Montana Code 32-2-931. Persons previously convicted — rulemaking
32-2-931. Persons previously convicted — rulemaking. (1) Unless the commissioner provides written consent:
Terms Used In Montana Code 32-2-931
- Commissioner: means the commissioner of banking and financial institutions as provided in 32-1-211. See Montana Code 32-2-603
- Institution-affiliated party: means :
(a)any director, officer, or employee of or agent for a mutual association;
(b)any other person who has filed or is required to file a change-in-control notice pursuant to this chapter;
(c)any consultant, joint venture partner, or other person as determined by the commissioner who participates in the conduct of the affairs of an insured depository institution; and
(d)any independent contractor, including any attorney, appraiser, or accountant, who knowingly or recklessly participates in any violation of any law or rule, any breach of fiduciary duty, or any unsafe or unsound practice that caused or is likely to cause more than a minimal financial loss to or a significant adverse effect on the mutual association. See Montana Code 32-2-603
- 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
- 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
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
(a)a person who has been convicted of a criminal offense involving dishonesty or a breach of trust or money laundering or who has agreed to enter into a pretrial diversion or similar program in connection with a prosecution for such an offense may not:
(i)become or continue as an institution-affiliated party with respect to any mutual association;
(ii)own or control, directly or indirectly, any mutual association; or
(iii)otherwise participate, directly or indirectly, in the conduct of the affairs of any mutual association; and
(b)a mutual association may not permit any person referred to in subsection (1)(a) to engage in any conduct or continue any relationship prohibited under subsection (1)(a).
(2)A person who knowingly violates subsection (1)(a) is subject to the penalties in 32-2-607(5).
(3)The commissioner may adopt rules to implement this section.