reglab/statecodes huggingface dataset:
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.55 - STATE COMPENSATION INSURANCE FUND › Subchapter 2.55.3 - Premium Rates › Rule 2.55.323 - OVERALL RATE LEVEL

Current through Register Vol. 13, July 5, 2024
(1) In order to
				determine the aggregate premium to be charged to new and renewal policies for
				the fiscal year that begins on the next July 1, the State Fund actuary shall
				evaluate the adequacy of the projected overall rate level for the fiscal year
				of the State Fund. The projected overall rate level must be sufficient to
				cover:
(a) the value of claims, as determined
				by actuarial analysis, expected to be incurred as a direct result of covered
				accidents during the following fiscal year of the State Fund;
(b) operational and administrative expenses,
				claims adjustment expense related to covered claims, and other expenses
				required to operate the State Fund for the fiscal year; and
(c) an amount sufficient to maintain
				appropriate contingency reserves and policyholder surplus.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.55 - STATE COMPENSATION INSURANCE FUND › Subchapter 2.55.3 - Premium Rates › Rule 2.55.324 - PREMIUM RATESETTING - HORSE RACING AND BOARD INTERIM MODIFICATION OF RATES

Current through Register Vol. 13, July 5, 2024
(1) Payrolls for
				horse racing activities conducted at licensed Montana race tracks and hauling
				of horses between those race tracks from March 1 through September 30 of each
				year have been determined not to be sufficiently verifiable and a fee basis
				shall be used, except as provided in (2) below. The fee for each March 1
				through September 30 period shall be based on the aggregate revenue requirement
				of this classification and allocated among the projected number of industry
				participants. This subsection will become effective October 1, 1994.
(2) The board, in lieu of a fee based policy
				for horse racing activities, may utilize classifications and establish
				loss-costs under ARM
				2.55.319 for horse racing
				activities if a fee based policy is determined to be inappropriate.
(3) The State Fund may, with concurrence of
				the State Fund board of directors, adopt and implement changes to previously
				adopted rates. These changes may be based on, but are not limited to, statutory
				or other legal changes in benefits or costs, or revisions in actuarial
				indications. These rate changes shall be effective on a date and in such manner
				as determined by the board of directors, and shall apply to each policy for the
				remainder of the policy year to which the previously adopted rates apply, and
				for new and renewal policies.
39-71-2315,
					 39-71-2316, MCA; IMP,
					 39-71-2211,
					 39-71-2311,
					 39-71-2316,
					 39-71-2330,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.55 - STATE COMPENSATION INSURANCE FUND › Subchapter 2.55.3 - Premium Rates › Rule 2.55.325 - VARIABLE PRICING WITHIN A CLASSIFICATION (REPEALED)

Current through Register Vol. 13, July 5, 2024
39-71-2315,
					 39-71-2316, MCA; IMP,
					 39-71-2311,
					 39-71-2316,
					 39-71-2330,
					 39-71-2341,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.55 - STATE COMPENSATION INSURANCE FUND › Subchapter 2.55.3 - Premium Rates › Rule 2.55.326 - MINIMUM LOSS BASED PREMIUM

Current through Register Vol. 13, July 5, 2024
(1) The State
				Fund, subject to the approval of the State Fund board of directors, may
				establish each fiscal year and charge a minimum loss based premium to a policy
				with an effective date between July 1 and June 30 inclusive, in order to cover
				the risk of loss for coverage of small employers.
(2) The minimum loss based premium may be
				derived by establishing a minimum yearly payroll. The minimum loss based
				premium shall be determined by multiplying the minimum yearly payroll by the
				rate of the governing classification of the policy. The board may adopt an
				amount that the minimum loss based premium may not be below, and may adopt an
				amount that the minimum loss based premium may not exceed.
(3) Minimum loss based premium may be
				established as a flat dollar amount.
39-71-2315,
					 39-71-2316, MCA; IMP,
					 39-71-2311,
					 39-71-2316,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.55 - STATE COMPENSATION INSURANCE FUND › Subchapter 2.55.3 - Premium Rates › Rule 2.55.327 - CONSTRUCTION INDUSTRY PREMIUM CREDIT PROGRAM (REPEALED)

Current through Register Vol. 13, July 5, 2024
39-71-2315,
					 39-71-2316, MCA; IMP,
					 39-71-2211,
					 39-71-2311,
					 39-71-2316,
					 39-71-2330,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.55 - STATE COMPENSATION INSURANCE FUND › Subchapter 2.55.3 - Premium Rates › Rule 2.55.327A - CONSTRUCTION INDUSTRY PREMIUM CREDIT PROGRAM

