reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 2. State-Chartered Banks and Functions ofDepartment of Administration › 32-1-234. Confidentiality -- penalties

32-1-234. Confidentiality -- penalties.
(1) (a) Reports and statements under 32-1-211, 32-1-215, 32-1-216, 32-1-221, 32-1-232, and 32-1-233 are confidential. Except for information made public by the federal deposit insurance corporation or other federal banking authority's publicly accessible website, any information contained in the reports and statements, the source documents from which this information is derived, and communications concerning reports and statements are 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 may 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 32-1-211, 32-1-215, and 32-1-216 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 bank must be removed from office and is also guilty of a felony. On conviction, the person shall be fined an amount not exceeding $1,000, imprisoned in a state correctional facility for a term not exceeding 5 years, or both.
History: En. Secs. 65, 85, Ch. 89, L. 1927; re-en. Secs. 6014.69, 6014.96, R.C.M. 1935; amd. Secs. 28, 33, Ch. 431, L. 1975; R.C.M. 1947, 5-705, 5-1012; amd. Sec. 12, Ch. 395, L. 1993; amd. Sec. 4, Ch. 12, L. 2015; amd. Sec. 1, Ch. 68, L. 2019; amd. Sec. 14, Ch. 75, L. 2019; amd. Sec. 14, Ch. 23, L. 2023.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 2. State-Chartered Banks and Functions ofDepartment of Administration › 32-1-235. Repealed

32-1-235. Repealed.
Sec. 6, Ch. 12, L. 2015.
History: En. Sec. 66, Ch. 89, L. 1927; re-en. Sec. 6014.70, R.C.M. 1935; R.C.M. 1947, 5-706; amd. Sec. 2, Ch. 186, L. 1985.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 2. State-Chartered Banks and Functions ofDepartment of Administration › 32-1-236. False statements and entries considered felony

32-1-236. False statements and entries considered felony.
Every officer or other person authorized by this chapter who willfully and knowingly makes any false statement of facts, statement of account, or report and every officer, agent, or clerk of any bank who willfully and knowingly makes any false entries in the books of such bank or knowingly subscribes or exhibits false papers with the intent to deceive any person authorized to examine such bank and every person authorized by the provisions of this chapter to make statements or reports who willfully and knowingly subscribes or makes any false statement or report is guilty of a felony and upon conviction thereof shall be imprisoned in the state prison for a term of not less than 1 or more than 10 years or be fined an amount not to exceed $50,000, or both.
History: En. Sec. 67, Ch. 89, L. 1927; re-en. Sec. 6014.71, R.C.M. 1935; amd. Sec. 15, Ch. 71, L. 1977; R.C.M. 1947, 5-707; amd. Sec. 7, Ch. 198, L. 1981.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 2. State-Chartered Banks and Functions ofDepartment of Administration › 32-1-240. Application to organize bank -- rulemaking

32-1-240. Application to organize bank -- rulemaking.
(1) Any five or more individuals, at least three of whom are residents of the state, may file an application to incorporate a proposed bank. The application must be in the form and contain the information prescribed by the department by rule. A nonrefundable application fee, as set by the department by rule, must accompany the application.
(2) The information must be set forth in the application in sufficient detail to allow the commissioner to determine if the proposed new bank meets the requirements set forth in 32-1-242 and 32-1-244.
(3) The department shall adopt rules to implement 32-1-240 through 32-1-245.
History: En. Sec. 1, Ch. 23, L. 2023.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 2. State-Chartered Banks and Functions ofDepartment of Administration › 32-1-241. Authority to require additional investigatory information -- fingerprinting

32-1-241. Authority to require additional investigatory information -- fingerprinting.
(1) The department may investigate any person named in the application or in other documents submitted for filing. The department may require the person to provide additional information for the department's further inquiry.
(2) For the purpose of further inquiry, the department may require any of the following individuals to submit fingerprints for submission to the federal bureau of investigation and any governmental agency or entity authorized to receive information for a state, national, and international criminal history background check:
(a) any individual required to be named in the application to organize; and
(b) any individual named in the proposed articles of incorporation of the bank or documents submitted for filing as a prospective incorporator, director, president, or officer of the bank.
History: En. Sec. 2, Ch. 23, L. 2023.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 2. State-Chartered Banks and Functions ofDepartment of Administration › 32-1-242. Department to review application

