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Can you summarize MTAR 2.59, Subchapter 9?
BANKING AND FINANCIAL INSTITUTIONS > Branch Banks and Loan Production Offices
Short Summary
This legal document, part of the Administrative Rules of Montana, governs the establishment and operation of branch banks and loan production offices. It provides definitions for key terms used in the subchapter, such as ‘consolidate’, ‘customer’, ‘principal city’, ‘relocate’, and ‘short distance’. The document outlines the requirements for banks to provide written notice to the department at least thirty days prior to opening a loan production office. It also specifies that banks must give notice to customers if they desire to relocate or close a loan production office temporarily or permanently. The department reserves the right to request additional information regarding the opening, closing, or relocation of a loan production office. Each loan production office is subject to examination and supervision by the department. Existing loan production offices in Montana must provide written notice to the department by October 1, 2020. The document also pertains to the establishment of branch banks in Montana by qualifying institutions. It outlines the criteria that a bank must meet in order to establish a branch, including being well-capitalized, having received favorable ratings on safety and soundness examinations, and not being a party to any enforcement action initiated by a regulatory agency. The document also provides requirements for banks organized under the laws of a state other than Montana or a national bank to branch into Montana. Additionally, the document covers the relocation or closure of branches by Montana state-chartered banks. It specifies the notice requirements to customers and the department, as well as the forms to be used for temporary or emergency branch closures. The document also clarifies the activities that a loan production office may conduct without being considered a branch, such as soliciting loans, assembling credit information, and preparing loan applications. However, a loan production office cannot accept deposits or loan payments, originate accounts, approve loans, or disburse loan funds. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Banks operating in Montana
What does it govern?
Establishment and operation of branch banks and loan production offices
What are exemptions?
No specific exemptions are mentioned
What are the Penalties?
No specific penalties are mentioned
Jurisdiction
Montana