BANKING AND FINANCIAL INSTITUTIONS

2.59.138 DEFINITIONS For purposes of 32-1-432, MCA, the following definitions apply: "Commitment to lend or extend credit" includes, but is not limited to: undisbursed portions of operating, construction or other lines of credit, up to limits established by a written agreement be…

2.59.139 LEGAL LENDING LIMIT 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. Authorizing statute(s): 32-1-211, 3…

2.59.140 COMBINATIONS OR GUARANTEES Loans or extensions of credit to a person will be combined with loans or extensions of credit to one or more other persons when: proceeds of a loan or extension of credit are to be used for the direct benefit of the other person; or a common en…

2.59.1401 DEFINITIONS (REPEALED) Authorizing statute(s): 31-1-802, MCA Implementing statute(s): 31-1-803, 31-1-804, 31-1-805, 31-1-810, 31-1-811, 31-1-812, 31-1-815, 31-1-816, 31-1-818, 31-1-820, MCA History: NEW, 2006 MAR p. 883, Eff. 4/7/06; AMD, 2008 MAR p. 1571, Eff. 8/1/08; …

2.59.1402 LICENSING AND APPLICATION REQUIREMENTS - EXCEPTIONS (REPEALED) Authorizing statute(s): 31-1-802, MCA Implementing statute(s): 31-1-804, 31-1-805, 31-1-811, 31-1-816, 31-1-817, MCA History: NEW, 2006 MAR p. 883, Eff. 4/7/06; AMD, 2008 MAR p. 1571, Eff. 8/1/08; REP, 2014 …

2.59.1403 TITLE LOAN DESIGNATION (REPEALED) Authorizing statute(s): 31-1-802, MCA Implementing statute(s): 31-1-803, MCA History: NEW, 2008 MAR p. 1571, Eff. 8/1/08; REP, 2014 MAR p. 205, Eff. 1/31/14.

2.59.1404 NOTIFICATION TO THE DEPARTMENT (REPEALED) Authorizing statute(s): 31-1-802, MCA Implementing statute(s): 31-1-805, MCA History: NEW, 2008 MAR p. 1571, Eff. 8/1/08; REP, 2014 MAR p. 205, Eff. 1/31/14.

2.59.1405 OWNERSHIP CHANGE (REPEALED) Authorizing statute(s): 31-1-802, MCA Implementing statute(s): 31-1-805, MCA History: NEW, 2006 MAR p. 883, Eff. 4/7/06; AMD, 2008 MAR p. 1571, Eff. 8/1/08; REP, 2014 MAR p. 205, Eff. 1/31/14.

2.59.1406 EXAMINATION OF TITLE LENDERS (REPEALED) Authorizing statute(s): 31-1-802, MCA Implementing statute(s): 31-1-803, 31-1-810, 31-1-815, 31-1-816, 31-1-817, 31-1-818, 31-1-819, 31-1-820, 31-1-821, 31-1-822, 31-1-825, MCA History: NEW, 2006 MAR p. 883, Eff. 4/7/06; AMD, 2008…

2.59.1407 RESCINDED LOANS (REPEALED) Authorizing statute(s): 31-1-802, MCA Implementing statute(s): 31-1-815, 31-1-816, 31-1-821, MCA History: NEW, 2008 MAR p. 1571, Eff. 8/1/08; REP, 2014 MAR p. 205, Eff. 1/31/14.

2.59.1408 FAILURE TO CORRECT DEFICIENCIES (REPEALED) Authorizing statute(s): 31-1-802, MCA Implementing statute(s): 31-1-810, 31-1-811, MCA History: NEW, 2008 MAR p. 1571, Eff. 8/1/08; REP, 2014 MAR p. 205, Eff. 1/31/14.

2.59.1409 DURATION OF LOANS – INTEREST (REPEALED) Authorizing statute(s): 31-1-802, MCA Implementing statute(s): 31-1-816, 31-1-817, 31-1-818, 31-1-825, MCA History: NEW, 2006 MAR p. 883, Eff. 4/7/06; AMD, 2008 MAR p. 1571, Eff. 8/1/08; REP, 2014 MAR p. 205, Eff. 1/31/14.

2.59.141 DIRECT BENEFIT 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 p…

2.59.1410 EXTENSIONS - REDUCTION OF PRINCIPAL (REPEALED) Authorizing statute(s): 31-1-802, MCA Implementing statute(s): 31-1-816, MCA History: NEW, 2006 MAR p. 883, Eff. 4/7/06; AMD, 2008 MAR p. 1571, Eff. 8/1/08; REP, 2014 MAR p. 205, Eff. 1/31/14.

2.59.1411 DEPARTMENT'S COST OF ADMINISTRATIVE ACTION (REPEALED) Authorizing statute(s): 31-1-802, MCA Implementing statute(s): 31-1-811, MCA History: NEW, 2008 MAR p. 1571, Eff. 8/1/08; REP, 2014 MAR p. 205, Eff. 1/31/14.

