32-2-925. Limitations on loans -- rulemaking. (1) The total loans or extensions of credit to a person, partnership, or corporation by a mutual association, including loans to a partnership and to the members of the partnership, may not exceed 15% of the mutual association's capital, plus an additional 10% of the mutual association's capital, if the amount that exceeds the mutual association's 15% general limit is fully secured by readily marketable collateral, as defined in 12 C.F.R. 32.2(v). To qualify for the additional 10% limit, the mutual association must perfect a security interest in the collateral under applicable law and the collateral must have a current market value at all times of at least 100% of the amount of the loan or extension of credit that exceeds the mutual association's 15% general limit.
(2) To the extent specified in regulations of the office of the comptroller of the currency, a mutual association may invest in, sell, or otherwise deal in the following loans and other investments without percentage of assets limitation:
(a) account loans -- loans on the security of its savings accounts and loans specifically related to transaction accounts;
(b) residential real property loans -- loans on the security of liens on residential real property;
(c) United States government securities -- investments in obligations of, or fully guaranteed as to principal interest by, the United States;
(d) federal home loan bank and federal national mortgage -- investments in the stock or bonds of a federal home loan bank or in the stock of the federal national mortgage association;
(e) federal home loan mortgage corporation instruments -- investments in mortgages, obligations, or other securities that are or have been sold by the federal home loan mortgage corporation pursuant to section 305 or 306 of the federal home loan mortgage corporation act; and
(f) other government securities -- investments in obligations, participations, securities, or other instruments issued by or fully guaranteed as to principal and interest by the federal national mortgage association, the student loan marketing association, the government national mortgage association, or any agency of the United States. A savings association may issue and sell securities that are guaranteed pursuant to section 306(g) of the National Housing Act.
(3) The commissioner may adopt rules to implement this section.
History: En. Sec. 66, 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