BANKING AND FINANCIAL INSTITUTIONS

2.59.304 FEES PAID TO PUBLIC OFFICIALS 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…

2.59.305 RECEIPT FORM Licensees shall give to the borrower or mail to the borrower's address a plain and complete receipt for each payment made. Licensees receipt forms shall contain the following minimum information: name of borrower; account number; amount and date of payment; …

2.59.306 RECORDS OF LICENSEE 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 mu…

2.59.307 DOLLAR AMOUNTS TO WHICH CONSUMER LOAN RATES ARE TO BE APPLIED (REPEALED) Authorizing statute(s): 32-5-104, MCA Implementing statute(s): 32-5-104, 32-5-201, 32-5-301, 32-5-302, 32-5-306, MCA History: NEW, 1984 MAR p. 922, Eff. 6/15/84; AMD, 1988 MAR p. 2034, Eff. 9/23/88;…

2.59.308 EXAMINATION FEES 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. The term "actual costs" means the "hourly cost o…

2.59.309 SERVICE OF PROCESS The written notice required under 32-5-207(1), MCA, constitutes process under the Montana Administrative Procedure Act, Title 2, chapter 4, part 6, MCA. The mailing of the notice to a person by certified mail under 32-5-207(2), MCA, constitutes effecti…

2.59.310 ADOPTION OF STANDARDIZED FORMS AND PROCEDURES OF THE NMLS The NMLS Policy Guidebook datedSeptember 27, 2021, isadopted by reference and available on the NMLS website at mortgage.nationwidelicensingsystem.org/slr/common/policy/Pages/default.aspx . Except as provided in AR…

2.59.311 TRANSITION (REPEALED) Authorizing statute(s): 32-5-209, MCA Implementing statute(s): 32-5-201, MCA History: NEW, 2014 MAR p. 2447, Eff. 10/10/14; REP, 2016 MAR p. 2327, Eff. 12/10/16.

2.59.312 LICENSE RENEWALS 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. Licensees shall submit their renewal applications by December 1 of e…

2.59.313 INITIAL LICENSE APPLICATION THROUGH NMLS (REPEALED) Authorizing statute(s): 32-5-201, 32-5-209, MCA Implementing statute(s): 32-5-201, 32-5-209, MCA History: NEW, 2014 MAR p. 2447, Eff. 10/10/14; REP, 2022 MAR p. 228, Eff. 2/12/22.

2.59.314 AMENDMENTS (REPEALED) Authorizing statute(s): 32-5-209, MCA Implementing statute(s): 32-5-209, MCA History: NEW, 2014 MAR p. 2447, Eff. 10/10/14; REP, 2022 MAR p. 228, Eff. 2/12/22.

2.59.315 LICENSE SURRENDER The department may decline to accept a licensee's offer to surrender a license under the following circumstances: the licensee has not fully complied with ARM 2.59.319; the licensee has not made a succession plan that adequately protects consumers relat…

2.59.316 FEES (REPEALED) Authorizing statute(s): 32-5-201, 32-5-209, MCA Implementing statute(s): 32-5-201, 32-5-209, MCA History: NEW, 2014 MAR p. 2447, Eff. 10/10/14; REP, 2022 MAR p. 228, Eff. 2/12/22.

2.59.317 REINSTATEMENT OF EXPIRED LICENSES 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…

2.59.318 ADOPTION OF ANNUAL REPORT AND DUE DATE 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 (an…

2.59.319 REQUIRED PROCEDURE FOR CLOSING A CONSUMER LOAN BUSINESS At least 60 days before the intended closure date of a consumer loan business, the licensee shall provide the following to the department: a copy of a notification to all consumers with outstanding loans containing:…

2.59.320 DEPARTMENT COSTS IN BRINGING AN ADMINISTRATIVE ACTION 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: administrative law judge charges; court reporter fees; exhibit prep…

2.59.401 CREDIT UNIONS - SUPERVISORY FEE 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. The fee is calculated based on the tota…

