Title 32, Title 32

Each mutual association 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 supervision of mutual associations. The department may amend the rule setting the fees on or…

If requested in writing, upon the authority of a majority of the board of directors of any mutual association to make an examination of the mutual association, the department shall do so.

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

(1) A person acting in good faith reliance on 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…

(1) A mutual association shall make to the department regular call reports at least four 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 mutual association, and att…

In addition to the information obtained from the call report required by 32-2-706, the department may also require a mutual association to furnish a special report in writing, verified as required by 32-2-706, if in its judgment the special report is necessary to inform it fully …

(1) (a) Reports and statement under 32-2-701, 32-2-703, and 32-2-707 are confidential. Except for information made public by the federal deposit insurance corporation or another federal mutual association authority's publicly accessible website, any information contained in the r…

(1) It is unlawful for any person to knowingly and purposefully: (a) make any material false statement of facts, statement of accounts, or report to the department; or (b) make any false entries in the books of the mutual association. (2) It is unlawful for any person to knowingl…

(1) Five or more individuals who are residents of this state may, with the approval of the commissioner, incorporate a mutual association. (2) The persons proposing to incorporate a mutual association shall apply for approval to incorporate by submitting the application in a form…

If the department determines that a completed application has been received, it shall issue a notice of acceptance of application to the applicant.

(1) (a) Within 10 days after receipt from the department of a notice of acceptance of an application, the applicant shall publish notice of the proposed incorporation in a newspaper of general circulation in the county where the mutual association's initial main office is to be l…

(1) The department may gather all available information relative to an application. The department may also make, or cause to be made, any investigations of any individual associated with the applicant as may be warranted under the circumstances, including a full background check…

(1) A mutual association's articles of incorporation must contain the following: (a) the information required by 35-14-202(1); (b) the name of the city or town and county within the state in which the principal office of the corporation is to be located; (c) the names and busines…

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 incorporation…

(1) The bylaws must be in conformity with the provisions of this chapter and must be open to inspection by the members at the principal place of business during regular business hours. (2) The bylaws, among other things, must provide for: (a) the character and method of conductin…

(1) The capital of a mutual association must be an amount determined by the commissioner based on the amount and character of the anticipated business of the mutual association and the safety of prospective depositors. (2) As used in this section, "capital" means the initial fund…

(1) The commissioner shall examine all of the facts connected with the application to determine if all of the requirements of law are met, including but not limited to the following: (a) the proposed articles of incorporation and bylaws, application for reservation of name, appli…

(1) A mutual association organized under this chapter may not accept deposits, incur indebtedness, or transact any business other than business that is incidental to its organization until it receives a certificate of authority to commence business issued by the commissioner. (2)…

(1) Any mutual association that fails to commence business as a financial institution within 1 year after receiving a certificate of authorization forfeits that certificate and shall cease all activities. The commissioner shall certify to the secretary of state that the certifica…

(1) Any federal mutual savings and loan association organized and existing under the laws and regulations of the United States and duly authorized to operate and actually operating in Montana may convert into a Montana mutual savings and loan association operating under the provi…

(1) Any mutual association eligible to become a federal savings and loan association may convert itself into a federal savings and loan association by following the procedure in subsection (2). (2) (a) At any regular meeting or special meeting of the members of the mutual associa…

A mutual association must have its qualified thrift investments: (1) equal or exceed 50% of its portfolio assets; and (2) continue to equal or exceed 50% of its assets on a monthly average basis in 9 out of every 12 months.

