reglab/statecodes huggingface dataset:
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2017 - MERGER APPLICATION

Current through Register Vol. 13, July 5, 2024
(1) The application
				to merge one or more mutual associations located in Montana or to merge two or
				more mutual associations doing business in this state must be in the following
				form:
MUTUAL ASSOCIATION MERGER APPLICATION
Any individual or entity desiring confidential treatment of
				  specific portions of the application shall specifically identify the
				  information for which they request confidentiality, separately bind it, and
				  label it "Confidential." The individual or entity shall follow the same
				  procedure for a request for confidential treatment for the subsequent filing of
				  supplemental information to the application. Inquiries concerning the
				  preparation and filing of this or any other application with the department
				  should be directed to the Montana Division of Banking and Financial
				  Institutions, P.O. Box 200546, Helena, MT 59620-0546.
1. State the exact corporate name and address
				of each mutual association participating in the merger, and the proposed names
				of the resultant mutual association.
2. State the name and address of, and the
				dates of publication in, the newspapers in which the required notice is
				published.
3. For the resultant
				mutual association, a list of the names of the directors and principal
				executive officers, their titles, including a brief resume of the educational
				background, banking experience, and other qualifications of each and an
				explanation of the extent of common management of the participating institution
				and the length of time such common ownership or management has
				existed.
4. The date on which the
				proposed merger is to occur.
5.
				Attach the following documents:
(a) the
				resolution or an authentic copy of the resolution, authorizing the merger
				adopted by a majority of the board of directors;
(b) the terms and conditions of the proposed
				merger;
(c) the manner and basis of
				converting the shares of each merging association into shares of the surviving
				association;
(d) a statement of any
				changes in the articles of incorporation of the surviving association to be
				effected by the merger;
(e) other
				provisions with respect to the proposed merger deemed necessary or desirable;
				and
(f) the proposed articles of
				merger and plan of merger.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2018 - MERGER APPLICATION PROCEDURES

Current through Register Vol. 13, July 5, 2024
(1) An
				application to merge one or more mutual associations located in Montana
				pursuant to 32-2-827, MCA, must be on the form in ARM 2.59.2017.
(2) The application to merge must be filed
				with the department.
(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 mutual association:
(i) maintains sufficient documentation to
				show that the customer received the short-form disclosures substantially
				similar to ARM 2.59.2047(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 2.59.2047(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 mutual association has mailed the long-form disclosures to the
				customer;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2021 - MUTUAL ASSOCIATIONS - DIRECT LEASING OF PERSONAL PROPERTY

Current through Register Vol. 13, July 5, 2024
(1) Under authority granted by 32-2-824, MCA,
				the department permits state mutual associations to engage in the business of
				direct leasing of personal property under the following regulations:
(a) A mutual association 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 mutual association.
(b) Lease agreements with any one lessee may
				not exceed 10% of the assets of the mutual association. If the lessee is also a
				borrower from the mutual association, this 10% must be reduced by the balance
				of loans to the lessee.
(c) Every
				lease agreement must provide for full payout to the mutual association 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 mutual association 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 mutual association
				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 mutual association 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 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2022 - RETENTION OF MUTUAL ASSOCIATION RECORDS

Current through Register Vol. 13, July 5, 2024
(1)
				Records of customer accounts, as defined in (7), must be held in accordance
				with 32-2-950, MCA.
(2) The
				publication "Mutual Savings and Loan Association Record Retention Periods -
				Appendix A to ARM 2.59.2022 " (Appendix A) establishes the minimum period for
				retention of mutual association records other than those specified in 32-2-950,
				MCA. Appendix A is maintained by the department and may be updated not more
				than once a year. The July 9, 2021, edition of Appendix A is incorporated by
				reference as part of this rule. A copy of Appendix A can be obtained from the
				department's website at banking.mt.gov.
(3) When a mutual association reproduces
				records in any manner in the regular course of business as permitted by
				32-2-951 through 32-2-953, MCA, the retention period of the reproduced records
				is the same as specified in Appendix A.
(4) Mutual associations shall comply with all
				applicable federal mutual association laws and regulations requiring specific
				retention periods for the records enumerated in those laws or regulations. If
				an applicable federal mutual association law or regulation concerning record
				retention conflicts with a retention period contained in 32-2-950, MCA, this
				rule, or Appendix A, a mutual association shall comply with whichever retention
				period is longer. Mutual associations shall comply with other applicable state
				laws governing retention of personnel records, corporation records,
				etc.
(5) If a mutual association
				does not maintain records set forth in Appendix A, but maintains similar
				records with equivalent information, the mutual association's similar records
				must be retained for the time set forth for records in Appendix A.
(6) Records not covered by this rule or
				32-2-950, MCA, must be retained for a period of time determined appropriate by
				the mutual association'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 32-2-950, 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: 32-2-950, MCA; IMP: 32-2-704, 32-2-950,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2023 - FORM TO REPORT DIRECTORS AND OFFICERS

