Montana Code Annotated
Part 4. Operation and Regulation
32-1-423. Real estate that banks may purchase, hold, or convey

32-1-423. Real estate that banks may purchase, hold, or convey. (1) (a) A bank organized under the provisions of this chapter may purchase, hold, or convey real estate that:
(i) is for its accommodation in the transaction of its business, but it may not invest an amount exceeding 100% of its paid-up capital and surplus in the lot and building in which the business of the company is or is projected to be carried on, furniture, equipment and fixtures, vaults and safety vaults, and boxes necessary or proper to carry on its banking business if property held for future use as a bank office site is held pursuant to a detailed written business plan formally adopted by the directors of the bank;
(ii) is mortgaged to it in good faith by way of security for loans previously made or money due to the bank;
(iii) is conveyed to it in satisfaction of debts previously contracted in the course of its business;
(iv) it purchases at sales under judgments, decrees, or mortgages held by the bank.
(b) The detailed written business plan required by subsection (1)(a)(i) must include information outlining the manner in which the acquired real estate will be developed for future use as a bank office site, including but not limited to the costs of projected construction, furniture, and equipment and fixtures. The plan must include sufficient information for the department to determine that the property will be used for a future bank office site.
(2) Real estate acquired in the manner set forth in subsections (1)(a)(iii) and (1)(a)(iv) may not be held longer than 5 years from the date of acquisition, unless special written permission is granted by the department. The real estate must be carried on the books of the bank for an amount not greater than its cost to the bank, including costs of foreclosure and other expenses of acquiring title.
History: En. Sec. 25, Ch. 89, L. 1927; re-en. Sec. 6014.29, R.C.M. 1935; amd. Sec. 12, Ch. 431, L. 1975; amd. Sec. 4, Ch. 71, L. 1977; R.C.M. 1947, 5-504; amd. Sec. 27, Ch. 395, L. 1993; amd. Sec. 15, Ch. 117, L. 1997; amd. Sec. 5, Ch. 105, L. 2003.

Structure Montana Code Annotated

Montana Code Annotated

Title 32. Financial Institutions

Chapter 1. Banks and Trust Companies

Part 4. Operation and Regulation

32-1-401. Bank advertising before issuance of charter

32-1-402. When advertising as bank prohibited -- trade names restricted

32-1-403. Penalty for transacting business without certificate

32-1-404. through 32-1-410 reserved

32-1-411. Extent assets may be pledged

32-1-412. Limits on excessive borrowing

32-1-413. Borrowing money for capital purposes -- status of capital

32-1-414. No certificate of deposit to issue for borrowed money

32-1-415. through 32-1-419 reserved

32-1-420. Investment by trust fiduciary in management investment company or investment trust

32-1-421. Investment of capital of savings banks

32-1-422. Restriction on investment in corporate stock -- rulemaking authority

32-1-423. Real estate that banks may purchase, hold, or convey

32-1-424. Investments of financial institutions

32-1-425. Definitions

32-1-426. Deposit of securities in central depository

32-1-427. Fiduciaries -- deposit of securities with a federal reserve bank

32-1-428. reserved

32-1-429. Insurance activities -- exemption -- rulemaking

32-1-430. Authority of state banks to make real estate loans -- borrower insurance requirements

32-1-431. Repealed

32-1-432. Limitations on loans -- rulemaking

32-1-433. Investment in certain securities -- rulemaking authority

32-1-434. Financial institutions authorized to obtain insurance and make loans when approved by federal housing administrator

32-1-435. Federal housing securities eligible collateral

32-1-436. Repealed

32-1-437. Acceptance and issuance of drafts -- rulemaking authority

32-1-438. and 32-1-439 reserved

32-1-440. Financial institution's responsibility to provide notice when funds become available for withdrawal

32-1-441. Certified checks

32-1-442. Repealed

32-1-443. Repealed

32-1-444. Deposit in name of minor

32-1-445. Demand or time deposits

32-1-446. Safe deposit department

32-1-447. Giving security for deposit prohibited -- exceptions

32-1-448. Payments to foreign administrator

32-1-449. and 32-1-450 reserved

32-1-451. Statement of capital, resources, and liabilities

32-1-452. Dividends, surplus, losses, and bad debts

32-1-453. Calculation of profits

32-1-454. Past-due and doubtful paper

32-1-455. Reserve requirements

32-1-456. through 32-1-460 reserved

32-1-461. Bonding of employees

32-1-462. Persons previously convicted under banking laws -- bank employment

32-1-463. Sale of securities by officer to bank

32-1-464. Fraud by director, officer, agent, or employee

32-1-465. Limit on loans to officer, director, or principal shareholder

32-1-466. Purchase of obligation of bank by officer

32-1-467. Loans to managing officer

32-1-468. Removal of directors, officers, or employees -- hearing

32-1-469. and 32-1-470 reserved

32-1-471. Penalty for unlawful hypothecation of property received

32-1-472. Concealing actions from directors

32-1-473. Theft of funds by directors, officers, or employees

32-1-474. False statement to obtain loan

32-1-475. through 32-1-480 reserved

32-1-481. Bank holidays

32-1-482. Transaction on holidays

32-1-483. Closing on Saturdays authorized -- Saturday treated as holiday

32-1-484. Banking hours and business days

32-1-485. Interest payable at bank on Saturday -- how paid

32-1-486. through 32-1-490 reserved

32-1-491. Destruction of records

32-1-492. Definitions -- reproduction of bank records -- admissibility in evidence -- cost recovery

32-1-493. Admissibility of copies in evidence -- exception when original available

32-1-494. Destruction or reproduction "in regular course of business" defined

32-1-495. Application