reglab/statecodes huggingface dataset:
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.132 - CONFLICTS OF INTEREST

Current through Register Vol. 13, July 5, 2024
(1) "Interested in"
				means the commissioner or deputy commissioner:
(a) is an officer, director, or employee of a
				supervised entity or an individual or person owning or controlling a supervised
				entity;
(b) owns or deals in,
				directly or indirectly, the shares or obligations of a supervised entity or a
				person that owns or controls the supervised entity;
(c) receives, directly or indirectly, any
				salary, fee, or compensation from a supervised entity or any officer, director,
				or employee of a supervised entity; or
(d) is married to an individual who is
				employed by a supervised entity.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.133 - OATHS OF DIRECTORS (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 32-1-211,
					 32-1-322,
					 MCA; IMP:
					 32-1-211,
					 32-1-322,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.134 - CONVERSION OF A NATIONAL BANK TO A STATE BANK

Current through Register Vol. 13, July 5, 2024
(1)
				Upon conversion:
(a) the resulting state bank
				succeeds, without other transfer, to all the rights and property of the
				converted bank and is subject to all the debts and liabilities of the converted
				bank in the same manner as if the resulting state bank itself had incurred
				them;
(b) all rights of creditors
				of the converted bank and all liens upon the converted bank's property are
				unimpaired by the transfer, provided that the liens are limited to the affected
				property immediately prior to the time when the conversion became
				effective;
(c) title to all real,
				personal, and mixed property owned by the converted bank is vested in the
				resulting state bank without reversion or impairment and without the necessity
				of any instrument of transfer;
(d)
				the resulting state bank has all the liabilities, duties, and obligations of
				the converted bank, including obligations as fiduciary, personal
				representative, administrator, trustee, or guardian; and
(e) any pending action or other judicial
				proceeding to which the converted bank was a party may continue to be
				prosecuted to final judgment, order, or decree as if the conversion had not
				occurred, or the resulting bank may be substituted as a party to the action or
				proceeding.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.135 - FORM TO REPORT DIRECTORS AND OFFICERS

Current through Register Vol. 13, July 5, 2024
(1)
				Banks shall use the List of Officers and Directors form dated June 29, 2020,
				which is located on the department's website at www.banking.mt.gov to report
				the directors and officers elected at the annual meeting and the board meeting
				to the department. The report shall be submitted to the department within
				thirty days of the date of the last meeting at which an election of officers or
				directors was held.
AUTH:
					 32-1-211,
					 32-1-218,
					 MCA; IMP:
					 32-1-211,
					 32-1-218,
					 32-1-322,
					 32-1-325,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.136 - FOREIGN FIDUCIARY TRUST COMPANY (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 32-1-1007, MCA; IMP:
					 32-1-1002,
					 32-1-1007,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.137 - PARITY WITH NATIONAL BANKS (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 32-1-211,
					 32-1-362,
					 MCA; IMP:
					 32-1-211,
					 32-1-362,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.138 - DEFINITIONS

Current through Register Vol. 13, July 5, 2024
For purposes of
				  32-1-432,
				  MCA, the following definitions apply:
(1) "Commitment to lend or extend credit"
				includes, but is not limited to:
(a)
				undisbursed portions of operating, construction or other lines of credit, up to
				limits established by a written agreement between the lender and the
				borrower;
(b) undisbursed portions
				of credit lines established to cover overdrafts;
(c) undisbursed portions of credit card
				plans; and
(d) standby letters of
				credit.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.139 - LEGAL LENDING LIMIT

Current through Register Vol. 13, July 5, 2024
(1) If no direct
				benefit is received or no common enterprise exists, the combined loans or
				extensions of credit to a commonly owned or controlled group of borrowers shall
				not exceed three times the bank's lending limit.
AUTH:
					 32-1-211,
					 32-1-432,
					 MCA; IMP:
					 32-1-211,
					 32-1-432,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.140 - COMBINATIONS OR GUARANTEES

Current through Register Vol. 13, July 5, 2024
(1) Loans or
				extensions of credit to a person will be combined with loans or extensions of
				credit to one or more other persons when:
(a)
				proceeds of a loan or extension of credit are to be used for the direct benefit
				of the other person; or
(b) a
				common enterprise is deemed to exist between the persons, to the extent that
				loan proceeds are used for the benefit of the common enterprise and repayment
				is dependent upon the common enterprise.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.141 - DIRECT BENEFIT

