BANKING AND FINANCIAL INSTITUTIONS

2.59.1748 MONTANA-SPECIFIC ESCROW FUND A mortgage servicer or lender shall: establish an escrow fund specifically for Montana residential mortgage loans being serviced. The escrow fund must contain only money related to Montana residential mortgage loans; or elect to provide to t…

2.59.1749 WRITTEN EXEMPTION FORM FOR REQUESTING A MORTGAGE LICENSING EXEMPTION (REPEALED) Authorizing statute(s): 32-9-130, MCA Implementing statute(s): 32-9-104, MCA History: NEW, 2013 MAR p. 48, Eff. 1/18/13; REP, 2013 MAR p. 2417, Eff. 12/27/13.

2.59.1750 CLARIFICATION OF DEFINITION (REPEALED) Authorizing statute(s): 32-9-130, MCA Implementing statute(s): 32-9-103(26), MCA History: NEW, 2013 MAR p. 2417, Eff. 12/27/13; REP, 2017 MAR p. 1049, Eff. 7/8/17.

2.59.1751 CERTIFICATE OF BONA FIDE NOT-FOR-PROFIT ENTITY A bona fide not-for-profit entity shall certify that it meets the exemption in 32-9-104(1)(f), MCA, and shall file with the department the Bona Fide Not-For"BFNP" Certificationform, to make its certification both initially …

2.59.1752 STATE-SPECIFIC PRELICENSING EDUCATION An individual seeking a mortgage loan originator's license shall complete two hours of prelicensing education specific to Montana residential mortgage statutes and rules. This rule will become effective on March 1, 2014. Authorizing…

2.59.1753 APPLICATIONS FOR INITIAL LICENSE NEAR YEAR-END; WHEN APPLICATION FOR INITIAL LICENSE MAY BE DEEMED ABANDONED An application for initial license submitted to the department through NMLS during the period of November 1 through December 31 is deemed an application for lice…

2.59.1754 CLARIFICATION OF DEFINITION OF "REGULARLY ENGAGE" A person who advertises in any manner is holding themselves out to the public as being able to act as a mortgage loan originator, mortgage broker, mortgage lender, or mortgage servicer in Montana. By so doing, the person…

2.59.1755 DEFINITION OF "ALTER" FOR MORTGAGE LICENSEES The word "alter" as used in 32-9-124(1)(l), MCA, means that loan documents may not be revised by: using correction fluid, correction tape, or any other means of changing or covering over a date or signature not on the origina…

2.59.1756 GOVERNMENT SPONSORED ENTERPRISES The government-sponsored enterprises for the mortgage servicer capital requirements in the Montana Mortgage Act are: Federal Home Loan Mortgage Corporation (Freddie Mac); Federal National Mortgage Association (Fannie Mae); or Federal Hom…

2.59.1757 DESIGNATED MANAGER SUPERVISORY REQUIREMENTS If a designated manager supervises more than one location, a mortgage broker or mortgage lender must have a written policy which addresses supervision of multiple licensed locations. The policy must include the frequency of: c…

2.59.1758 FALSE, DECEPTIVE, OR MISLEADING ADVERTISING False, deceptive, or misleading advertising includes but is not limited to advertising or marketing that: is defined by this rule as false, deceptive, or misleading; violates 32-9-149, MCA, or this rule; violates any applicabl…

2.59.1759 INTERNET OR ELECTRONIC ADVERTISING For the purpose of this rule, "Internet" means the Internet, the World Wide Web, or Internet-based electronic information distribution networks, and any derivative delivery systems or evolutions of such delivery systems that may be con…

2.59.1760 EXAMINATION FEES A mortgage lender, broker, or servicer shall pay to the department the actual cost of any examination or investigation which must include expenses for necessary travel for the purposes of conducting the examination or investigation. Authorizing statute(…

2.59.1761 ACTIVITIES REQUIRING A LICENSE For purposes of 32-9-124(1)(h), MCA, the department adopts by reference Appendices A through D of 12 CFR 1008 (Regulation H) (July 1, 2022). The appendices may be found on the department's website at banking.mt.gov . Authorizing statute(s)…

2.59.1801 MORTGAGE LENDER SURETY BOND (REPEALED) Authorizing statute(s): 32-10-303, 32-10-502, MCA Implementing statute(s): 32-10-203, 32-10-208, 32-10-303, MCA History: NEW, 2008 MAR p. 1579, Eff. 10/1/08; REP, 2010 MAR p. 212, Eff. 1/29/10.

