Title 32, Title 32

(1) Except as provided in subsection (2), the department shall give notice by advertisement once a week for 2 successive weeks in a newspaper of general circulation in the town or city where the mutual association is located, if there is one, or in another newspaper that is publi…

(1) Except as provided in subsection (6), the department may reject or allow all claims in whole or in part and on each claim allowed shall designate the order of its priority. (2) If a claim is rejected or an order of priority allowed lower than that claimed, notice must be give…

(1) Claims presented to the department prior to the expiration of the time fixed in the notice to creditors and allowed by it must be paid in the order of the priority fixed in this chapter. (2) Those claims filed after that expiration and within 1 year of that expiration are ent…

(1) Except as otherwise provided by the Uniform Commercial Code, the order of payment of the debts of a mutual association liquidated by the department is as follows: (a) the expense of liquidation, including compensation of agents, employees, and attorneys; (b) all funds of any …

(1) At any time after taking possession of the mutual association and prior to the expiration of the period fixed for filing of claims, and if under the circumstances of the particular case it considers it expedient and safe and if it has on hand in cash sufficient funds in exces…

All funds in the hands of the department belonging to a mutual association in process of liquidation must be deposited in the department's name in those financial institutions in the state and designated by it and subject to its checks. Those funds must be preferred and protected…

(1) The department shall certify to the state treasurer a complete list of funds remaining with the department that are uncalled for and that have been left with it in its official capacity in trust for depositors in and creditors of a liquidated mutual association after the fund…

(1) (a) Except as provided in subsection (4), when the department has paid to each depositor and creditor of the mutual association whose claims have been approved and allowed as provided in this chapter the amount due on them or made satisfactory adjustment of them and has made …

(1) The liquidating officer of a mutual association may decide when the assets of a failed mutual association are not sufficient to pay the debts, contracts, engagements, and liabilities and may determine the time when and the court where necessary legal proceedings are conducted…

(1) Except as provided in subsection (2), the department shall, within 90 days after taking charge of an insolvent mutual association, file with the district court having jurisdiction a complete inventory of all of the property and assets of the insolvent mutual association, such…

As used in 32-2-1030 through 32-2-1034, unless the context requires otherwise, the following definitions apply: (1) "Emergency" means any condition or occurrence that may interfere physically with the conduct of normal business operations at any of the offices of a mutual associa…

When the department feels that an emergency exists or is impending in this state or in any part of this state, it may, by proclamation, authorize mutual associations located in the affected area to close any of their offices. In addition, if the department is of the opinion that …

(1) When the officers of a mutual association feel that an emergency exists or is impending that affects or may affect any of a mutual association's offices, they may, in the reasonable and proper exercise of their discretion, determine not to open any of those offices on any bus…

A mutual association closing an office under authority granted under 32-2-1032 shall give to the department as prompt notice of its action as conditions will permit and by any means available. In the case of a federal savings association, the notice must be given to the comptroll…

(1) A day on which a mutual association or any of its offices is closed during any part of its normal mutual association hours under 32-2-1031 and 32-2-1032 with respect to that mutual association or, if not all of its offices are closed, then with respect to the office or office…

As used in this part, the term "savings institution" means a mutual association that is organized under the laws of this state.

(1) A savings institution may, on the authority of its board of directors or a majority of the board, enter into the contracts, incur the obligations, and generally perform any acts necessary or appropriate in order to take advantage of any memberships, loans, subscriptions, cont…

If a savings institution whose deposits are in any extent insured by the federal deposit insurance corporation created by the Federal Deposit Insurance Act, 12 U.S.C. 1811 through 1831, is closed on account of the savings institution's inability to meet the demands of its credito…

Whenever any savings institution has been closed as provided in 32-2-1103 and the federal deposit insurance corporation pays or makes available for payment the insured deposit liabilities of the closed savings institution, the federal deposit and insurance corporation, whether or…

(1) The department may accept, in its discretion, in place of any examination authorized by the laws of this state to be conducted of a savings institution by the department, the examination made of the savings institution within a reasonable period by the federal deposit insuran…

