2.59.134    CONVERSION OF A NATIONAL BANK TO A STATE BANK

(1) Upon conversion:

(a) the resulting state bank succeeds, without other transfer, to all the rights and property of the converted bank and is subject to all the debts and liabilities of the converted bank in the same manner as if the resulting state bank itself had incurred them;

(b) all rights of creditors of the converted bank and all liens upon the converted bank's property are unimpaired by the transfer, provided that the liens are limited to the affected property immediately prior to the time when the conversion became effective;

(c) title to all real, personal, and mixed property owned by the converted bank is vested in the resulting state bank without reversion or impairment and without the necessity of any instrument of transfer;

(d) the resulting state bank has all the liabilities, duties, and obligations of the converted bank, including obligations as fiduciary, personal representative, administrator, trustee, or guardian; and

(e) any pending action or other judicial proceeding to which the converted bank was a party may continue to be prosecuted to final judgment, order, or decree as if the conversion had not occurred, or the resulting bank may be substituted as a party to the action or proceeding.

(2) Upon conversion, a resulting bank that is organized under the laws of this state:

(a) shall designate and operate a location of the converted bank as its main banking house; and

(b) may maintain the branch banks and other offices previously maintained by the converted bank.

(3) A bank that desires to convert from a national bank to a state bank shall use the Application for Conversion of an Existing National-Chartered Bank to a State-Chartered Bank form dated June 30, 2020, which is located on the department's website at banking.mt.gov.

History: 32-1-218, MCA; IMP, 32-1-374, MCA; NEW, 2020 MAR p. 1698, Eff. 9/12/20; AMD, 2021 MAR p. 328, Eff. 3/27/21.