2.59.1802 BRANCH OFFICE LICENSING (REPEALED) Authorizing statute(s): 32-10-203, 32-10-502, MCA Implementing statute(s): 32-10-202, 32-10-203, 32-10-208, MCA History: NEW, 2008 MAR p. 1579, Eff. 10/1/08; REP, 2010 MAR p. 212, Eff. 1/29/10.

2.59.1803 SUPERVISION OF OFFICES AND LOAN OFFICERS (REPEALED) Authorizing statute(s): 32-10-502, MCA Implementing statute(s): 32-10-202, 32-10-203, 32-10-208, MCA History: NEW, 2008 MAR p. 1579, Eff. 10/1/08; REP, 2010 MAR p. 212, Eff. 1/29/10.

2.59.1804 RESPONSIBILITY FOR ACTS OF AGENTS (REPEALED) Authorizing statute(s): 32-10-502, MCA Implementing statute(s): 32-10-207, 32-10-501, MCA History: NEW, 2008 MAR p. 1579, Eff. 10/1/08; REP, 2010 MAR p. 212, Eff. 1/29/10.

2.59.1805 WAIVER OF IN-STATE OFFICE REQUIREMENT (REPEALED) Authorizing statute(s): 32-10-309, 32-10-502, MCA Implementing statute(s): 32-10-309, MCA History: NEW, 2008 MAR p. 2621, Eff. 12/25/08; REP, 2010 MAR p. 212, Eff. 1/29/10.

2.59.1901 EXAMINATION FEES (REPEALED) (REPEALED) Authorizing statute(s): 32-11-105, MCA Implementing statute(s): 32-11-203, MCA History: NEW, 2007 MAR p. 1932, Eff. 11/22/07; REP, 2025 MAR, Notice No. 2025-900, Eff. 9/13/25.

2.59.2001 APPLICATION PROCEDURE FOR A CERTIFICATE OF AUTHORIZATION FOR A STATE-CHARTERED MUTUAL ASSOCIATION One or more individual incorporators desiring to organize a mutual association shall file with the department, an application for a certificate of authorization for a state…

2.59.2002 PERSUASIVE SHOWING OF REASONABLE PUBLIC NECESSITY AND DEMAND In determining whether a reasonable public necessity and demand is established in any case, the department requires that these words be given a meaning which will promote the public interest of the community a…

2.59.2003 MANAGEMENT OF PROPOSED MUTUAL ASSOCIATION To establish reasonable assurance that the mutual association will be safely and soundly operated as required by 32-2-801, MCA, and recognizing that the ultimate responsibility for management of a mutual association reposes in i…

2.59.2004 CAPITAL ADEQUACY OF PROPOSED NEW MUTUAL ASSOCIATIONS The applicant must provide a reasonable assurance that the proposed new mutual association will have adequate initial paid-in capital sufficient to: absorb initial operating losses under foreseeable business condition…

2.59.2005 MUTUAL ASSOCIATIONS - FDIC INSURANCE REQUIRED To comply with 32-2-801 and 32-2-809, MCA, it has been determined by the department that it is in the public interest to require all mutual associations to be accepted by the Federal Deposit Insurance Corporation (FDIC) for …

2.59.2006 PRO FORMA STATEMENT An operational projection shall be submitted as part of the application for new mutual association charters, in order to show that the new mutual association will remain solvent while meeting the requirements set forth in ARM 2.59.2004. The pro forma…

2.59.2009 CONVERSION OF A NATIONAL MUTUAL ASSOCIATION TO A STATE MUTUAL ASSOCIATION Upon conversion: the resulting state mutual association succeeds, without other transfer, to all the rights and property of the converted mutual association and is subject to all the debts and lia…

2.59.201 SAVINGS AND LOAN ASSOCIATIONS - REAL ESTATE (REPEALED) Authorizing statute(s): 32-2-401, 32-2-403, MCA Implementing statute(s): 32-2-407, MCA History: Eff. 12/31/72; TRANS, from Commerce, 2001 MAR p. 1178; REP, 2022 MAR p. 230, Eff. 2/12/22.