Current through Register Vol. 13, July 5, 2024
(1) A direct
				benefit exists when the proceeds of a loan or extension of credit to a person
				are deemed to be used to the advantage of another person. The amount of the
				loan will be attributed to the other person when the proceeds, or assets
				purchased with the proceeds, are transferred to the other person. If the
				proceeds are used to acquire property, goods, or services through a bona fide
				arm's length transaction, a direct benefit does not exist regarding the seller
				of the property, goods, or services. A bona fide arm's length transaction is an
				actual transaction, performed in good faith, between two or more parties, with
				each party acting in their own self-interest.
AUTH:
					 32-1-211,
					 32-1-432,
					 MCA; IMP:
					 32-1-211,
					 32-1-432,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.142 - COMMON ENTERPRISE

Current through Register Vol. 13, July 5, 2024
(1) A common
				enterprise occurs when two or more persons combine to acquire, operate, or
				control a business enterprise or property interest.
(2) Credit to a common enterprise includes:
(a) loans or extensions of credit to two or
				more persons when the loans or extensions of credit are used for a common
				purpose; the expected source of repayment for each loan or extension of credit
				is the same for two or more of the persons, and those persons lack another
				source of income from which the loans or extensions of credit, together with
				the person's other liabilities, may be fully repaid; and
(b) loans or extensions of credit made to
				persons who are related directly or indirectly through common control,
				including where one person is directly or indirectly controlled by another
				person; and if substantial financial interdependence exists between or among
				the persons. Substantial financial interdependence is deemed to exist when 50%
				or more of one person's gross receipts or gross expenditures, on an annual
				basis, are derived from transactions with the other person.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.1 - Banks › Rule 2.59.143 - EXCLUSIONS

Current through Register Vol. 13, July 5, 2024
(1) The following items will be excluded when
				calculating the amount of a person's total loans and extensions of credit:
(a) loans or extensions of credit, and
				participation in loans and extensions of credit, that have been sold, if:
(i) the loan, extension of credit, or the
				portion of the loan or extension of credit sold as a participation is sold
				without recourse to the selling bank; or
(ii) the participation agreement provides for
				a pro rata sharing of credit risk proportionate to the respective interests of
				the originating and participating lenders. Where a participation agreement
				provides that repayment must be applied first to the portions sold, a pro rata
				sharing will be deemed to exist only if the agreement also provides that, in
				the event of a default or comparable event defined in the agreement,
				participants must share in all subsequent repayments and collections in
				proportion to their percentage participation at the time of the occurrence of
				the event.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.2 - Savings and Loan Associations › Rule 2.59.201 - SAVINGS AND LOAN ASSOCIATIONS - REAL ESTATE (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 32-2-401,
					 32-2-403,
					 MCA; IMP:
					 32-2-407,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.2 - Savings and Loan Associations › Rule 2.59.202 - EXAMINATION AND SUPERVISORY FEE (ANNUAL) (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 32-2-110,
					 MCA; IMP:
					 32-2-110,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.21 - Foreign Trust Companies › Rule 2.59.2101 - DEFINITIONS