(1) If a savings institution is closed on account of the savings institution's inability to meet the demands of its depositors, by action of the department, by action of its directors, or in the event of its insolvency or suspension, the department or the department's agent may b…

As used in this part, the following definitions apply: (1) "Board member" means a member of the board of directors of the institution. (2) "Cease and desist order that has become final" means a cease and desist order or an order with respect to which: (a) a timely petition for re…

(1) If the department has reasonable cause to believe that any institution is engaging, has engaged, or is about to engage in an unsafe or unsound practice in conducting the business of the institution or is violating, has violated, or is about to violate a law or rule, the depar…

Within 15 days after service of the notice of charges, either the institution or the department may request an informal conference to discuss the charges and the possible disposition of the charges without a formal hearing process. The conference must be carried out in accordance…

(1) (a) Whenever the department determines that any violation or threatened violation or any unsafe or unsound practice specified in the notice of charges served on the institution pursuant to 32-2-1202(1) or the continuation is likely to cause insolvency or substantial dissipati…

(1) The department may serve on a board member or officer of an institution a written notice of intention to remove the member or officer from office whenever the department has reasonable cause to believe that: (a) the board member or officer has: (i) committed any violation of …

Within 15 days after service of the notice of charges sent pursuant to 32-2-1205, the board member, officer, or other person may request an informal conference to discuss the charges and the possible disposition of the charges without a formal hearing process. The conference must…

(1) (a) With respect to any board member, officer, or other person of an institution to whom notice is sent pursuant to 32-2-1205, if the department considers it necessary for the protection of the institution or the interests of its depositors that the individual be suspended fr…

(1) (a) If a board member, officer, or other person participating in the conduct of the affairs of an institution is charged in any information, indictment, warrant, or complaint authorized by a county, state, or federal authority with the commission of or participation in a felo…

(1) If at any time because of the suspension or removal of one or more board members pursuant to this part the board of directors of an institution has less than a quorum of board members not suspended or removed, all powers and functions vested in or exercisable by the board ves…

(1) A hearing provided for in this part must be conducted in accordance with the provisions of the Montana Administrative Procedure Act. The hearing must be private unless the commissioner, after fully considering the views of the party afforded the hearing, determines that a pub…

Any service required or authorized to be made by the department pursuant to this part must be made on individual board members and officers by personal service and may be made on institutions by registered or certified mail or common courier with tracking capability or in any man…

The commissioner may apply to the district court of the county in which the home office of the institution is located or to the district court for Lewis and Clark County for the enforcement of any effective and outstanding notice or order issued under this part. The court has jur…

Any present or former board member or officer of an institution or any other person against whom an outstanding and effective notice or final order has been served pursuant to 32-2-1205, 32-2-1207, or 32-2-1208 is subject to the penalties in 32-2-607(5) if the individual: (1) par…

(1) This chapter may be cited as the "Mutual Savings and Loan Association Act". (2) A corporation that has been incorporated for the purpose of encouraging home ownership and thrift and making substantially all of its loans in qualified thrift investments is known in this chapter…

It is unlawful for any corporation, partnership, firm, or individual to engage in or transact business as a mutual association, as defined in 32-2-603, except by means of a corporation organized for that purpose.

As used in this chapter, unless the context requires otherwise, the following definitions apply: (1) "Capital" means, with respect to a mutual association: (a) retained earnings; or (b) at the discretion of the commissioner, any other form of capital, subject to any applicable fe…

(1) If the department has reasonable cause to believe that a person has violated this chapter, a rule promulgated under this chapter, or an order issued by the department or has made a material misrepresentation to the department by act or omission, the department may issue an ad…

(1) A person who knowingly and purposefully violates any provision of this chapter or any rule or order under this chapter shall upon conviction be fined not more than $5,000 or imprisoned not more than 10 years, or both. However, if the person has been previously convicted of a …

(1) The department shall: (a) exercise constant supervision over the books and affairs of all mutual associations doing business in this state; and (b) investigate the methods of operation and conduct of business of the mutual associations and their systems of accounting to ascer…

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 …