Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.20 - Mutual Savings and Loan Associations › Rule 2.59.2040 - DEFINITIONS

Current through Register Vol. 13, July 5, 2024
(1) "Actuarial method" means the method of
				allocating payments made on a debt between the amount financed and the finance
				charge. Under this method, a payment is applied first to the accumulated
				finance charge and any remainder is subtracted from, or any deficiency is added
				to, the unpaid balance of the amount financed.
(2) "Contract" means a debt cancellation
				contract or a debt suspension agreement.
(3) "Customer" means an individual who
				obtains from a mutual association an extension of credit that is primarily for
				personal, family, or household purposes. For purposes of this subchapter, the
				term means the same thing as "borrower."
(4) "Debt cancellation contract" means a loan
				term or contractual arrangement modifying loan terms under which a mutual
				association agrees, for a fee, to suspend all or part of a customer's
				obligation to repay an extension of credit from that mutual association upon
				the occurrence of a specified event. The agreement must specify the extension
				of credit to which it pertains. The extension of credit to which it pertains
				may be a direct loan made by the mutual association or an indirect loan in the
				form of a retail installment sales contract purchased by or assigned to the
				mutual association. In the case of an indirect loan in the form of a retail
				installment sales contract, the debt cancellation contract may be offered by
				the mutual association through a nonexclusive, unaffiliated agent contingent
				upon the mutual association purchasing or taking assignment of the indirect
				loan. The agreement may be separate from or a part of other loan documents. A
				debt cancellation contract may be offered and purchased either
				contemporaneously with the other terms of the loan agreement or
				subsequently.
(5) "Debt suspension
				agreement" means a loan term or contractual arrangement modifying loan terms
				under which a mutual association agrees, for a fee, to suspend all or part of a
				customer's obligation to repay an extension of credit from that mutual
				association upon the occurrence of a specified event. The agreement must
				specify the extension of credit to which it pertains. The extension of credit
				may be a direct loan made by the mutual association or an indirect loan in the
				form of a retail installment sales contract purchased by or assigned to the
				mutual association. In the case of an indirect loan in the form of a retail
				installment sales contract, the debt suspension agreement may be offered by the
				mutual association through a nonexclusive, unaffiliated agent contingent upon
				the mutual association purchasing or taking assignment of the indirect loan.
				The agreement may be separate from or a part of other loan documents. The term
				"debt suspension agreement" does not include loan payment deferral arrangements
				in which the triggering event is the borrower's unilateral election to defer
				repayment or the mutual association's unilateral decision to allow a deferral
				of repayment.
(6) "Guaranteed asset
				protection (GAP) waiver or agreement" means a term of an extension of credit or
				contractual arrangement modifying terms of an extension of credit for the
				purchase of titled personal property under which a mutual association agrees to
				cancel the customer's obligation to repay the portion of the extension of
				credit that exceeds the amount paid by the primary insurer of the titled
				personal property upon the insurer's declaration that the titled personal
				property is a total loss or determination that the titled personal property is
				stolen and not recoverable.
(7)
				"Loan or extension of credit" means a direct or indirect advance of funds to a
				customer made on the basis of any obligation of that customer to repay the
				funds or that is repayable from specific property pledged by or on the
				customer's behalf. The term also includes any liability of a mutual association
				to advance funds to or on behalf of a customer pursuant to a contractual
				commitment.
(8) "Residential
				mortgage loan" means a loan for personal, family, or household purposes secured
				by a one- to four-family residential property.
AUTH: 32-2-704, MCA; IMP: 32-2-909,
					 MCA