32-1-242. Department to review application.
(1) The department shall ensure that sufficient information has been submitted to allow the commissioner to determine whether:
(a) the purposes of the proposed bank as stated in the proposed bank's business plan, articles of incorporation, and the application are consistent with the Bank Act;
(b) the character, financial responsibility, and general fitness of the owners and managers of the proposed bank command the confidence of the community in which the proposed bank is to be located and warrant the belief that the business of the proposed corporation will be honestly and efficiently conducted;
(c) the proposed directors and officers are competent to successfully manage a bank;
(d) there is a reasonable assurance of sufficient volume of business for the proposed bank to be economically viable;
(e) the suggested capitalization is adequate for the proposed banking institution's anticipated development and growth within a reasonable period of time;
(f) there is a reasonable public necessity and demand for a new bank at the proposed location or in the area in which the proposed new bank will operate;
(g) the corporate name assumed by the proposed bank, by reason of the use of any one or more of the words "bank", "banker", "banking", "trust", "savings", or "investment" in conjunction with any other word or words, resembles so closely the name of any other bank previously formed under this chapter as to be likely to cause confusion; and
(h) anything else is considered pertinent.
(2) The department may define the standards in subsection (1) by rule.
(3) The department may request additional information as needed to allow an assessment of the standards in 32-1-244 and this section.
(4) An applicant may withdraw an application at any time before the department determines the application is complete.
History: En. Sec. 3, Ch. 23, L. 2023.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 2. State-Chartered Banks and Functions ofDepartment of Administration › 32-1-243. Commissioner grants or denies application

32-1-243. Commissioner grants or denies application.
(1) When the department determines an application to organize a new bank is complete, the department shall notify the applicant and submit the completed application to the commissioner for a decision.
(2) The commissioner shall review all the submitted materials and the results of the investigation and determine if a preponderance of the evidence shows the standards in 32-1-242 and 32-1-244 and the rules adopted pursuant to 32-1-242 and 32-1-244 have been met. The commissioner may further investigate the applicant, materials, application, and any other factors the commissioner considers relevant.
(3) If the commissioner approves the application, the commissioner shall determine the amount needed for initial capitalization of the institution based on the business plan and application of the proposed institution.
(4) The commissioner shall approve or deny the application within 60 days from receipt of the application unless the commissioner requests more information. If more information is requested, the commissioner shall act within 30 days of the date the additional information has been fully provided.
(5) The commissioner may grant conditional approval of an application and require the applicant to make additional showing or changes in the proposed bank as the commissioner considers advisable.
(6) The applicant may request a hearing on the decision of the commissioner as provided in Title 2, chapter 4, part 6, of the Montana Administrative Procedure Act.
History: En. Sec. 4, Ch. 23, L. 2023.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 2. State-Chartered Banks and Functions ofDepartment of Administration › 32-1-244. Grounds for refusing application to organize

32-1-244. Grounds for refusing application to organize.
The commissioner may disapprove an application on a finding that any person named in the application to organize or in other documents submitted for filing:
(1) is insolvent, either in the sense that the person's liabilities exceeded the person's assets or that the person cannot meet the person's obligations as they mature, or is in a financial condition in which the person cannot continue in business with safety to the person's customers;
(2) has engaged in dishonest, fraudulent, or illegal practices or conduct in any business or profession;
(3) has willfully or repeatedly violated or failed to comply with any provisions of the Bank Act or any rule or order of the commissioner;
(4) has been convicted of any felony or a misdemeanor, if an essential element of the crime is fraud or dishonesty;
(5) is not qualified to conduct a banking business on the basis of factors such as training, experience, and knowledge of the business;
(6) is permanently or temporarily enjoined by a court of competent jurisdiction from engaging in or continuing any conduct or practice involving any aspect of the banking business or other business that may lawfully be conducted by an insured institution;
(7) is the subject of an order of the commissioner subjecting the person to a civil penalty or removing the person from an office in any entity regulated by the commissioner; or
(8) is the subject of an order directing the person to cease and desist from any fraudulent or unlawful business or banking practice, subjecting the person to a civil penalty, or removing the person from an office in a financial institution or a consumer finance company issued by a state, the comptroller of the currency, the board of governors of the federal reserve system, or any other agency of the federal government or another state with regulatory authority over financial institutions or consumer finance companies.
History: En. Sec. 5, Ch. 23, L. 2023.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 2. State-Chartered Banks and Functions ofDepartment of Administration › 32-1-245. Additional requirements after approval of application

32-1-245. Additional requirements after approval of application.
Following approval of the application, the incorporators must:
(1) file a signed original of the articles of incorporation with the department for filing with the secretary of state and pay the filing fee;
(2) provide acceptable proof that the capital of the institution has been placed into escrow;
(3) if the bank will accept money on deposit, prove that the bank has federal deposit insurance corporation insurance, or provide satisfactory assurance from the federal deposit insurance corporation that the proposed bank will be accepted for insurance when the applicants comply with certain stated minor requirements imposed by the federal deposit insurance corporation. "Minor requirements" must be of a type and character that the commissioner determines can be promptly complied with by the applicants without serious difficulty.
(4) provide proposed bylaws that comply with Montana law to the department for review and approval.
History: En. Sec. 6, Ch. 23, L. 2023.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 2. State-Chartered Banks and Functions ofDepartment of Administration › 32-1-246. Shell bank

