Montana Code 32-1-379. Bank acquisition or control — disapproval by department — change of officers
32-1-379. Bank acquisition or control — disapproval by department — change of officers. (1) The department may disapprove the acquisition of a bank within 30 days after the filing of a complete application pursuant to 32-1-378.
Terms Used In Montana Code 32-1-379
- Acquiring party: means the person acquiring control of a bank through the purchase of stock. See Montana Code 32-1-109
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- bank: as used in this chapter means any corporation that has been incorporated to conduct the business of receiving money on deposit or transacting a trust or investment business, as defined in this chapter. See Montana Code 32-1-102
- Control: means :
(a)ownership of, authority over, or power to vote, directly or indirectly, 25% or more of any class of voting security;
(b)authority in any manner over the election of a majority of directors; or
(c)power to exercise, directly or indirectly, a controlling influence over management and policies. See Montana Code 32-1-109
- Department: means the department of administration provided for in Title 2, chapter 15, part 10. See Montana Code 32-1-109
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- Writing: includes printing. See Montana Code 1-1-203
(2)The department may have an extended period, not exceeding an additional 15 days from the period allowed in subsection (1), to disapprove the acquisition if:
(a)the poor financial condition of any acquiring party may jeopardize the financial stability of the bank or may prejudice the interests of the bank depositors, borrowers, or shareholders;
(b)the plan or proposal of the acquiring party to liquidate the bank, sell its assets, merge it with any person, or make any other major change in its business or corporate structure or management is not fair and reasonable to the bank’s depositors, borrowers, or stockholders or is not in the public interest;
(c)the banking and business experience and the integrity of any acquiring party that would control the operation of the bank indicate that approval would not be in the interest of the bank’s depositors, borrowers, or shareholders;
(d)the information provided by the application is insufficient for the department to make a determination;
(e)there has been insufficient time to verify the information provided and conduct an examination of the qualifications of the acquiring party; or
(f)the acquisition would not be in the public interest.
(3)An acquisition may be made before expiration of the disapproval period if the department issues written notice of intent not to disapprove the action.
(4)(a) The department shall set forth the basis for disapproval of any proposed acquisition in writing and shall provide a copy of the findings and order to the applicants and to the bank involved.
(b)The findings and order may not be disclosed to any other party and may not be subject to public disclosure under 32-1-234 unless either the findings, order, or both are appealed pursuant to the Montana Administrative Procedure Act.
(5)Whenever a change in control occurs, each party to the transaction shall notify the department within 10 business days of any changes or replacements of its chief executive officer or any director that occurs in the next 12-month period and provide a statement of the past and present business and professional affiliations of the new chief executive officer or director.