2.59.402 CREDIT UNIONS - LIMITED INCOME PERSONS, DEFINITION 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…

2.59.403 CREDIT UNIONS - SURETY BOND AND HAZARD INSURANCE COVERAGE 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, …

2.59.404 CORPORATE CREDIT UNIONS (REPEALED) Authorizing statute(s): 32-3-803, 32-3-804, MCA Implementing statute(s): 32-3-801, 32-3-802, 32-3-803, 32-3-804, MCA History: NEW, 1994 MAR p. 161, Eff. 1/28/94; TRANS, from Commerce, 2001 MAR p. 1178; REP, 2016 MAR p. 2325, Eff. 12/10/…

2.59.405 RETENTION OF CREDIT UNION RECORDS 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 m…

2.59.406 DEFINITIONS APPLICABLE TO DEBT CANCELLATION AND DEBT SUSPENSION BY A CREDIT UNION The following definitions apply in ARM 2.59.407 through 2.59.414: "Actuarial method" means the method of allocating payments made on a debt between the amount financed and the finance charg…

2.59.407 DEBT CANCELLATION AND DEBT SUSPENSION PROGRAMS – REQUIREMENTS A credit union offering debt cancellation contracts and/or debt suspension agreements shall: manage the risks associated with debt cancellation contracts and debt suspension agreements in accordance with credi…

2.59.408 REQUIRED DISCLOSURES A credit union shall provide the following disclosures to the credit union's member: notice of the prohibited acts or practices contained in ARM 2.59.409; the fee applicable to the contract and any payment options; the refund; whether the member is b…

2.59.409 PROHIBITED ACTS OR PRACTICES A credit union is prohibited from engaging in any of the following acts or practices: extending credit or altering the terms or conditions of an extension of credit conditioned upon the member entering into a debt cancellation contract or deb…

2.59.410 REFUNDS OF FEES UPON TERMINATION OR PREPAYMENT OF COVERED LOAN 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 f…

2.59.411 METHOD OF PAYMENT OF FEES 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 …

2.59.412 AFFIRMATIVE ELECTION TO PURCHASE AND ACKNOWLEDGMENT OF RECEIPT OF DISCLOSURES 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 ackn…

2.59.413 DISCLOSURE FORMS 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 requi…

2.59.414 GUARANTEED ASSET PROTECTION (GAP) FEATURE 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, famil…

2.59.415 DUTIES OF THE SUPERVISORY COMMITTEE The supervisory committee shall: verify that adequate internal controls are established and maintained to safeguard the credit union's assets; oversee the inspection of securities, cash, and accounts of the credit union; review credit …

2.59.416 NET WORTH DEFINITION – CALCULATION – DETERMINATION For purposes of ARM 2.59.417, 2.59.418, and 2.59.422, "net worth" means the sum of regular reserves and undivided earnings. Net worth excludes the allowance for loan and lease losses. Net worth is calculated quarterly ba…

2.59.417 INVESTMENT RULE – CERTAIN QUASI-GOVERNMENT SECURITIES Certain other securities are approved for credit union investment. There is no dollar limit on a credit union's investment in: General Services Administration (participation certificates); Maritime Administration (bon…

2.59.418 INVESTMENT RULE – CORPORATE BONDS A credit union may invest up to 20 percent of its net worth, per issuer, in corporate bonds. These bonds must be investment grade, i.e., rated in one of the four highest grades by a recognized national investment rating organization. Oth…

2.59.419 INVESTMENT RULE – MUTUAL FUNDS Under the authority of 32-3-701, MCA, and subject to its restrictions, a credit union may invest in mutual funds whose shares represent only those United States obligations listed in ARM 2.59.417. Shareholders must have a proportionate undi…

2.59.420 GENERAL OBLIGATION BONDS A credit union may invest, without dollar limitation, in the general obligations of: any state of the United States if the obligations are fully guaranteed as to the repayment of principal and interest. Evidence of a full guarantee includes, but …

2.59.421 DIRECTOR TRAINING (TRANSFERRED) Authorizing statute(s): 32-3-412, MCA Implementing statute(s): 32-3-412, MCA History: NEW, 2015 MAR p. 2247, Eff. 12/25/15; TRANS to 2.59.430, 2016 MAR p. 720, Eff. 4/23/16.