2.59.2010 FEE FOR CONVERSION OF A NATIONAL MUTUAL ASSOCIATION TO A STATE MUTUAL ASSOCIATION The fee for conversion of a federal mutual savings association to a state mutual savings association is $1,500.00. Authorizing statute(s): 32-2-704, MCA Implementing statute(s): 32-2-816, …

2.59.2013 SEMIANNUAL ASSESSMENT The department invoices mutual associations for semiannual assessments every June and December. The assessment is based on each institution's total assets provided in its previous March and September call reports. The fee is calculated based on the…

2.59.2014 ADOPTION OF EXAMINATION PROCEDURE The department adopts the revised Uniform Financial Institution Rating System as one of its examination procedures. The edition adopted is the December 19, 1996, edition as published in the Federal Register at 61 Fed. Reg. 67021. It may…

2.59.2017 MERGER APPLICATION 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: the resolution or an authentic copy of the resolution, authorizing the …

2.59.2018 MERGER APPLICATION PROCEDURES 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. The application to merge must be filed with the department. The election and acknowledgment informat…

2.59.202 EXAMINATION AND SUPERVISORY FEE (ANNUAL) (REPEALED) Authorizing statute(s): 32-2-110, MCA Implementing statute(s): 32-2-110, MCA History: NEW, 1985 MAR p. 776, Eff. 6/28/85; TRANS, from Commerce, 2001 MAR p. 1178; REP, 2022 MAR p. 230, Eff. 2/12/22.

2.59.2021 MUTUAL ASSOCIATIONS - DIRECT LEASING OF PERSONAL PROPERTY 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 mutual association ma…

2.59.2022 RETENTION OF MUTUAL ASSOCIATION RECORDS Records of customer accounts, as defined in (7), must be held in accordance with 32-2-950, MCA. The publication "Mutual Savings and Loan Association Record Retention Periods - Appendix A to ARM 2.59.2022" (Appendix A) establishes …

2.59.2023 FORM TO REPORT DIRECTORS AND OFFICERS 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 boar…

2.59.2026 DEFINITIONS For purposes of this subchapter, the following definitions apply: "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 pa…

2.59.2027 APPLICATION PROCEDURE FOR APPROVAL TO ESTABLISH A NEW BRANCH 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. Applications shall be submitt…

2.59.2028 REVIEW PROCEDURE FOR APPLICATIONS FOR APPROVAL TO ESTABLISH A NEW BRANCH 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 applicat…

2.59.2029 PROCEDURE FOLLOWING APPROVAL OF AN APPLICATION TO ESTABLISH A NEW BRANCH 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 …

2.59.2030 BRANCHES 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 Appr…

2.59.2031 MONTANA MUTUAL ASSOCIATIONS BRANCHING OUTSIDE MONTANA 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 re…

2.59.2032 MUTUAL ASSOCIATIONS ORGANIZED OUTSIDE OF MONTANA BRANCHING INTO MONTANA 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 s…

2.59.2033 CLOSURE OR RELOCATION OF A BRANCH 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 …

2.59.2034 TEMPORARY EMERGENCY CLOSURE OF BRANCH 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 w…

2.59.2035 EMERGENCY CLOSURE OF BRANCH 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.…

2.59.2036 LOAN PRODUCTION OFFICE ACTIVITIES 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: solicit loans on behalf of the mutual association or a bran…

2.59.2037 LOAN PRODUCTION OFFICE 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 …

2.59.2040 DEFINITIONS "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 deficie…