Idaho Code § 26-715 — Idaho Code / Title 26 / Chapter 7 / Section 26-715
26-715 BRANCH OR OFFICE AT WHICH INSTRUMENTS ARE TO BE PRESENTED MUST BE INDICATED.
Status: in_force

26-715. Branch or office at which instruments are to be presented must be indicated. All checks, drafts, bills of exchange or other orders for the payment of money drawn against any bank operating branch banks shall indicate the particular bank and branch at which the same are to be presented for payment or acceptance.

History:

[(26-715) 26-719, added 1979, ch. 41, sec. 2, p. 94; am. and redesig. 2004, ch. 159, sec. 15, p. 524.]
Idaho Code § 26-1110 — Idaho Code / Title 26 / Chapter 11 / Section 26-1110
26-1110 PROOF THAT SERVICES PERFORMED WILL BE SUBJECT TO REGULATION AND EXAMINATION.
Status: in_force

26-1110. Proof that services performed will be subject to regulation and examination. No bank subject to examination by the department of finance may cause to be performed, by contract or otherwise, any bank services for itself, whether on or off its premises, unless assurances satisfactory to the department of finance are furnished to such department by both the bank and the party performing such services that the performance thereof for any such bank will be subject to regulation and examination by the department of finance to the same extent as if such services were being performed by the bank itself on its own premises.

History:

[26-1110, added 1979, ch. 41, sec. 2, p. 117.]
Idaho Code § 26-2105 — Idaho Code / Title 26 / Chapter 21 / Section 26-2105
26-2105 ORGANIZATION.
Status: in_force

26-2105. Organization. (1) Any seven (7) or more residents of the jurisdiction of the state of Idaho, of legal age, who have a common bond referred to in section 26-2110, Idaho Code, may organize a credit union and become charter members thereof by:

(a) Filing an application furnished by the director;

(b) Executing articles of incorporation by the terms of which they agree to be bound, which articles shall state:

(i) The name, which shall include the words "credit union" and that is not the same as the name of another existing credit union that is authorized to do business in Idaho;

(ii) The term of existence of the credit union, which shall be perpetual;

(iii) The par value of shares of the credit union, which shall be at least five dollars ($5.00); and

(iv) The names and addresses of the subscribers to the articles of incorporation, and the number of shares subscribed by each;

(c) Adopting bylaws for the general government of the credit union, consistent with the provisions of this chapter; and

(d) Forwarding the required application fee, articles of incorporation, and the bylaws to the director. If they conform to the statute, he shall endorse the articles of incorporation and return two (2) copies of the endorsed articles of incorporation and two (2) copies of the bylaws to the applicants of the credit union. The credit union shall deliver one (1) copy of the endorsed articles of incorporation, together with any required filing fee, to the secretary of state for filing. One (1) original copy of the articles of incorporation and bylaws shall be delivered to and retained by the department of finance. If the director approves or endorses the articles of incorporation, he will issue three (3) charters in original. The director shall have the authority to investigate the application for charter to determine whether the proposed credit union does meet the objectives of this chapter. The determination for the approval of the application for charter shall be under such rules and regulations as shall be adopted by the director. These rules and regulations shall give account to the number of potential members, their stability of employment or membership in the group comprising the common bond of membership, and the economic characteristics of the proposed common bond. If, in the opinion of the director, the proposed credit union does not meet these objectives, the charter application shall be denied.

(2) The subscribers for a credit union charter shall not transact any business until formal approval of the charter has been received. In order to simplify the organization of credit unions, the director shall cause to be prepared a form of articles of incorporation and a form of bylaws, consistent with this chapter, which shall be used by credit union incorporators for their guidance.

(3) The articles of incorporation filed in the department of finance shall be available for inspection and a copy may be provided upon payment of an appropriate fee.

History:

[26-2105, added 1977, ch. 213, sec. 2, p. 584; am. 2024, ch. 130, sec. 2, p. 522; am. 2025, ch. 108, sec. 1, p. 567.]
Idaho Code § 26-31-306 — Idaho Code / Title 26 / Chapter 31 / Section 26-31-306
26-31-306 ISSUANCE OF LICENSE — LICENSE NOT ASSIGNABLE OR TRANSFERABLE — INACTIVE LICENSE STATUS.
Status: in_force

PART 3.

PROVISIONS APPLICABLE TO MORTGAGE LOAN ORIGINATORS

26-31-306. issuance of license — license not assignable or transferable — inactive license status. (1) The director shall not issue a mortgage loan originator license under this part unless the director first makes the following findings:

(a) The applicant has never had a mortgage loan originator license, or other mortgage related license, revoked in any governmental jurisdiction. If such revocation was formally vacated, then it shall not be deemed a revocation for purposes of this section.

(b) The applicant has not been convicted of, found guilty of or pled guilty or nolo contendere to a felony in a domestic, foreign or military court:

(i) During the seven (7) year period immediately preceding the date of the application for licensing or registration; or

(ii) At any time preceding such date of application, if such felony involved an act of fraud, dishonesty, or a breach of trust, or money laundering;

(c) Any pardon or expungement of a conviction shall not be deemed a conviction for purposes of this section resulting in an automatic denial or revocation of a mortgage loan originator license. The director may consider the underlying crime, facts or circumstances of a pardoned or expunged felony conviction when determining the eligibility of an applicant for licensure under paragraph (d) of this subsection.

