32-10-512. Conviction of crime -- nolo contendere. (1) Any person who has pleaded guilty to, been convicted of, or pleaded nolo contendere to any offense specified in subsection (2) within the past 10 years or who has been held liable in any civil action by final judgment or administrative judgment by any public agency within the past 7 years of any of the provisions specified in subsection (2) may not serve as an officer, director, partner, trustee, independent contractor, or employee of a mortgage lender or may not be a shareholder controlling 10% or more of the ownership interest in the mortgage lender without prior written approval of the department.
     (2) Subsection (1) applies to criminal convictions of, pleas of nolo contendere to, or civil or administrative judgments entered for the following:
     (a) offenses involving robbery, burglary, theft, embezzlement, fraud, fraudulent conversion or misappropriation of property, forgery, bookmaking, receiving stolen property, counterfeiting, extortion, or check, credit card, or computer violations specified in the provisions of Montana's criminal laws, federal criminal laws, or another state's criminal laws; or
     (b) offenses specified in provisions of the federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989, 12 U.S.C. 3310, et seq.
     (3) Any officer, director, partner, trustee, or other person who seeks a controlling ownership interest of 10% or more in the business of a licensed mortgage lender shall, as a condition to obtaining that interest or participation, authorize the department access to that person's criminal history information for purposes of determining whether the person has a prior conviction of or has pleaded nolo contendere to a criminal offense specified in subsection (2).
     (4) A person who violates a provision of this section, including but not limited to a licensee who permits a controlling ownership interest in or other participation in the business of the licensee in violation of this section, is subject to the penalty provisions of this chapter.
     (5) For purposes of this section, the term "employee" means:
     (a) a loan officer or other individual who negotiates agreements with the public; or
     (b) an individual with access to or responsibility for escrow funds, trust funds, reserves, or escrow closing funds held by the licensee.

     History: En. Sec. 29, Ch. 369, L. 2007.