Administrative Rules of Montana
Department 2 - ADMINISTRATION
Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS
Subchapter 2.59.6 - Agriculture Credit Corporations
Rule 2.59.601 - CONDITIONS OF INVESTMENT

(1) A bank organized under the laws of Montana may invest in a wholly-owned agricultural credit corporation under the following conditions:

(2) A bank operating under the laws of Montana may invest in an agricultural credit corporation owned by two or more investors under the same conditions listed in (1) if the bank owns 80% or more of the outstanding stock of the corporation. A bank owning less than 80% of the stock of the corporation must limit its investment to its statutory lending limit under the Montana Code Annotated and must follow the conditions in (b) (c) above.

(3) Any bank operating under the laws of Montana shall notify the commissioner of financial institutions of its intentions to invest in an agriculture credit corporation. If the bank does not receive from the commissioner within 30 days after he has received the above notice, a statement disapproving the investment for stated reasons, the bank may proceed with the investment in the agriculture credit corporation.

(4) For the purpose of this rule, an agricultural credit corporation is defined as a corporation organized to make available to banks the right to sell or rediscount loans available through the federal intermediate credit bank or any government agricultural lender.

(5) For the purpose of this rule, a loan means extensions of credit to agricultural producers or agribusinesses which are eligible for rediscount or sale to the federal intermediate credit bank or other government agency.