Current through Register Vol. 13, July 5, 2024
(1)
				Mutual associations shall use the List of Officers and Directors form dated
				July 9, 2021, which is located on the department's website at banking.mt.gov to
				report the directors and officers elected at the annual meeting and the board
				meeting to the department. The form shall be submitted to the department within
				30 days of the date of the last meeting at which an election of officers or
				directors was held.
AUTH: 32-2-701, 32-2-704, MCA; IMP: 32-2-701, 32-2-704,
					 32-2-820, 32-2-821, MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2026 - DEFINITIONS

Current through Register Vol. 13, July 5, 2024
For purposes of this subchapter, the following definitions
				  apply:
(1) "Branch" means a banking
				house, other than the main banking house, maintained and operated by a mutual
				association doing business in the state and at which deposits are received,
				checks are paid, or money is lent. The term does not include a satellite
				terminal, as defined in
				32-6-103,
				MCA, a loan production office, or the office of an affiliated depository
				institution acting as an agent under
				12 U.S.C.
				1828.
(2) "Consolidate" means a combination of two
				or more office locations within the same immediate neighborhood that does not
				substantially affect the nature of the business or customers served. Thus, for
				example, a consolidation of two branches on the same block following a merger
				would not constitute a branch closure. Mutual associations that are in doubt
				about whether a consolidation or a closure has occurred should consult the
				department. A consolidation is considered a relocation for purposes of ARM
				2.59.2033 and 2.59.2037.
(3)
				"Customer" means a person who opened an account at the branch location in
				question, is currently associated with that branch, or whose address is within
				the same municipal area as the branch, as the mutual association determines is
				appropriate.
(4) "Loan production
				office" means a staffed facility, other than a branch, that provides
				lending-related services to the public, including loan information and
				applications.
(5) "Principal city"
				means an area designated as a "principal city" by the federal Office of
				Management and Budget.
(6)
				"Relocate" means a movement within the same immediate neighborhood that does
				not substantially affect the nature of the business or customers served.
				Generally, relocations involve movement over a short distance.
(7) "Short distance" means:
(a) within a 1,000-foot radius of the current
				location of the branch if it is located within the principal city of a
				metropolitan statistical area (MSA);
(b) within a one-mile radius of the current
				location of the branch if the branch is not located within a principal city,
				but is within an MSA; or
(c) within
				a two-mile radius of the branch if it is not located in an MSA.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2027 - APPLICATION PROCEDURE FOR APPROVAL TO ESTABLISH A NEW BRANCH

Current through Register Vol. 13, July 5, 2024
(1) An existing state-chartered mutual
				association that does not meet the criteria in shall file with the department
				an application for approval to establish and operate a new branch.
(2) Applications shall be submitted to the
				department using the Uniform Interstate Application/Notice form dated July 9,
				2021, which can be found on the department's website at banking.mt.gov.
				Electronic submission of applications to banking@mt.gov is preferred.
(3) The applicant shall publish its notice of
				intent to establish a new branch using the following procedure:
(a) if the application for a new branch also
				requires the approval of either the federal reserve system or the federal
				deposit insurance corporation, the notice shall be published at the times and
				in the format required by the federal agency, except that the notice shall
				include the following information which may be rephrased as needed: "Comments
				regarding this application should be forwarded in writing via email to
				banking@mt.gov. Comments will also be accepted by mail addressed to the
				Commissioner of Banking and Financial Institutions, Department of
				Administration, P.O. Box 200546, Helena, MT 59620-0546. The application may be
				reviewed, during the comment period, at the above address by calling the
				commissioner's office at (406) 841-2920 and requesting an
				appointment";
(b) if the applicant
				does not fall under the regulatory jurisdiction of either the federal reserve
				system or the federal deposit insurance corporation, or if the publication
				requirement of the federal regulator has been eliminated, the notice shall be
				published, following a format obtained from the department, in a newspaper of
				general circulation in the community or communities where the main office of
				the mutual association and proposed branch are located. If there is no such
				newspaper in the community, then the notice shall be published in the nearest
				newspaper of general circulation. Publication shall be made at least once a
				week on the same day for two consecutive weeks.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2028 - REVIEW PROCEDURE FOR APPLICATIONS FOR APPROVAL TO ESTABLISH A NEW BRANCH

