Title 32, Title 32

Before accepting an appointment or acting as a trustee, guardian, or conservator, a foreign trust company shall file a bond with a court of competent jurisdiction in an amount that the court directs, with sufficient sureties, conditioned on the faithful discharge of its duties as…

A foreign trust company acting as trustee, guardian, or conservator has the rights, authority, and duties that a natural person resident in this state duly acting as trustee, guardian, or conservator has under the laws of this state.

A foreign trust company may conduct business in Montana only in accordance with rules adopted by the department.

(1) Parts 1 through 5 of this chapter may be known as the "Bank Act". (2) The Bank Act is applicable to: (a) all corporations and persons specified in 32-1-102; (b) corporations that subject themselves to the Bank Act; and (c) persons, partnerships, or corporations who by violati…

(1) The word "bank" as used in this chapter means any corporation that has been incorporated to conduct the business of receiving money on deposit or transacting a trust or investment business, as defined in this chapter. (2) The soliciting, receiving, or accepting of money or it…

Corporations may be formed by any number of natural persons or by a corporation or other entity authorized to own or control banks and organized under the laws of this state to conduct, as provided in this chapter, the businesses mentioned in 32-1-102.

The term "commercial bank" means any bank authorized by law to: (1) receive deposits of money; (2) deal in commercial paper or make loans on commercial paper; (3) lend money on real or personal property; (4) engage in business activities directly or indirectly through affiliates …

The term "savings bank" means a bank organized only for the purpose of accumulating and loaning the funds of its members, stockholders, and depositors and which may: (1) loan and invest the funds thereof; (2) receive deposits of money; loan, invest, and collect the same with inte…

The term "trust company" means any corporation that is incorporated under the laws of this state for any one or more of the following purposes: (1) to receive money in trust and to accumulate the money at rates of interest as may be obtained or agreed upon or to allow interest on…

The term "investment company" means any corporation which is incorporated under the laws of this state for any one or more of the following purposes: (1) to receive moneys in trust and to accumulate the same at such rates of interest as may be obtained or agreed upon or to allow …

As used in this chapter, unless the context requires otherwise, the following definitions apply: (1) "Acquire" means: (a) the direct or indirect purchase or exchange of stock; (b) the direct or indirect purchase of assets and liabilities; or (c) a merger. (2) "Acquiring party" me…

When no other punishment is provided, a person willfully or knowingly violating parts 1 through 5 of this chapter is guilty of a misdemeanor. Upon information furnished by the department, the attorney general shall sue to enforce parts 1 through 5 of this chapter.

No property owned by any bank organized under the laws of the state of Montana shall be subject to attachment.

(1) Except as provided in subsection (2), the provisions of Title 35, chapter 14, apply to banks unless a section in this title or a rule or order issued under this chapter is inconsistent with Title 35, chapter 14. (2) The provisions of 35-14-301, 35-14-302(4) through (10), 35-1…

(1) The term "student financial institution" means a financial institution that: (a) is located at a school or a location where educational services are provided; (b) is operated as a financial literacy educational program; (c) is operated by one or more state-chartered or federa…

For the purposes of this part, the following definitions apply: (1) "Covered agency" means any of the following: (a) a federal, state, or local law enforcement agency; or (b) the department of public health and human services as provided in 2-15-2201 or its local affiliate. (2) "…

(1) A covered financial institution may notify any covered agency if the covered financial institution believes that the financial exploitation of a vulnerable adult is occurring, has or may have occurred, is being attempted, or has been or may have been attempted. (2) A covered …

(1) A covered financial institution may, but is not required to, delay completion or execution of a transaction involving an account of a vulnerable adult, an account on which a vulnerable adult is a beneficiary, an account in which the vulnerable adult has a financial interest, …

(1) (a) A covered financial institution and its directors, officers, employees, attorneys, accountants, agents, and other representatives have no duty to act pursuant to this part or otherwise to protect a vulnerable adult from financial exploitation by a third person. (b) A cove…

(1) The department shall: (a) exercise constant supervision over the books and affairs of all banks and trust companies doing business in this state; and (b) investigate the methods of operation and conduct of business of the banks and trust companies and their systems of account…

(1) The commissioner and any deputy commissioner may not be, directly or indirectly, interested in any entity chartered or supervised by the department. (2) The commissioner, any deputy commissioner, or any employee of the division, including a bank examiner, may not borrow money…

Each bank, trust company, or investment company under the supervision of the department shall pay to the department fees set by the department by rule to recover all of the costs of administering the program for the supervision of banks, trust companies, and investment companies.…

A special examination is an examination made by the department otherwise than in the ordinary routine of the department because, in its opinion, the condition of the bank requires the examination or an examination made at the request of the board of directors or stockholders of a…

Special examinations may be made of a bank, trust company, investment company, building and loan association, or credit union when in the judgment of the department it is considered necessary, and the special examination shall be charged for at a rate that equals the department's…

When requested in writing, upon the authority of a majority of the board of directors of any bank, to make an examination of such bank, the department shall do so.