32-1-246. Shell bank.
The department shall adopt rules providing an application process, processing times, requirements, fees, and criteria for the approval of a shell bank.
History: En. Sec. 7, Ch. 23, L. 2023.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-301. Organization and incorporation -- articles of incorporation

32-1-301. Organization and incorporation -- articles of incorporation.
(1) A person desiring to organize a banking corporation shall make and file articles of incorporation with the department and, on approval by the department, the department may file the articles with the secretary of state as provided in Title 35, chapter 14. The articles of incorporation must set forth:
(a) the information required by 35-14-202(1);
(b) the name of the city or town and county in which the principal office of the corporation is to be located;
(c) the names and places of residence of the initial shareholders and the number of shares subscribed by each;
(d) the number of the board of directors and the names of those initially agreed on; and
(e) the purpose for which the banking corporation 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) In addition to provisions required in subsection (1), the articles of incorporation may also contain provisions set forth in 35-14-202(2).
(3) A banking corporation may not adopt or use the name of any other banking corporation or association, and the corporation name must comply with 35-14-401(2) through (4).
(4) A banking corporation may not be organized or incorporated until the articles of incorporation have been submitted to and have been approved by the department and until it has obtained a certificate from the department authorizing the proposed corporation to transact the business specified in the articles of incorporation within this state.
(5) A banking corporation may not amend or restate its articles of incorporation until its articles of amendment or articles of restatement have been submitted to and have been approved by the department and until it has obtained approval from the department authorizing the proposed amendment or restatement.
(6) For banks organized before October 1, 1993, articles of agreement are considered articles of incorporation.
History: Ap. p. Sec. 6, Ch. 89, L. 1927; re-en. Sec. 6014.10, R.C.M. 1935; amd. Sec. 1, Ch. 7, L. 1965; Sec. 5-201, R.C.M. 1947; Ap. p. Sec. 2661, C. Civ. Proc. 1895; re-en. Sec. 7361, Rev. C. 1907; amd. Sec. 1, Ch. 39, L. 1921; re-en. Sec. 9964, R.C.M. 1921; re-en. Sec. 9964, R.C.M. 1935; amd. Sec. 21, Ch. 240, L. 1971; amd. Sec. 33, Ch. 94, L. 1973; amd. Sec. 59, Ch. 535, L. 1975; Sec. 93-100-2, R.C.M. 1947; R.C.M. 1947, 5-201, 93-100-2(part); amd. Sec. 1, Ch. 179, L. 1985; amd. Sec. 1, Ch. 278, L. 1989; amd. Sec. 14, Ch. 395, L. 1993; amd. Sec. 77, Ch. 382, L. 1997; amd. Sec. 13, Ch. 163, L. 2005; amd. Sec. 228, Ch. 271, L. 2019; amd. Sec. 15, Ch. 23, L. 2023; amd. Sec. 1, Ch. 415, L. 2023.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-302. Incorporation

32-1-302. Incorporation.
(1) 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.
(2) On the presentation of the proposed articles of incorporation, together with the application, the department shall ascertain whether the requisite capital of the bank, as required in 32-1-307, has been subscribed and been paid up in cash. The department shall also determine whether the corporation is being formed for any other purpose than the legitimate business contemplated by this chapter. The department shall determine whether the corporate name assumed by the bank, by reason of the use of any one or more of the words "bank", "banker", "banking", "trust", "savings", or "investment" in conjunction with any other word or words, resembles so closely the name of any other bank previously formed under this chapter as to be likely to cause confusion.
(3) The expenses of the department incurred in the examinations and investigations provided for in this chapter for the formation of new banks must be paid by the proposed bank through advance payment of a reasonable nonrefundable application fee that must be determined by the department by rule.
History: En. as part of Sec. 6, Ch. 89, L. 1927; re-en. Sec. 6014.10, R.C.M. 1935; amd. Sec. 2, Ch. 431, L. 1975; R.C.M. 1947, 5-202; amd. Sec. 1, Ch. 79, L. 1979; amd. Sec. 15, Ch. 395, L. 1993; amd. Sec. 16, Ch. 23, L. 2023.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-303. Repealed

32-1-303. Repealed.
Sec. 28, Ch. 23, L. 2023.
History: En. 5-202.1 by Sec. 3, Ch. 431, L. 1975; amd. Sec. 2, Ch. 71, L. 1977; R.C.M. 1947, 5-202.1.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-304. Repealed