Current through Register Vol. 13, July 5, 2024
(1) The State Fund shall each fiscal year
				offer a program which provides a premium credit to insureds in the construction
				industry who pay their workers wages equal to or in excess of 1.168 times the
				state's average weekly wage.
(2) To
				become eligible for the program, the insured must meet all of the following
				criteria:
(a) maintain accurate individual
				employee records of the total hours worked and payroll by class code and make
				those records available for verification and audit;
(i) If a payroll audit period includes all or
				a portion of a policy year to which a construction credit applies, the survey
				period will also be audited to determine the proper credit for the payroll
				audit period even though the survey period may be more than three years
				prior.
(ii) If the verification or
				audit reveals hourly records are not available, the insured is disqualified
				from the program.
(iii) If the
				insured fails to make the records available within a reasonable period of time
				after contact, the insured is disqualified from the program.
(iv) If the application of the insured was
				originally disapproved based on criteria (2)(c) or (2)(d) but otherwise
				qualified and a subsequent verification or audit results in adjustments which
				determine the insured actually met those criteria, a credit will be applied
				retroactively.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.55 - STATE COMPENSATION INSURANCE FUND › Subchapter 2.55.3 - Premium Rates › Rule 2.55.328 - EMPLOYERS' LIABILITY - LIMITS AND RATES

Current through Register Vol. 13, July 5, 2024
(1)
				The State Fund may, upon approval of the board, provide employers liability
				insurance as part of the workers' compensation policy for employers insured by
				the State Fund. The board shall approve the terms and conditions of employers'
				liability coverage including, but not limited to, the limits of
				liability.
(2) In establishing
				rates the board shall, in consultation with the actuary, consider employers'
				liability basic limits coverage in establishing the overall rate level
				adjustment. Limits of liability above the basic limit, and related rates, may
				be established by the board in consultation with the actuary.
39-71-2315,
					 39-71-2316, MCA; IMP,
					 39-71-2211,
					 39-71-2311,
					 39-71-2316,
					 39-71-2330,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.55 - STATE COMPENSATION INSURANCE FUND › Subchapter 2.55.4 - Premium Modifiers › Rule 2.55.401 - EXPERIENCE MODIFICATION FACTOR

Current through Register Vol. 13, July 5, 2024
(1) An
				insured, whose premium level qualifies, must be assigned an experience
				modification factor that reflects the insured's actual experience in comparison
				to the expected experience. "Experience modification factor" means a factor
				derived from an evaluation of payroll and accident experience in previous
				policy periods that is based on the formula of an advisory or rating
				organization.
(2) The state fund
				shall use the methods used by the workers' compensation advisory or rating
				organization to identify a qualified insured and determine the insured's
				experience modification factor in order to reward an insured with a good safety
				record and penalize an insured with a poor safety record.
Sec.
					 39-71-2315 and
					 39-71-2316 MCA; IMP,
					 39-71-2311,
					 39-71-2316 and
					 39-71-2330
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.55 - STATE COMPENSATION INSURANCE FUND › Subchapter 2.55.4 - Premium Modifiers › Rule 2.55.402 - MEDICAL DEDUCTIBLE

Current through Register Vol. 13, July 5, 2024
(1) The state fund
				offers an annual (fiscal year July l through June 30) medical deductible plan
				for policies with effective dates between each July 1 and June 30 inclusive, in
				increments of $500, $1,000, $1,500, $2,000 and $2,500 per claim. This plan
				allows qualified employers to reimburse the state fund for a selected
				deductible amount of the medical costs of each claim in exchange for a premium
				discount.
(2) To qualify for the
				plan for the next policy year, an employer must:
(a) file an endorsement form, provided by the
				state fund prior to the beginning of the next policy year;
(b) have estimated annual premium for the
				next policy year which equals or exceeds the chosen deductible amount;
				and
(c) demonstrate the ability to
				promptly pay the deductible amounts by not having a poor premium payment
				history with the state fund.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.55 - STATE COMPENSATION INSURANCE FUND › Subchapter 2.55.4 - Premium Modifiers › Rule 2.55.403 - VOLUME DISCOUNT

Current through Register Vol. 13, July 5, 2024
(1) The state fund
				may establish each fiscal year for insureds covered by the state fund a
				percentage reduction of premium for policies with effective dates between each
				July 1 and June 30 inclusive, based on premium volume.
(2) The state fund may provide a group volume
				discount to a group as provided by
				39-71-433, MCA.
Sec.
					 39-71-2315 and
					 39-71-2316 MCA; IMP, Sec.
					 39-71-433,
					 39-71-2311,
					 39-71-2316 and
					 39-71-2330
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.55 - STATE COMPENSATION INSURANCE FUND › Subchapter 2.55.4 - Premium Modifiers › Rule 2.55.404 - SCHEDULED RATING - HIGH LOSS MODIFIER (REPEALED)

Current through Register Vol. 13, July 5, 2024
Sec.
					 39-71-2315 and
					 39-71-2316 MCA; IMP, Sec.
					 39-71-2316 and
					 39-71-2341
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.55 - STATE COMPENSATION INSURANCE FUND › Subchapter 2.55.4 - Premium Modifiers › Rule 2.55.405 - SCHEDULED RATING - LOSS CONTROL NONCOMPLIANCE MODIFIER (REPEALED)