2.59.1412 EXAMINATION FEES (REPEALED) Authorizing statute(s): 31-1-802, MCA Implementing statute(s): 31-1-810, 31-1-811, MCA History: NEW, 2008 MAR p. 1571, Eff. 8/1/08; REP, 2014 MAR p. 205, Eff. 1/31/14.

2.59.1413 REPORTS (REPEALED) Authorizing statute(s): 31-1-802, MCA Implementing statute(s): 31-1-810, 31-1-815, MCA History: NEW, 2006 MAR p. 883, Eff. 4/7/06; AMD, 2008 MAR p. 1571, Eff. 8/1/08; REP, 2014 MAR p. 205, Eff. 1/31/14.

2.59.1414 SCHEDULE OF CHARGES (REPEALED) Authorizing statute(s): 31-1-802, MCA Implementing statute(s): 31-1-816, 31-1-817, 31-1-818, MCA History: NEW, 2006 MAR p. 883, Eff. 4/7/06; AMD, 2008 MAR p. 1571, Eff. 8/1/08; REP, 2014 MAR p. 205, Eff. 1/31/14.

2.59.1415 REQUIRED RECORD KEEPING (REPEALED) Authorizing statute(s): 31-1-802, MCA Implementing statute(s): 31-1-815, 31-1-821, MCA History: NEW, 2008 MAR p. 1571, Eff. 8/1/08; REP, 2014 MAR p. 205, Eff. 1/31/14.

2.59.1416 EMPLOYEES' CHARACTER AND FITNESS (REPEALED) Authorizing statute(s): 31-1-802, MCA Implementing statute(s): 31-1-805, MCA History: NEW, 2006 MAR p. 883, Eff. 4/7/06; REP, 2014 MAR p. 205, Eff. 1/31/14.

2.59.1417 PROCEDURAL RULES FOR HEARINGS AND DISCOVERY (REPEALED) Authorizing statute(s): 31-1-802, MCA Implementing statute(s): 31-1-811, 31-1-812, 31-1-826, 31-1-841, MCA History: NEW, 2006 MAR p. 883, Eff. 4/7/06; AMD, 2008 MAR p. 1571, Eff. 8/1/08; REP, 2014 MAR p. 205, Eff. 1…

2.59.1418 SALE OF REPOSSESSED PROPERTY (REPEALED) Authorizing statute(s): 31-1-802, MCA Implementing statute(s): 31-1-816, 31-1-818, 31-1-820, MCA History: NEW, 2008 MAR p. 1571, Eff. 8/1/08; REP, 2014 MAR p. 205, Eff. 1/31/14.

2.59.1419 UNFAIR PRACTICE (REPEALED) Authorizing statute(s): 31-1-802, MCA Implementing statute(s): 31-1-825, MCA History: NEW, 2008 MAR p. 1571, Eff. 8/1/08; REP, 2014 MAR p. 205, Eff. 1/31/14.

2.59.142 COMMON ENTERPRISE A common enterprise occurs when two or more persons combine to acquire, operate, or control a business enterprise or property interest. Credit to a common enterprise includes: loans or extensions of credit to two or more persons when the loans or extens…

2.59.143 EXCLUSIONS The following items will be excluded when calculating the amount of a person's total loans and extensions of credit: loans or extensions of credit, and participation in loans and extensions of credit, that have been sold, if: the loan, extension of credit, or …

2.59.144 REPORT OF SERVICE AND TECHNOLOGY PROVIDERS A state-chartered bank must file with the department a Report of Service and Technology Providers form, April 30, 2025, version, located at banking.mt.gov. Authorizing statute(s): 32-1-218, 32-1-233, MCA Implementing statute(s):…

2.59.1501 DEFINITIONS For the purposes of this subchapter, the following definitions apply: "Commissioner" means the Commissioner of Banking and Financial Institutions provided for in 32-1-211 , MCA. "Department" means the Department of Administration established in 2-15-1001 , M…

2.59.1502 APPLICATION PROCEDURE REQUIRED TO ENGAGE IN DEPOSIT LENDING (REPEALED) Authorizing statute(s): 31-1-702, MCA Implementing statute(s): 31-1-702, 31-1-705, 31-1-722, MCA History: NEW, 2000 MAR p. 71, Eff. 11/5/99; TRANS, from Commerce, 2001 MAR p. 1178; AMD, 2007 MAR p. 1…

2.59.1503 UNENCUMBERED ASSETS AS ADDITIONAL SURETY The statutorily required $25,000 in unencumbered assets shall serve as additional surety for the licensee's operations. These assets shall remain unencumbered. Authorizing statute(s): 31-1-702, MCA Implementing statute(s): 31-1-7…