(d) The applicant has demonstrated financial responsibility, character and general fitness sufficient to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly, and efficiently within the purposes of this part. The director shall not base a license application denial under this part solely on a license applicant's credit score or credit report. For purposes of this section, a license applicant is not financially responsible if he has shown a disregard for the management of his personal financial affairs. A determination that an individual has not shown financial responsibility may include, but is not limited to, consideration of the following:

(i) A current outstanding judgment, except a judgment issued solely as a result of medical expenses;

(ii) A current outstanding tax lien or other government lien or filing;

(iii) A foreclosure within the past three (3) years; or

(iv) A pattern of delinquent accounts within the past three (3) years.

(e) The applicant has successfully completed the prelicensing education requirement pursuant to section 26-31-307, Idaho Code.

(f) The applicant has passed a written test that meets the test requirement pursuant to section 26-31-308, Idaho Code.

(g) The applicant has met the mortgage recovery fund requirement pursuant to section 26-31-110, Idaho Code.

(h) The applicant has provided information on the application as required in section 26-31-305, Idaho Code.

(2) The director may conduct investigations as he deems necessary to determine the existence of the requirements listed in this section.

(3) A license issued under this part is not assignable or transferable.

(4) A mortgage loan originator whose license is placed on inactive status under this part shall not act as a mortgage loan originator in this state until the license is activated.

(5) The director shall place a mortgage loan originator license on inactive status upon the occurrence of any of the following:

(a) A mortgage loan originator license application is submitted and approved prior to the filing and approval of a loan originator's relationship and sponsorship by an employing licensed mortgage broker or mortgage lender or by an exempt entity;

(b) Receipt of a notice from either the licensed mortgage broker, mortgage lender, registrant, exempt entity or mortgage loan originator that the mortgage loan originator's sponsored relationship as an employee or independent agent of a licensed mortgage broker, mortgage lender or exempt entity has been terminated; or

(c) The surrender, expiration, suspension or revocation of the employing licensed mortgage broker's, mortgage lender's or exempt entity's license.

(6) If a mortgage loan originator license is designated as inactive under this part, then it shall remain in that status unless and until it is surrendered, revoked, suspended, expired or is activated.

(7) A mortgage loan originator who holds an inactive mortgage loan originator license may renew such inactive license if he or she remains otherwise eligible for renewal pursuant to section 26-31-309, Idaho Code. Such renewal shall not activate the license from an inactive status.

(8) The director may activate a mortgage loan originator license upon receipt of a filing through the NMLSR indicating that the mortgage loan originator licensee has been employed and sponsored as a mortgage loan originator by a licensed mortgage broker, mortgage lender or by an exempt entity registrant and if such mortgage loan originator meets the conditions for licensing under this part.

History:

[26-31-306, added 2009, ch. 97, sec. 2, p. 300; am. 2013, ch. 64, sec. 16, p. 156.]
Idaho Code § 26-2140A — Idaho Code / Title 26 / Chapter 21 / Section 26-2140A
26-2140A CONSERVATORSHIP.
Status: in_force

26-2140A. Conservatorship. (1) The director may, in his discretion and without notice, appoint himself or an agent as conservator and immediately take possession and control of the business and assets of any credit union in any case in which:

(a) The director determines that such action is necessary to conserve the assets of any credit union or to protect the interests of the members of such credit union;

(b) The credit union, by a resolution of its board of directors, consents to such an action by the director;

(c) There is a violation of a cease and desist order, or any law, rule, regulation or any written agreement entered into with the director; or

(d) There is concealment of books, papers, records, or assets of the credit union or refusal to submit books, papers, records, or affairs of the credit union for inspection to any examiner or to any lawful agent of the director.

(2) Not later than thirty (30) calendar days after the date on which the director takes possession and control of the business and assets of a credit union, such credit union may apply to the district court for the judicial district in which the credit union is located for an order requiring the director to show cause why he should not be enjoined from continuing such possession and control. Except as provided in this subsection, no court may take any action, except at the request of the director, to restrain or affect the exercise of powers or functions of the director as conservator.

(3) The director may maintain possession and control of the business and assets of such credit union and may operate such credit union until such time as:

(a) The director shall permit such credit union to continue business subject to such terms and conditions as may be imposed by the director;

(b) Such credit union is placed in receivership in accordance with the provisions of section 26-2141, Idaho Code; or

(c) Otherwise ordered by the district court of the judicial district in which the credit union is located.

(4) The director may appoint such agents as he considers necessary in order to carry out his duties as conservator.

(5) All expenses of the credit union during the period of the conservatorship shall be paid by the credit union.

(6) The conservator shall have all the powers of the members, the directors, the officers, and the committees of the credit union and shall be authorized to operate the credit union in its own name or to conserve its assets in the manner and to the extent authorized by the director.

(7) The authority granted in this section is in addition to all other authority granted to the director under this chapter.

History:

[26-2140A, added 1991, ch. 236, sec. 6, p. 571; am. 2020, ch. 214, sec. 6, p. 631.]
Idaho Code § 26-2103 — Idaho Code / Title 26 / Chapter 21 / Section 26-2103
26-2103 SUPPLEMENTARY GENERAL PRINCIPLES OF LAW APPLICABLE.
Status: in_force

26-2103. Supplementary general principles of law applicable. Unless displaced by the particular provisions of this chapter, the Uniform Commercial Code, the Uniform Consumer Credit Code, the Idaho Securities Act, the corporation laws of this state and the principles of law and equity, including the law relative to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress, coercion, mistake, bankruptcy, or other validating or invalidating cause supplement its provisions.