Current through Register Vol. 13, July 5, 2024
For purposes of this subchapter, the following definitions
				  apply:
(1) "Good standing" means the
				entity is not subject to a supervisory directive, corrective action order,
				conservatorship, or the equivalent, from a state or federal regulator, and has
				not had its authority to do business in its home state, any other state, or a
				foreign jurisdiction suspended or revoked.
(2) "Home state" means the state where a bank
				or nonbank trust company is chartered.
(3) "Home state regulator" means the
				supervisory agency of the home state of a bank or nonbank trust
				company.
(4) "Nonbank trust
				company" means a foreign non-depository trust company.
(5) "Primary regulator" means the state or
				federal regulatory agency tasked with being the main supervisory authority of a
				financial institution.
(6)
				"Principal office" means an office of a fiduciary foreign trust company that is
				located in Montana and undertakes activities set forth in
				32-1-1002, MCA.
(7) "Trust representative office" means an
				office of a fiduciary foreign trust company, other than a principal office,
				located in Montana at which the fiduciary foreign trust company performs
				activities ancillary to its fiduciary business, but does not engage in any of
				the activities specified in
				32-1-1002, MCA. Examples of
				ancillary activities include advertising, marketing, and soliciting for
				fiduciary business; contacting existing or potential customers, answering
				questions, and providing information about matters related to their accounts;
				acting as a liaison between the trust office and the customer (such as
				forwarding requests for distribution or changes in investment objectives, or
				forwarding forms and funds received from the customer); and inspecting or
				maintaining custody of fiduciary assets or holding title to real property. A
				trust representative office is not a "branch" for purposes of
				32-1-372, MCA, unless it is also
				an office at which deposits are received, checks paid, or money lent.
(8) "Well capitalized" means the fiduciary
				foreign trust company is well capitalized under the existing standards in the
				home state.
AUTH:
					 32-1-1007, MCA; IMP:
					 32-1-1002,
					 32-1-1007,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.21 - Foreign Trust Companies › Rule 2.59.2102 - OUT-OF-STATE STATE-CHARTERED BANK OR NATIONAL BANK SEEKING TO EXERCISE FIDUCIARY POWERS IN MONTANA

Current through Register Vol. 13, July 5, 2024
(1) An out-of-state
				state-chartered or national bank that seeks to act as a fiduciary foreign trust
				company in Montana must provide:
(a) the
				Fiduciary Foreign Trust Company Application, October 30, 2023, version, which
				is available on the department's website at banking.mt.gov;
(b) certification from the primary regulator
				stating:
(i) that the bank is lawfully
				chartered;
(ii) that the bank is
				operating in good standing;
(iii)
				that banking or trust corporations or corporations organized under the laws of
				Montana or national banking associations that maintain their principal offices
				in Montana are permitted to act as trustees, guardians, or conservators in the
				state in which the applicant maintains its principal office; and
(c) the physical location of any
				principal or trust representative office located in Montana.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.21 - Foreign Trust Companies › Rule 2.59.2103 - OUT-OF-STATE NONBANK TRUST COMPANIES SEEKING TO EXERCISE FIDUCIARY POWERS IN MONTANA

Current through Register Vol. 13, July 5, 2024
(1) A nonbank trust
				company that seeks to act as a fiduciary foreign trust company in Montana must
				provide:
(a) the Fiduciary Foreign Trust
				Company Application, October 30, 2023, version, which is available on the
				department's website at banking.mt.gov;
(b) certification from the primary regulator
				stating:
(i) that the nonbank trust company is
				lawfully chartered or licensed;
(ii) that the nonbank trust company is in
				good standing in the chartering or licensing state;
(iii) that the nonbank trust company is well
				capitalized under the standards that exist in the home state; and
(iv) that banking or trust associations or
				corporations organized under the laws of Montana or national banking
				associations that maintain their principal offices in Montana are permitted to
				act as trustees, guardians, or conservators in the state in which the fiduciary
				foreign trust company maintains its principal office; and
(c) the physical location of any principal or
				trust representative office located in Montana.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.3 - Consumer Loan Licensees › Rule 2.59.301 - ADVERTISING

Current through Register Vol. 13, July 5, 2024
(1) "Advertising"
				or "advertisement" means any written or oral statement or depiction that
				includes terms or availability of loans or that is designed to create interest
				in a consumer loan product and is conveyed in any manner or medium including
				but not limited to radio, television, telemarketing script and materials,
				on-hold script, upsell script, infomercials, the Internet, web pages, cellular
				network, film, slide, audio program transmitted over a telephone system, label,
				brochure, newspaper, magazine, pamphlet, leaflet, circular, mailer, letter,
				catalogue, poster, chart, billboard display, and promotional materials and
				items.
(2) A licensee shall
				maintain copies or images of all of the licensee's advertising as defined in
				(1) for a period of at least 12 months after the last date of the
				advertisement's use or until an examination of the licensee, including review
				of the advertising, has been accomplished by the department, whichever occurs
				first. Advertising may be maintained in an electronic format that is capable of
				being reproduced in or converted to hard copy form. All advertising copy
				records must have the following information noted thereon:
(a) the name or names of all advertising
				media used and the dates when the advertising publicly appeared; and
(b) the full text of audio and video
				advertising.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.3 - Consumer Loan Licensees › Rule 2.59.302 - FEE DISCLOSURES - COMPUTATION OF INTEREST