(1) Within 30 days after the corporate existence of a mutual association begins, the directors of the mutual association shall hold an organizational meeting and shall elect officers pursuant to the provisions of this chapter and the bylaws of the mutual association. At the organ…

(1) The affairs of the mutual association must be managed by a board of directors consisting of no fewer than three persons. At least two-thirds of the board must be residents of this state. Directors need not be members of the corporation unless required by the articles of incor…

(1) The board of directors of a mutual association shall hold a meeting at least quarterly. (2) The board of directors may elect a president, one or more vice presidents, a cashier, one or more assistant cashiers, and other officers and employees that the board may from time to t…

(1) A depositor of a mutual association is a voting member and has an ownership interest in the mutual association as may be provided in the terms and conditions set forth in the articles of incorporation and bylaws of the mutual association. (2) The bylaws of a mutual associatio…

A member of a mutual association incorporated under the laws of this state who is not a director may not inspect the books and records of the mutual association showing its transactions with a customer. A member may inspect the books and records of the mutual association as provi…

(1) A mutual association organized under the laws of this state may engage in any activity or business in which the mutual association could engage if it were operating as a federal savings association if the power or activity is not expressly prohibited or limited by the laws of…

(1) Any mutual association that will become a corporation for carrying on the business of a mutual association under the laws of the United States ceases to be a corporation under the laws of this state. (2) The members of the board of directors last in office when the corporatio…

(1) A mutual association may be a member of the federal home loan bank of this federal reserve banking district as far as may be compatible with the constitution of this state and the laws of the United States. (2) The department, on request of any federal home loan bank, shall f…

(1) (a) Any mutual association doing business in this state that has been in business for at least 5 years may, with the approval of the department if any merger party is a mutual association organized under the laws of this state, merge into one mutual association on terms and c…

(1) A mutual association may establish and maintain branches as provided in 32-2-827 and this section. The formation and operation of a branch in this state by a mutual association organized under the laws of this state require the prior approval of the department. A mutual assoc…

Any mutual association may, with the approval of the department, buy from or sell to another mutual association, regardless of where either mutual association is located or doing business, all or substantially all of the business, assets, and liabilities of the selling mutual ass…

(1) A mutual association may: (a) establish and maintain a loan production office only after giving notice to 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…

(1) The selling and purchasing mutual associations shall enter into an agreement that must contain: (a) all of the terms and conditions of the sale; (b) proper provision for the assumption, payment, transfer, or retention of all of the liabilities of the selling mutual associatio…

It is unlawful for any individual, firm, or corporation to advertise, publish, or otherwise promulgate that it is engaged in the mutual association business without first having obtained authority from the department. Any person who violates this section is subject to the penalti…

(1) Except as provided in subsection (4), a person, firm, company, partnership, or corporation, either domestic or foreign, that is not subject to the supervision of the department and not required by the provisions of this chapter to report to the department and that has not rec…

(1) A person, firm, company, partnership, or corporation, domestic or foreign, advertising that the person or entity is receiving or accepting money or savings for deposit, investment, or otherwise and issuing notes or certificates of deposit for them or advertising that the pers…

(1) A mutual association may: (a) act as fiscal agent for and receive deposits from the federal government, this state, or any agency or political subdivision of the federal government or this state; (b) sue and be sued, complain, and defend in any court of law or equity; (c) hav…

No mutual association, mutual association employee, or mutual association officer, except as otherwise authorized by law, may pledge or hypothecate as collateral security for money borrowed its assets in a ratio exceeding 1 1/2 times the amount borrowed, except as otherwise autho…

A mutual association may issue mutual capital certificates as allowed by federal law.

A mutual association may not issue its certificate of deposit for the purpose of borrowing money or make partial payments on any certificate of deposit.

(1) Notwithstanding other provisions of the law, it is lawful for a mutual association operating under the laws of this state to invest the funds or money in its custody or possession, eligible for investment, in: (a) debentures issued by the federal housing administrator and in …

(1) A mutual association may: (a) except for title insurance, sell insurance of all types, including annuities, credit life insurance, and disability insurance; and (b) act as an insurance producer, adjuster, consultant, or administrator as defined in Title 33, chapter 17. (2) A …

(1) A state mutual association has the same authority to make loans on real estate that is given by acts of congress or the federal reserve system to federal savings associations. (2) A mutual association that is subject to this section may not require a borrower, as a condition …

(1) A mutual association may purchase, sell, underwrite, and hold investment securities that are obligations in the form of bonds, notes, or debentures, as provided in rules adopted by the department. In addition, unless limited by the department by rule, a mutual association may…