History:

[26-2103, added 1977, ch. 213, sec. 2, p. 583.]
Idaho Code § 26-1702 — Idaho Code / Title 26 / Chapter 17 / Section 26-1702
26-1702 DEFINITIONS.
Status: in_force

26-1702. Definitions. (1) As used in this chapter, unless the context otherwise requires:

(a) "Director" means the director of the department of finance.

(b) "Federal international bank institutions" means a branch, agency, or representative office of an international banking corporation established and operating under the federal international banking act of 1978, 12 U.S.C. sec. 3101 et seq., as amended, and its regulations.

(c) "Foreign country" means a country other than the United States, but including a territory or possession of the United States.

(d) "International bank agency" means a business or any part of a banking business conducted in this state or through an office located in this state, other than a federal international bank institution, which exercises powers as set forth in section 26-1709, Idaho Code, on behalf of an international banking corporation.

(e) "International bank branch" means a business or any part of a banking business conducted in this state, or through an office located in this state, other than a federal international bank institution, which exercises powers as set forth in section 26-1709, Idaho Code, on behalf of an international banking corporation.

(f) "International banking corporation" means a banking corporation organized and licensed under the laws of a foreign country or a political subdivision of a foreign country.

(g) "International representative office" means a business location of a representative of an international banking corporation other than a federal international bank institution, established to act in a liaison capacity with existing and potential customers of the international banking corporation and to generate new loans and other activities for the international banking corporation that is operating outside the state.

(2) Legal and financial terms used in this chapter refer to equivalent terms used by the country in which the international banking corporation is organized.

History:

[26-1702, added 1995, ch. 99, sec. 10, p. 308.]
Idaho Code § 26-31-317 — Idaho Code / Title 26 / Chapter 31 / Section 26-31-317
26-31-317 PROHIBITED ACTS AND PRACTICES.
Status: in_force

PART 3.

PROVISIONS APPLICABLE TO MORTGAGE LOAN ORIGINATORS

26-31-317. PROHIBITED ACTS AND PRACTICES. It is a violation of this part for a person or individual subject to this part, in connection with mortgage loan origination activity in this state, to:

(1) Directly or indirectly employ any scheme, device or artifice to defraud or mislead borrowers or lenders or to defraud any person;

(2) Engage in any unfair or deceptive practice;

(3) Obtain property by fraud or misrepresentation;

(4) Solicit or enter into a contract with a borrower that provides that the person or individual subject to this part may earn a fee or commission through "best efforts" to obtain a loan, even though no loan is actually obtained for the borrower;

(5) Solicit, advertise or enter into a contract for specific interest rates, points or other financing terms, unless the terms are actually available at the time of soliciting, advertising or contracting;

(6) Conduct any business covered by this part without holding a valid license as required under this part, or assist or aid and abet any person in the conduct of business under this part who does not hold a valid license as required under this part;

(7) Fail to make disclosures as required by this part or any other applicable state or federal law including rules or regulations promulgated thereunder;

(8) Fail to comply with provisions of this part or rules promulgated under this part, or fail to comply with any other state or federal law, including the rules and regulations promulgated thereunder, applicable to any business authorized or conducted under this part;

(9) Make any false or deceptive statement or representation, including a false or deceptive statement or representation concerning rates, points or other financing terms or conditions for a residential mortgage loan, or engage in bait and switch advertising;

(10) Negligently make any false statement or knowingly and willfully omit a material fact in connection with any information or reports filed with a government agency or the NMLSR or in connection with any investigation conducted by the director or another governmental agency;

(11) Make any payment, threat or promise, directly or indirectly, to any person for the purpose of influencing the independent judgment of the person in connection with a residential mortgage loan, or make any payment, threat or promise, directly or indirectly, to any appraiser of a property, for the purpose of influencing the independent judgment of the appraiser with respect to the value of the property;

(12) Collect, charge, attempt to collect or charge, or use or propose any agreement purporting to collect or charge any fee prohibited by this part;

(13) Cause or require a borrower to obtain property insurance coverage in an amount that exceeds the replacement cost of the improvements as established by the property insurer;

(14) Fail to truthfully account for moneys belonging to a party to a residential mortgage loan transaction;

(15) Be employed simultaneously by more than one (1) mortgage broker or mortgage lender licensed or required to be licensed under part 2 of this chapter;

(16) Enter into concurrent contractual relationships for delivery of mortgage loan origination services to more than one (1) mortgage broker or mortgage lender licensed or required to be licensed under part 2 of this chapter;

(17) Obtain any exclusive dealing or exclusive agency agreement from any borrower;

(18) Delay closing of any residential mortgage loan for the purpose of increasing interest, costs, fees or charges payable by the borrower;

(19) Accept any fees at closing which were not previously disclosed fully to the borrower;

(20) Obtain any agreement or instrument in which blanks are left to be filled in after signing by a borrower;

(21) Enter into any agreement, with or without the payment of a fee, to fix in advance a particular interest rate or other term in a residential mortgage loan unless written confirmation of the agreement is delivered to the borrower as required by rule pursuant to this chapter;

(22) Violate standards of conduct adopted by the NMLSR applicable to a person taking a written test administered pursuant to section 26-31-308, Idaho Code, as found by the director; or

(23) Obtain or attempt to obtain credit for education required pursuant to section 26-31-307 or 26-31-310, Idaho Code, by means of false pretenses or representations.

