Banks - Banking and Financial Institutions

Application

Application for Conversion of an Existing National-Chartered Bank to a State-Chartered Bank

Fee

A nonrefundable application fee of $1,500 must be paid to the department at the time of application.

Newspaper Publication Requirements

The cashier of the bank shall publish notice of the change once a week for 4 consecutive weeks in the newspaper that the directors select.

Laws and Rules

32-1-374, MCA Conversion of National to State Bank

ARM 2.59.134 Conversion of a National Bank to a State Bank

Application

• Interagency Charter and Federal Deposit Insurance Application
• Interagency Biographical and Financial Report

Fee

A nonrefundable application fee of $10,000 must be paid to the department at the time of application.

Newspaper Publication

The department may require publication of notice of the application in the closest major newspaper of general circulation and an affidavit of publication following completion.

Laws and Rules

• 32-1-240, MCA Application to Organize Bank - Rulemaking
• 32-1-241, MCA Authority to Require Additional Investigatory Information - Fingerprinting
• 32-1-242, MCA Department to Review Application
• 32-1-243, MCA Commissioner Grants or Denies Application
• 32-1-244, MCA Grounds for refusing application to organize
• 32-1-245, MCA Additional requirements after approval of application
• ARM 2.59.2201 Definitions
• ARM 2.59.2202 Application Procedure for a Certificate of Authorization for a State-Chartered Bank
• ARM 2.59.2203 Application Contents
• ARM 2.59.2204 Pro Forma Statement
• ARM 2.59.2205 Persuasive Showing of Reasonable Public Necessity and DemandARM 2.59.2206 Capital Adequacy of a Proposed New Depository Bank
• ARM 2.59.2207 Fingerprinting
• ARM 2.59.2208 A State Bank Organized for the Purpose of Assuming Deposit Liability of any Closed Bank
• ARM 2.29.2209 FDIC Insurance Required
• ARM 2.59.2210 Institution Name

Application

Shell Bank Charter Application

Fee

A nonrefundable application fee of $10,000 must be paid to the department at the time of application.

Newspaper Publication

At least 30 days prior to the effective date of any merger or business consolidation involving a shell bank, the applicant must publish notice in a newspaper of general circulation in the community in which the main office of the proposed shell bank is to be located. If there is no such newspaper in the community, then the closest major newspaper of general circulation published nearest the community will suffice. The notice must run once a week for two consecutive weeks.

The notice must include:

• the name of the proposed shell bank;
• a brief summary of the purpose of the shell bank; and
• a reference to ARM 2.59.2302, under which the proposed shell bank is to be formed.

Laws and Rules

• 32-1-246, MCA Shell Bank
• 32-1-371, MCA Merger of Banks
• ARM 2.59.2302 A State Bank Organized for the Purpose of being a Shell Bank
• ARM 2.59.2303Application Procedures
• ARM 2.59.2304Department to Reivew Application
• ARM 2.59.2305 Authority to Require Additional Investigatory Information - Fingerprinting
• ARM 2.59.2306 Decision of the Department; IncorporationARM 2.59.2307 Grounds for Denying Applicaiton
• ARM 2.59.2308 Additional Requirements After Approval of Application
• ARM 2.59.2309 Powers of a Shell Bank Before Merger
• ARM 2.59.2310 Proof of Merger: Revocation of Certificate of Authorization

The Montana Division of Banking and Financial Institutions (Division) has approved the following fiduciary foreign trust companies to do business in Montana. If you would like to verify their registration status, you can do so through the Montana Secretary of State's business search.

The Montana Division of Banking and Financial Institutions (Division) has approved the following fiduciary foreign trust companies to do business in Montana. If you would like to verify their registration status, you can do so through the Montana Secretary of State's business search.

When registering the name of a business with the Secretary of State (SOS), there are certain words and word combinations that are restricted from use without a consent letter from the Montana Division of Banking and Financial Institutions (Division). These restrictions are in place to protect citizens from being misled into thinking a business is a financial institution when it is not and to prevent confusion between similar names.

