Montana Code 32-1-212. Conflicts of interest — definition — rulemaking
32-1-212. Conflicts of interest — definition — rulemaking. (1) The commissioner and any deputy commissioner may not be, directly or indirectly, interested in any entity chartered or supervised by the department.
Terms Used In Montana Code 32-1-212
- 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
- Department: means the department of administration provided for in Title 2, chapter 15, part 10. See Montana Code 32-1-109
- Division: means the division of banking and financial institutions of the department. See Montana Code 32-1-109
(2)The commissioner, any deputy commissioner, or any employee of the division, including a bank examiner, may not borrow money from an entity chartered or supervised by the department unless the extension of credit:
(a)is made on substantially the same terms as those prevailing at the time for comparable transactions by the financial institution with persons who are not employed by the division; and
(b)does not involve more than the normal risk of repayment or present other unfavorable features.
(3)For the purposes of this section, the phrase “substantially the same terms” includes interest rates and collateral and credit underwriting procedures that are not less stringent than those prevailing at the time for comparable transactions by the lender as for other borrowers who are not employed by the division.
(4)The department shall adopt rules to implement this section.