History:

[26-31-317, added 2009, ch. 97, sec. 2, p. 307; am. 2013, ch. 64, sec. 20, p. 159.]
Idaho Code § 26-2155 — Idaho Code / Title 26 / Chapter 21 / Section 26-2155
26-2155 DESIGNATION OF DEPOSITORY — REPORTING OF RESERVES AND UNDIVIDED EARNINGS.
Status: in_force

26-2155. Designation of depository — Reporting of reserves and undivided earnings. (1) The state treasurer shall designate state or federal credit unions qualified under this chapter as a state depository or depositories. Such designation shall be determined by competitive bidding or by other means generally accepted as standard business practice. In no case shall the deposit or deposits of state funds in any credit union over the total covered by insurance exceed at any one time the total of the reserves and undivided earnings of such credit union or the total sum covered by share and deposit insurance provided by either the national credit union share insurance fund or by a deposit guarantee corporation authorized to issue share and deposit insurance contracts in this state, whichever sum shall be greater. The credit union shall provide collateral for funds held in accounts of the state in the credit union pursuant to this section in excess of the amount covered by share insurance. The type and amount of collateral shall be determined by agreement of the credit union and the depositor. In the event that any credit union has been designated as a depository under this chapter, such designation shall continue in force until revoked by the treasurer.

(2) Every credit union designated as a state depository and holding any deposit of the funds of the state of Idaho under the provisions of this section shall, on or before beginning to hold such deposits, file with the state treasurer the affidavit of one (1) of its officers containing the following:

(a) The amount of the reserves and undivided earnings of such credit union; and

(b) A certification that such credit union is not currently engaged in and will not for the duration of its designation as a state depository engage in a boycott of any individual or company because the individual or company:

(i) Engages in or supports the exploration, production, utilization, transportation, sale, or manufacture of fossil fuel-based energy, timber, minerals, hydroelectric power, nuclear energy, or agriculture; or

(ii) Engages in or supports the manufacture, distribution, sale, or use of firearms, as defined in section 18-3302(2)(d), Idaho Code.

(3) Upon receipt of the affidavit pursuant to subsection (2) of this section, the state treasurer shall determine, subject to the uniform prudent investor act, chapter 5, title 68, Idaho Code, whether to maintain deposits with such credit union. Such affidavits shall be effective for the purposes of this section, to and including January 31 next following the date of their filing but no longer, and, on or before that date, if such credit union is to continue as a designated state depository under this section, a like affidavit shall be filed in like manner for the succeeding year. No such credit union shall receive deposits from or act as depository for the funds of the state of Idaho unless and until the affidavit required pursuant to this section is on file with the state treasurer in accordance with this section. The state treasurer shall revoke the state depository designation of any credit union determined by the state treasurer to be currently engaged in any activities prohibited by this section.

(4) Subsection (2)(b) of this section shall not apply to a state depository designation issued by the state treasurer if the state treasurer determines the requirements of subsection (2)(b) of this section would be inconsistent with the constitutional or statutory duties of the state treasurer or would be contrary to the business needs of the state of Idaho and prevent the state of Idaho from fulfilling its legal duties or obligations.

(5) The state treasurer shall revoke the state depository designation of any credit union determined by the state treasurer to be currently engaged in any activities prohibited by this section. In determining if a credit union has engaged in activities prohibited by this section, the state treasurer shall rely only upon publicly available statements or information made by any person authorized to speak on behalf of the credit union or in the credit union's official external communications. Prior to any such revocation of a state depository designation, the state treasurer shall provide the credit union with sixty (60) days' prior written notice identifying the specific prohibited activities at issue and providing the credit union the opportunity to refute in writing having engaged in the specified prohibited activities. A decision by the treasurer revoking a depository designation may be appealed by the credit union to district court within twenty-eight (28) days of the treasurer's decision, and the reviewing court shall review the appeal under the standard for appeals set forth in section 67-5279, Idaho Code.

(6) The state treasurer is authorized in his or her discretion and from time to time to negotiate for the payment to designated state depositories of reasonable compensation for services rendered in acting as such depositories. The method and/or rate of such compensation and the terms and conditions thereof shall be fixed by the state treasurer after such negotiation, which may include the calling of bids for specific services. All bids received, whether by a formal bidding process or by negotiation, and the compensation fixed by the treasurer, which shall be in the form of a written agreement, shall be a matter of public record.

(7) For the purposes of this section, a boycott means that the credit union, without a reasonable business purpose, refuses to offer financial services to an individual or organization, terminates business with an individual or organization, or takes another action that is intended to penalize, inflict economic harm on, or limit commercial relations with an individual or organization because the individual or organization:

(a) Engages in a particular business sector;

(b) Engages in a particular business sector and does not commit or pledge to meet standards beyond applicable federal and state law; or

(c) Does business with an individual or organization that engages in a particular business sector.

(8) For purposes of this section, reasonable business purpose means any purpose directly related to:

(a) Promoting the financial success or stability of a financial institution;

(b) Mitigating risk to a financial institution;

(c) Complying with legal or regulatory requirements; or

(d) Limiting liability of a financial institution.

