes or certificates of deposit for them or advertising that the person or entity is transacting the business of a mutual association or making use of an office sign at the place where the business is transacted, having on it an artificial or corporate name or other words indicating that the place or office is the place or office of a mutual association, or that deposits are received there or payments made on check or that interest is paid on deposits or that certificates of deposit, with or without interest, are being issued or that any other form of mutual association business is transacted, and a person, firm, company, partnership, or corporation, domestic or foreign, using or circulating any letterheads, billheads, blank notes, blank receipts, certificates, or circulars or any written or printed or partly written and partly printed paper whatever, having on it an artificial or corporate name or advertising that the business is the business of a mutual association, must have the proper capital set aside for the purpose of transacting that business and must have received form the department, as provided in this chapter, a certificate to do a mutual association business.
(2) A person who violates any provision of this section is subject to the penalties set forth in 32-2-607(5).
(3) Upon action brought by the department, the court may issue an injunction restraining a person, firm, company, partnership, or corporation from further violating any provision of this section and may enter a further order or decree as equality and justice require.
(4) A person, firm, company, partnership, or corporation doing any of the things or transacting any of the business defined in this section shall transact that business according to the provisions of this chapter, and the department may examine the accounts, books, papers, cash, and credits of that person, firm, company, partnership, or corporation, domestic or foreign, in order to ascertain whether that person, firm, company, partnership, or corporation has violated or is violating any provisions of this section.
History: En. Sec. 44, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 9. Operation and Regulation › 32-2-904. Mutual associations -- powers and duties

32-2-904. Mutual associations -- powers and duties.
(1) A mutual association may:
(a) act as fiscal agent for and receive deposits from the federal government, this state, or any agency or political subdivision of the federal government or this state;
(b) sue and be sued, complain, and defend in any court of law or equity;
(c) have a corporate seal, affixed by imprint, facsimile, or otherwise;
(d) appoint officers and agents as its business requires and allow them suitable compensation;
(e) adopt bylaws not inconsistent with the laws of Montana and the rules adopted under the laws of Montana;
(f) raise capital, which must be unlimited, by accepting payments on savings, demand, or other accounts, as are authorized by statute and rule, and the holders of the accounts or other accounts must, to the extent as may be provided by such rules and regulations, be members of the association and must have the voting rights and other rights as are provided;
(g) issue notes, bonds, debentures or other obligations, or securities, provided by or under any provision of state statute as from time to time is in effect;
(h) provide for redemption of insured accounts;
(i) borrow money without limitation and pledge and otherwise encumber any of its assets to secure its debts;
(j) lend and otherwise invest its funds as authorized by statute and rules;
(k) wind up and dissolve, merge, consolidate, convert, or reorganize;
(l) purchase, hold, and convey real estate and personal property consistent with its objectives, purposes, and powers;
(m) mortgage or lease any real estate and personal property and take the property by gift, devise, or bequest; and
(n) exercise all powers conferred by law.
(2) In addition to the powers listed in subsection (1), the mutual association may have power to do all things reasonably incident to the accomplishment of its express objects and the performance of its express powers.
History: En. Sec. 45, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 9. Operation and Regulation › 32-2-905. Extent that assets may be pledged

32-2-905. Extent that assets may be pledged.
No mutual association, mutual association employee, or mutual association officer, except as otherwise authorized by law, may pledge or hypothecate as collateral security for money borrowed its assets in a ratio exceeding 1 1/2 times the amount borrowed, except as otherwise authorized in writing by the department.
History: En. Sec. 46, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 9. Operation and Regulation › 32-2-906. Issuance of capital certificates

32-2-906. Issuance of capital certificates.
A mutual association may issue mutual capital certificates as allowed by federal law.
History: En. Sec. 47, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 9. Operation and Regulation › 32-2-907. No certificate of deposit to be issued for borrowed money

32-2-907. No certificate of deposit to be issued for borrowed money.
A mutual association may not issue its certificate of deposit for the purpose of borrowing money or make partial payments on any certificate of deposit.
History: En. Sec. 48, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 9. Operation and Regulation › 32-2-908. Investments of financial institutions

32-2-908. Investments of financial institutions.
(1) Notwithstanding other provisions of the law, it is lawful for a mutual association operating under the laws of this state to invest the funds or money in its custody or possession, eligible for investment, in:
(a) debentures issued by the federal housing administrator and in obligations of national mortgage associations; and
(b) United States government obligations, either directly or in the form of securities of or other interests in an open-end or closed-end management type investment company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C. 80a-1 through 80a-64, as amended, if:
(i) the portfolio of the investment company or investment trust is limited to United States government obligations and repurchase agreements fully collateralized by United States government obligations; and
(ii) the investment company or investment trust takes delivery of the collateral for any repurchase agreement, either directly or through an authorized custodian.
(2) The department shall publish a list of the permissible type of investments in United States government obligations as provided in subsection (1).
History: En. Sec. 49, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 9. Operation and Regulation › 32-2-909. Insurance activities -- exemption -- rulemaking

32-2-909. Insurance activities -- exemption -- rulemaking.
(1) A mutual association may:
(a) except for title insurance, sell insurance of all types, including annuities, credit life insurance, and disability insurance; and
(b) act as an insurance producer, adjuster, consultant, or administrator as defined in Title 33, chapter 17.
(2) A mutual association that engages in insurance activities authorized in subsection (1) is subject to the provisions of Title 33.
(3) A mutual association may, upon application to and approval by the department pursuant to 32-2-824, offer debt cancellation and suspension programs. Debt cancellation or suspension programs offered pursuant to this subsection are not insurance products subject to the provisions of Title 33. The department shall adopt rules to implement this subsection that must be substantially equivalent to or more stringent than federal laws, regulations, and regulatory guidelines that are applicable to debt cancellation or suspension programs offered by federal savings associations.
History: En. Sec. 50, Ch. 431, L. 2021.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 2. Mutual Savings and Loan Associations › Part 9. Operation and Regulation › 32-2-910. Authority of state mutual associations to make real estate loans -- borrower insurance requirements

32-2-910. Authority of state mutual associations to make real estate loans -- borrower insurance requirements.
(1) A state mutual association has the same authority to make loans on real estate that is given by acts of congress or the federal reserve system to federal savings associations.
(2) A mutual association that is subject to this section may not require a borrower, as a condition of obtaining or maintaining a loan secured by real property, to provide insurance on improvements to real property in an amount that exceeds the reasonable replacement value of the improvements.
History: En. Sec. 51, Ch. 431, L. 2021.