Montana Administrative Code

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…

2.59.702 CHANGE OF OWNERSHIP IN ESCROW BUSINESS In the event of a change of ownership of an escrow business, the buyer(s) shall file with the department of administration, a new application for a license. For the purpose of this rule, a change in ownership will be deemed to occur…

2.59.703 EXAMINATION OF ESCROW BUSINESS Examinations of escrow businesses may be conducted by the department of administration, division banking and financial institutions, when requested by the licensee or when, in the judgment of the director, they are necessary. Licensees shal…

2.59.704 ESCROW BUSINESS BONDING An applicant for an escrow business license shall file with the division of banking and financial institutions a bond in the amount of $100,000 along with the application for licensure. Authorizing statute(s): Sec. 32-7-108, MCA Implementing statu…

2.59.705 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…

2.59.706 TRANSITION (REPEALED) Authorizing statute(s): 32-7-109, 32-7-112, MCA Implementing statute(s): 32-7-109, 32-7-112, MCA History: NEW, 2014 MAR p. 2448, Eff. 10/10/14; REP, 2016 MAR p. 2410, Eff. 12/24/16.

2.59.707 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…

2.59.708 INITIAL LICENSE APPLICATION THROUGH NMLS (REPEALED) Authorizing statute(s): 32-7-109, 32-7-112, MCA Implementing statute(s): 32-7-109, 32-7-112, MCA History: NEW, 2014 MAR p. 2448, Eff. 10/10/14; REP, 2022 MAR p. 228, Eff. 2/12/22.

2.59.709 AMENDMENTS (REPEALED) Authorizing statute(s): 32-7-109, 32-7-112, MCA Implementing statute(s): 32-7-109, 32-7-112, MCA History: NEW, 2014 MAR p. 2448, Eff. 10/10/14; REP, 2022 MAR p. 228, Eff. 2/12/22.

2.59.710 LICENSE SURRENDER (REPEALED) Authorizing statute(s): 32-7-112, MCA Implementing statute(s): 32-7-112, MCA History: NEW, 2014 MAR p. 2448, Eff. 10/10/14; REP, 2022 MAR p. 228, Eff. 2/12/22.

2.59.711 FEES (REPEALED) Authorizing statute(s): 32-7-110, 32-7-112 MCA Implementing statute(s): 32-7-110, 32-7-112, MCA History: NEW, 2014 MAR p. 2448, Eff. 10/10/14; REP, 2022 MAR p. 228, Eff. 2/12/22.

2.59.712 REINSTATEMENT OF EXPIRED LICENSES Upon expiration of a license issued under 32-7-110, 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…

2.59.713 ANNUAL FINANCIAL STATEMENT AND ESCROW ACTIVITIES REPORT AND DUE DATE The Montana Escrow Business Annual Financial Statement and Escrow Activities Report form, May 9, 2017, edition, is adopted and incorporated by reference. The form is available on the division's website,…

2.59.801 AUTHORITY, PURPOSE AND SCOPE: DEFINITIONS (REPEALED) Authorizing statute(s): 32-8-107, MCA Implementing statute(s): 32-8-107, 32-8-301, 32-8-302, 32-8-308, MCA History: NEW, 1997 MAR p. 2283, Eff. 12/16/97; TRANS, from Commerce, 2001 MAR p. 1178; REP, 2006 MAR p. 205, Ef…

2.59.802 ANNUAL REGULATION FEES (REPEALED) Authorizing statute(s): 32-8-107, MCA Implementing statute(s): 32-8-302, MCA History: NEW, 1997 MAR p. 2283, Eff. 12/16/97; TRANS, from Commerce, 2001 MAR p. 1178; REP, 2006 MAR p. 205, Eff. 1/27/06.

2.59.803 EXAMINATIONS (REPEALED) Authorizing statute(s): 32-8-107, 32-8-205, 32-8-301, MCA Implementing statute(s): 32-8-303, MCA History: NEW, 1997 MAR p. 2283, Eff. 12/16/97; TRANS, from Commerce, 2001 MAR p. 1178; REP, 2006 MAR p. 205, Eff. 1/27/06.

2.59.804 CRITERIA FOR KNOW-YOUR-CUSTOMER POLICY (REPEALED) Authorizing statute(s): 32-8-107, 32-8-301, MCA Implementing statute(s): 32-8-301, MCA History: NEW, 1997 MAR p. 2283, Eff. 12/16/97; TRANS, from Commerce, 2001 MAR p. 1178; REP, 2006 MAR p. 205, Eff. 1/27/06.

