32-1-424. Investments of financial institutions. (1) Notwithstanding other provisions of the law, it is lawful for a bank, trust company, investment company or other financial institution operating under the laws of this state to invest the funds or money in its custody or possession, eligible for investment, in:
(a) debentures issued by the federal housing administrator and in obligations of national mortgage associations; and
(b) United States government obligations, either directly or in the form of securities of or other interests in an open-end or closed-end management type investment company or investment trust registered under the Investment Company Act of 1940 (15 U.S.C. 80a-1 through 80a-64), as amended, if:
(i) the portfolio of the investment company or investment trust is limited to United States government obligations and repurchase agreements fully collateralized by United States government obligations; and
(ii) the investment company or investment trust takes delivery of the collateral for any repurchase agreement, either directly or through an authorized custodian.
(2) The department shall publish a list of the permissible type of investments in United States government obligations as provided in subsection (1).
History: (1), (2)En. Sec. 26, Ch. 89, L. 1927; re-en. Sec. 6014.30, R.C.M. 1935; Sec. 5-505, R.C.M. 1947; (3)En. Sec. 1, Ch. 5, Ex. L. 1933; amd. Sec. 1, Ch. 37, L. 1935; re-en. Sec. 5309.35, R.C.M. 1935; amd. Sec. 1, Ch. 24, L. 1937; Sec. 35-142, R.C.M. 1947; R.C.M. 1947, 5-505, 35-142(part); amd. Sec. 1, Ch. 36, L. 1979; amd. Sec. 4, Ch. 137, L. 1989; amd. Sec. 28, Ch. 395, L. 1993.
Structure 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
32-1-426. Deposit of securities in central depository
32-1-427. Fiduciaries -- deposit of securities with a federal reserve bank
32-1-429. Insurance activities -- exemption -- rulemaking
32-1-430. Authority of state banks to make real estate loans -- borrower insurance requirements
32-1-432. Limitations on loans -- rulemaking
32-1-433. Investment in certain securities -- rulemaking authority
32-1-435. Federal housing securities eligible collateral
32-1-437. Acceptance and issuance of drafts -- rulemaking authority
32-1-438. and 32-1-439 reserved
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
32-1-482. 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