Current through Register Vol. 13, July 5, 2024
(1)
				At the time of filing an application for initial license or a renewal license
				under the Montana Consumer Loan Act, the applicant shall file with the
				department a fee disclosure statement and a failure- or inability-to-pay
				disclosure statement, collectively referred to as "disclosure statements,"
				unless otherwise specified.
(a) The fee
				disclosure statement must contain:
(i) the
				interest rate or range of interest rates that the licensee charges for each
				type of loan product offered not to exceed the maximum allowed under
				32-5-301(1),
				MCA;
(ii) known third-party fees
				and reasonable estimates of unknown third-party fees allowed under
				32-5-301, MCA. Consumers may not
				be charged more than the third party's actual fee; and
(iii) examples of the total cost to the
				consumer for each type of loan product offered as follows:
(A) an example using the lowest available
				interest rate for the loan type including all third-party fees typically
				charged for that loan type; and
(B)
				an example using the highest interest rate chargeable for the loan type
				including all third-party fees typically charged for that loan type.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.3 - Consumer Loan Licensees › Rule 2.59.304 - FEES PAID TO PUBLIC OFFICIALS

Current through Register Vol. 13, July 5, 2024
(1) A licensee
				who collects a fee to be paid to a public official for filing or recording any
				instrument used to secure a loan shall file or record the security instrument.
				A licensee who has filed or recorded a security instrument shall release the
				security instrument from the public record within ten business days after the
				obligation has been satisfied whether or not a fee was collected for the filing
				or recording of the security instrument in the first instance or for the filing
				or recording of the release.
(2)
				Licensees shall record on the borrower's ledger card or electronic payment
				record each amount collected as a fee for recording, filing, or releasing any
				instrument executed by a borrower to secure a loan. The electronic record must
				be capable of being reproduced in or converted to hard copy form.
(3) Licensees may not charge a fee to
				notarize any instrument tendered by a borrower as security for the consumer
				loan. The prohibition does not affect the authority of a licensee to finance
				the fee charged by a third party for notary services under
				32-5-301(2),
				MCA.
32-5-401, MCA; IMP,
					 32-5-301,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.3 - Consumer Loan Licensees › Rule 2.59.305 - RECEIPT FORM

Current through Register Vol. 13, July 5, 2024
(1) Licensees shall
				give to the borrower or mail to the borrower's address a plain and complete
				receipt for each payment made.
(2)
				Licensees receipt forms shall contain the following minimum information:
(a) name of borrower;
(b) account number;
(c) amount and date of payment;
(d) past-due amount collected, if
				any;
(e) balance remaining on loan;
				and
(f) amount of refund.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.3 - Consumer Loan Licensees › Rule 2.59.306 - RECORDS OF LICENSEE

Current through Register Vol. 13, July 5, 2024
(1) Each licensee
				shall continuously maintain a record of the current total of Montana consumer
				loan notes receivable that were originated at or from each of the licensee's
				licensed business locations. The original source documents supporting the total
				must be available for examination by the department at that licensed business
				location or submitted to the department at the department's
				direction.
32-5-401, MCA; IMP,
					 32-5-307,
					 32-5-403,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.3 - Consumer Loan Licensees › Rule 2.59.307 - DOLLAR AMOUNTS TO WHICH CONSUMER LOAN RATES ARE TO BE APPLIED (REPEALED)

Current through Register Vol. 13, July 5, 2024
32-5-104, MCA; IMP,
					 32-5-104,
					 32-5-201,
					 32-5-301,
					 32-5-302,
					 32-5-306,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.3 - Consumer Loan Licensees › Rule 2.59.308 - EXAMINATION FEES

