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Can you summarize MTAR 2.59, Subchapter 11?
BANKING AND FINANCIAL INSTITUTIONS > Establishment of New Branches
Short Summary
This document outlines the review procedure for applications seeking approval to establish a new branch bank. The division responsible for processing these applications will prioritize them based on the order of receipt. Incomplete applications will be notified and will only be considered received when in complete form. The division may request additional information even if the application is considered complete. Factors considered for approval include the financial history and condition of the applicant, capital levels and structure, management experience, convenience and needs of the community, earnings prospects, and any other factors that could affect safety and soundness. The department will issue an order approving or denying the application within 45 days, which may be extended if additional information is required. Written notifications will be provided to the applicant, appropriate federal regulatory agency(s), and those who submitted written comments. If an application is denied, the reasons for denial will be included. If an administrative hearing is requested, it must be filed within 14 calendar days following the department’s decision. This document also outlines the procedure to be followed after the approval of an application to establish a new branch bank. It applies to banks seeking to open approved branch banks. The bank must open the approved branch within 18 months of approval, unless an extension of up to six months is granted by the department for good cause. During the formation and establishment of the new branch bank, the applicant must inform the department of significant changes that may affect the commitments, representations, or projections made in the original application. Significant changes include the location, services offered, and staffing or management of the new branch bank. The department’s approval may be voided if significant changes are not properly communicated. This document also outlines the application procedure for approval to establish and operate a new branch bank. It applies to existing state-chartered banks that do not meet the criteria specified in ARM 2.59.904 (2). The application must be submitted to the department using the Uniform Interstate Application/Notice form, preferably through electronic submission. The applicant is required to publish a notice of intent to establish a new branch bank, following specific procedures depending on whether the application requires approval from federal agencies or not. Written comments regarding the application must be received by the department within 15 calendar days of the last publication of the notice. The application itself should be emailed or delivered to the department within ten days subsequent to the first publication of the notice.
Whom does it apply to?
Applicants seeking approval to establish a new branch bank, the department responsible for processing the applications, federal regulatory agency(s), and those who submitted written comments
What does it govern?
Establishment of new branch banks
What are exemptions?
No specific exemptions are mentioned in this document.
What are the Penalties?
No specific penalties are mentioned in this document.
Jurisdiction
Montana