Current through Register Vol. 13, July 5, 2024
(1) The department
				shall process applications for new branches in the order in which they are
				received. If an application is incomplete, the department shall notify the
				applicant by e-mail. An application will not be considered to have been
				received until it is in a complete form. An application is complete when all
				information required by the application form has been submitted and received.
				The department may request additional information from an applicant even if the
				application is considered complete.
(2) Factors that will be considered when
				determining whether to approve an application to establish a new branch
				include, but are not limited to, the following:
(a) the financial history and condition of
				the applicant;
(b) the capital
				levels and capital structure of the applicant;
(c) the quality, financial and banking
				experience, and depth of management of the applicant and the proposed
				branch;
(d) the convenience and
				needs of the community to be served at the proposed location of the new branch
				as evidenced by a brief statement provided by the applicant;
(e) earnings prospects of the applicant after
				establishing the new branch; and
(f) any other factors the department
				considers that could adversely affect the safety and soundness of the applicant
				or the viability of the new branch.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2029 - PROCEDURE FOLLOWING APPROVAL OF AN APPLICATION TO ESTABLISH A NEW BRANCH

Current through Register Vol. 13, July 5, 2024
(1) A mutual association must open an
				approved branch within 18 months of the date of branch approval. Upon written
				request by the applicant and a finding of good cause by the department, the
				18-month period may be extended by the department for a maximum of an
				additional six months.
(2) During
				the formation and establishment of the new branch, the applicant must inform
				the department of significant changes affecting any of the commitments,
				representations, or projections contained in the original application.
				Significant changes include, but are not limited to, the location of the new
				branch, the services to be offered by the new branch, and the staffing or
				management of the new branch. Significant changes may be sufficient to void the
				department's approval.
AUTH: 32-2-704, MCA; IMP: 32-2-704, 32-2-828,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2030 - BRANCHES

Current through Register Vol. 13, July 5, 2024
(1) A mutual association organized under the
				laws of this state that is a qualifying institution, as set forth in (2), may
				establish a branch in Montana upon summary notice and approval by the
				department. The notice shall be given using the Request for Summary Approval of
				Branch form dated July 9, 2021, which is located on the department's website at
				banking.mt.gov.
(2) In order to
				qualify for summary notice, the mutual association shall:
(a) have received its mutual association
				charter at least five years prior to making the request;
(b) be well-capitalized as defined in 12 CFR
				Part 324 by the Federal Deposit Insurance Corporation, if the mutual
				association is a nonmember mutual association; or as defined in
				12 CFR
				208.43(b)(1) by the Federal
				Reserve Board of Governors, if the mutual association is a member mutual
				association of the Federal Reserve System;
(c) have received a CAMELS composite rating
				of one or two on its most recent state or federal safety and soundness
				examination;
(d) have received a
				management rating of one or two on its most recent state or federal regulatory
				examination; and
(e) not be a party
				to any formal or informal enforcement action initiated by a state or federal
				regulatory agency.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2031 - MONTANA MUTUAL ASSOCIATIONS BRANCHING OUTSIDE MONTANA

Current through Register Vol. 13, July 5, 2024
(1) In order for a mutual association
				organized under the laws of this state to request approval for a branch outside
				of Montana, the mutual association must submit copies of all required
				regulatory filings or notices required by the host state and federal agencies
				and comply with ARM 2.59.2030 and the branching requirements of the state into
				which it seeks to branch.
AUTH: 32-2-701, 32-2-704, MCA; IMP: 32-2-701, 32-2-704,
					 32-2-828, MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2032 - MUTUAL ASSOCIATIONS ORGANIZED OUTSIDE OF MONTANA BRANCHING INTO MONTANA