2.59.805 CRITERIA FOR ANTI-MONEY LAUNDERING COMPLIANCE (REPEALED) Authorizing statute(s): 32-8-107, 32-8-301, MCA Implementing statute(s): 32-8-301, 32-8-309, 32-8-314, 32-8-501, MCA History: NEW, 1997 MAR p. 2283, Eff. 12/16/97; TRANS, from Commerce, 2001 MAR p. 1178; REP, 2006 …

2.59.806 QUARTERLY AND ANNUAL REPORTS (REPEALED) Authorizing statute(s): 32-8-107, 32-8-301, MCA Implementing statute(s): 32-8-308, MCA History: NEW, 1997 MAR p. 2283, Eff. 12/16/97; TRANS, from Commerce, 2001 MAR p. 1178; REP, 2006 MAR p. 205, Eff. 1/27/06.

2.59.807 SUSPICIOUS ACTIVITY REPORTS (REPEALED) Authorizing statute(s): 32-8-107, 32-8-301, MCA Implementing statute(s): 32-8-301, 32-8-309, MCA History: NEW, 1997 MAR p. 2283, Eff. 12/16/97; TRANS, from Commerce, 2001 MAR p. 1178; REP, 2006 MAR p. 205, Eff. 1/27/06.

2.59.808 OTHER REPORTS REQUIRED (REPEALED) Authorizing statute(s): 32-8-107, 32-8-301, 32-8-308, MCA Implementing statute(s): 32-8-301, 32-8-308, 32-8-315, MCA History: NEW, 1997 MAR p. 2283, Eff. 12/16/97; TRANS, from Commerce, 2001 MAR p. 1178; REP, 2006 MAR p. 205, Eff. 1/27/0…

2.59.901 CHANGE OF LOCATION (REPEALED) Authorizing statute(s): 32-1-372, MCA Implementing statute(s): 32-1-372, MCA History: Eff. 12/6/73; TRANS & AMD, 1998 MAR p. 2480, Eff. 9/11/98; TRANS, from Commerce, 2001 MAR p. 1178; AMD, 2010 MAR p. 213, Eff. 1/29/10; AMD, 2016 MAR p. 232…

2.59.902 DEFINITIONS For purposes of this subchapter, the following definitions apply: "Consolidate" means a combination of two or more office locations within the same immediate neighborhood that does not substantially affect the nature of the business or customers served. For e…

2.59.903 LOAN PRODUCTION OFFICE A bank that desires to establish a new loan production office in this state must obtain prior approval from the department. A bank must file an application with the department prior to opening a loan production office using the Application to Estab…

2.59.904 BRANCH BANKS A bank 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 must be given using the Request for Summary Approval of Bran…

2.59.905 MONTANA BANKS BRANCHING OUTSIDE MONTANA In order for a bank organized under the laws of this state to request approval for a branch outside of Montana, the bank must submit copies of all required regulatory filings or notices required by the host state and federal agenci…

2.59.906 BANKS ORGANIZED OUTSIDE OF MONTANA BRANCHING INTO MONTANA Banks organized under the laws of a state other than Montana and national banks must submit copies of all required regulatory filings or notices required by the home state and federal agencies to the department an…

2.59.907 CLOSING OR RELOCATING A BRANCH BANK A Montana state-chartered bank that desires to relocate or close a branch temporarily or permanently must give notice to its customers using the Notice of Relocation of Bank Branch form, April 30, 2025, version, or Notice of Closure of…

2.59.908 TEMPORARY EMERGENCY CLOSURE OF BRANCH (REPEALED) (REPEALED) Authorizing statute(s): 32-1-211, 32-1-218, MCA Implementing statute(s): 32-1-211, 32-1-218, 32-1-561, 32-1-562, 32-1-563, 32-1-564, 32-1-565, MCA History: NEW, 2020 MAR p. 1698, Eff. 9/12/20; REP, 2025 MAR, Not…

2.59.909 EMERGENCY CLOSURE OF BRANCH (REPEALED) (REPEALED) Authorizing statute(s): 32-1-211, 32-1-218, MCA Implementing statute(s): 32-1-211, 32-1-218, 32-1-561, 32-1-562, 32-1-563, 32-1-564, 32-1-565, MCA History: NEW, 2020 MAR p. 1698, Eff. 9/12/20; REP, 2025 MAR, Notice No. 20…