32-2-902. Prohibitions on advertising as mutual association -- trade names restricted. (1) Except as provided in subsection (4), a person, firm, company, partnership, or corporation, either domestic or foreign, that is not subject to the supervision of the department and not required by the provisions of this chapter to report to the department and that has not received a certificate to do business as a mutual association from the department may not:
(a) except as for a student financial institution, as defined in 32-1-115, advertise that the person or entity is receiving or accepting money or savings for deposit, investment, or otherwise and issuing notes or certificates of deposit; or
(b) use an office sign at the place where the business is transacted that has on it an artificial or corporate name or other words indicating that:
(i) the place or office is the place or office of a mutual association;
(ii) deposits are received there or payments made on checks; or
(iii) any other form of mutual association business is transacted there.
(2) The person, firm, company, or corporation, domestic or foreign, may not use or circulate letterheads, billheads, blank notes, blank receipts, certificates, circulars, or any written or printed or partly written and partly printed papers that contain an artificial or corporate name or other words indicating that the business is the business of a mutual association.
(3) The person, firm, company, partnership, or corporation or any agent of a foreign corporation not having an established place of business in this state may not solicit or receive deposits or transact business in the manner of a mutual association or in a manner that leads the public to believe that its business is that of a mutual association.
(4) (a) A person, firm, company, partnership, or corporation, domestic or foreign, except for a student financial institution, as defined in 32-1-115, that is not subject to the supervision of the department and not required by the provisions of this chapter to report to the department and that has not received from the department a certificate to do a mutual association business may not transact business under a name or title that contains the words "mutual savings and loan association", "savings and loan association", "savings and loan", "mutual association", "mutual savings association", "building and loan", or "building and loan association", unless the department has granted a waiver.
(b) The department may grant a waiver to allow the use of a restricted word listed in subsection (4)(a) to a nonprofit organization if:
(i) the organization is not acting as a financial institution; and
(ii) the name used is not likely to mislead a reasonable individual into thinking that the organization is acting as a financial institution.
(5) A person, firm, company, partnership, or corporation, domestic or foreign, violating a provision of this section shall forfeit to the state $500 a day for every day or part of a day during which the violation continues.
(6) Upon suit by the department, the court may issue an injunction restraining the person, firm, company, partnership, or corporation during pendency of the action and permanently from further using those words in violation of the provisions of this section or from further transacting business in a manner that leads the public to believe that its business is that of a mutual association and may enter any other order or decree as equity and justice require.
History: En. Sec. 43, Ch. 431, L. 2021.
Structure Montana Code Annotated
Title 32. Financial Institutions
Chapter 2. Mutual Savings and Loan Associations
Part 9. Operation and Regulation
32-2-901. Mutual association advertising before issuance of charter
32-2-902. Prohibitions on advertising as mutual association -- trade names restricted
32-2-903. Penalty for transacting business without certificate
32-2-904. Mutual associations -- powers and duties
32-2-905. Extent that assets may be pledged
32-2-906. Issuance of capital certificates
32-2-907. No certificate of deposit to be issued for borrowed money
32-2-908. Investments of financial institutions
32-2-909. Insurance activities -- exemption -- rulemaking
32-2-911. Investment in certain securities -- rulemaking
32-2-913. Federal housing securities eligible collateral
32-2-914. Acceptance and issuance of drafts -- rulemaking
32-2-917. Deposit in name of minor
32-2-918. Demand or time deposits
32-2-919. Safe deposit department
32-2-920. Giving security for deposit prohibited -- exceptions
32-2-921. Payments to foreign administrator
32-2-922. Calculation of profits
32-2-923. Past-due and doubtful paper
32-2-924. Reserve requirements
32-2-925. Limitations on loans -- rulemaking
32-2-926. through 32-2-929 reserved
32-2-930. Bonding of employees
32-2-931. Persons previously convicted -- rulemaking
32-2-932. Sale of securities by officer to mutual association
32-2-933. Real estate that mutual associations may purchase, hold, or convey
32-2-934. Purchase of obligation of mutual association by officer
32-2-935. Fraud by director, officer, agent, or employee
32-2-936. Removal of directors, officers, or employees -- hearing
32-2-937. Penalty for unlawful hypothecation of property received
32-2-938. Concealing actions from directors
32-2-939. Theft of funds by directors, officers, or employees
32-2-940. False statement to obtain loan
32-2-941. Mutual association holidays
32-2-942. Transaction on holiday
32-2-943. Closing on Saturdays authorized -- Saturday treated as holiday
32-2-944. Mutual association hours and business days
32-2-945. Interest payable at mutual association on Saturday -- how paid
32-2-946. through 32-2-949 reserved
32-2-950. Destruction of records -- rulemaking
32-2-952. Admissibility of copies in evidence -- exception when original available