Montana Administrative Code

2.59.2204 PRO FORMA STATEMENT An operational projection must be submitted as part of the application for proposed new depository bank charters, in order to show that the new bank will remain solvent while meeting the requirements set forth in 32-1-240 through 32-1-245, MCA, and A…

2.59.2205 PERSUASIVE SHOWING OF REASONABLE PUBLIC NECESSITY AND DEMAND In determining whether reasonable public necessity and demand is established, the department must assess the needs of the community as a whole and determine whether the proposed new depository bank will promot…

2.59.2206 CAPITAL ADEQUACY OF A PROPOSED NEW DEPOSITORY BANK The applicant must provide reasonable assurances that the proposed new depository bank will have adequate initial paid-in capital sufficient to accomplish the following: establish an undivided profits account in an amou…

2.59.2207 FINGERPRINTING The department may require any person listed in 32-1-241, MCA, to submit to fingerprints for submission to the Federal Bureau of Investigation as well as a consent to a background check. Authorizing statute(s): 32-1-218, 32-1-241, MCA Implementing statute…

2.59.2208 A STATE BANK ORGANIZED FOR THE PURPOSE OF ASSUMING DEPOSIT LIABILITY OF ANY CLOSED BANK All provisions of 32-1-240 through 32-1-245, MCA, and ARM 2.59.2201 through 2.59.2209 are applicable. Prior to submitting a bid for the assets and liabilities of a closed bank, organ…

2.59.2209 FDIC INSURANCE REQUIRED To comply with 32-1-242, MCA, it has been determined by the department that it is in the public interest to require all commercial banks to be accepted by the Federal Deposit Insurance Corporation for the insurance of deposits. The department wil…

2.59.2210 INSTITUTION NAME The name of a financial institution may not contain any word or phrase that indicates or implies that the institution is organized for any purpose other than one or more of the purposes contained in the institution’s articles of incorporation. The name …

2.59.2302 A STATE BANK ORGANIZED FOR THE PURPOSE OF BEING A SHELL BANK For a bank organized solely for the purpose of merging with, or otherwise acquiring, an existing bank or savings association is referred to as a shell bank in this subchapter. A shell bank charter may only be …

2.59.2303 APPLICATION PROCEDURES An application to form a shell bank must be submitted to the department using the Shell Bank Charter Application form, April 30, 2025, version, located at banking.mt.gov. At least 30 days prior to the effective date of any merger or business conso…

2.59.2304 DEPARTMENT TO REVIEW APPLICATION The department must ensure that sufficient information has been submitted to determine whether: the character, financial responsibility, and general fitness of the owners and managers of the proposed bank command the confidence of the co…

2.59.2305 AUTHORITY TO REQUIRE ADDITIONAL INVESTIGATORY INFORMATION - FINGERPRINTING The department may investigate any person named in the application or in other documents submitted for filing. The department may require the person to provide additional information for the depa…

2.59.2306 DECISION OF DEPARTMENT; INCORPORATION The department’s approval of a shell bank must be specifically conditioned on: the department's approval of the subsequent merger; and the resulting bank being accepted for deposit insurance by the Federal Deposit Insurance Corporat…

2.59.2307 GROUNDS FOR DENYING AN APPLICATION The department may deny an application on a finding that any person named in the application to organize or in other documents submitted for filing: is insolvent, either in the sense that the person's liabilities exceed the person's as…

2.59.2308 ADDITIONAL REQUIREMENTS AFTER APPROVAL OF APPLICATION Following approval of the application, the incorporators must: file a signed original of the articles of incorporation with the department for filing with the Secretary of State and pay the filing fee; provide accept…

2.59.2309 POWERS OF A SHEL BANK BEFORE MERGER Prior to completing a merger, a shell bank may take only those corporate and fiduciary steps and actions reasonably incidental and necessary to facilitate and complete the merger. Such limitation does not preclude the department from …

2.59.2310 PROOF OF MERGER: REVOCATION OF CERTIFICATE OF AUTHORIZATION From the date a shell bank is authorized according to this rule, the parties to the shell bank merger agreement have six months in which to effect the merger with the existing bank or savings association. The m…

2.59.2401 DEFINITIONS The following definition applies to rules within this subchapter: “Nondepository trust company bank” means a bank as defined in 32-1-107, MCA, that engages in one or more of the purposes set forth in 32-1-107(2), (3), (4), (5), (6), or (8), MCA. Authorizing …

2.59.2402 CAPITAL ADEQUACY OF A NONDEPOSITORY TRUST COMPANY BANK The department may not issue a charter to a nondepository trust company bank having initial capital of less than $2 million. The department may, on a case-by-case basis, require additional capital, or the deposit of…

2.59.301 ADVERTISING "Advertising" or "advertisement" means any written or oral statement or depiction that includes terms or availability of loans or that is designed to create interest in a consumer loan product and is conveyed in any manner or medium including but not limited …

2.59.302 FEE DISCLOSURES – COMPUTATION OF INTEREST At the time of filing an application for initial license or a renewal license under the Montana Consumer Loan Act, the applicant shall file with the department a fee disclosure statement and a failure- or inability-to-pay disclos…

2.59.303 CREDIT INSURANCE A consumer loan licensee may not sell, solicit, or negotiate insurance or act as an insurance producer or insurance agency in this state unless licensed under Title 33, chapter 17, MCA. A consumer loan licensee holding an insurance producer or insurance …

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…