Montana Code 32-2-1106. Closed savings institutions empowered to borrow from corporation
32-2-1106. Closed savings institutions empowered to borrow from corporation. (1) If a savings institution is closed on account of the savings institution’s inability to meet the demands of its depositors, by action of the department, by action of its directors, or in the event of its insolvency or suspension, the department or the department’s agent may borrow from the corporation and furnish any of the assets of the savings institution to the corporation as security for a loan from the corporation. The department may sell to the corporation any part or all of the assets of the savings institution.
Terms Used In Montana Code 32-2-1106
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Department: means the department of administration provided for in 2-15-1001. See Montana Code 32-2-603
- savings institution: means a mutual association that is organized under the laws of this state. See Montana Code 32-2-1101
(2)The provisions of this section do not limit the power of a savings institution or the department to pledge or sell assets in accordance with any existing law.