32-1-304. Repealed.
Sec. 2, Ch. 79, L. 1979.
History: En. Sec. 7, Ch. 89, L. 1927; re-en. Sec. 6014.11, R.C.M. 1935; amd. Sec. 170, Ch. 431, L. 1975; R.C.M. 1947, 5-205.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-305. Repealed

32-1-305. Repealed.
Sec. 50, Ch. 395, L. 1993.
History: En. as part of Sec. 6, Ch. 89, L. 1927; re-en. Sec. 6014.10, R.C.M. 1935; amd. Sec. 4, Ch. 431, L. 1975; R.C.M. 1947, 5-203.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-306. Repealed

32-1-306. Repealed.
Sec. 50, Ch. 395, L. 1993.
History: En. as part of Sec. 6, Ch. 89, L. 1927; re-en. Sec. 6014.10, R.C.M. 1935; R.C.M. 1947, 5-204.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-307. Amount of capital

32-1-307. Amount of capital.
The commissioner shall determine the appropriate level of capitalization of the proposed corporation prior to the issuance of the certificate of authorization.
History: En. Sec. 8, Ch. 89, L. 1927; amd. Sec. 1, Ch. 81, L. 1935; re-en. Sec. 6014.12, R.C.M. 1935; amd. Sec. 1, Ch. 45, L. 1963; amd. Sec. 170, Ch. 431, L. 1975; R.C.M. 1947, 5-206; amd. Sec. 16, Ch. 395, L. 1993; amd. Sec. 17, Ch. 23, L. 2023.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-308. Bylaws

32-1-308. Bylaws.
The bylaws must be certified by a majority of the directors and the secretary of the corporation and recorded in the permanent records of the bank. Bylaws must be open to public inspection during office hours. A copy of the bylaws must also be transmitted to the department.
History: En. Sec. 13, Ch. 89, L. 1927; re-en. Sec. 6014.17, R.C.M. 1935; amd. Sec. 170, Ch. 431, L. 1975; R.C.M. 1947, 5-211; amd. Sec. 17, Ch. 395, L. 1993; amd. Sec. 15, Ch. 75, L. 2019.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-321. Calling of first meeting -- cancellation of certificate

32-1-321. Calling of first meeting -- cancellation of certificate.
When the formation of the corporation is completed under the provisions of this chapter by the issuance of the certificate of incorporation by the secretary of state, any three such incorporators signing the articles of agreement may call the first meeting of the corporation at such time and place as they may appoint by giving notice thereof by publication in some newspaper of general circulation in the county in which the principal office for the transaction of business is to be located at least 5 days before the time appointed for such meeting. If all the subscribers to the capital stock unite in a call for such meeting, in writing, no notice is necessary. If the first meeting be not called within 30 days from the date of the certificate of incorporation or if such corporation shall fail to commence the business for which it is incorporated within 90 days from the date of the issuance of the certificate of authorization, the department is authorized to cancel such certificate of authorization.
History: En. Sec. 9, Ch. 89, L. 1927; re-en. Sec. 6014.13, R.C.M. 1935; amd. Sec. 170, Ch. 431, L. 1975; R.C.M. 1947, 5-207.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-322. Board of directors -- qualifications, tenure, and vacancies

32-1-322. Board of directors -- qualifications, tenure, and vacancies.
(1) The affairs of the bank 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 Montana. Directors need not be shareholders of the corporation unless required by the articles of incorporation or bylaws. A person who has been convicted of a crime against the banking laws of the United States or of any state may not be elected a director.
(2) (a) As set forth in the bylaws of the institution, the directors may serve a term of multiple years and the terms may be staggered.
(b) 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 shall hold their office until successors are elected and qualified.
(c) 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 bank.
History: En. Sec. 10, Ch. 89, L. 1927; re-en. Sec. 6014.14, R.C.M. 1935; amd. Sec. 1, Ch. 78, L. 1957; amd. Sec. 5, Ch. 431, L. 1975; R.C.M. 1947, 5-208; amd. Sec. 1, Ch. 84, L. 1979; amd. Sec. 1, Ch. 341, L. 1981; amd. Sec. 1, Ch. 561, L. 1983; amd. Sec. 2, Ch. 179, L. 1985; amd. Sec. 1, Ch. 24, L. 1989; amd. Sec. 18, Ch. 395, L. 1993; amd. Sec. 2, Ch. 415, L. 2023.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-323. Repealed

32-1-323. Repealed.
Sec. 50, Ch. 395, L. 1993.
History: En. Sec. 23, Ch. 89, L. 1927; re-en. Sec. 6014.27, R.C.M. 1935; R.C.M. 1947, 5-502.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-324. Repealed

