Montana Code 32-1-463. Sale of securities by officer to bank
32-1-463. Sale of securities by officer to bank. (1) A director, officer, employee, or controlling stockholder of any bank may not, directly or indirectly, for the person‘s account, for the person, or as the partner or agent of others sell or transfer or cause to be sold or transferred to the bank of which the person is a director, officer, employee, or controlling stockholder any note or bond secured by any mortgage or trust deed on real estate or any contract arising from the sale of real estate, in which the director, officer, employee, or controlling stockholder is personally or financially interested, without a vote of the majority of the board of the bank, duly noted upon the minutes of the meeting at which the transaction is decided upon. The minutes must be signed by a majority of the board.
Terms Used In Montana Code 32-1-463
- 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
- Contract: A legal written agreement that becomes binding when signed.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Knowingly: means only a knowledge that the facts exist which bring the act or omission within the provisions of this code. See Montana Code 1-1-204
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
(2)Any director, officer, employee, or controlling stockholder of any bank who knowingly violates or consents to the violation of this provision is guilty of a felony.