2.59.1504 OWNERSHIP CHANGE IN THE DEFERRED DEPOSIT LENDER In the event there is a change of ownership in a licensee, the owner(s) shall file with the department an application for a new license. For purposes of this rule, a change in ownership includes circumstances when 25% or m…

2.59.1505 EXAMINATION OF DEFERRED DEPOSIT LENDERS An examination of a licensee's lending operations conducted by the department to verify compliance with Title 31, chapter 1, part 7, MCA, and these rules, must consist of a comprehensive review of the records, operations, and affa…

2.59.1506 PROCEDURAL RULES FOR HEARINGS AND DISCOVERY In the case of hearings concerning the issuance, suspension, revocation, or other enforcement actions pertaining to a licensee: hearings and related discovery must be conducted under the Montana Administrative Procedure Act im…

2.59.1507 REPORTS The following must be reported to the department: any instances of theft from the deferred deposit loan business within ten days of discovery of the theft; any change in managers within ten days of each occurrence; and all officer questionnaires must be answered…

2.59.1508 SCHEDULE OF CHARGES Every licensee under the Montana Deferred Deposit Loan Act shall file with the commissioner in duplicate, at the time of filing application for such license or license renewal, a full and accurate schedule of all charges, fees, and costs as follows: …

2.59.1510 EMPLOYEES' CHARACTER AND FITNESS Licensees are responsible for conducting appropriate background checks on new employees hired after July 1, 2006. At a minimum, each licensee shall: require completion of employee criminal background questionnaire; verify and document em…

2.59.1512 ELECTRONIC DEDUCTIONS An electronic deduction for nonsufficient funds may be authorized by the borrower only on the original loan agreement. An electronic deduction for nonsufficient funds shall be separate and apart from an electronic deduction for the amount of the lo…

2.59.1513 INCOME VERIFICATION Licensees shall verify a borrower's income prior to issuing any deferred deposit loan. Verification of income shall be in a form of most recent pay stubs for employment, or other official documents for public assistance, child support, alimony, unemp…

2.59.1514 DEPARTMENT APPROVAL OF LOAN AGREEMENT FORM For purposes of 31-1-721(2), MCA, department approval of a deferred deposit loan agreement form submitted for review by a licensee or license applicant means the department has verified that the form contains the provisions req…

2.59.1515 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 A…

2.59.1516 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 …

2.59.1517 INITIAL LICENSE APPLICATION THROUGH NMLS (REPEALED) Authorizing statute(s): 31-1-705, 31-1-710, MCA Implementing statute(s): 31-1-705, 31-1-710, MCA History: NEW, 2014 MAR p. 2449, Eff. 10/10/14; REP, 2022 MAR p. 228, Eff. 2/12/22.

2.59.1518 AMENDMENTS (REPEALED) Authorizing statute(s): 31-1-710, MCA Implementing statute(s): 31-1-710, MCA History: NEW, 2014 MAR p. 2449, Eff. 10/10/14; REP, 2022 MAR p. 228, Eff. 2/12/22.

2.59.1519 LICENSE SURRENDER (REPEALED) Authorizing statute(s): 31-1-710, MCA Implementing statute(s): 31-1-710, MCA History: NEW, 2014 MAR p. 2449, Eff. 10/10/14; REP, 2022 MAR p. 228, Eff. 2/12/22.

2.59.1520 FEES (REPEALED) Authorizing statute(s): 31-1-705, 31-1-706, 31-1-710, MCA Implementing statute(s): 31-1-705, 31-1-706, 31-1-710, MCA History: NEW, 2014 MAR p. 2449, Eff. 10/10/14; REP, 2022 MAR p. 228, Eff. 2/12/22.

2.59.1521 REINSTATEMENT OF EXPIRED LICENSES Upon expiration of a license issued under 31-1-705, 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 a…

2.59.1522 ADOPTION OF ANNUAL REPORTING FORM AND DUE DATE An entity holding a deferred deposit lender license for any period of time during a calendar year reporting period shall complete and file with the department by April 15 of the following calendar year a Deferred Deposit Le…

2.59.1601 U.S. TREASURY AND U.S. GOVERNMENT AGENCY ISSUES There is no dollar limit on a bank's investment in the following U.S. treasury securities: bonds; notes; or bills. There is no dollar limit on a bank's investment in U.S. treasury bonds and notes in the form of separate tr…

2.59.1602 OTHER APPROVED QUASI-GOVERNMENT SECURITIES Certain other securities are approved for bank investment. There is no dollar limit on a bank's investment in: general services administration (participation certificates) ; maritime administration (bonds and notes) ; and Washi…

2.59.1603 STATE, COUNTY, AND MUNICIPAL ISSUES Banks may invest, without dollar limitation, in the general obligation of any state which is part of the United States of America. Such obligations must be fully guaranteed as to the repayment of principal and interest. Evidence of su…

2.59.1604 CORPORATE BONDS Banks may invest up to 20% of their capital and surplus, 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. Other rating services ma…