Current through Register Vol. 13, July 5, 2024
Sec.
					 39-71-2315 and
					 39-71-2316 MCA; IMP, Sec.
					 39-71-2316,
					 39-71-2330 and
					 39-71-2341
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.55 - STATE COMPENSATION INSURANCE FUND › Subchapter 2.55.4 - Premium Modifiers › Rule 2.55.406 - SCHEDULED RATING - UNIQUE RISK CHARACTERISTICS MODIFIER

Current through Register Vol. 13, July 5, 2024
(1) The state fund may modify the premium for
				an insured to acknowledge characteristics of the business that are not
				reflected in its experience. Such characteristics may include but are not
				limited to the condition of the insured's premises and worksites, peculiarities
				of classification, medical facilities, safety devices, employees and
				management. The modifier will be a percentage increase (scheduled rating debit
				modifier) or decrease (scheduled rating credit modifier) applied to standard
				premium.
(2) All scheduled rating
				debit and credit modifiers shall be based on evidence contained in the file of
				the state fund at the time the scheduled rating modifier is applied. The
				effective date of any scheduled rating modifier shall not be any date prior to
				the receipt in the state fund's office of the evidence supporting the debit or
				credit.
(3) The derivation of the
				scheduled rating modifier must be made available to the insured upon
				request.
(4) To the degree that the
				insured can correct the reason for any scheduled rating debit modifier to the
				satisfaction of the state fund, the modifier may be removed at the beginning of
				the next quarterly period.
(5) If
				the insured fails to maintain the basis for which a scheduled rating credit
				modifier was applied, the modifier may be removed by the state fund at the
				beginning of the next quarterly period.
(6) An insured subject to the modifier may be
				assigned a quarterly report basis.
Sec.
					 39-71-2315 and
					 39-71-2316 MCA; IMP, Sec.
					 39-71-2316 and
					 39-71-2330
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.55 - STATE COMPENSATION INSURANCE FUND › Subchapter 2.55.4 - Premium Modifiers › Rule 2.55.407 - OPTIONAL DEDUCTIBLE PLANS

Current through Register Vol. 13, July 5, 2024
(1) The state
				fund may offer to an employer an optional deductible plan for benefits payable
				under the Workers' Compensation Act.
(2) The board shall establish deductible
				plans for each fiscal year. The board shall determine the factors, multipliers,
				ratios or other formula components for the plan.
(3) Except as provided in (4), to qualify for
				a plan an employer must meet the following conditions:
(a) be selected by the state fund pursuant to
				criteria established by the board, and be provided a written proposal for state
				fund optional deductible plan;
(b)
				the employer shall have an annual estimated earned premium that equals or
				exceeds the deductible level chosen or such annual estimated earned premium as
				established by the board;
(c) file
				an endorsement form provided by the state fund; and
(d) the endorsement is approved by the state
				fund for the plan chosen by the employer.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.55 - STATE COMPENSATION INSURANCE FUND › Subchapter 2.55.4 - Premium Modifiers › Rule 2.55.408 - RETROSPECTIVE RATING PLANS

Current through Register Vol. 13, July 5, 2024
(1) The State Fund
				may offer an employer, or a group, a retrospective rating plan for coverage
				under the Workers' Compensation Act.
(2) The board shall establish employer
				retrospective rating plans for each fiscal year utilizing the methods and
				formulas published by the National Council on Compensation Insurance
				Retrospective Rating Manual, 2009 edition. The board shall determine the
				factors, multipliers, ratios, or other formula components for the plan. The
				board may establish a group retrospective rating plan utilizing the methods,
				formulas, factors, multipliers, ratios, or other formula components as
				determined by the board.
(3) To
				qualify for participation in a plan the employer or group shall:
(a) be selected by the State Fund pursuant to
				criteria established by the board, and be provided a written proposal for a
				State Fund retrospective rating plan;
(b) execute an agreement with the State Fund;
				and
(c) have an annual estimated
				employer or group earned premium that equals or exceeds an amount determined by
				the board.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.55 - STATE COMPENSATION INSURANCE FUND › Subchapter 2.55.4 - Premium Modifiers › Rule 2.55.409 - EXPENSE CONSTANT

Current through Register Vol. 13, July 5, 2024
(1) The state fund
				may assess an expense constant on all policies in effect during a fiscal year.
				The amount of the charge shall be determined annually by the board for the
				future fiscal year, and may be in addition to any other charge, premium or loss
				based premium.
(2) The expense
				constant is included in the total minimum premium charged if the expense
				constant plus premium is less than the total minimum premium established by the
				board for the fiscal year.
(3) The
				expense constant includes, but is not limited to, expense components for
				issuing, maintaining and servicing policies, which are common to all policies
				regardless of premium size.
(4) The
				state fund may cancel the employer's policy for failure to pay an expense
				constant.
Sec.
					 39-71-2315 and
					 39-71-2316, MCA; IMP, Sec.
					 39-71-2311 and
					 39-71-2316,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.55 - STATE COMPENSATION INSURANCE FUND › Subchapter 2.55.5 - Individual Loss Sensitive Dividend Distribution Plan › Rule 2.55.501 - DEFINITIONS

