Montana Code 32-1-402. When advertising as bank prohibited — trade names restricted
32-1-402. When advertising as bank prohibited — trade names restricted. (1) Except as provided in subsection (3), a person, 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 it and that has not received a certificate to do a banking business from the department, may not:
Terms Used In Montana Code 32-1-402
- 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
- Bank holding company: means a bank holding company or a financial holding company registered under the federal Bank Holding Company Act of 1956, as amended, regardless of where the entity is located or has its headquarters. 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
- Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC
- Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
(a)except for a student financial institution, as defined in 32-1-115, advertise that the person is receiving or accepting money or savings for deposit, investment, or otherwise and issuing notes or certificates of deposit; or
(b)advertise a sign at the place where the business is transacted having on it an artificial or corporate name or other words indicating that:
(i)the place or office is the place or office of a bank or trust company;
(ii)deposits are received there or payments made on checks; or
(iii)any other form of banking business is transacted there.
(2)The person, domestic or foreign, may not use any sign, logo, or marketing message, in any media, or use any written, printed, electronic, or internet-based instrument or material representation whatever directly or indirectly indicating that the business of the person is that of a bank, savings bank, or trust or investment company.
(3)(a) A Montana state-chartered bank or an out-of-state state-chartered bank that seeks to transact business under a name or title that contains the word “bank”, “banker”, “banking”, “savings bank”, “saving”, “trust company”, or “investment company” may do so only on the approval of the department. This section does not prohibit the use of the word “bank” in the name or title of any bank holding company registered with the board of governors of the federal reserve system pursuant to 12 U.S.C. § 1844.
(b)The department may grant a waiver to allow the use of a restricted word listed in subsection (3)(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.
(4)A person, domestic or foreign, violating a provision of this section shall forfeit to the state $100 a day for every day or part of a day during which the violation continues.
(5)On suit by the department, the court may issue an injunction restraining the person 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 bank, savings bank, or trust or investment company and may enter any other order or decree as equity and justice require.