Title 32, Title 32

(1) Except as limited by this part and rules adopted pursuant to this part, a corporate credit union has all of the rights and powers of any other credit union organized under this chapter and the additional rights and powers specified in this part. (2) A corporate credit union m…

(1) A corporate credit union may issue membership capital accounts to members that are available to cover losses that exceed reserves and undivided earnings and paid-in capital. (2) (a) For purposes of this section, "membership capital account" means a share, deposit, term certif…

(1) A corporate credit union may not invest in fixed assets if the aggregate of those investments would exceed 15% of capital, unless the credit union receives prior written approval from the department and the national credit union administration board. (2) The department shall …

(1) A corporate credit union shall maintain a minimum capital to assets ratio according to rules adopted by the department in substantial conformance with Title 12, part 704, Code of Federal Regulations. (2) The department shall adopt rules for the administration of subsection (1…

(1) The supervisory committee of a corporate credit union shall require an annual opinion audit to be made by an independent, licensed certified public accountant and shall submit the audit report to the board of directors. A summary of the audit report must be submitted to the m…

Services, facilities, personnel, or equipment shared with any party must be supported by a written contract or agreement that specifies the duties and responsibilities of each party and that fully supports and documents the allocation of service fees and expenses.

(1) "Paid-in capital" means accounts or other interests of a corporate credit union that: (a) may not exceed reserves and undivided earnings; (b) may include both member paid-in capital and nonmember paid-in capital; (c) are available to cover losses that exceed reserves and undi…

All credit unions organized under this or any other credit union law shall have the same immunity from state and local taxation that federal credit unions have from time to time under the laws of the United States.

The shares of any credit union shall not be subject to stock transfer taxes, either when issued or when transferred from one member to another.

The participation by a credit union in any government program providing unemployment, social security, old-age pension, or other benefits shall not be deemed a waiver of the taxation exemption hereby granted.

As used in this chapter, the following words and phrases, unless differently defined or described, shall have the meanings and references as follows: (1) "board of directors"--the board of directors of a corporation created under this chapter; (2) "corporation"--a Montana develop…

(1) The purposes of the corporation shall be to: (a) promote, stimulate, develop, and advance the business prosperity and economic welfare of the state of Montana and its citizens; (b) encourage and assist through loans, investments, or other business transactions in the location…

Under no circumstances is the credit of the state, county, or municipal governments or their agencies or authorities pledged under this chapter.

The provisions of Title 35 shall apply to the corporation insofar as they may be applicable and not inconsistent with this chapter.

Nine or more persons, a majority of whom must be residents of this state, who desire to create a development corporation under the provisions of this chapter for the purpose of promoting, developing, and advancing the prosperity and economic welfare of the state and, to that end,…

The period of duration of the corporation shall be perpetual.

Before the articles of incorporation may become effective, the secretary of state shall issue a certificate that verifies that a copy of the articles containing the required statement of facts has been filed in the secretary of state's office. Upon issuance of the certificate, th…

If a corporation organized pursuant to this chapter shall fail to begin business within 5 years from the effective date of its articles of incorporation, then said articles shall become null and void.

(1) The articles of incorporation may be amended by vote of the stockholders of the corporation, and the amendments require approval by the affirmative vote of two-thirds of the stockholders, provided: (a) that an amendment that is inconsistent with the general purposes expressed…

(1) The business and affairs of the corporation shall be managed and conducted by a board of directors, a president and treasurer, and other officers and agents as the corporation by its bylaws shall authorize. (2) The board of directors shall consist of a number, not less than n…

(1) The first meeting of the corporation shall be called by a notice signed by three or more of the incorporators, stating the time, place, and purpose of the meeting, a copy of which notice shall be mailed or delivered to each incorporator at least 5 days before the day appointe…

Notwithstanding any rule at common law or any provision of any general or special law or any provision in their respective charters, agreements of association, articles of organization, or trust indentures: (1) all persons, domestic corporations organized for the purpose of carry…

(1) The stockholders of the corporation have the following powers of the corporation: (a) to determine the number of and elect directors as provided in 32-4-206; (b) to make, amend, and repeal bylaws; (c) to amend the articles of incorporation as provided in 32-4-205; (d) to exer…