Current through Register Vol. 13, July 5, 2024
(1) Mutual
				associations organized under the laws of a state other than Montana or of a
				national mutual association must submit copies of all required regulatory
				filings or notices required by the home state and federal agencies and comply
				with ARM 2.59.2030 in order to branch into Montana.
AUTH: 32-2-701, 32-2-704, MCA; IMP: 32-2-701, 32-2-704,
					 32-2-828, MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2033 - CLOSURE OR RELOCATION OF A BRANCH

Current through Register Vol. 13, July 5, 2024
(1) A
				Montana state-chartered mutual association that desires to relocate or close a
				branch temporarily or permanently shall give notice to its customers using the
				customer Notice of Relocation of Mutual Association Branch form (relocation
				form) dated July 9, 2021, or customer Notice of Closure of Mutual Association
				Branch form (closure form) dated July 9, 2021. The forms are located on the
				department's website at banking.mt.gov. A mutual association may amend the form
				as needed or include additional information in the form as
				appropriate.
(2) The relocation or
				closure form shall be provided to customers of the branch by posting it at the
				branch at least 30 days before the relocation or closure of the branch. The
				relocation or closure form shall be provided to the department at the same
				time. The mutual association shall also notify its customers at least 30 days
				before the relocation or closure, by any effective method.
(3) The department reserves the right to
				request additional information regarding closure or relocation of a
				branch.
AUTH: 32-2-701, 32-2-704, MCA; IMP: 32-2-701, 32-2-704,
					 32-2-828, MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2034 - TEMPORARY EMERGENCY CLOSURE OF BRANCH

Current through Register Vol. 13, July 5, 2024
(1)
				A mutual association that closes a branch under the authority of 32-2-1032(1),
				MCA, for 48 hours or less shall notify the department using the Temporary
				Emergency Branch Closure form dated July 9, 2021, located on the department's
				website at banking.mt.gov.
AUTH: 32-2-701, 32-2-704, MCA; IMP: 32-2-701, 32-2-704,
					 32-2-1030, 32-2-1031, 32-2-1032, 32-2-1033, 32-2-1034,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2035 - EMERGENCY CLOSURE OF BRANCH

Current through Register Vol. 13, July 5, 2024
(1) A mutual
				association that closes a branch under the authority of 32-2-1032, MCA, for
				more than 48 hours shall notify the department using the Emergency Branch
				Closure form dated July 9, 2021, located on the department's website at
				banking.mt.gov.
AUTH: 32-2-701, 32-2-704, MCA; IMP: 32-2-701, 32-2-704,
					 32-2-1030, 32-2-1031, 32-2-1032, 32-2-1033, 32-2-1034,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2036 - LOAN PRODUCTION OFFICE ACTIVITIES

Current through Register Vol. 13, July 5, 2024
(1) A loan
				production office may conduct any of the following activities, which shall not,
				individually or collectively, cause the loan production office to be considered
				a branch:
(a) solicit loans on behalf of the
				mutual association or a branch of the mutual association;
(b) assemble credit information;
(c) make property inspections and
				appraisals;
(d) secure title
				information;
(e) prepare
				applications for loans, including making recommendations with respect to
				action; and
(f) solicit investors
				to purchase loans from the mutual association and to contract with the mutual
				association for servicing of such loans.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2037 - LOAN PRODUCTION OFFICE

Current through Register Vol. 13, July 5, 2024
(1) A mutual
				association that desires to establish a loan production office in this state
				shall provide written notice to the department of its intent to do so at least
				30 days prior to opening the loan production office using the Notice of Intent
				to Establish a Loan Production Office form dated July 9, 2021, located on the
				department's website at banking.mt.gov.
(2) A mutual association organized under the
				laws of Montana that intends to open a loan production office in another state
				shall submit copies of all required regulatory filings or notices required by
				the host state and federal agencies along with the items required in the Notice
				of Intent to Establish a Loan Production Office form, if they are not already
				included in the form, to the department.
(3) A Montana state-chartered mutual
				association that desires to relocate or close a loan production office
				temporarily or permanently shall give notice to its customers using the
				customer Notice of Relocation form (relocation form) dated July 9, 2021, or
				customer Notice of Closure form (closure form) dated July 9, 2021, located on
				the department's website at banking.mt.gov.
(4) The relocation or closure form shall be
				provided to customers of the loan production office by posting it at the loan
				production office at least fifteen days before the relocation or closure of the
				office. The relocation or closure form shall be provided to the department at
				the same time.
(5) The department
				reserves the right to request additional information regarding the opening,
				closure, or relocation of a loan production office.
(6) If the loan production office will be
				using an assumed name, compliance with 32-2-902, MCA, is required.
(7) Each loan production office shall be
				subject to examination and supervision by the department in the same manner and
				to the same extent as the mutual association.
AUTH: 32-2-701, 32-2-830, MCA; IMP: 32-2-701, 32-2-830,
					 32-2-1030, 32-2-1031, 32-2-1032, 32-2-1033, 32-2-1034,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2041 - DEBT CANCELLATION AND DEBT SUSPENSION PROGRAMS - REQUIREMENTS

