Montana Attorney General Opinion 15-249

Opinion No. 249 Banks and Banking-Univel'sity of l\Iontana--Students' Funds, Deposit of. HELD: Acceptance by Unil'ersity of ~Iontana of deposits of moneys from students is authorizer1 hr RN·tion 1!)(;. R. C. 1\1. 1921. June 22, 1933. You have asked my opinion whetilPr the acceptance by the University of Montana of mone~;" from students. 'such moneys being paid out by cllPck to such students as needed. ean he construed as placing the Statc of ~I()ntana in the ha nking business. It is' my opinion that this practice is authorizec1 by section 196, H. C. l\L 1921. ns amended by Chap. 157, Laws of 1931, which reads: "The state board of ex- aminers may in its discretion, hy reso- lution duly adoptell and entered upon the minutes of said board, l)ermit any state institution to retain in its posses- sion. under such conditions as the board may prescribe, incom('s from dormitor- ies conducted by state institutions, and moneys deposited in trust by students, members, inIllates or other persons, which may be subject to refund to the depositors on demand or otherwise. The state hoard of examiners may cancel such permission 'and require the deposit of any or all such funds with the sta te treasurer at its pleasure,. 0 0 ." If the practice is authorized by stat- ute it is therefore not material whether the State of Montana may hc consid- ered in the banking business 01' not. In view, however, of the definition of "com- mercial banking" by section 6017, R. C. M. 1921, and the general definitions of modern banking as found in 7 C .. T. 473, and other authorities, I doubt if the mere acceptance of money from students and paying it out to them when needed could be constru'eel as hanking.