Any financial institution may request membership in the corporation by making application to the board of directors on such form and in such manner as said board of directors may require, and membership shall become effective upon acceptance of such application by the board. The …

(1) Membership in the corporation shall be for the duration of the corporation, provided that, upon written notice given to the corporation 2 years in advance, a member may withdraw from membership in the corporation at the expiration date of such notice. (2) A member shall not b…

Each year the corporation shall set apart as earned surplus not less than 10% of its net earnings for the preceding fiscal year until such surplus shall be equal in value to 50% of the amount paid in on the capital stock then outstanding. Whenever the amount of surplus establishe…

(1) The corporation shall not deposit any of its funds in any banking institution unless such institution has been designated as a depository by a vote of a majority of the directors present at an authorized meeting of the board of directors, exclusive of any director who is an o…

The corporation is subject to the examination of the department of administration and shall make reports of its condition not less than annually to the department. The department shall make copies of the reports available to the commissioner of insurance and to the governor. The …

This chapter may be cited as the "Montana Consumer Loan Act".

For the purposes of this chapter, the following definitions apply: (1) "Balloon payment" means any repayment option in which the borrower is required to repay the entire amount of any outstanding balance as of a specific date or at the end of a specified term and the aggregate am…

(1) Except as provided in subsection (5), a person may not engage in the business of making consumer loans in any amount and contract for, charge, or receive directly or indirectly on or in connection with any loan any compensation, whether for interest, fees, other consideration…

(1) (a) Each place of business operated under this chapter must be licensed. Licenses are nontransferable and nonassignable. The same person may obtain an additional license for each business location upon compliance with this chapter. (b) Applications for a license or renewal mu…

(1) Upon submission of a completed application and payment of all required fees, a license or renewal must be issued if the department determines that: (a) the character and general fitness of the applicant warrant the belief that the business will be operated lawfully and fairly…

A licensee may conduct the business of making consumer loans under this chapter within any office, room, or place of business in which any other business for which a license under this chapter is not required is solicited or engaged in or in association or conjunction with the bu…

A license may be surrendered on conditions of the department consistent with the protocols of a nationwide licensing system for license surrender. The license surrender does not affect the licensee's civil, administrative, or criminal liability for acts committed prior to the sur…

No revocation, surrender, or expiration of any license shall impair or affect the obligation of any preexisting lawful contract.

(1) If the department has probable cause to believe that a licensed or unlicensed 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 depar…

The department may reinstate any revoked license if there is not a fact or condition existing at the time of reinstatement that would have justified the department in refusing originally to issue the license. In any case in which the license has been revoked for cause, an applica…

(1) The department may participate in a nationwide licensing system for licensing purposes under this chapter and may require consumer loan licensees to apply for licensure on applications approved by the nationwide licensing system. (2) The department may establish rules that ar…

(1) A licensee may contract for and receive interest on the principal amount of any loan. The interest, excluding the fees authorized in subsections (3) and (4), may not exceed 36% a year. (2) The following third-party fees may be financed at the borrower's option and included in…

(1) Except as provided in subsection (4), if the loan contract requires installment payments, the contract must provide that principal and interest be payable at approximately equal periodic intervals, except that payment dates may be omitted to accommodate borrowers with seasona…

(1) At the time a loan is made, there must be delivered to the borrower or borrowers the disclosures required by the federal Consumer Credit Protection Act and the federal Truth in Lending Act, 15 U.S.C. 1601, et seq., and a copy of the loan contract or a written statement showin…

Every licensee shall: (1) give to the borrower a plain, dated, and complete receipt for every payment made in cash on account of any loan at the time the payment is made; (2) endorse indelibly on a loan ledger or card or maintain a record by reliable electronic means of the amoun…

A licensee may not: (1) take any confession of judgment from the borrower or any power of attorney running to the licensee or to any third person to confess judgment for the borrower or to appear for the borrower in a judicial proceeding, except that this subsection does not proh…

(1) Except as provided in this section, insurance may not be written by a licensee or employee, affiliate, or associate of the licensee in connection with any loan. (2) Insurance permitted under the provisions of this section must be obtained through an insurance company authoriz…

Each licensee shall keep or make available in each licensed office the books, accounts, and records that the department requires and that are necessary to enable the department to determine whether the licensee is complying with this chapter and with the rules promulgated under t…