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Can you summarize MTCO 32-1-455?
Operation and Regulation > Reserve requirements
Short Summary
This legal document governs the reserve requirements for banks and trust companies in Montana. It states that a bank, except a reserve bank, must maintain a reserve of a certain percentage of its deposit liabilities as required by the appropriate federal regulator. If the federal regulator discontinues reserve requirements, the department may establish reserve requirements. A bank approved as a reserve bank by the department must maintain a reserve as required by the department. The department may designate a solvent bank as a reserve agent for Montana banking institutions, subject to approval or withdrawal at any time. If a bank’s reserve drops below the legal requirements, it must report the matter to the department immediately. The bank may not increase its loans or discounts, except under certain conditions. The document also specifies the basis for calculating deposit liabilities and states that compliance with federal reserve banking laws, rules, and regulations ensures compliance with the reserve requirements of this chapter.
Whom does it apply to?
Banks, reserve banks, and Montana banking institutions
What does it govern?
Reserve requirements
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Montana