Current through Register Vol. 13, July 5, 2024
The following definitions apply to ARM
				  2.55.502:
(1) "Dividend factors" means the percentage
				multiplied times premium to arrive at the dividend amount payable to an
				eligible policyholder.
(2) "Fiscal
				year" or "dividend year" means the period of time between July 1 and the
				succeeding June 30.
(3) "Incurred
				losses" means:
(a) losses as reflected on the
				first report of the unit statistical reports including any corrections to the
				first report as provided to the National Council on Compensation Insurance
				(NCCI) for the dividend year; or
(b) incurred losses for the dividend year on
				a date, or on various dates based on policy period such that eligible
				policyholder losses are captured at equivalent maturities, as selected by the
				State Fund board of directors.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.101 - BANKS - RESERVE REQUIREMENTS

Current through Register Vol. 13, July 5, 2024
(1) No bank shall
				act as a reserve bank unless:
(a) the bank
				has unimpaired paid-up capital and surplus of at least $1,000,000. For purposes
				of this rule, "unimpaired paid-up capital and surplus" shall mean the aggregate
				of the bank's capital stock account(s) and its surplus account, as defined in
				32-1-109, MCA, minus any deficit
				balance existing after aggregating the bank's undivided profits account, profit
				and loss (or similar) account, capital reserve account(s), valuation reserve
				account(s), and allocated or specific reserve account(s) ; and
(b) the bank has received written approval
				from the department in response to the bank's written request to act as a
				reserve bank.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.102 - BANKS - DIRECT LEASING OF PERSONAL PROPERTY

Current through Register Vol. 13, July 5, 2024
(1)
				Under authority granted by
				32-1-362, MCA, the department
				hereby permits state banks of Montana to engage in the business of direct
				leasing of personal property under the following regulations:
(a) A bank may purchase personal property to
				be leased only after it has a valid and binding commitment from the prospective
				lessee to lease the specific property under terms acceptable to the
				bank.
(b) Lease agreements with any
				one lessee may not exceed 40% of the unimpaired capital and surplus of the
				bank. If the lessee is also a borrower from the bank this 40% must be reduced
				by the balance of loans to the lessee.
(c) Every lease agreement must provide for
				full payout to the bank of its full acquisition cost of the lease property
				during the initial term of the lease.
(d) Residual value of the property at the end
				of a lease agreement's original term may be considered by the bank to
				constitute partial recovery of its cost of acquisition if such residual value
				is not more than 25% of the cost of acquisition.
(e) No lease agreement shall extend for an
				initial period of more than ten years or the leased property's normal useful
				life, whichever is less, unless the bank receives from the department prior
				written approval of each lease agreement of longer term.
(f) Each lease agreement must include
				provisions whereby the lessee disclaims any liability of the bank for the
				condition of the leased property or its quality; and whereby the lessee assumes
				full responsibility for protection and maintenance of the leased
				property.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.103 - RETENTION OF BANK RECORDS (REPEALED)

Current through Register Vol. 13, July 5, 2024
32-1-491, MCA; IMP,
					 32-1-491,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.104 - SEMIANNUAL ASSESSMENT

Current through Register Vol. 13, July 5, 2024
(1) The department
				invoices banks, investment companies, and trust companies for semiannual
				assessments every June and December. The assessment is based on each
				institution's total assets provided in its previous March and September call
				reports.
(2) The fee is calculated
				based on the total assets of the bank, investment company, or trust company
				multiplied by .0000375, plus the flat fee listed below.
Total Assets
Flat Fee ($)
$0 to $50 million
$0
Over $50 to $100 million
$3,000
Over $100 to $250 million
$5,000
Over $250 million to $1 billion
$7,500
Over $1 billion
$15,000
Example: Bank A reports total assets of $58,873,000 x
				  .0000375 plus $3,000 equals $5,207.74.
(3) The assessment is due 30 days after each
				invoice date, or July 31 and January 31, whichever is later.
(4) The fee shall not exceed $400,000 for
				each semiannual assessment.
(5) In
				the event of a merger between Montana state-chartered banks, investment
				companies, or trust companies during the second or fourth quarter of the year,
				the assessment fee for the acquired institution must be paid by the surviving
				institution.
AUTH:
					 32-1-213,
					 32-1-218, MCA; IMP:
					 32-1-213,
					 32-1-218,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.105 - INVESTMENT SECURITIES (REPEALED)

Current through Register Vol. 13, July 5, 2024
32-1-433, MCA; IMP,
					 32-1-433,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.106 - INVESTMENT IN CORPORATE STOCK