What are the Restricted Words?

Pursuant to Mont. Code Ann. §§ 32-1-402(4) When Advertising As Bank Prohibited - Trade Names Restricted ;and; 32-3-103(2) Use Of Name Exclusive, the restricted words are:

• "bank"
• "banker"
• "banking"
• "savings bank"
• "saving"
• "trust company"
• "investment company"
• "credit union"

The restriction includes the plural of these words. Mont. Code Ann. §; 1-2-105(3) General Definitional Rules -- Verb Tense, Gender, And Number

How Will I Know if I Need a Consent Letter from the Division?

If the SOS receives a registration for a business name containing restricted words, a message will appear stating that a consent letter from the Division must be uploaded before the registration can be completed.

How do I Request a Consent Letter from the Division?

Send an email to the Division office at;banking@mt.gov;and provide the following:

• The name of the business,
• a brief description of business activities the business intends to perform in Montana, and
• if the business a non-profit or for-profit.

Why does it Matter if My Business is a Non-Profit?

The Division may grant a waiver to a nonprofit organization if:

• the organization is not acting as a financial institution; and
• the name used is not likely to mislead a reasonable individual into thinking that the organization is acting as a financial institution.

Can an Out-of-State State-Chartered Bank Register the Word "Bank" in Montana?

Yes.; The 2023 Montana Legislature amended Mont. Code Ann. § 32-1-402 to allow the Division to grant a waiver to out-of-state state-chartered banks that seek to do business in Montana.; The effective date of this amendment was February 28, 2023.

Banks

Pursuant to 32-1-231, MCA, a bank's successful and timely electronic transmittal of its call report to the applicable federal banking regulator or authority satisfies the bank's obligation to transmit the report to the Montana Division of Banking and Financial Institutions (Division). The original signature page of the bank's call report must be permanently retained by the bank and available for the Division's review. Appendix A To ARM 2.59.111 provides for a 5-year retention period -- THIS LINK IS BROKEN, FILE DOES NOT EXIST ON CURRENT SITE for call reports and related work papers.

Separately, 32-1-491, MCA, requires a retention period of 8 years after Jan. 1 of the year following the time the records are made, for records of customer transaction accounts. That statute also requires the permanent retention of all records showing unpaid balances in favor of bank depositors.

Non-Depository Trust Companies

A nondepository trust company that is not insured by the Federal Deposit Insurance Corporation shall transmit its call report directly to the Division in hard copy or imaged form.

Laws and Rules

• 32-1-231, MCA Reports to Department
• 32-1-491, MCA Destruction of Records
• ARM 2.59.111 Retention of Bank Records

• Technology-Based Notarization
• Depository Institutions Doing Business in Montana
• Forms
• Abstract of Reports of the Condition of Montana State Banks, Trust Companies, National Banks, and Private Banks - January 31, 1910 through December 31, 2009
• Annual Report of the Banking Division to the Governor - 1895-1974

• Title 32, Chapter 1 Bank Act
• Title 32, Chapter 6 Montana Electronic Funds Transfer Act

• Title 2, Chapter 59 All Division Rules
  • Subchapter 1 Banks
    • 2.59.111 Appendix A Related to Retention of Bank Records - Amended June 2, 2014
    • 2.59.129 Appendix A Credit Exposure Arising from Derivatives and Securities Financing Transactions - Amended April 20, 2015
  • Subchapter 9 Branch Banks and Loan Production Offices
  • Subchapter 10 Bank Mergers
  • Subchapter 11 New Bank Branches
  • Subchapter 16 Approved Investments
  • Subchapter 21 Foreign Trust Companies
  • Subchapter 22 New Bank Charters
  • Subchapter 23 Shell Banks
  • Subchapter 24 Nondepository Trust Company Banks