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Rule Title: ELIGIBLE STATE BANK'S PERMISSIBLE DERIVATIVE TRANSACTIONS
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Department: ADMINISTRATION
Chapter: BANKING AND FINANCIAL INSTITUTIONS
Subchapter: Banks
 
Latest version of the adopted rule presented in Administrative Rules of Montana (ARM):

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2.59.126    ELIGIBLE STATE BANK'S PERMISSIBLE DERIVATIVE TRANSACTIONS

(1) An eligible state bank as defined in ARM 2.59.125 may engage in any derivative transaction if the bank has a written policy approved by its board of directors that:

(a) identifies the types of derivative transactions in which the bank is authorized to engage;

(b) establishes an exposure limit for each type of authorized derivative transaction and an aggregate exposure limit for all of the bank's authorized derivative transactions expressed in relation to the bank's lending limit;

(c) is consistent with bank safety and soundness principles; and

(d) requires the designation of an employee to be in charge of the bank's derivatives program who:

(i) has demonstrable expertise and understanding of derivative transactions; and

(ii) is responsible for periodic testing of the model(s) used to measure credit exposure against actual outcomes.

History: 32-1-432, MCA; IMP, 32-1-432, MCA; NEW, 2014 MAR p. 675, Eff. 4/11/14.


 

 
MAR Notices Effective From Effective To History Notes
2-59-502 4/11/2014 Current History: 32-1-432, MCA; IMP, 32-1-432, MCA; NEW, 2014 MAR p. 675, Eff. 4/11/14.
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