Montana Code 32-2-932. Sale of securities by officer to mutual association
32-2-932. Sale of securities by officer to mutual association. (1) A director, officer, or employee of a mutual association 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 mutual association of which the person is a director or officer 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, or employee is personally or financially interested, without a vote of the majority of the board of the mutual association, duly noted on the minutes of the meeting at which the transaction is decided on. The minutes must be signed by a majority of the board.
Terms Used In Montana Code 32-2-932
- 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.
- 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
(2)Any director, officer, or employee of any mutual association who knowingly violates or consents to the violation of this provision is subject to the penalties in 32-2-607(5).