This legal provision authorizes banks and trust companies acting as fiduciaries or custodians for fiduciaries to deposit or arrange for the deposit of securities with the federal reserve bank in their district. The securities must be those for which the United States or any of its departments, agencies, or instrumentalities has agreed to pay or guaranteed payment of principal and interest. The securities are credited to accounts on the books of the federal reserve bank in the name of the bank or trust company, designated as fiduciary or safekeeping accounts.

This legal provision governs the certification of checks drawn on banks. According to the provision, when a check is certified by an officer or employee of a bank, the amount of the check is immediately charged against the account of the person, firm, or corporation that drew the check. It is unlawful for any officer or employee of a bank to certify a check unless the drawer of the check has sufficient funds on deposit with the bank to cover the amount specified in the check.

Whenever any deposit shall be made in any bank by or in the name of any minor, the same shall be held for the exclusive right and benefit of such minor and free from the control or lien of all persons whatsoever, except creditors, and shall be paid, with any interest due thereon, to the person in whose name the deposit was made, and the receipt of such minor is a sufficient release or discharge for such deposit to the bank.

Demand deposits, within the meaning of this chapter, shall comprise all deposits payable within 7 days, and time deposits shall comprise all deposits payable after 7 days and all savings accounts and certificates of deposit which are subject to not less than 7 days’ notice before payment. History: En. Sec. 52, Ch. 89, L. 1927; re-en. Sec. 6014.56, R.C.M. 1935; R.C.M. 1947, 5-531; amd. Sec. 1, Ch. 75, L. 1985.

It is unlawful for any bank to pledge, mortgage, or hypothecate to any depositor any of its real or personal property as security for any deposit, and any pledge, mortgage, or hypothecation made in violation thereof is unenforceable. This provision does not apply to any deposits of money of the United States, public funds deposited in accordance with the provisions of any depository act of this state or the United States, or bankruptcy estate funds or deposits, including deposits of receivers or trustees in bankruptcy, deposited under the direction and supervision of a court of record of the state of Montana or of the United States.

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.

This legal document governs the limit on loans that a bank can extend to its officer, director, or principal shareholder. The general rule is that a bank cannot extend credit to these individuals in an amount that exceeds the bank’s unimpaired capital and unimpaired surplus. However, a bank with deposits of less than $100 million may increase this limit by resolution of its board of directors, as long as certain conditions are met.

This legal document governs the extension of credit by banks to their managing officers. It allows banks to provide loans to managing officers for specific purposes, such as financing the education of their children or financing the purchase, construction, maintenance, or improvement of a residence. The extension of credit for the latter purpose must be secured by a first lien on the residence. Additionally, banks can provide loans to managing officers for any other purpose not specified, as long as the aggregate amount of loans does not exceed certain limits.

This provision, part of the Montana Code under the Electronic Funds Transfer Act, governs the disclosure of information related to electronic funds transfer transactions between a financial institution and its customers or prospective customers. It prohibits financial institutions from disclosing such information to any person or government entity without the consent of the customer or a court-issued subpoena. Compliance with a subpoena relieves the financial institution and its employees from liability for such disclosure.

This legal document, part of the Montana Code related to insurance and insurance companies, governs the disclosure of information in the event of a computer security breach. It requires any licensee or insurance-support organization conducting business in Montana, and owning or licensing computerized data containing personal information, to provide notice of any breach of the system’s security to individuals whose unencrypted personal information was or is reasonably believed to have been acquired by an unauthorized person.