17.86.120 CERTIFICATES OF DEPOSIT
(1) An owner may satisfy the bonding requirements of this subchapter by submitting proof acceptable to the department that the certificate of deposit (CD):
(a) was issued by a single institution in a denomination not in excess of $250,000, or the maximum insurable amount as determined by the Federal Deposit Insurance Corporation (FDIC), whichever is less. The department may not accept a combination of CDs from an owner in excess of that limit from a single institution. If the issuing institution uses a system in which the issuing institution serves as custodian for the payees of multiple CDs and arranges for one or more additional institutions to issue CDs not in excess of each institution's FDIC limit, and submits those CDs to the department with proof determined acceptable to the department that the issued CDs are insured by the FDIC, the department may accept those CDs;
(b) is automatically renewable annually on the CD's anniversary date;
(c) in combination with all CDs, is in a sufficient amount to ensure that funds in the amount of the bond required in this subchapter will be paid to the department by the issuing bank if the department forfeits the bond and liquidates the CDs before maturity;
(d) is payable to the owner and the department, and the owner has assigned its interest in the CD to the department, both in writing and in the records of the bank issuing the CD;
(e) expressly prohibits the owner from withdrawing funds until the department has released the CD and assignment; and
(f) waives all rights of the issuer to a setoff or lien against the CDs.
History: 75-26-310, MCA; IMP, 75-26-304, MCA; NEW, 2018 MAR p. 94, Eff. 1/13/18; AMD, 2020 MAR p. 957, Eff. 5/30/20.