17.24.145    BONDING: CERTIFICATES OF DEPOSIT

(1) The department may accept as bond an assignment of a certificate of deposit in a denomination not in excess of the maximum insurable amount as determined by the FDIC or the NCUA. The department may not accept a combination of certificates of deposit for one operator on one institution in excess of that limit.

(2) The department may accept only automatically renewable certificates of deposit from a United States bank or credit union.

(3) The department shall require the operator to deposit sufficient amounts of certificates of deposit, to assure that the department will be able to liquidate those certificates prior to maturity, upon forfeiture, for the amount of the bond required pursuant to ARM 17.24.140 and 17.24.141.

(4) The department shall require that each certificate of deposit be made payable to or assigned to the department, both in writing and in the records of the bank issuing the certificate. The department shall require banks issuing these certificates to waive all rights of setoff or liens against these certificates.

(5) The certificate of deposit assignment must be submitted on a certificate of deposit assignment form provided by the department. The certificate of deposit assignment form may not be modified by the bank or credit union beyond populating the necessary certificate of deposit bond form fields.

 

History: 82-4-321, MCA; IMP, 82-4-338, MCA; NEW, 1994 MAR p. 2952, Eff. 11/11/94; TRANS, from DSL, 1996 MAR p. 2852; AMD, 1999 MAR p. 640, Eff. 4/9/99; AMD, 2024 MAR p. 1060, Eff. 5/11/24.