History:

[26-2155, added 1986, ch. 74, sec. 2, p. 221; am. 1988, ch. 158, sec. 3, p. 288; am. 2023, ch. 235, sec. 1, p. 729; am. 2025, ch. 59, sec. 1, p. 273.]
Idaho Code § 26-2141A — Idaho Code / Title 26 / Chapter 21 / Section 26-2141A
26-2141A RECEIVER — DUTIES — POWERS.
Status: in_force

26-2141A. receiver — duties — powers. (1) A receiver appointed pursuant to section 26-2141, Idaho Code, shall do all of the following:

(a) Take possession of the books, records, and assets of the credit union and collect all debts, dues, and claims belonging to the credit union;

(b) Sue and defend, compromise, and settle all claims involving the credit union;

(c) Sell all real and personal property of the credit union;

(d) Exercise all fiduciary functions of the credit union as of the date of the commencement of the receivership;

(e) Pay all administrative expenses of the receivership. The administrative expenses are a first charge on the assets of the credit union and the receiver shall pay those expenses before any final distribution or payment of dividends to creditors or members;

(f) Except as provided in this subsection, pay ratably the debts of the credit union. The receiver may not pay any debt that does not exceed one thousand dollars ($1,000) in full, but the holder of that debt is not entitled to payment of interest on the debt;

(g) After paying or providing for payment of all the administrative expenses and debts under subsections (e) and (f) of this section, pay ratably to the members of the credit union the balance of the net assets of the credit union in proportion to the number of shares held and owned by each;

(h) Have all the powers of the directors, officers, and members of the credit union necessary to support an action taken on behalf of the credit union; and

(i) Hold title to the credit union's property, contracts, and rights of action, beginning on the date the credit union is ordered into receivership.

(2) A receiver appointed pursuant to section 26-2141, Idaho Code, may do all of the following:

(a) Borrow money as necessary or expedient to aid in the liquidation of the credit union and secure the borrowing by the pledge of a lien, security interest, or mortgage on the assets of the credit union;

(b) Employ agents, legal counsel, accountants, appraisers, consultants, and other personnel the receiver considers necessary to assist in the performance of the receiver's duties. With the prior approval of the district court, the receiver may employ personnel of the department of finance if the receiver considers the employment to be advantageous or desirable. The expense of employing personnel of the department of finance is an administrative expense of the liquidation that is payable to the department of finance;

(c) If approved by the district court, dispose of records of a credit union that are obsolete and unnecessary to administer the receivership or retain records, as necessary, through the termination of the receivership or for any period following the receivership as the receiver may find necessary or appropriate. In such case, a receiver may preserve assets of a liquidated credit union and deposit them in an account to be used to maintain the records of a liquidated credit union after the closing of the receivership; and

(d) Exercise other powers and duties ordered by the district court under the laws of this state applicable to the appointment of a receiver.

History:

[26-2141A, added 2020, ch. 214, sec. 11, p. 634.]
Idaho Code § 26-2715 — Idaho Code / Title 26 / Chapter 27 / Section 26-2715
26-2715 OFFICES — LOCATION.
Status: in_force

26-2715. Offices — Location. (1) A licensee shall maintain not less than one (1) office in this state.

(2) A licensee, with the approval of the director, may maintain an office at any place outside this state.

(3) Each office of a licensee shall be located in a place which is reasonably accessible to the public.

(4) A licensee shall post in a conspicuous place at each of its offices a sign which bears the corporate name of the licensee.

(5) A licensee shall maintain at each of its offices personnel who are competent to conduct the business of such an office.

(6) Upon written notice to the director, a licensee may establish, relocate, or close an office.

History:

[26-2715, added 1989, ch. 252, sec. 1, p. 612; am. 2001, ch. 86, sec. 2, p. 222.]
Idaho Code § 26-1010 — Idaho Code / Title 26 / Chapter 10 / Section 26-1010
26-1010 DIRECTOR MAY APPOINT AGENTS.
Status: in_force

26-1010. Director may appoint agents. The director may, under his hand and seal, appoint and authorize an agent to assist him or act for him in the performance of any powers or duties hereunder, the certificate of appointment to be filed in the office of said director, and a certified copy thereof delivered to such agent. Such agent and other employees hereinafter mentioned, shall receive a salary, to be fixed as hereinafter provided, for the time he is actually engaged in the performance of such duties. The director may also employ such attorneys and procure such expert accountants and other experts, assistants and employees as may be necessary in the liquidation and distribution of the assets of any such bank, and the performance of his duties hereunder, and may retain such of the officers or employees of such bank as he may deem necessary. He shall require from the agent appointed by him and from such of the assistants as will have charge of any of the assets of the bank such security for the faithful discharge of their duties as he may deem proper.

The director may also designate any one of the examiners of the department of finance as a general liquidating agent, with his office in the department of finance, for the purpose of liquidating any one or all state banks in the process of liquidation, and for the purpose of conducting such liquidation under the direction of said director; and may authorize the said liquidating agent to employ such clerical help as may be necessary.

Liquidating agents and experts and clerical assistants shall receive a salary to be fixed by the director and necessary traveling and hotel expenses incurred in the performance of official duties. The salary of the liquidating agent and experts and necessary clerical assistance and other expenses incurred by the said liquidating agent shall be borne equally and ratably by the bank or banks in process of liquidation under such agent's charge in proportion to the total amount of resources of each of such banks. The funds for such expenses shall be raised by assessing each bank in ratio herein set forth and paying such expenses directly to the persons entitled thereto, without depositing any of such funds in the state treasury.

The compensation of the agents appointed by the director and of attorneys, expert accountants and other assistants, and all expenses of liquidation and distribution of a bank whose assets and business shall be taken possession of by the director, shall be fixed by the director, but subject to be approved by the judge of the district court of the county in which the bank is located, on notice to such bank. Except in cases of emergency, the compensation to be paid to attorneys and expert accountants shall be fixed and approved before services are rendered. When the compensation shall have been so fixed and approved and the services rendered, the same shall be paid out of the funds of such bank in the hands of the director, and shall be a proper charge and lien on the assets of such bank as herein provided.

