Administrative Rules of Montana
Department 2 - ADMINISTRATION
Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS
Subchapter 2.59.4 - Credit Unions
Rule 2.59.407 - DEBT CANCELLATION AND DEBT SUSPENSION PROGRAMS - REQUIREMENTS
Universal Citation: MT Admin Rules 2.59.407
Current through Register Vol. 18, September 20, 2024
(1) A credit union offering debt cancellation contracts and/or debt suspension agreements shall:
(a) manage the risks associated with debt
cancellation contracts and debt suspension agreements in accordance with credit
union safety and soundness principles by establishing and maintaining effective
risk management and control processes over its debt cancellation contracts and
debt suspension agreements to include:
(i)
appropriate recognition and financial reporting of income, expenses, assets,
and liabilities;
(ii) appropriate
treatment of all expected and unexpected losses associated with the contracts;
and
(iii) assessment of the
adequacy of its internal control and risk mitigation activities in view of the
nature and scope of the credit union's debt cancellation and debt suspension
program; and
(b) obtain
and maintain in effect insurance from an insurer authorized or otherwise
registered with the State Auditor and Commissioner of Insurance (State Auditor)
to do business in Montana, except as provided in (2). The insurance must cover
100% of the at-risk loan balances to which the credit union's debt cancellation
contracts pertain.
(2) An insurer authorized by the insurance regulator in an out-of-state credit union's home state that has issued a policy to the out-of-state credit union covering all of its debt cancellation contractual liabilities need not be authorized or otherwise registered with the State Auditor.
32-3-201, MCA; IMP, 32-3-609, MCA;
Disclaimer: These regulations may not be the most recent version. Montana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
