32-1-212. Conflicts of interest -- definition -- rulemaking. (1) The commissioner and any deputy commissioner may not be, directly or indirectly, interested in any entity chartered or supervised by the department.
(2) The commissioner, any deputy commissioner, or any employee of the division, including a bank examiner, may not borrow money from an entity chartered or supervised by the department unless the extension of credit:
(a) is made on substantially the same terms as those prevailing at the time for comparable transactions by the financial institution with persons who are not employed by the division; and
(b) does not involve more than the normal risk of repayment or present other unfavorable features.
(3) For the purposes of this section, the phrase "substantially the same terms" includes interest rates and collateral and credit underwriting procedures that are not less stringent than those prevailing at the time for comparable transactions by the lender as for other borrowers who are not employed by the division.
(4) The department shall adopt rules to implement this section.
History: En. Sec. 58, Ch. 89, L. 1927; re-en. Sec. 6014.62, R.C.M. 1935; amd. Sec. 20, Ch. 431, L. 1975; amd. Sec. 10, Ch. 71, L. 1977; R.C.M. 1947, 5-604; amd. Sec. 2, Ch. 274, L. 1981; amd. Sec. 77, Ch. 483, L. 2001; amd. Sec. 2, Ch. 49, L. 2013; amd. Sec. 12, Ch. 75, L. 2019.
Structure Montana Code Annotated
Title 32. Financial Institutions
Chapter 1. Banks and Trust Companies
Part 2. Functions of State Banking Board and Department of Administration
32-1-201. State banking board -- secretary -- meetings -- per diem
32-1-202. Powers and duties of board
32-1-203. Rules adopted by board -- new banks
32-1-205. Board rules for discovery and hearing procedures
32-1-206. Disqualification of board member -- when
32-1-207. through 32-1-210 reserved
32-1-212. Conflicts of interest -- definition -- rulemaking
32-1-213. Payments to be made by banks, investment companies, and trust companies
32-1-214. Special examination defined
32-1-215. Special examinations and fees -- report within 120 days
32-1-216. Examination at request of directors
32-1-218. Department to make rules
32-1-219. Reliance on order -- limit on liability
32-1-220. Access to holding companies and affiliated entities
32-1-221. Regional banking organizations -- department authority
32-1-222. Loan production office -- rulemaking authority
32-1-223. through 32-1-230 reserved
32-1-231. Reports to department
32-1-232. Report of declaration of dividend
32-1-233. Special reports to department