1. (1) The department may not issue a charter to a nondepository trust company bank having initial capital of less than $2 million.

2. (2) The department may, on a case-by-case basis, require additional capital, or the deposit of securities in the amount and types as directed by the department, for a proposed or existing nondepository trust company bank if the department finds the condition and operations of the existing nondepository trust company bank or the proposed scope or type of operations of the proposed nondepository trust company bank requires additional capital or securities to protect the safety and soundness of the institution. The safety and soundness factors to be considered by the department in the exercise of discretion include:

   1. (a) the nature and type of business the nondepository trust company bank conducts or proposes to conduct;
   2. (b) the nature and degree of liquidity in assets held or to be held in a corporate capacity;
   3. (c) the amount, type, and depository of fiduciary assets that the nondepository trust company bank manages or proposes to manage;
   4. (d) the complexity of the nondepository trust company bank's fiduciary duties or proposed fiduciary duties and degree of discretion undertaken;
   5. (e) the competence and experience of the nondepository trust company bank's management or proposed management;
   6. (f) the extent and adequacy of internal controls maintained or to be maintained by the nondepository trust company bank;
   7. (g) the presence or absence of annual unqualified audits by an independent certified public accountant, if applicable;
   8. (h) the reasonableness of the nondepository trust company bank's business plans for retaining or acquiring additional restricted capital; and
   9. (i) the existence and adequacy of insurance obtained or held, or to be obtained or held, by the nondepository trust company bank to protect its clients, beneficiaries, and grantors.

Authorizing statute(s): 32-1-218, 32-1-240, MCA

Implementing statute(s): 32-1-102, 32-1-105, 32-1-106, 32-1-107, 32-1-240, 32-1-242, MCA

History: NEW, 2025 MAR, Notice No. 2025-900, Eff. 9/13/25.