Montana Code Annotated
Part 5. Dissolution, Closing, and Liquidation
32-1-516. Recourse of aggrieved bank -- injunction

32-1-516. Recourse of aggrieved bank -- injunction. (1) A bank aggrieved by the action of the department in taking possession of its assets or closing its doors may, within 14 days after possession has been taken, apply to the district court of the county in which its principal place of business is located, or to the judge of that court in chambers, to enjoin further proceedings by the department.
(2) The court or the judge in chambers, after notifying the department to appear at a specified time and place to show cause why further proceedings should not be enjoined and after hearing the allegations and proofs of the parties and determining facts, may on the merits dismiss the application or enjoin the department from further proceeding and direct it to surrender the business and assets of the bank.
(3) The application for injunction may be heard at any time after 5 days' notice from the time of service on the department, in the discretion of the court, or at any time prior to then by the consent of the department.
(4) Application shall be made on the verified complaint of the bank, in the form used in civil actions, and a copy of the complaint shall be served on the department with the order to show cause.
(5) The department shall, at least 2 days before the time set for hearing, file with the court and serve upon counsel for plaintiff an answer to the complaint, also in the form used in civil actions. Any questions raised by motion in other actions may be raised in the answer.
(6) On the issues raised by the complaint and answer, the court or the judge at chambers, at the time fixed for showing cause, shall try the matter on the merits by hearing the allegations and proofs of the parties and shall enter judgment, as in the trial of other civil actions.
(7) If the department makes no appearance in the time allowed, the court shall enter its default and proceed to hear the proofs of the plaintiff as in civil actions under similar circumstances and enter judgment accordingly. The judgment entered either after hearing on the merits or by default is a final judgment.
(8) During the pendency of litigation the department shall take that action in relation to the assets of the bank which is necessary to conserve them.
History: En. Sec. 128, Ch. 89, L. 1927; re-en. Sec. 6014.138, R.C.M. 1935; amd. Sec. 50, Ch. 431, L. 1975; R.C.M. 1947, 5-1108; amd. Sec. 10, Ch. 49, L. 2013.

Structure Montana Code Annotated

Montana Code Annotated

Title 32. Financial Institutions

Chapter 1. Banks and Trust Companies

Part 5. Dissolution, Closing, and Liquidation

32-1-501. Dissolution and disincorporation

32-1-502. Grounds for closing bank

32-1-503. Bank insolvent when

32-1-504. Deposits in insolvent bank

32-1-505. Penalty for receiving deposits when insolvent or for making false statements

32-1-506. Assessment on capital stock to make good impairment

32-1-507. Power of closed banks to borrow money from governmental agencies

32-1-508. Corporate existence -- ceases when

32-1-509. Taxes on banks which have ceased to do business

32-1-510. Penalty for maliciously declaring bank insolvent

32-1-511. Bank may be placed in department's possession

32-1-512. Effect of posting notice

32-1-513. Taking possession of bank -- notice

32-1-514. Resumption after closing

32-1-515. Powers of department on closing bank -- court proceedings

32-1-516. Recourse of aggrieved bank -- injunction

32-1-517. Department may retain bank employees -- liquidating agent's salary and expenses

32-1-518. Compensation of agents and attorneys

32-1-519. through 32-1-530 reserved

32-1-531. Notice to creditors of insolvent bank

32-1-532. Claims -- allowance and rejection

32-1-533. Payment of claims

32-1-534. Claims -- order of payment -- priorities

32-1-535. Claims -- partial payments -- assignments

32-1-536. Deposit of funds in department's hands

32-1-537. Disposition of unclaimed funds

32-1-538. Disposition of assets remaining after payment of claims

32-1-539. through 32-1-550 reserved

32-1-551. Liquidating officer's powers and duties

32-1-552. Further duties of liquidating officer

32-1-553. Department to file inventory -- report required -- exception

32-1-554. through 32-1-560 reserved

32-1-561. Definitions

32-1-562. Power of department

32-1-563. Powers of officers

32-1-564. Notice of bank closing

32-1-565. Effect of closing