Current through Register Vol. 13, July 5, 2024
(1) A mutual association 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 mutual
				association 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 mutual association's debt cancellation and debt suspension program;
				and
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2042 - REQUIRED DISCLOSURES

Current through Register Vol. 13, July 5, 2024
(1) A mutual
				association shall provide the following disclosures to the mutual association's
				customer:
(a) notice of the prohibited acts or
				practices contained in ARM 2.59.2043;
(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 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2043 - PROHIBITED ACTS OR PRACTICES

Current through Register Vol. 13, July 5, 2024
(1) A mutual
				association 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 contract or debt suspension agreement with
				the mutual association. 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 2.59.2042, 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 mutual association 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 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2044 - 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 mutual association shall refund to the customer any
				unearned fees paid for the contract unless the contract provides
				otherwise.
(2) A mutual association
				may offer a customer a contract that does not provide for a refund only if the
				mutual association also offers that customer a bona fide option to purchase a
				comparable contract that provides for a refund.
(3) A mutual association shall calculate the
				amount of a refund using a method at least as favorable to the customer as the
				actuarial method.
AUTH: 32-2-704, MCA; IMP: 32-2-909,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2045 - METHOD OF PAYMENT OF FEES

Current through Register Vol. 13, July 5, 2024
(1) Except as
				provided in ARM 2.59.2043(1)(c)(ii), a mutual association 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 mutual association also
				offers the customer a bona fide option of paying the fee for that contract in
				periodic installment payments.
(2)
				If a mutual association offers the customer the option to finance the single
				payment by adding it to the loan principal, the mutual association must also
				disclose, in accordance with ARM 2.59.2044, whether the customer may cancel the
				agreement and receive a refund, and, if so, the time period during which the
				customer may do so.
AUTH: 32-2-704, MCA; IMP: 32-2-909,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2046 - 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 mutual
				association shall obtain the customer's written affirmative election to
				purchase the contract and a written acknowledgment of receipt of the
				disclosures required under ARM 2.59.2042.
(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 mutual association:
(i) maintains sufficient documentation to
				show that the customer received the short-form disclosures substantially
				similar to ARM 2.59.2047(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 2.59.2047(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 mutual association has mailed the long-form disclosures to the
				customer;
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2047 - 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 mutual association to include the
				disclosures required under ARM 2.59.2042(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 mutual association to include the disclosures required under ARM
				2.59.2042(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
				mutual association 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 mutual association concerning its debt
				cancellation and/or debt suspension program.
AUTH: 32-2-704, MCA; IMP: 32-2-909,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2048 - 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
				mutual association 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 mutual association 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
				2.59.2043(1)(a).
AUTH: 32-2-704, MCA; IMP: 32-2-909,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2051 - NONCONFORMING LOANS AND EXTENSIONS OF CREDIT

Current through Register Vol. 13, July 5, 2024
(1) A loan or extension of credit within a
				mutual association'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 mutual association's lending limit
				because:
(a) the mutual association'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 2.59.2069 and Appendix B to ARM
				2.59.2069, the credit exposure subject to the lending limits of 32-2-925, 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 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2052 - U.S. TREASURY AND U.S. GOVERNMENT AGENCY ISSUES

Current through Register Vol. 13, July 5, 2024
(1) There is no dollar limit on a mutual
				association's investment in the following U.S. treasury securities:
(a) bonds;
(b) notes; or
(c) bills.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2053 - RULE XXXIX OTHER APPROVED QUASI-GOVERNMENT SECURITIES

Current through Register Vol. 13, July 5, 2024
(1) Certain other securities are approved for
				mutual association investment. There is no dollar limit on a mutual
				association's investment in:
(a) general
				services administration (participation certificates);
(b) maritime administration (bonds and
				notes); and
(c) Washington
				metropolitan area transit authority (bonds).
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2054 - STATE, COUNTY, AND MUNICIPAL ISSUES