2.59.422 INVESTMENT RULE – REVENUE BONDS Credit unions may invest, without limitation, in revenue bonds issued by the state of Montana or its political subdivisions. Credit unions may invest up to 40 percent of their net worth, per issuer, in revenue bonds issued by any other sta…

2.59.429 ADOPTION OF MODEL BYLAWS AND STATUTORY REFERENCE FOR CREDIT UNIONS The department adopts by reference the model bylaws of credit unions dated April 2023 and the model credit union bylaws statutory reference dated April 2023, to be used by incorporators when they want to …

2.59.430 DIRECTOR TRAINING Training topics and course selection for directors' training must reflect the size and complexity of the business model of the credit union that the directors serve and the depth of understanding needed by the directors to effectively manage the credit …

2.59.435 PRIVATE SHARE INSURANCE All Montana state-chartered credit unions insured by a private share insurance plan pursuant to 32-3-611, MCA, are regulated the same as Montana state-chartered credit unions insured under the provisions of Title II of the Federal Credit Union Act…

2.59.436 ORGANIZING A NEW CREDIT UNION An applicant seeking to organize a new state-chartered credit union shall complete the Application for a Certificate of Approval to Organize a New Montana Credit Union dated June 13, 2025, which is adopted and incorporated by reference and a…

2.59.437 ANNUAL REPORTS The Report of Credit Union Management form dated June 13, 2025, is adopted and incorporated by reference and available on the department's website at banking.mt.gov. The Liabilities of Directors and Committee Members form dated June 13, 2025, is adopted an…

2.59.501 APPLICATION FOR SATELLITE TERMINAL AUTHORIZATION (REPEALED) Authorizing statute(s): 32-6-401, MCA Implementing statute(s): 32-6-401, MCA History: Eff. 10/25/77; AMD, 1987 MAR p. 1968, Eff. 10/30/87; TRANS, from Commerce, 2001 MAR p. 1178; REP, 2010 MAR p. 213, Eff. 1/29/…

2.59.502 CRITERIA FOR AUTHORIZATION (REPEALED) Authorizing statute(s): 32-6-401, MCA Implementing statute(s): 32-6-401, MCA History: Eff. 10/25/77; TRANS, from Commerce, 2001 MAR p. 1178; REP, 2010 MAR p. 213, Eff. 1/29/10.

2.59.503 MAGNETIC ENCODING AND CARD STANDARDS (REPEALED) Authorizing statute(s): 32-6-401, MCA Implementing statute(s): 32-6-203, 32-6-308, MCA History: Eff. 12/15/78; TRANS, from Commerce, 2001 MAR p. 1178; REP, 2010 MAR p. 213, Eff. 1/29/10.

2.59.504 FEES FOR THE APPROVAL OF AUTOMATED TELLER MACHINES (REPEALED) Authorizing statute(s): 32-6-401, MCA Implementing statute(s): 32-6-304, MCA History: NEW, 1994 MAR p. 1143, Eff. 4/29/94; TRANS, from Commerce, 2001 MAR p. 1178; REP, 2010 MAR p. 213, Eff. 1/29/10.

2.59.601 CONDITIONS OF INVESTMENT A bank organized under the laws of Montana may invest in a wholly-owned agricultural credit corporation under the following conditions: The investment in shares of or loans to the agricultural credit corporation by a bank shall be limited to two …

2.59.701 APPLICATION PROCEDURE FOR AUTHORIZATION TO ENGAGE IN THE ESCROW BUSINESS In addition to the statutory qualifications found in Title 32, chapter 7, MCA, officers and managers of proposed escrow businesses shall demonstrate the character and fitness to operate their propos…