Montana Administrative Code

2.59.1208 REINSTATEMENT OF EXPIRED LICENSES Upon expiration of a license issued under 31-1-221, 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…

2.59.121 METHOD OF PAYMENT OF FEES Except as provided in ARM 2.59.119(1)(c)(ii), a bank 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 bank also offers the customer a bona fide op…

2.59.122 AFFIRMATIVE ELECTION TO PURCHASE AND ACKNOWLEDGMENT OF RECEIPT OF DISCLOSURES Before entering into a debt cancellation contract or debt suspension agreement, a bank shall obtain the customer's written affirmative election to purchase the contract and a written acknowledg…

2.59.123 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 App A revised as of January 1, 2010. The form must be adapted by the bank to include the disclosures required under ARM…

2.59.124 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…

2.59.125 DEFINITIONS APPLICABLE TO DERIVATIVE TRANSACTIONS AND SECURITIES FINANCING TRANSACTIONS The following definitions apply to rules within this subchapter: "Bank" or "state bank" has the same meaning as "eligible state bank" in (10). "Borrower" means: a person who is named …

2.59.126 ELIGIBLE STATE BANK'S PERMISSIBLE DERIVATIVE TRANSACTIONS An eligible state bank as defined in ARM 2.59.125 may engage in any derivative transaction if the bank has a written policy approved by its board of directors that: identifies the types of derivative transactions …

2.59.127 LENDING LIMITS APPLICABLE TO DERIVATIVE TRANSACTIONS For purposes of 32-1-432, MCA, derivative transactions and securities financing transactions must be included in the calculation of lending limits. The calculation of credit exposure arising from derivative transaction…

2.59.128 NONCONFORMING LOANS AND EXTENSIONS OF CREDIT A loan or extension of credit within a bank'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 bank's lend…

2.59.129 CREDIT EXPOSURE ARISING FROM DERIVATIVES AND SECURITIES FINANCING TRANSACTIONS For purposes of determining a bank's lending limit under 32-1-432, MCA, the bank's credit exposure arising from a derivatives transaction or a securities financing transaction entered by a ban…

2.59.130 CHANGE IN CONTROL An applicant filing under 32-1-378(1)(b), MCA, must use the Application for Change in Control form, April 30, 2025, version, which is located at banking.mt.gov. An applicant or other person subject to this rule must notify the department immediately of …

2.59.131 REPORT OF DECLARATION AND PAYMENT OF DIVIDEND – DIVIDEND APPROVAL REQUEST FORM (REPEALED) Authorizing statute(s): 32-1-211, 32-1-218, MCA Implementing statute(s): 32-1-211, 32-1-232, 32-1-452, MCA History: NEW, 2020 MAR p. 1698, Eff. 9/12/20; AMD, 2021 MAR p. 328, Eff. 3…

2.59.132 CONFLICTS OF INTEREST For purposes of 32-1-212, MCA, the following definitions apply: "Interested in" means the commissioner or deputy commissioner: is an officer, director, or employee of a supervised entity or an individual or person owning or controlling a supervised …

2.59.133 OATHS OF DIRECTORS (REPEALED) Authorizing statute(s): 32-1-211, 32-1-322, MCA Implementing statute(s): 32-1-211, 32-1-322, MCA History: NEW, 2020 MAR p. 1698, Eff. 9/12/20; REP, 2022 MAR p. 234, Eff. 2/12/22.

2.59.134 CONVERSION OF A NATIONAL BANK TO A STATE BANK Upon conversion: the resulting state bank has all the rights and property of the converted bank and all the debts and liabilities of the converted bank in the same manner as if the resulting state bank itself had incurred the…

2.59.135 FORM TO REPORT DIRECTORS AND OFFICERS Banks must file the List of Officers and Directors form, June 29, 2020, version, 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 de…

2.59.136 FOREIGN FIDUCIARY TRUST COMPANY (REPEALED) (REPEALED) Authorizing statute(s): 32-1-1007, MCA Implementing statute(s): 32-1-1002, 32-1-1007, MCA History: NEW, 2020 MAR p. 1698, Eff. 9/12/20; REP, 2024 MAR p. 1058, Eff. 5/11/24.

2.59.137 PARITY WITH NATIONAL BANKS (REPEALED) Authorizing statute(s): 32-1-211, 32-1-362, MCA Implementing statute(s): 32-1-211, 32-1-362, MCA History: NEW, 2020 MAR p. 1698, Eff. 9/12/20; REP, 2022 MAR p. 234, Eff. 2/12/22.

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…