32-1-324. Repealed.
Sec. 3, Ch. 24, L. 1989.
History: En. Sec. 11, Ch. 89, L. 1927; re-en. Sec. 6014.15, R.C.M. 1935; amd. Sec. 170, Ch. 431, L. 1975; R.C.M. 1947, 5-209; amd. Sec. 3, Ch. 179, L. 1985.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-325. Selection of officers and employees -- minutes of meetings

32-1-325. Selection of officers and employees -- minutes of meetings.
(1) The board of directors of a bank shall hold a meeting at least quarterly.
(2) The board of directors may elect a president, one or more vice-presidents, a cashier or treasurer, one or more assistant cashiers or treasurers, and other officers and employees that they may from time to time consider to be to the best interest of the bank and fix their compensation. The president must be chosen from the board of directors. Each bank shall file a list of the officers and directors of the bank with the department by July 31 of each year.
(3) The board of directors shall keep a correct report of the meetings of the board and of the stockholders. The minutes must disclose the dates of the meetings and the names of the directors or stockholders present. 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. 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. The minutes must be available in the main office of the bank at all times and must be available to the department at the time of its examination of the books. 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 32-1-468.
History: En. Sec. 12, Ch. 89, L. 1927; re-en. Sec. 6014.16, R.C.M. 1935; amd. Sec. 6, Ch. 431, L. 1975; R.C.M. 1947, 5-210; amd. Sec. 1, Ch. 264, L. 1983; amd. Sec. 4, Ch. 179, L. 1985; amd. Sec. 19, Ch. 395, L. 1993; amd. Sec. 16, Ch. 75, L. 2019; amd. Sec. 18, Ch. 23, L. 2023.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-331. Repealed

32-1-331. Repealed.
Sec. 50, Ch. 395, L. 1993.
History: En. Sec. 33, Ch. 89, L. 1927; re-en. Sec. 6014.37, R.C.M. 1935; R.C.M. 1947, 5-512.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-332. Repealed

32-1-332. Repealed.
Sec. 50, Ch. 395, L. 1993.
History: En. Sec. 22, Ch. 89, L. 1927; re-en. Sec. 6014.26, R.C.M. 1935; R.C.M. 1947, 5-501.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-333. Repealed

32-1-333. Repealed.
Sec. 50, Ch. 395, L. 1993.
History: En. as part of Sec. 21, Ch. 89, L. 1927; amd. Sec. 1, Ch. 110, L. 1935; re-en. Sec. 6014.25, R.C.M. 1935; R.C.M. 1947, 5-401.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-334. Repealed

32-1-334. Repealed.
Sec. 50, Ch. 395, L. 1993.
History: En. Sec. 42, Ch. 89, L. 1927; re-en. Sec. 6014.46, R.C.M. 1935; R.C.M. 1947, 5-521.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-335. Purchase or loan of own capital stock prohibited -- exception

32-1-335. Purchase or loan of own capital stock prohibited -- exception.
A bank may not purchase or invest its capital or surplus or money of its depositors, or any part of either, in shares of its own capital stock or loan its capital or surplus or the money of its depositors, or any part of either, on shares of its own capital stock unless the purchase or loan is necessary to prevent loss to the bank on debts previously contracted in good faith. However, a bank may redeem or otherwise purchase its own capital stock with the prior approval of the department and subject to any conditions that the department may require.
History: En. Sec. 36, Ch. 89, L. 1927; re-en. Sec. 6014.40, R.C.M. 1935; R.C.M. 1947, 5-515; amd. Sec. 2, Ch. 36, L. 2001; amd. Sec. 1, Ch. 105, L. 2003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-336. Repealed

32-1-336. Repealed.
Sec. 50, Ch. 395, L. 1993.
History: En. Sec. 1, Ch. 15, Ex. L. 1933; re-en. Sec. 6016.1, R.C.M. 1935; R.C.M. 1947, 5-1127.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-337. Repealed

32-1-337. Repealed.
Sec. 50, Ch. 395, L. 1993.
History: En. Sec. 2, Ch. 15, Ex. L. 1933; re-en. Sec. 6016.2, R.C.M. 1935; R.C.M. 1947, 5-1128.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-338. Repealed

32-1-338. Repealed.
Sec. 50, Ch. 395, L. 1993.
History: En. Sec. 3, Ch. 15, Ex. L. 1933; re-en. Sec. 6016.3, R.C.M. 1935; amd. Sec. 63, Ch. 431, L. 1975; R.C.M. 1947, 5-1129.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-339. Right of examination by stockholder

