Montana Code 32-2-924. Reserve requirements
32-2-924. Reserve requirements. (1) A mutual association shall maintain at all times a reserve of that percentage of its deposit liabilities as required by the appropriate federal regulator.
Terms Used In Montana Code 32-2-924
- Department: means the department of administration provided for in 2-15-1001. See Montana Code 32-2-603
- Deposit: has the meaning provided in 12 C. See Montana Code 32-2-603
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Mutual association: means any corporation that has been incorporated to conduct the business of receiving money on deposit from its members and making substantially all of its loans on one-to-four family real estate mortgage security. See Montana Code 32-2-603
(2)The department may establish reserve requirements if the federal regulator discontinues reserve requirements.
(3)A mutual association whose reserve drops below the legal requirements shall report the matter to the department immediately and as often as the department asks for a report.
(4)When the reserve of a mutual association falls below the legal requirements, the mutual association may not increase its loans or discounts except by discounting or purchasing bill of exchange payable at sight or on demand, and the department shall notify a mutual association whose reserve is below the amount required to make good the reserve.
(5)In arriving at deposit liabilities with regard to mutual association deposits, the net balance of amounts due to and from other financial institutions must be used as the basis for ascertaining the deposit liability to mutual associations against which reserves are carried.