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Can you summarize MTAR 2.59.109?
Banks > LOANS TO A MANAGING OFFICER, OFFICER, DIRECTOR, OR PRINCIPAL SHAREHOLDER OF A BANK
Short Summary
This document governs loans made to managing officers, officers, directors, or principal shareholders of a bank. It applies to managing officers, officers, directors, employees, and principal shareholders of a bank. The document specifies that any loan made before October 1, 1993, and in compliance with state law at the time, is considered legal throughout its term unless renewed, modified (except for periodic interest rate adjustments), or the security for the loan is changed (except for agreed-upon substitutions or deletions at origination). If any of these occur on or after October 1, 1993, the loan must be restructured to comply with specific provisions. The document also lists exemptions to the aggregate loan limitation and provides a historical reference. No penalties are mentioned in the document.
Whom does it apply to?
Managing officers, officers, directors, employees, and principal shareholders of a bank
What does it govern?
Loans to a managing officer, officer, director, or principal shareholder of a bank
What are exemptions?
Loans or portions of loans guaranteed by a department, bureau, board, commission or establishment of the United States, loans or portions of loans guaranteed by or covered by a commitment or agreement to take over or purchase, issued by an agency or board of the state of Montana, loans or portions of loans sold without recourse to a federally insured depository institution, loans or portions of loans secured by pledged deposits in the lending bank
What are the Penalties?
No penalties mentioned
Jurisdiction
Montana