Current through Register Vol. 13, July 5, 2024
(1) Ownership
				of stock in a bank service corporation is subject to the following conditions:
(a) The department adopts the definition of
				bank service corporation defined by
				12 USC
				1861 as "a corporation organized to perform
				services authorized by this Act, all of the capital stock of which is owned by
				one or more insured banks."
(b)
				Services which may be provided by a bank service corporation include, but are
				not limited to:
(i) electronic data
				processing;
(ii) accounting
				services;
(iii) clearinghouse
				functions;
(iv) investment services
				for the account(s) of bank(s) ;
(v)
				advertising and marketing services;
(vi) communications services;
(vii) audit services;
(viii) loan review and collateral
				inspections;
(ix) retention of bank
				records, including data backup retention;
(x) safekeeping services, including vault and
				safe deposit box facilities;
(xi)
				courier services.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.107 - INVESTMENTS OF FINANCIAL INSTITUTIONS (REPEALED)

Current through Register Vol. 13, July 5, 2024
32-1-424, MCA; IMP,
					 32-1-424,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.108 - LIMITATIONS ON LOANS (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 32-1-432,
					 MCA IMP:
					 32-1-432,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.109 - LOANS TO A MANAGING OFFICER, OFFICER, DIRECTOR, OR PRINCIPAL SHAREHOLDER OF A BANK

Current through Register Vol. 13, July 5, 2024
(1) The definitions
				of capital and unimpaired surplus are as follows:
(a) "Capital" shall mean the aggregate of the
				bank's outstanding capital stock account(s) minus any deficit balance existing
				in an impaired surplus account.
(b)
				"Surplus" is defined in
				32-1-109, MCA. "Unimpaired
				surplus" shall mean surplus minus any deficit balance existing after
				aggregating the bank's undivided profits account, profit and loss (or similar)
				account, capital reserve account(s), valuation reserve account(s) and allocated
				or specific reserve account(s).
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.110 - FEES FOR THE APPROVAL OF POINT-OF-SALE TERMINALS (REPEALED)

Current through Register Vol. 13, July 5, 2024
32-6-401, MCA; IMP,
					 32-6-305,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.111 - RETENTION OF BANK RECORDS

Current through Register Vol. 13, July 5, 2024
(1) Records of
				customer accounts, as defined in (7), must be held in accordance with
				32-1-491, MCA.
(2) The publication "Bank Record Retention
				Periods - Appendix A to ARM
				2.59.111 " (Appendix A) establishes
				the minimum period for retention of bank records other than those specified in
				32-1-491, MCA. Appendix A is
				maintained by the Commissioner of Banking and Financial Institutions, and may
				be updated not more than once a year by the commissioner. The June 2, 2014,
				edition of Appendix A is incorporated by reference as part of this rule. A copy
				of Appendix A can be obtained from the Division of Banking and Financial
				Institutions, Department of Administration, 301 South Park, P.O. Box 200546,
				Helena, MT 59620-0546 or found on the department's web site at
				http://banking.mt.gov/Portals/58/BanksTC/Bank_Records_Retention_Sched_A_
				6-2-2014.pdf.
(3) When a bank
				reproduces records in any manner in the regular course of business as permitted
				by 32-1-492 through
				32-1-494, MCA, the retention
				period of the reproduced records is the same as specified in Appendix
				A.
(4) Banks shall comply with all
				applicable federal banking laws and regulations requiring specific retention
				periods for the records enumerated in those laws or regulations. If an
				applicable federal banking law or regulation concerning record retention
				conflicts with a retention period contained in
				32-1-491, MCA, this rule, or
				Appendix A, a bank shall comply with whichever retention period is longer.
				Banks shall comply with other applicable state laws governing retention of
				personnel records, corporation records, etc.
(5) If a bank does not maintain records set
				forth in Appendix A, but maintains similar records with equivalent information,
				the bank's similar records must be retained for the time set forth for records
				in Appendix A.
(6) Records not
				covered by this rule or
				32-1-491, MCA, must be retained
				for a period of time determined appropriate by the bank's board of directors.
				Retention periods determined appropriate by the board must be maintained as a
				permanent part of the board's minutes.
(7) "Customer accounts," for record retention
				purposes under
				32-1-491, MCA, and this rule,
				means customer deposit accounts including savings deposit accounts, checking
				accounts, demand deposit accounts, certificates of deposit, safety deposit
				boxes, trust accounts, Negotiable Order of Withdrawal (NOW) accounts, and money
				market deposit accounts.
AUTH:
					 32-1-491, MCA; IMP:
					 32-1-218,
					 32-1-491,
					 32-1-492,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.112 - UNDERWRITING OF SECURITIES

Current through Register Vol. 13, July 5, 2024
(1) Banks are
				permitted to underwrite issues of investment securities if the following
				conditions are met:
(a) No banks having
				unimpaired capital and surplus of less than $5,000,000 shall underwrite or
				otherwise participate as principal in the marketing of securities, except for
				the account of and upon specific instructions from its customer.
(b) Banks that qualify to underwrite or
				participate by having unimpaired capital and surplus of $5,000,000 or greater,
				may do so with any securities that such banks could purchase for their own
				account.
(c) Accounting and other
				records of trading in such securities must be separately maintained from
				accounting and other records relating to purchases of securities for the bank's
				own account.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.113 - INVESTMENTS BY BANKS TO PROMOTE THE PUBLIC WELFARE