History:

[26-1010, added 1979, ch. 41, sec. 2, p. 105.]
Idaho Code § 26-507 — Idaho Code / Title 26 / Chapter 5 / Section 26-507
26-507 VIOLATION — PENALTY.
Status: in_force

26-507. Violation — Penalty. Any person who willfully violates any provision of this chapter shall be guilty of a felony.

History:

[26-507, added 1979, ch. 41, sec. 2, p. 83.]
Idaho Code § 26-2227 — Idaho Code / Title 26 / Chapter 22 / Section 26-2227
26-2227 DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.
Status: in_force

26-2227. Denial, suspension, or revocation of license. (1) An application for a license may be denied or, after notice and the opportunity for a hearing, a license may be suspended or revoked by the director if he finds that facts or conditions exist that would have justified the director in refusing to grant a license had such facts or conditions been known to exist at the time the license was issued or that the licensee or the applicant, or any officer, member, owner, manager, or agent of a licensee or applicant:

(a) Has violated any provision of this chapter, the federal fair debt collection practices act, 15 U.S.C. 1692 et seq., as amended, or any rule or order of the director under this chapter;

(b) Is not legally qualified to do business in this state;

(c) Has failed, refused, or neglected to pay or remit to any creditor client the agreed portion of any sum collected by the applicant or licensee on any bill, claim, account, or other indebtedness entrusted to such applicant or licensee for collection;

(d) Has failed to return to a debtor an amount that was not owed on his debt;

(e) Has made a material misstatement in the application for such license or renewal;

(f) Has obtained or attempted to obtain a license or renewal by fraud or misrepresentation;

(g) Has misappropriated or converted to his own use or improperly withheld moneys collected or held for any other person, except that a collection agency licensee may convert into business funds his portion of any moneys collected on behalf of a creditor client, pursuant to a written agreement with the creditor client and in compliance with this chapter;

(h) Has falsely represented himself as a licensee for the purpose of soliciting for or representing any business covered in this chapter;

(i) Has been convicted of, or a court of competent jurisdiction has entered a withheld judgment for, a crime deemed relevant in accordance with section 67-9411(1), Idaho Code, including a crime involving financial wrongdoing;

(j) Has had a license substantially equivalent to a license under this chapter issued by another state revoked, suspended, or denied; or

(k) Demonstrates a lack of fitness to engage in business activities authorized for a licensee under this chapter.

(2) The director may, after notice and the opportunity for a hearing, impose upon any licensee, or person required to be licensed under this chapter, a civil penalty of not more than five thousand dollars ($5,000) for each violation of this chapter.

(3) The director may, after notice and the opportunity for a hearing, impose upon a licensee, or person required to be licensed under this chapter, any sanction authorized by this section if the director finds that an agent of the licensee, or person required to be licensed under this chapter, has violated any provision of this chapter.

(4) The director may, in his discretion and by an order issued in accordance with chapter 52, title 67, Idaho Code, prohibit a licensee from using an individual as an agent if the individual has violated any provision of this chapter or any similar statute or rule of another state.

(5) Any denial, suspension, or revocation of any license issued under this chapter shall be governed by chapter 52, title 67, Idaho Code.

History:

[26-2227, added 2008, ch. 347, sec. 7, p. 943; am. 2020, ch. 175, sec. 2, p. 505; am. 2022, ch. 286, sec. 3, p. 907.]
Idaho Code § 26-2921 — Idaho Code / Title 26 / Chapter 29 / Section 26-2921
26-2921 LICENSEE LIABILITY.
Status: in_force

26-2921. Licensee liability. A license's liability to any person for a money transmission conducted on that person's behalf by the licensee or the licensee's authorized representative shall be limited to the amount of money transmitted or the face amount of the payment instrument purchased.

History:

[26-2921, added 1994, ch. 410, sec. 1, p. 1294.]
Idaho Code § 26-502 — Idaho Code / Title 26 / Chapter 5 / Section 26-502
26-502 APPROVAL OF BANK HOLDING COMPANY.
Status: in_force

26-502. Approval of bank holding company. Every bank holding company hereafter formed shall register with the department of finance and receive the approval of the director to become a bank holding company. The director shall approve an application to form a bank holding company if he finds that the persons who are officers, directors or stockholders are of such character and fitness that a bank or banks acquired by the bank holding company will be operated in a safe, prudent and profitable manner. The application shall include such information with respect to the financial condition and operations, management, and intercompany relationships of the bank holding company and its subsidiaries and related matters, as the director may deem necessary or appropriate. The director may, in his discretion, accept copies of federal registration in lieu of state requirements.

History:

[26-502, added 1979, ch. 41, sec. 2, p. 82.]
Idaho Code § 26-1501 — Idaho Code / Title 26 / Chapter 15 / Section 26-1501
26-1501 OFFICE LOCATION.
Status: in_force

26-1501. Office location. (a) Nothing in the laws of this state shall prohibit a bank from maintaining an authorized branch office, customer bank communication terminal or other authorized office at the same location as an authorized office of another bank or a savings and loan association, credit union or supervised lender authorized to do business under the Idaho uniform consumer credit code.

(b) Nothing in the laws of this state shall prohibit a savings and loan association from maintaining an authorized branch office or other authorized office at the same location as an authorized office of another savings and loan association or a bank, credit union or supervised lender licensed to do business under the Idaho uniform consumer credit code.

