The bill proposes to amend Section 32-3-401 of the Montana Code Annotated (MCA) to explicitly prohibit credit unions from acquiring banks, their assets, or liabilities. The new legal language inserted into the current law clarifies that while credit unions have various general powers, they are not permitted to engage in any transactions that involve acquiring a bank or any aspect of a bank's business. This amendment aims to delineate the operational boundaries of credit unions in relation to banks, ensuring that credit unions do not expand their scope to include banking operations.

In addition to the prohibition, the bill retains the existing powers of credit unions, such as making contracts, lending funds, and holding memberships in other credit unions. The amendment serves to reinforce the distinction between credit unions and banks, thereby maintaining the integrity of the financial services landscape in Montana. Overall, the bill seeks to provide clarity and regulatory oversight regarding the activities of credit unions in relation to traditional banking institutions.

Statutes affected:
LC Text: 32-3-401