Current through Register Vol. 13, July 5, 2024
(1) The department incorporates by reference
				the Office of the Comptroller of the Currency Code of Federal Regulations (12
				CFR Part 24.1 through 24.7, 1996 edition) that implement
				12 USC
				24, which authorizes national banks to make
				investments designed primarily to promote the public welfare, including the
				welfare of low and moderate income areas or individuals, such as providing
				housing, services or jobs.
(2) A
				copy of 12 CFR Part 24.1 through 24.7 may be obtained from the Division of
				Banking and Financial Institutions of the Department of Administration, 301
				South Park, Suite 316, P.O. Box 200546, Helena, MT 59620-0546.
32-1-422, MCA; IMP,
					 32-1-422,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.114 - TRUST COMPANY EXAMINATION FEES (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 32-1-218,
					 MCA IMP:
					 32-1-211,
					 32-1-214,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.115 - ADOPTION OF EXAMINATION PROCEDURE

Current through Register Vol. 13, July 5, 2024
(1) The
				department adopts the revised Uniform Financial Institution Rating System as
				one of its examination procedures. The edition adopted is the December 19,
				1996, edition as published in the Federal Register at 61 Fed. Reg. 67021. It
				may be viewed at
http://www.fdic.gov/news/news/financial/1996/fil96105.pdf
.
				A copy may be obtained from the Federal Financial Institutions Examination
				Council (FFIEC) at 3501 Fairfax Drive, Room D-8073a, Arlington, VA
				22226-3550.
32-1-218, MCA; IMP,
					 32-1-211,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.117 - DEBT CANCELLATION AND DEBT SUSPENSION PROGRAMS - REQUIREMENTS

Current through Register Vol. 13, July 5, 2024
(1) A bank offering debt cancellation
				contracts and/or debt suspension agreements shall:
(a) manage the risks associated with debt
				cancellation contracts and debt suspension agreements in accordance with bank
				safety and soundness principles by establishing and maintaining effective risk
				management and control processes over its debt cancellation contracts and debt
				suspension agreements to include:
(i)
				appropriate recognition and financial reporting of income, expenses, assets,
				and liabilities;
(ii) appropriate
				treatment of all expected and unexpected losses associated with the contracts;
				and
(iii) assessment of the
				adequacy of its internal control and risk mitigation activities in view of the
				nature and scope of the bank's debt cancellation and debt suspension program;
				and
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.118 - REQUIRED DISCLOSURES

Current through Register Vol. 13, July 5, 2024
(1) A bank shall
				provide the following disclosures to the bank's customer:
(a) notice of the prohibited acts or
				practices contained in ARM
				2.59.119;
(b) the fee applicable to the contract and
				any payment options;
(c) the refund
				policy;
(d) whether the customer is
				barred from using the credit line to which it pertains if the debt cancellation
				contract or debt suspension agreement is activated;
(e) eligibility requirements, conditions, and
				exclusions;
(f) that a debt
				suspension agreement, if activated, does not cancel the debt, but only suspends
				payment requirements; and
(g)
				notice that cancellation of debt may result in a tax liability to the customer
				if activated.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.119 - PROHIBITED ACTS OR PRACTICES

Current through Register Vol. 13, July 5, 2024
(1) A bank is
				prohibited from engaging in any of the following acts or practices:
(a) extending credit or altering the terms or
				conditions of an extension of credit conditioned upon the customer entering
				into a debt cancellation agreement or debt suspension agreement with the bank.
				The prohibition is commonly referred in the regulatory context as the
				anti-tying provision;
(b) engaging
				in any practice or using any advertisement that could mislead or otherwise
				cause a reasonable person to reach an erroneous belief with respect to
				information that must be disclosed under ARM
				2.59.118, including what is being
				offered, the cost, and/or the terms of the contract;
(c) offering debt cancellation contracts or
				debt suspension agreements that contain terms:
(i) giving the bank the right unilaterally to
				modify the contract unless:
(A) the
				modification is favorable to the customer and is made without additional charge
				to the customer; or
(B) the
				customer is notified of any proposed change and is provided a reasonable
				opportunity to cancel the contract without penalty before the change goes into
				effect; or
(ii)
				requiring an up-front, lump-sum single payment for the contract if the
				extension of credit to which the contract pertains is a residential mortgage
				loan.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.120 - REFUNDS OF FEES UPON TERMINATION OR PREPAYMENT OF COVERED LOAN