Current through Register Vol. 13, July 5, 2024
(1) The examination
				fee charged by the department to the examinee must be in an amount sufficient
				to recover all of the department's actual costs for its supervision program
				related to the subject examination.
(2) The term "actual costs" means the "hourly
				cost of employee" for each examiner performing the examination plus actual
				travel expenses incurred in conjunction with the examination.
(3) The term "hourly cost of employee" means
				the cost incurred by the department for each hour that an employee is
				performing the examination; the cost includes the employee's wages and
				benefits.
(4) The term "performance
				of an examination" or "performing an examination" means pre-examination
				preparation, travel time, examination, examination report writing, review of a
				licensee's response to the examination report, and, if appropriate, amending
				the report based on the licensee's response.
(5) The term "travel expenses" means the
				"hourly cost of employee" for each examiner's travel time; motor pool and fuel
				charges; airfare, cab, or other public transportation fare; lodging; per diem;
				and, if approved by the department in advance, charge for rental vehicle for
				use at the examination site. The term also includes mileage paid to an examiner
				under 2-18-503, MCA, for use of personal
				vehicle for examination travel if use of the personal vehicle was approved by
				the department in advance.
AUTH:
					 32-5-401,
					 32-5-403, MCA; IMP:
					 32-5-402,
					 32-5-403,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.3 - Consumer Loan Licensees › Rule 2.59.310 - ADOPTION OF STANDARDIZED FORMS AND PROCEDURES OF THE NMLS

Current through Register Vol. 13, July 5, 2024
(1) The NMLS Policy Guidebook dated September
				27, 2021, is adopted by reference and available on the NMLS website at
				mortgage.nationwidelicensingsystem.org/slr/common/policy/Pages/default.aspx.
(2) Except as provided in ARM
				2.59.312, the
				NMLS deadlines, policies, procedures, and processes for all licensing-related
				actions, changes, and reports are adopted and available at
				mortgage.nationwidelicensingsystem.org/.
(3) Members of the public can look up the
				current license status, license number, states of licensure, contact
				information, and regulatory history of any consumer loan licensee at
				nmls.consumeraccess.org. If an entity is not listed on NMLS consumer access, it
				does not hold a consumer loan license issued by the department.
(4) All applicants for a consumer loan
				license shall use the NMLS-approved forms and checklists for all
				licensing-related activities, including but not limited to initial
				applications, renewals, amendments, surrenders, and reports.
AUTH:
					 32-5-209,
					 32-5-401,
					 MCA; IMP:
					 32-5-201,
					 32-5-209,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.3 - Consumer Loan Licensees › Rule 2.59.311 - TRANSITION (Repealed)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 32-5-209, MCA; IMP:
					 32-5-201,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.3 - Consumer Loan Licensees › Rule 2.59.312 - LICENSE RENEWALS

Current through Register Vol. 13, July 5, 2024
(1) The renewal
				period begins November 1. Every renewal applicant shall apply for renewal
				through the NMLS. Licensees shall use the NMLS renewal process to request
				renewal of their license.
(2)
				Licensees shall submit their renewal applications by December 1 of each year to
				ensure issuance of the license to qualified renewal applicants by January 1 of
				the following year.
(3) The holder
				of an expired license may not conduct any business in Montana until becoming
				properly licensed.
AUTH:
					 32-5-209, MCA; IMP:
					 32-5-201,
					 32-5-201,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.3 - Consumer Loan Licensees › Rule 2.59.313 - INITIAL LICENSE APPLICATION THROUGH NMLS (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 32-5-201,
					 32-5-209,
					 MCA; IMP:
					 32-5-201,
					 32-5-209,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.3 - Consumer Loan Licensees › Rule 2.59.314 - AMENDMENTS (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 32-5-209,
					 MCA; IMP:
					 32-5-209,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.3 - Consumer Loan Licensees › Rule 2.59.315 - LICENSE SURRENDER

Current through Register Vol. 13, July 5, 2024
(1) The department
				may decline to accept a licensee's offer to surrender a license under the
				following circumstances:
(a) the licensee has
				not fully complied with ARM
				2.59.319;
(b) the licensee has not made a succession
				plan that adequately protects consumers related to the continued servicing of
				the licensee's active loan files;
(c) the licensee has not fully complied with a final order issued
				by the department in an enforcement action even though compliance is not yet
				due;
(d) the department has an
				outstanding complaint or a pending enforcement action against the licensee;
				or
(e) the licensee has not
				submitted an annual report covering the final calendar year or partial year
				that the licensee was in business irrespective of whether the licensee had any
				Montana loan activity during that reporting period.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.3 - Consumer Loan Licensees › Rule 2.59.316 - FEES (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 32-5-201,
					 32-5-209,
					 MCA; IMP:
					 32-5-201,
					 32-5-209,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.3 - Consumer Loan Licensees › Rule 2.59.317 - REINSTATEMENT OF EXPIRED LICENSES

