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Rule: 2.59.2004 Prev     Up     Next    
Rule Title: CAPITAL ADEQUACY OF PROPOSED NEW MUTUAL ASSOCIATIONS
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Department: ADMINISTRATION
Chapter: BANKING AND FINANCIAL INSTITUTIONS
Subchapter: Mutual Savings and Loan Associations
 
Latest version of the adopted rule presented in Administrative Rules of Montana (ARM):

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2.59.2004    CAPITAL ADEQUACY OF PROPOSED NEW MUTUAL ASSOCIATIONS

(1)  The applicant must provide a reasonable assurance that the proposed new mutual association will have adequate initial paid-in capital sufficient to: 

(a)  absorb initial operating losses under foreseeable business conditions;

(b)  permit the proposed investment in building, land, furniture, and fixtures within the limitation of 100% of capital and surplus as imposed by 32-2-933, MCA;

(c)  provide protection for depositors' funds to the same extent that the average of all insured mutual associations in the proposed mutual association's peer group provides capital protection, measured by the most current peer group data available on total capital accounts as a percentage of total assets.  The proposed mutual association's reasonably estimated total assets at the end of its first three years of operation shall be the basis upon which this standard shall be projected; and

(d)  enable the mutual association to furnish competitive services that will ensure an amount of business sufficient to assure its success.

 

History: 32-2-801, MCA; IMP, 32-2-801, 32-2-808, 32-2-933, MCA; NEW, 2022 MAR p. 230, Eff. 2/12/22.


 

 
MAR Notices Effective From Effective To History Notes
2-59-615 2/12/2022 Current History: 32-2-801, MCA; IMP, 32-2-801, 32-2-808, 32-2-933, MCA; NEW, 2022 MAR p. 230, Eff. 2/12/22.
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