Current through Register Vol. 13, July 5, 2024
(1) If a debt cancellation contract or debt
				suspension agreement is terminated, including, for example, when the customer
				prepays the covered loan, a bank shall refund to the customer any unearned fees
				paid for the contract unless the contract provides otherwise.
(2) A bank may offer a customer a contract
				that does not provide for a refund only if the bank also offers that customer a
				bona fide option to purchase a comparable contract that provides for a
				refund.
(3) A bank shall calculate
				the amount of a refund using a method at least as favorable to the customer as
				the actuarial method.
32-1-218, MCA; IMP,
					 32-1-429,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.121 - METHOD OF PAYMENT OF FEES

Current through Register Vol. 13, July 5, 2024
(1) Except as
				provided in ARM
				2.59.119(1)(c)(ii),
				a bank may offer a customer the option of paying the fee for a debt
				cancellation contract or a debt suspension agreement in a single payment,
				provided the bank also offers the customer a bona fide option of paying the fee
				for that contract in periodic installment payments.
(2) If a bank offers the customer the option
				to finance the single payment by adding it to the loan principal, the bank must
				also disclose, in accordance with ARM
				2.59.120, whether the customer may
				cancel the agreement and receive a refund, and, if so, the time period during
				which the customer may do so.
32-1-218, MCA; IMP,
					 32-1-429,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.122 - AFFIRMATIVE ELECTION TO PURCHASE AND ACKNOWLEDGMENT OF RECEIPT OF DISCLOSURES

Current through Register Vol. 13, July 5, 2024
(1) Before entering
				into a debt cancellation contract or debt suspension agreement, a bank shall
				obtain the customer's written affirmative election to purchase the contract and
				a written acknowledgment of receipt of the disclosures required under ARM
				2.59.118.
(2) The election and acknowledgment
				information must be conspicuous, simple, direct, readily understandable, and
				designed to call attention to its significance.
(3) The election and acknowledgment
				information satisfies these standards if it conforms to the following
				requirements:
(a) if the sale of a contract
				occurs by telephone, the customer's affirmative election to purchase may be
				made orally, provided that the bank:
(i)
				maintains sufficient documentation to show that the customer received the
				short-form disclosures substantially similar to ARM
				2.59.123(1) and
				then affirmatively elected to purchase the contract;
(ii) mails to the customer the affirmative
				written election and written acknowledgment together with a long-form
				disclosure substantially similar to ARM
				2.59.123(2),
				within three business days after the telephone solicitation, and maintains
				sufficient documentation to show it made reasonable efforts to obtain the
				documents from the customer; and
(iii) permits the customer to cancel the
				purchase of the contract without penalty within 30 days after the bank has
				mailed the long-form disclosures to the customer.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.123 - DISCLOSURE FORMS

Current through Register Vol. 13, July 5, 2024
(1) The department
				adopts as a model, but not as a requirement, the Comptroller of the Currency's
				model short form disclosure at 12 CFR 37 App A revised as of January 1, 2010.
				The form must be adapted by the bank to include the disclosures required under
				ARM 2.59.118(1)(a) and
				(g).
(2) The department adopts as a model, but not
				as a requirement, the Comptroller of the Currency's model long-form disclosure
				at 12 CFR 37 App B revised as of January 1, 2010. The form must be adapted by
				the bank to include the disclosures required under ARM
				2.59.118(1)(a) and
				(g).
(3) The model forms in (1) and (2), which are
				available at Title 12, Volume I, Part 37, Appendices A and B in the Code of
				Federal Regulations, are not mandatory, but a bank that provides disclosures in
				a form substantially similar to the adapted model forms will be deemed to have
				satisfied the disclosure requirements applicable to the bank concerning its
				debt cancellation and/or debt suspension program.
32-1-218, MCA; IMP,
					 32-1-429,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.124 - GUARANTEED ASSET PROTECTION (GAP) FEATURE

Current through Register Vol. 13, July 5, 2024
(1)
				A GAP waiver or agreement is a type of debt cancellation contract. A debt
				cancellation contract with a GAP feature offered in connection with an
				extension of credit for the purchase of titled personal property for personal,
				family, or household use is a single product. A bank offering a debt
				cancellation contract with a GAP feature may do so through nonexclusive,
				unaffiliated agents such as automobile dealers. The fee arrangement between a
				bank and a nonexclusive, unaffiliated agent through which the debt cancellation
				product is offered does not create a separate contract that violates the
				anti-tying provision of ARM
				2.59.119(1)(a).
32-1-218, MCA; IMP,
					 32-1-429,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.125 - DEFINITIONS APPLICABLE TO DERIVATIVE TRANSACTIONS AND SECURITIES FINANCING TRANSACTIONS

Current through Register Vol. 13, July 5, 2024
(1) "Bank" or
				"state bank" has the same meaning as "eligible state bank" in (10).
(2) "Borrower" means:
(a) a person who is named as a borrower or
				debtor in a loan or extension of credit;
(b) a person to whom a bank has credit
				exposure arising from a derivative transaction or securities financing
				transaction entered by the bank; or
(c) any other person, including a drawer,
				endorser, or guarantor, who is deemed to be a borrower under the direct benefit
				or common enterprise tests in
				12 CFR
				32.5 and ARM
				2.59.108.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.126 - ELIGIBLE STATE BANK'S PERMISSIBLE DERIVATIVE TRANSACTIONS