32-1-339. Right of examination by stockholder.
A stockholder of a bank incorporated under the laws of this state who is not a director may not inspect the books and records of the bank showing its transactions with a customer. A stockholder may inspect the books and records of the bank as provided in Title 35, chapter 14, part 16.
History: En. Sec. 108, Ch. 89, L. 1927; re-en. Sec. 6014.119, R.C.M. 1935; R.C.M. 1947, 5-1035; amd. Sec. 20, Ch. 395, L. 1993; amd. Sec. 229, Ch. 271, L. 2019.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-340. Conversion of surplus and undivided profits to capital stock

32-1-340. Conversion of surplus and undivided profits to capital stock.
(1) A bank having a surplus and undivided profits equal to or in excess of 50% of its capital stock may increase its capital stock by the issuance of new stock for a part of that surplus and undivided profits.
(2) The increase may be made by a vote of the stock, either at a regular annual stockholders' meeting or at a meeting called for that purpose in accordance with the bylaws of the corporation.
(3) All increases of capital stock made under this section must be accomplished in a manner conforming to the requirements of this chapter pertaining to surplus of banks when first incorporated.
(4) When a bank has voted to issue any stock as contemplated in this section, it shall certify that action to the department, which shall within 30 days approve or reject the plan. Departmental action is final, and written notice of the action must be given to the bank.
History: En. Sec. 97, Ch. 89, L. 1927; re-en. Sec. 6014.108, R.C.M. 1935; amd. Sec. 36, Ch. 431, L. 1975; R.C.M. 1947, 5-1024; amd. Sec. 21, Ch. 395, L. 1993.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-351. Repealed

32-1-351. Repealed.
Sec. 50, Ch. 395, L. 1993.
History: En. Sec. 14, Ch. 89, L. 1927; re-en. Sec. 6014.18, R.C.M. 1935; R.C.M. 1947, 5-212.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-352. Repealed

32-1-352. Repealed.
Sec. 50, Ch. 395, L. 1993.
History: En. Sec. 15, Ch. 89, L. 1927; re-en. Sec. 6014.19, R.C.M. 1935; R.C.M. 1947, 5-213.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-353. Repealed

32-1-353. Repealed.
Sec. 50, Ch. 395, L. 1993.
History: En. Sec. 16, Ch. 89, L. 1927; re-en. Sec. 6014.20, R.C.M. 1935; amd. Sec. 7, Ch. 431, L. 1975; R.C.M. 1947, 5-214.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-354. Repealed

32-1-354. Repealed.
Sec. 50, Ch. 395, L. 1993.
History: En. Sec. 17, Ch. 89, L. 1927; re-en. Sec. 6014.21, R.C.M. 1935; R.C.M. 1947, 5-215.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-355. Repealed

32-1-355. Repealed.
Sec. 50, Ch. 395, L. 1993.
History: En. Sec. 18, Ch. 89, L. 1927; re-en. Sec. 6014.22, R.C.M. 1935; amd. Sec. 8, Ch. 431, L. 1975; R.C.M. 1947, 5-216.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-356. Repealed

32-1-356. Repealed.
Sec. 50, Ch. 395, L. 1993.
History: En. Sec. 19, Ch. 89, L. 1927; amd. Sec. 1, Ch. 145, L. 1931; re-en. Sec. 6014.23, R.C.M. 1935; amd. Sec. 1, Ch. 131, L. 1937; amd. Sec. 2, Ch. 7, L. 1965; amd. Sec. 9, Ch. 431, L. 1975; R.C.M. 1947, 5-217; amd. Sec. 5, Ch. 179, L. 1985.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-361. Change from state to national bank

32-1-361. Change from state to national bank.
(1) A bank may become a corporation for the purpose of carrying on the business of banking in this state, under the act of congress "to provide a national currency secured by a pledge of United States bonds and to provide for the circulation and redemption thereof", approved June 3, 1864, and under Title 52 of the Revised Statutes of the United States, when:
(a) stockholders owning two-thirds of the stock of the bank vote to become a national bank corporation or execute a written consent authorizing its directors to make the certificate required therefor by the laws of the United States; or
(b) a majority of the directors of the bank, authorized in their discretion to make the change, by a vote of the majority decide to become a national bank corporation.
(2) The cashier of the bank shall:
(a) publish notice of the change once a week for 4 consecutive weeks in the newspaper that the directors select;
(b) send a printed notice by mail or otherwise to all nonvoting or dissenting stockholders; and
(c) notify the department that the bank has decided to become a corporation under the laws of the United States.
History: En. Sec. 75, Ch. 89, L. 1927; re-en. Sec. 6014.86, R.C.M. 1935; amd. Sec. 32, Ch. 431, L. 1975; amd. Sec. 17, Ch. 71, L. 1977; R.C.M. 1947, 5-1002; amd. Sec. 22, Ch. 395, L. 1993.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-362. National bank powers extended to state banks