Current through Register Vol. 13, July 5, 2024
(1) Upon expiration
				of a license issued under
				32-5-201, MCA, due to nonrenewal
				by the renewal date, the former licensee shall immediately cease from engaging
				in the activities for which the license was issued. The department may
				reinstate an expired license, provided that by the last day of February
				following expiration of the license, the following are submitted through the
				NMLS:
(a) a properly completed license
				renewal application;
(b) the
				license renewal fee as set forth in
				32-5-201, MCA;
(c) a reinstatement fee of $250;
				and
(d) proof that the licensee
				continues to meet standards for licensure under
				32-5-202, MCA.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.3 - Consumer Loan Licensees › Rule 2.59.318 - ADOPTION OF ANNUAL REPORT AND DUE DATE

Current through Register Vol. 13, July 5, 2024
(1)
				An entity holding a consumer loan license for any period during a calendar year
				reporting period shall complete and file with the department by February 15 of
				the following calendar year a Consumer Loan Annual Report of Licensee (annual
				report). The annual report must be filed whether any loans were originated
				during the reporting period and whether the licensee renewed its license at the
				end of the reporting period or held a license when the report came due the
				following February 15.
(2) A
				completed annual report must be e-mailed to mortgagelicensing@mt.gov.
(3) The annual report, January 25, 2018,
				edition, is adopted and incorporated by reference and available on the
				division's website at banking.mt.gov.
AUTH:
					 32-5-209,
					 32-5-401,
					 MCA; IMP:
					 32-5-308,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.3 - Consumer Loan Licensees › Rule 2.59.319 - REQUIRED PROCEDURE FOR CLOSING A CONSUMER LOAN BUSINESS

Current through Register Vol. 13, July 5, 2024
(1) At least 60
				days before the intended closure date of a consumer loan business, the licensee
				shall provide the following to the department:
(a) a copy of a notification to all consumers
				with outstanding loans containing:
(i) a
				current outstanding loan balance including an itemization of unpaid principal,
				accrued interest, and allowable fees;
(ii) notice of intended closure date of the
				business which date shall not be sooner than 60 days from the date of mailing
				the notice;
(iii) the licensee's
				succession plan, e.g., sale or assignment of the loan, and the successor's
				contact information and assumption letter;
(iv) any alternatives to the licensee's
				succession plan that are available to the consumer;
(v) contact information for borrower use in
				obtaining collateral/lien releases; and
(vi) the department's name, address, phone
				number, and e-mail address where any complaints arising from the intended
				closure may be filed;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.3 - Consumer Loan Licensees › Rule 2.59.320 - DEPARTMENT COSTS IN BRINGING AN ADMINISTRATIVE ACTION

Current through Register Vol. 13, July 5, 2024
(1) The
				department's "costs in bringing an administrative action" as used in
				32-5-207, MCA, for which
				reimbursement may be ordered by the department are:
(a) administrative law judge
				charges;
(b) court reporter
				fees;
(c) exhibit preparation costs
				if the exhibit was admitted into evidence at the hearing;
(d) the cost of a deposition if the
				deposition was used at the hearing;
(e) fees, if any, for service of
				subpoenas;
(f) transcription cost
				as provided in
				2-4-614, MCA;
(g) witness fees and mileage for the
				department's lay/fact witnesses; and
(h) mileage for the department's expert
				witness if the expert appears personally and testifies at the
				hearing.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.4 - Credit Unions › Rule 2.59.401 - CREDIT UNIONS - SUPERVISORY FEE