Current through Register Vol. 13, July 5, 2024
(1) An eligible state bank as defined in ARM
				2.59.125 may engage in any
				derivative transaction if the bank has a written policy approved by its board
				of directors that:
(a) identifies the types
				of derivative transactions in which the bank is authorized to engage;
(b) establishes an exposure limit for each
				type of authorized derivative transaction and an aggregate exposure limit for
				all of the bank's authorized derivative transactions expressed in relation to
				the bank's lending limit;
(c) is
				consistent with bank safety and soundness principles; and
(d) requires the designation of an employee
				to be in charge of the bank's derivatives program who:
(i) has demonstrable expertise and
				understanding of derivative transactions; and
(ii) is responsible for periodic testing of
				the model(s) used to measure credit exposure against actual outcomes.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.127 - LENDING LIMITS APPLICABLE TO DERIVATIVES AND SECURITIES FINANCING TRANSACTIONS

Current through Register Vol. 13, July 5, 2024
(1) For purposes of
				32-1-432, MCA, derivative
				transactions and securities financing transactions must be included in the
				calculation of lending limits.
(2)
				The calculation of credit exposure arising from derivative transactions and
				securities financing transactions for lending limit purposes under
				32-1-432, MCA, must be determined
				pursuant to Appendix A to ARM
				2.59.129 dated April 20,
				2015.
(3) Loans not subject to
				lending limits of
				32-1-432, MCA, and this regulation
				are:
(a) credit exposures arising from
				transactions financing certain government securities. Credit exposures arising
				from securities financing transactions in which the securities financed are
				Type I securities, as defined in ARM
				2.59.125 and
				12 CFR
				1.2(j);
(b) intraday credit exposures arising from
				derivative transactions or securities financing transactions; and
(c) other exceptions as applicable.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.128 - NONCONFORMING LOANS AND EXTENSIONS OF CREDIT RELATED TO DERIVATIVES AND SECURITIES FINANCING TRANSACTIONS

Current through Register Vol. 13, July 5, 2024
(1) A loan or
				extension of credit within a bank's legal lending limit when made will not be
				deemed a violation but will be treated as nonconforming if the loan or
				extension of credit is no longer in conformity with the bank's lending limit
				because:
(a) the bank's capital has declined,
				borrowers have subsequently merged or formed a common enterprise, lenders have
				merged, or the lending limit or capital rules changed;
(b) collateral securing the loan to satisfy
				the requirements of a lending limit exception has declined in value;
				or
(c) in the case of a credit
				exposure arising from a derivative transaction or a securities financing
				transaction and measured by either the Current Exposure Method or the Basel
				Collateral Haircut Method specified in ARM
				2.59.129 and Appendix A to ARM
				2.59.129 dated April 20, 2015, the
				credit exposure subject to the lending limits of
				32-1-432, MCA, or this rule
				increases after execution of the transaction.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.129 - CREDIT EXPOSURE ARISING FROM DERIVATIVES AND SECURITIES FINANCING TRANSACTIONS

Current through Register Vol. 13, July 5, 2024
(1) For purposes of
				determining a bank's lending limit under
				32-1-432, MCA, the bank's credit
				exposure arising from a derivatives transaction or a securities financing
				transaction entered by a bank must be calculated in accordance with the methods
				and models contained in Appendix A to ARM
				2.59.129 dated April 20, 2015,
				which is adopted and incorporated by reference. Appendix A to ARM
				2.59.129 dated April 20, 2015, may
				be found on the department's web site at
http://banking.mt.gov/Home/Forms
				under Banks and Trust Companies
.
AUTH:
					 32-1-432,
					 32-1-433, MCA; IMP:
					 32-1-432,
					 32-1-433,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.130 - CHANGE IN CONTROL

Current through Register Vol. 13, July 5, 2024
(1) An applicant
				filing under
				32-1-378(1)(b),
				MCA, shall use the Application for Change in Control form dated June 29, 2020,
				which is located at www.banking.mt.gov.
(2) An applicant or other person subject to
				this rule shall notify the department immediately of any material changes in a
				notice or application submitted to the department, including changes in
				financial or other conditions.
(3)
				The department may require a person who is obligated to file an application
				under
				32-1-378,
				MCA, to appoint a registered agent in this state for service of process upon
				the filing of such notice or as a condition to the acceptance of such
				application for review.
AUTH:
					 32-1-211,
					 32-1-378,
					 MCA; IMP:
					 32-1-211,
					 32-1-378,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.131 - REPORT OF DECLARATION AND PAYMENT OF DIVIDEND - DIVIDEND APPROVAL REQUEST FORM (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 32-1-211,
					 32-1-218,
					 MCA; IMP:
					 32-1-211,
					 32-1-232,
					 32-1-452,
					 MCA