32-1-362. National bank powers extended to state banks.
(1) A bank organized under the laws of this state may engage in any activity or business in which the bank could engage if it were operating as a national bank 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 national banks by federal statute, regulations, or interpretive ruling issued or adopted by a federal banking regulator having jurisdiction over national banks; 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 upon an application under this section within 15 days of 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 of receipt of the application and does not extend the time period for good cause, the bank may engage in the activity requested without the approval of the department.
History: En. Sec. 1, Ch. 119, L. 1973; R.C.M. 1947, 5-1002.1; amd. Sec. 1, Ch. 163, L. 1981; amd. Sec. 8, Ch. 117, L. 1997; amd. Sec. 3, Ch. 100, L. 1999; amd. Sec. 3, Ch. 36, L. 2001.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-363. Surrender of charter by state bank

32-1-363. Surrender of charter by state bank.
(1) Any bank which will become a corporation for carrying on the business of banking under the laws of the United States shall cease to be a corporation under the laws of this state, except that for the term of 3 years thereafter its corporate existence shall be deemed to continue for the purposes of prosecuting and defending suits by and against it and of enabling it to close its concerns and to dispose of and convey its property.
(2) The members of the board of directors last in office, when such corporation shall have become a corporation under the laws of the United States, shall continue to be the board of directors of the corporation, with power to take all necessary measures to carry out and perfect such organization by signing the articles of association and the organization certificate and adopting such regulations as may be just and proper and not inconsistent with the acts of congress in relation thereto.
(3) Such change from a state to a national bank corporation shall not release any such bank from its obligations to pay and discharge all the liabilities created by law or incurred by it before becoming a national bank corporation or any tax imposed by the laws of this state up to the date of its becoming such national bank corporation, in proportion to the time which has elapsed since the next preceding payment thereof.
History: En. Sec. 76, Ch. 89, L. 1927; re-en. Sec. 6014.87, R.C.M. 1935; R.C.M. 1947, 5-1003.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-364. Increase or reduction of capital stock

32-1-364. Increase or reduction of capital stock.
The directors of such new corporation may reduce the capital stock of the bank to its par value by dividing the surplus among its stockholders or may retain such portion of such surplus as they may deem necessary. In case of an increase of the capital stock under the provisions of the acts of congress, the directors may charge the shares of such increased capital stock with a like amount to place the whole of such capital stock on an equality and may award such new stock, or such proportion or fractional parts thereof, to such persons as they shall determine are entitled thereto and as are provided in their articles of association and the acts of congress. New directors may be chosen at such time and in the manner provided in the articles of association and the acts of congress.
History: En. Sec. 77, Ch. 89, L. 1927; re-en. Sec. 6014.88, R.C.M. 1935; R.C.M. 1947, 5-1004.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-365. Certificate of change to national bank

32-1-365. Certificate of change to national bank.
(1) When any such bank has decided to become a corporation under the laws of the United States, the directors shall immediately thereafter execute and transmit to the comptroller of the currency the proper certificate and other instruments for its conversion into a national bank corporation under the laws of the United States.
(2) When any such bank shall have become authorized to commence the business of banking under the laws of the United States, all the property of such bank shall immediately, by act of law and without any conveyance or transfer, be vested in and become the property of the national bank corporation into which such bank shall have been converted.
History: En. Sec. 78, Ch. 89, L. 1927; re-en. Sec. 6014.89, R.C.M. 1935; R.C.M. 1947, 5-1005.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-372. Branch bank