Current through Register Vol. 13, July 5, 2024
(1) The
				division invoices credit unions for semiannual assessments. The assessment is
				based on each credit union's total assets provided in its previous March and
				September financial performance reports.
(2) The fee is calculated based on the total
				assets of the credit union multiplied by .0000375, plus the flat fee listed in
				the table 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: Credit Union A reports total assets of $36,169,980 x
				  .0000375 plus $0 equals $1,356.37.
(3) The assessment is due 30 days after each
				invoice date, or July 31 and January 31, whichever is later.
(4) The assessment billed in December 2022
				and collected in January 2023 is waived.
AUTH:
					 32-3-201,
					 MCA; IMP:
					 32-3-201,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.4 - Credit Unions › Rule 2.59.402 - CREDIT UNIONS - LIMITED INCOME PERSONS, DEFINITION

Current through Register Vol. 13, July 5, 2024
(1) A limited
				income person is defined as an individual whose annual income is less than that
				specified below based upon family size:
Family Size
Annual Income
1
$ 11,880
2
16,020
3
20,160
4
24,300
5
28,440
6
32,580
7
36,730
8
40,890
For family/household units with more than eight members, add
				  $4,060 4,160 for each additional member.
(2) For purposes of this rule, the term
				"income" must include before-tax income of the following types:
(a) earnings (wages, tips, and salary);
(b) unemployment
				compensation;
(c) workers'
				compensation;
(d) social security;
(e) supplemental security
				income;
(f) survivor
				benefits;
(g) pension or retirement
				income; and
(h) self-employment
				earnings computed in accordance with the credit union's written policies.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.4 - Credit Unions › Rule 2.59.403 - CREDIT UNIONS - SURETY BOND AND HAZARD INSURANCE COVERAGE

Current through Register Vol. 13, July 5, 2024
(1) Each credit union shall provide surety
				bond coverage for each of its employees, board members, or committee members
				whose duties include the handling of cash, cash equivalents, negotiable
				instruments of any kind, credit cards, debit cards, or who act as bookkeepers
				or who are able to make entries to accounts affecting the credit union or its
				members.
(2) Each credit union
				shall obtain casualty insurance, fire insurance, liability insurance or such
				other types of insurance as may be appropriate to the credit union's
				needs.
(3) Surety bond coverage and
				insurance coverage shall be in amounts appropriate to the total assets of the
				credit union, the nature of its business, and the value of its insured
				property. In no case shall the amounts of coverage be less than those required
				of federal credit unions by the National Credit Union Administration.
32-3-201, MCA; IMP,
					 32-3-201,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.4 - Credit Unions › Rule 2.59.404 - CORPORATE CREDIT UNIONS (Repealed)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 32-3-803,
					 32-3-804, MCA IMP:
					 32-3-801,
					 32-3-802,
					 32-3-803,
					 32-3-804,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.4 - Credit Unions › Rule 2.59.405 - RETENTION OF CREDIT UNION RECORDS

Current through Register Vol. 13, July 5, 2024
(1) Credit
				unions are required to retain records of member accounts, as defined in (7),
				for at least eight years after January 1 of the year following the time that
				the records are made; however, records showing unpaid balances in favor of
				members may not be destroyed.
(2)
				The publication Montana Credit Union Records Retention Schedule, Appendix A to
				ARM 2.59.405 (Appendix A), establishes
				the minimum retention period for records other than member account records for
				all state-chartered credit unions. 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 August 11, 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/creditunion.mcpx [File
				Link Not Available].
(3) When a
				credit union microfilms, photographs, or uses other electronic or
				computer-generated data records in the regular course of business, the
				retention period of the microfilm, photographs, electronic, or
				computer-generated data must be the same as specified in Appendix A.
(4) Credit unions must comply with all
				applicable federal laws and regulations concerning credit union records
				retention requirements. In the event that an applicable federal law or
				regulation conflicts with a retention period contained in this rule or in
				Appendix A, a credit union must comply with whichever retention period is
				longer. Credit unions must comply with other applicable state laws governing
				retention of personnel records, corporation records, etc.
(5) If a credit union does not maintain
				records set forth in Appendix A, but maintains similar records with equivalent
				information, the credit union's similar records must be retained for the time
				specified within Appendix A.
(6)
				Records not covered by this rule, Appendix A, or applicable federal laws and
				regulations must be retained for a period of time determined appropriate by the
				credit union's board of directors. The board's minutes must reflect the record
				retention periods determined appropriate and be maintained as a permanent part
				of the board's minutes.
(7) "Member
				accounts" for record retention purposes means member deposit accounts including
				share savings accounts, share draft accounts, share certificates, safety
				deposit boxes, trust accounts, negotiable orders of withdrawal (NOW) accounts,
				and money market deposit accounts.
32-3-201, MCA; IMP,
					 32-3-204,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.4 - Credit Unions › Rule 2.59.407 - DEBT CANCELLATION AND DEBT SUSPENSION PROGRAMS - REQUIREMENTS