Current through Register Vol. 13, July 5, 2024
(1) Mutual
				associations may invest, without dollar limitation, in the general obligation
				of any state which is part of the United States of America.
(a) The obligations must be fully guaranteed
				as to the repayment of principal and interest. Evidence of a full guarantee
				includes, but is not limited to, the pledge of the full faith and credit of the
				state responsible for repayment of the general obligation.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2055 - CORPORATE BONDS

Current through Register Vol. 13, July 5, 2024
(1) Mutual
				associations may invest up to 20% of their capital, per issuer, in corporate
				bonds.
(2) These bonds must be
				investment grade, i.e., rated in one of the four highest grades by a recognized
				national investment rating organization. Other rating services may be used if
				the gradations are equivalent to those above, and the rating services are
				identified by the mutual association's investment policy. Corporate bonds
				should be reviewed as necessary to assure the mutual association's board of
				directors that bond quality has not fallen below investment grade.
AUTH: 32-2-911, MCA; IMP: 32-2-908, 32-2-911,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2056 - MUTUAL FUNDS

Current through Register Vol. 13, July 5, 2024
(1) Under the
				authority of 32-2-908(1)(b), MCA, and subject to its restrictions, mutual
				associations may invest in mutual funds whose shares represent only those
				United States obligations listed in ARM 2.59.2052.
(2) Members must have a proportionate
				undivided interest in any mutual fund utilized under this rule.
(3) Members must be shielded from personal
				liability for acts or obligations of the mutual fund.
(4) The mutual association's investment
				policy, as formally approved by its board of directors, must specifically
				provide for such investments. Prior approval of the board of directors must be
				obtained for initial investments in specific mutual funds and recorded in the
				official board minutes. Procedures, standards, and controls for managing such
				investments must be implemented prior to the investment being made.
AUTH: 32-2-911, MCA; IMP: 32-2-908, 32-2-911,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2057 - OTHER APPROVED INVESTMENTS

Current through Register Vol. 13, July 5, 2024
(1) Certain other
				instruments which may have investment characteristics are approved for
				state-chartered mutual associations. They are the following:
(a) mutual associations may invest, on a per
				issuer basis, in certificates of deposit (CDs) or deposit notes from insured
				financial institutions up to the greater of 20% of their capital or the maximum
				amount of federal deposit insurance available for deposits. This limitation
				applies to the deposit and any accrued interest;
(b) mutual associations may invest up to 20%
				of their capital, per issuer, in commercial paper provided the commercial paper
				is rated A1 or P1, at the time of purchase, by a recognized national investment
				rating organization. Equivalent ratings from other established and generally
				recognized national rating organizations may be substituted;
(c) mutual associations may invest up to 20%
				of their capital, per issue, in privately issued CMOs and REMICs;
(d) privately issued CMOs and REMICs will not
				represent more than 40% of a mutual association's investment portfolio, or more
				than 400% of a mutual association's capital, whichever is the lesser;
				and
(e) mutual associations may
				invest up to 20% of their capital, per issuer, in trust preferred securities.
				These bonds must be investment grade, i.e., rated in one of the four highest
				grades by a recognized national investment rating organization. Other rating
				services may be used if the gradations are equivalent to those above, and the
				rating services are identified by the mutual association's investment
				policy.
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2058 - DEBT SECURITIES FOR DEBTS PREVIOUSLY CONTRACTED

Current through Register Vol. 13, July 5, 2024
(1) Debt securities received by a mutual
				association in good faith, in satisfaction of debts previously contracted, are
				not subject to the limitations of the applicable provisions of ARM 2.59.2052
				through 2.59.2057, if the book value of such obligations in excess of the
				limitations of the rule is reduced to the amount allowed within six months
				after the date the obligations are acquired.
AUTH: 32-2-911, MCA; IMP: 32-2-908, 32-2-911,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2061 - DEFINITIONS

Current through Register Vol. 13, July 5, 2024
For purposes of ARM 2.59.2062 through 2.59.2066, 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 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2062 - 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 mutual association's lending limit.
AUTH: 32-2-925, MCA; IMP: 32-2-925,
					 MCA
Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2063 - 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 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2064 - 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: 32-2-925, MCA; IMP: 32-2-925,
					 MCA