(c) Nothing in the laws of this state shall prohibit a credit union from maintaining an authorized branch office, customer credit union communication terminal or other authorized office at the same location as an authorized office of another credit union or a bank, savings and loan association or supervised lender licensed to do business under the Idaho uniform consumer credit code.

(d) Nothing in the laws of this state shall prohibit a supervised lender authorized to do business under the Idaho uniform consumer credit code from maintaining an authorized branch office, or other authorized office, at the same location as an authorized office of another supervised lender or a bank, savings and loan association or credit union.

History:

[26-1501, added 1979, ch. 224, sec. 1, p. 619.]
Idaho Code § 26-2246 — Idaho Code / Title 26 / Chapter 22 / Section 26-2246
26-2246 CLOSURE OR DISCONTINUANCE OF OPERATIONS — REQUIREMENTS.
Status: in_force

26-2246. Closure or discontinuance of operations — Requirements. (1) Whenever the operations of a collection agency licensee under this act are closed or discontinued due to revocation, termination, or relinquishment of a collection agency license, or for any other reason, the collection agency shall, within thirty (30) days following the closure or discontinuance of operations, furnish the director with sufficient proof in a form to be determined by the director that:

(a) The collection agency has remitted to all of its creditor clients all moneys collected on their behalf and due such creditor clients;

(b) All collection accounts, judgments obtained, and other accounts have been returned to the creditor clients or other proper parties, and if appropriate, assigned by the collection agency to its creditor clients or other proper parties; and

(c) All valuable papers, documents, judgments and other property provided to the collection agency by its creditor clients or other parties in connection with the collection agency's collection activities have been returned to the creditor clients or other proper parties.

(2) A collection agency which holds a license issued pursuant to this act, upon closure or discontinuance of its operations, shall maintain the bonds required of such licensee to conduct a collection agency business until a final accounting of its affairs, as set forth in subsection (1) of this section, has been filed with and approved by the director.

(3) Whenever the operations of a collection agency are closed or discontinued as set forth in subsection (1) of this section, in the event the collection agency does not complete all requirements of such subsection within thirty (30) days following the closure or discontinuance of operations, upon demand by the director, the collection agency shall permit the director to take possession of its business records, bank accounts, including creditor client trust accounts, other property belonging to its creditor clients or third parties, and its assets. The director may then liquidate the collection agency's business, return any moneys owed to the collection agency's creditor clients, return the collection agency's accounts to its creditor clients, return or assign any judgments to the agency's creditor clients, and take any other actions which are reasonably necessary to cause the collection agency to liquidate its assets and to comply with subsection (1) of this section.

(4) If a collection agency refuses to permit the director to take possession of its business records, bank accounts, creditor client trust accounts, other property belonging to its creditor clients or third parties and its assets, as set forth in subsection (3) of this section, the director may apply to a court of competent jurisdiction in the county of the collection agency's principal place of business for the appointment of a receiver or conservator as set forth in section 26-2245(1), Idaho Code. Such receiver or conservator may be the director.

(5) The expenses of the receiver or conservator and attorney's fees, and all expenses necessarily incurred in liquidation of the collection agency, shall be paid out of the funds in the control of the director or conservator, to the extent those funds exceed any sums due and owing to the collection agency's creditor clients or other proper parties. To the extent funds in the control of the receiver are not sufficient to pay all sums due and owing to the collection agency's creditor clients or other proper parties and to pay the costs of a receiver or conservator and of liquidation of the collection agency, the collection agency and its owners, shareholders, or interest holders shall be responsible for the balance of any reasonably necessary costs and fees of liquidation.

History:

[26-2246, added 2008, ch. 347, sec. 28, p. 956.]
Idaho Code § 26-1706 — Idaho Code / Title 26 / Chapter 17 / Section 26-1706
26-1706 REQUIREMENTS FOR CARRYING ON BANKING BUSINESS.
Status: in_force

26-1706. Requirements for carrying on banking business. (1) No international banking corporation, other than a federal international bank corporation, shall transact a banking business or maintain in this state any office for carrying on a banking business or any part of a banking business unless the corporation:

(a) Is authorized by its articles to carry on a banking business and has complied with the laws of the country under which it is chartered;

(b) Has furnished to the director any proof as to the nature and character of its business and as to its financial condition as the director may require;

(c) Has filed with the director:

(i) A duly executed instrument in writing, by its terms of indefinite duration and irrevocable, appointing the director its true and lawful attorney upon whom all process in any action against it may be served with the same force and effect as if it were a domestic corporation and has been lawfully served with process within the state;

(ii) A written certificate of designation, which may be changed from time to time thereafter by the filing of a new certificate of designation, specifying the name and address of the officer, agent, or other person to whom the director shall forward the process; and

(iii) A certified copy of any filings required to be made by foreign corporations to the secretary of state by the Idaho business corporation act.

(d) Has paid to the director a fee set by the director to defray the cost of investigation and supervision.

(e) Has received a license duly issued to it by the director.

(2) The director shall not issue a license to an international banking corporation unless it is chartered in a foreign country that permits banks chartered by the United States or any of its states to establish similar facilities in that country.

History:

[26-1706, added 1995, ch. 99, sec. 10, p. 309.]
Idaho Code § 26-1220 — Idaho Code / Title 26 / Chapter 12 / Section 26-1220
26-1220 ILLEGAL DATA PROCESSING ACTIVITIES.
Status: in_force

26-1220. Illegal data processing activities. It shall be unlawful for any person to introduce fraudulent records or data into the computer system of a bank or to use the computer related facilities of a bank without the proper authorization, or to alter or destroy information or files in a bank's computer system or to obtain without proper authorization, by electronic or other means, money, financial instruments, property, services or valuable data stored in a bank's computer system. Any person violating the provisions of this section shall be guilty of a felony.

