(1) This sub-chapter applies to living trusts and to transactions involving living trusts, subject to the Montana Living Trust Act, Title 30, chapter 10, part 9, MCA.

As used in this sub-chapter, unless the context indicates otherwise:

(1) The definitions in 30-10-903, MCA, apply.

(2) "Living trust representative" means a person licensed to sell living trusts under 30-10-901 through 30-10-915, MCA.

(1) Each application for a license to offer and sell living trusts in this state must be made on Form LT-1, available from the state auditor.

(2) (a) A license granted under 30-10-904, MCA, to an investment advisor entitles an investment advisor representative affiliated with the investment advisor and registered in this state to act under that license pursuant to (b) .

(b) An investment advisor licensed under 30-10-904, MCA, shall provide the state auditor with the names of each investment advisor representative who will offer or sell living trusts in this state under that license by completing Schedule A to Form LT-1, and paying the fees required by 30-10-904, MCA.

(3) Each applicant shall notify the state auditor of any change in the information in the applicant's application within 30 days after the change occurs by filing an amended Form LT-1 or Schedule A.

(4) A license issued between October 1, 1997, and December 31, 1997, is effective until December 31, 1998, unless the license is suspended or revoked.

(1) Each living trust representative shall make and keep all books and records relating to the representative's offering and sales of living trusts, including, but not limited to, the following:

(a) each written agreement (or copy thereof) entered into by the living trust representative with a client;

(b) a complaint file containing each written customer or client complaint, the action taken by the living trust representative with respect to each complaint, and all documents related to the complaint;

(c) a litigation file documenting each criminal or civil action filed in a state or federal court against the living trust representative, and the disposition of any such action;

(d) a correspondence file containing all correspondence to and received from the public; and

(e) a file containing a copy of all letters of solicitation to clients with whom a living trust agreement is executed.

(2) Records made and kept pursuant to (1) shall be maintained and preserved for a period of at least 5 years.

(3) The state auditor may copy records made, kept, or preserved pursuant to (1) or require a living trust representative to copy those records and provide the copies to the state auditor.

(4) A living trust representative may make and keep records required to be made and kept by (1) on a computer, microform, or other electronic data storage system if the records can be immediately produced in document form.

(1) Sales and promotional material used in connection with the offer or sale of living trusts by persons required to be licensed under 30-10-904, MCA, to persons in this state must be filed with the state auditor at least 10 days prior to use in this state.

(2) The state auditor may by order disallow the use of sales or promotional material filed pursuant to this rule if the state auditor finds that such an order is in the public interest or necessary to protect consumers in this state. Unless the state auditor disallows the use of material filed pursuant to this rule within 10 business days from the day it is filed, the material may be used.

(1) An offer of sale of living trusts made through the internet or similar proprietary or common carrier electronic system is exempt from 30-10-901 through 30-10-915, MCA, if the following conditions are met:

(a) the offer indicates that the offer is not being made to residents of Montana;

(b) the offer is not specifically directed to any person in Montana; and

(c) no sale of a living trust is made in Montana as a result of the offer until the person making the offer is licensed under 30-10-901 through 30-10-915, MCA.