32-1-372. Branch bank.
(1) A bank may establish and maintain branch banks, as provided in 32-1-371 and this section. The formation and operation of a branch bank in this state by a bank organized under the laws of this state require the prior approval of the department. A bank organized under the laws of this state may establish, acquire, or operate a branch bank or other office outside this state if approved by the department and if permitted by the laws of the jurisdiction where the branch bank or office is to be located.
(2) A branch bank may but is not required to offer all services and conduct all business authorized to be offered or conducted by the bank.
(3) A bank authorized to do banking 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 bank may continue to maintain and operate all branch banks and other banking offices in existence or authorized on July 1, 1997, without further consent, authorization, or approval of the department. All offices established and maintained by a bank, other than the main banking house, at which deposits are received, checks are paid, or money is lent must be considered branch banks for all purposes under this title.
(5) A bank located in this state may provide services for other banks located in this state, whether or not those banks are affiliates.
(6) With the prior approval of the appropriate federal regulator and state chartering authority, a bank 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 bank organized under the laws of this state seeking approval from the department to establish and operate a de novo branch in this state.
(7) A bank that is not organized under the laws of this state that applies to the appropriate federal regulator and state chartering authority under subsection (6) to establish and operate a de novo interstate branch in Montana shall simultaneously file a copy of the application with the department for notification purposes.
(8) A bank shall notify the department and its customers of any branch bank closure or relocation.
(9) The department may adopt rules to implement this section.
History: En. Sec. 101, Ch. 89, L. 1927; re-en. Sec. 6014.112, R.C.M. 1935; amd. Sec. 1, Ch. 39, L. 1963; amd. Sec. 1, Ch. 80, L. 1965; amd. Sec. 170, Ch. 431, L. 1975; amd. Sec. 22, Ch. 503, L. 1977; R.C.M. 1947, 5-1028; amd. Sec. 5, Ch. 322, L. 1989; amd. Sec. 1, Ch. 15, L. 1991; amd. Sec. 5, Ch. 401, L. 1993; amd. Sec. 1, Ch. 307, L. 1995; amd. Sec. 10, Ch. 117, L. 1997; amd. Sec. 4, Ch. 36, L. 2001; amd. Sec. 2, Ch. 15, L. 2005; amd. Sec. 2, Ch. 49, L. 2011; amd. Sec. 19, Ch. 75, L. 2019; amd. Sec. 19, Ch. 23, L. 2023.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-373. Banks may join federal reserve bank

32-1-373. Banks may join federal reserve bank.
Any bank is hereby authorized and empowered to join or associate itself with the federal reserve bank, or any branch thereof, and nothing herein contained shall prevent or prohibit any bank from joining or associating itself with any such banks or branch thereof or from investing any part of its capital or surplus in the stock of such bank, in accordance with the terms and provisions of the act of congress creating such association. Any bank joining or associating itself with such bank shall be permitted to conform to and transact its business in accordance with the terms and provisions of the act of congress creating the same and the rules of such federal reserve bank.
History: En. Sec. 28, Ch. 89, L. 1927; re-en. Sec. 6014.32, R.C.M. 1935; R.C.M. 1947, 5-507.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-374. Conversion of national bank to state bank

32-1-374. Conversion of national bank to state bank.
(1) A national bank may convert to a state bank on the consent in writing of the owners of two-thirds of the capital stock of the bank and with the approval of the department. The stockholders shall make, execute, and acknowledge articles of incorporation as required by the laws of the state of Montana and shall set forth in the articles of incorporation the written consent of the stockholders. When the articles and the department approval are filed as provided by law, the bank is converted under this chapter, and all assets, real and personal, of the national bank are vested in and become the property of the converted state bank, subject to all liabilities of the national bank not liquidated before the conversion.
(2) The cashier of the bank shall:
(a) publish notice of the change once a week for 4 consecutive weeks in the newspaper that the directors select;
(b) send a printed notice by mail or otherwise to all nonvoting or dissenting stockholders; and
(c) notify the department that the bank has decided to become a corporation under the laws of Montana.
History: En. Sec. 79, Ch. 89, L. 1927; re-en. Sec. 6014.90, R.C.M. 1935; amd. Sec. 170, Ch. 431, L. 1975; R.C.M. 1947, 5-1006; amd. Sec. 23, Ch. 395, L. 1993; amd. Sec. 20, Ch. 75, L. 2019.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-375. Prohibition of acquisition -- exception

32-1-375. Prohibition of acquisition -- exception.
(1) Notwithstanding any other provision of law, a bank holding company or any other company may not acquire or control an institution in this state that is an "insured bank" as defined in section 3(h) of the Federal Deposit Insurance Act (12 U.S.C. 1813(h)) or any institution eligible to become an insured bank as defined therein if the institution does not both accept demand deposits and engage in the business of making commercial loans.
(2) Nothing in this section prohibits the continued control of a financial institution eligible for insurance under the Federal Deposit Insurance Act by a company that acquired the financial institution prior to March 1, 1987.
History: En. Sec. 1, Ch. 491, L. 1987.
2023 Montana Code Annotated › Title 32. Financial Institutions › Chapter 1. Banks and Trust Companies › Part 3. Formation and Reorganization › 32-1-376. Sale of branch bank

32-1-376. Sale of branch bank.
Any bank may, with the approval of the department, buy from or sell to another bank, regardless of where either bank is located or doing business, all or substantially all of the business, assets, and liabilities of the selling bank's branch bank or branch banks that are physically located in this state.
History: En. Sec. 8, Ch. 265, L. 1995; amd. Sec. 11, Ch. 117, L. 1997; amd. Sec. 5, Ch. 49, L. 2013.