Current through Register Vol. 13, July 5, 2024
(1) A credit union 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 credit
				union 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 credit union's debt cancellation and debt suspension
				program; and
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.4 - Credit Unions › Rule 2.59.408 - REQUIRED DISCLOSURES

Current through Register Vol. 13, July 5, 2024
(1) A credit union
				shall provide the following disclosures to the credit union's member:
(a) notice of the prohibited acts or
				practices contained in ARM
				2.59.409;
(b) the fee applicable to the contract and
				any payment options;
(c) the
				refund;
(d) whether the member 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 member if
				activated.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.4 - Credit Unions › Rule 2.59.409 - PROHIBITED ACTS OR PRACTICES

Current through Register Vol. 13, July 5, 2024
(1) A credit union
				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 member entering into
				a debt cancellation contract or debt suspension agreement with the credit
				union. The prohibition is commonly referred to 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
				2.59.408, 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 credit union the right
				unilaterally to modify the contract unless:
(A) the modification is favorable to the
				member and is made without additional charge to the member; or
(B) the member 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 2.59.4 - Credit Unions › Rule 2.59.410 - 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 member
				prepays the covered loan, a credit union shall refund to the member any
				unearned fees paid for the contract unless the contract provides
				otherwise.
(2) A credit union may
				offer a member a contract that does not provide for a refund only if the credit
				union also offers that member a bona fide option to purchase a comparable
				contract that provides for a refund.
(3) A credit union shall calculate the amount
				of a refund using a method at least as favorable to the member as the actuarial
				method.
32-3-201, MCA; IMP,
					 32-3-609,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.4 - Credit Unions › Rule 2.59.411 - METHOD OF PAYMENT OF FEES

Current through Register Vol. 13, July 5, 2024
(1) Except as
				provided in ARM
				2.59.409(1)(c)(ii),
				a credit union may offer a member the option of paying the fee for a debt
				cancellation contract or a debt suspension agreement in a single payment,
				provided the credit union also offers the member a bona fide option of paying
				the fee for that contract in periodic installment payments.
(2) If a credit union offers the member the
				option to finance the single payment by adding it to the loan principal, the
				credit union must also disclose, in accordance with ARM
				2.59.410, whether the member may
				cancel the agreement and receive a refund, and, if so, the time period during
				which the member may do so.
32-3-201, MCA; IMP,
					 32-3-609,
					 MCA;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.4 - Credit Unions › Rule 2.59.412 - 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 credit union
				shall obtain the member's written affirmative election to purchase the contract
				and a written acknowledgment of receipt of the disclosures required under ARM
				2.59.408.
(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 member's affirmative election to purchase may be made
				orally, provided that the credit union:
(i)
				maintains sufficient documentation to show that the member received the
				short-form disclosures substantially similar to ARM
				2.59.413(1) and
				then affirmatively elected to purchase the contract;
(ii) mails to the member the affirmative
				written election and written acknowledgment together with a long-form
				disclosure substantially similar to ARM
				2.59.413(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 member; and
(iii) permits the member to cancel the
				purchase of the contract without penalty within 30 days after the credit union
				has mailed the long-form disclosures to the member; or
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.4 - Credit Unions › Rule 2.59.413 - 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 Appendix A revised as of January 1,
				2010. The form must be adapted by the credit union to include the disclosures
				required under ARM
				2.59.408(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 Appendix B revised as of January 1, 2010. The form must be adapted
				by the credit union to include the disclosures required under ARM
				2.59.408(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 credit union 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 credit
				union concerning its debt cancellation and/or debt suspension
				program.
32-3-201, MCA; IMP,
					 32-3-609,
					 MCA;