(1) The department may promulgate reasonable rules and orders concerning bookkeeping and accounting by state banks, including the keeping of reasonable credit information, information in connection with assets, or information in connection with charged-off items. (2) The departme…

A person acting in good faith reliance upon a rule, order, or declaratory statement issued by the division is not subject to any criminal, civil, or administrative liability for the action if a subsequent decision by a court of competent jurisdiction invalidates the rule, order, …

The division may review the books and affairs of a bank holding company operating under the Bank Holding Company Act of 1956 during the course of a safety and soundness examination of the bank holding company's subsidiary bank to the extent that the records pertain to the operati…

(1) Notwithstanding 32-1-211(2)(b), the department shall submit to a regional banking organization a report of the examination findings no later than 90 days after the completion of the examination. (2) The department has the same examination authority over the bank holding compa…

(1) A bank may: (a) establish and maintain a loan production office only after approval by the department; or (b) relocate or close a loan production office after giving notice to its customers and the department. (2) The department may adopt rules to implement this section.

(1) A bank shall make to the department regular call reports at least three times each year according to the form that may be prescribed by the department, verified by oath or affirmation of the president, vice president, or cashier of the bank and attested by the signature of at…

In addition to the call report required by 32-1-231, a bank shall report to the department within 30 days after declaring a dividend, showing the amount of the dividend and the amount of net earnings in excess of the dividend. The report must be attested as provided in 32-1-231.

(1) In addition to the information obtained from the call report required by 32-1-231, the department may also require a bank to furnish a special report in writing, verified as required by 32-1-231, when in its judgment the special report is necessary to inform it fully of the a…

(1) (a) Reports and statements under 32-1-211, 32-1-215, 32-1-216, 32-1-221, 32-1-232, and 32-1-233 are confidential. Except for information made public by the federal deposit insurance corporation or other federal banking authority's publicly accessible website, any information …

Every officer or other person authorized by this chapter who willfully and knowingly makes any false statement of facts, statement of account, or report and every officer, agent, or clerk of any bank who willfully and knowingly makes any false entries in the books of such bank or…

(1) Any five or more individuals, at least three of whom are residents of the state, may file an application to incorporate a proposed bank. The application must be in the form and contain the information prescribed by the department by rule. A nonrefundable application fee, as s…

(1) 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 department's further inquiry. (2) For the purpose of further inquiry, the department …

(1) The department shall ensure that sufficient information has been submitted to allow the commissioner to determine whether: (a) the purposes of the proposed bank as stated in the proposed bank's business plan, articles of incorporation, and the application are consistent with …

(1) When the department determines an application to organize a new bank is complete, the department shall notify the applicant and submit the completed application to the commissioner for a decision. (2) The commissioner shall review all the submitted materials and the results o…

The commissioner may disapprove an application on a finding that any person named in the application to organize or in other documents submitted for filing: (1) is insolvent, either in the sense that the person's liabilities exceeded the person's assets or that the person cannot …

Following approval of the application, the incorporators must: (1) file a signed original of the articles of incorporation with the department for filing with the secretary of state and pay the filing fee; (2) provide acceptable proof that the capital of the institution has been …

The department shall adopt rules providing an application process, processing times, requirements, fees, and criteria for the approval of a shell bank.

(1) A person desiring to organize a banking corporation shall make and file articles of incorporation with the department and, on approval by the department, the department may file the articles with the secretary of state as provided in Title 35, chapter 14. The articles of inco…

(1) The proposed articles of incorporation must be presented to the department, together with an application in writing in the form prescribed by the department, for a certificate authorizing the proposed corporation to transact the business specified in the articles of incorpora…

The commissioner shall determine the appropriate level of capitalization of the proposed corporation prior to the issuance of the certificate of authorization.

The bylaws must be certified by a majority of the directors and the secretary of the corporation and recorded in the permanent records of the bank. Bylaws must be open to public inspection during office hours. A copy of the bylaws must also be transmitted to the department.