History:

[26-1220, added 1979, ch. 41, sec. 2, p. 125.]
Idaho Code § 26-2221 — Idaho Code / Title 26 / Chapter 22 / Section 26-2221
26-2221 SHORT TITLE.
Status: in_force

26-2221. Short title. This act shall be known as the "Idaho Collection Agency Act."

History:

[26-2221, added 1995, ch. 211, sec. 1, p. 716.]
Idaho Code § 26-2222 — Idaho Code / Title 26 / Chapter 22 / Section 26-2222
26-2222 DEFINITIONS.
Status: in_force

26-2222. Definitions. As used in this act:

(1) "Agent" means any person who, for compensation or gain, or in the expectation of compensation or gain, contacts persons in Idaho in connection with the business activities of a licensee or person required to be licensed under this act.

(2) "Business funds" means all moneys belonging to or due a licensee or person required to be licensed in connection with the business activities authorized under this act.

(3) "Collection activities" means the activities enumerated in subsections (2) through (6) of section 26-2223, Idaho Code.

(4) "Collection agency" means a person who engages in any of the activities enumerated in subsections (2) through (6) of section 26-2223, Idaho Code.

(5) "Credit repair organization" means any person engaged in any of the activities enumerated in subsection (8) of section 26-2223, Idaho Code. A credit repair organization does not include:

(a) A consumer reporting agency, as defined in 15 U.S.C. section 1681a(f), that provides consumer reports based on information furnished by creditors or any affiliate or subsidiary of such consumer reporting agency as defined by rule promulgated by the director;

(b) A person who has an ongoing contractual arrangement with a consumer reporting agency, as described in subsection (5)(a) of this section, to obtain consumer reports from a consumer reporting agency for the purposes of:

(i) Reselling such report, or any information contained in or derived from such report, to a consumer; or

(ii) Monitoring information in such report on behalf of a consumer; or

(c) A person to the extent that such person advertises, markets, provides or facilitates consumer access to the products or services offered or provided by:

(i) An entity described in subsection (5)(a) of this section; or

(ii) A person described in subsection (5)(b) of this section.

(6) "Creditor" means any person who offers or extends credit creating a debt or to whom a debt is owed.

(7) "Creditor client" means any person who transfers or assigns to a collection agency licensee or person required to be so licensed under this act, any account, bill, claim or other indebtedness for collection purposes.

(8) "Creditor funds" means all funds due and owing a creditor by a licensee or person required to be licensed under this act.

(9) "Debt counselor" or "credit counselor" means any person engaged in any of the activities enumerated in subsection (7) of section 26-2223, Idaho Code.

(10) "Department" means the Idaho department of finance.

(11) "Director" means the director of the Idaho department of finance.

(12) "Licensee" means a person who has obtained a license under this act.

(13) "Net collections" means all funds that are due to creditors from the licensee pursuant to the contract between the licensee and creditor, or licensee and debtor without taking into account any offset or funds due from the creditor to the licensee, because of the creditor having collected any part of the account due, plus all funds that the licensee agreed to return to debtors or that were not to be applied to debts.

(14) "Person" means any individual, corporation, association, partnership, limited liability partnership, trust, company, limited liability company, or unincorporated association.

History:

[26-2222, added 1970, ch. 53, sec. 1, p. 118; am. 1974, ch. 24, sec. 22, p. 592; am. 1987, ch. 295, sec. 1, p. 630; am. 1990, ch. 346, sec. 1, p. 931; am. 1997, ch. 370, sec. 1, p. 1176; am. 2002, ch. 190, sec. 1, p. 545; am. 2008, ch. 347, sec. 1, p. 938.]
Idaho Code § 26-2151 — Idaho Code / Title 26 / Chapter 21 / Section 26-2151
26-2151 CUSTODIAL ACCOUNTS.
Status: in_force

26-2151. custodial accounts. A credit union is authorized to act as custodian or fiduciary for members of the credit union and may receive reasonable compensation for so acting under any written trust instrument or custodial agreement in connection with a tax-advantaged savings plan authorized under the Internal Revenue Code or chapter 30, title 63, Idaho Code, if the funds of such trust or funds subject to the custodial agreement are invested only in savings accounts or deposits in such credit union. All funds held in such fiduciary capacity by any such credit union may be commingled for appropriate purposes of investment, but individual records shall be kept by the fiduciary for each participant and shall show in proper detail all transactions engaged in under the authority of this section.

History:

[26-2151, added 1977, ch. 213, sec. 2, p. 611; am. 2020, ch. 214, sec. 13, p. 636.]
Idaho Code § 26-3507 — Idaho Code / Title 26 / Chapter 35 / Section 26-3507
26-3507 DISCLOSURE OF INFORMATION.
Status: in_force

26-3507. Disclosure of information. A state trust company or trust department, its officers and employees, shall not disclose information to any person concerning the existence, condition, management and administration of any trust of which it is the trustee except as such disclosure:

(1) Is specifically authorized by the terms of the trust or upon the direction of the trustor;

(2) Is determined by an officer of the state trust institution to be necessary for the proper administration of such trust;

(3) Is required by a court of competent jurisdiction;

(4) Is made, in the case of an irrevocable trust, to or upon the instructions of any beneficiary thereunder whether or not presently entitled to receive benefits from the trust;

(5) Is made to the director or to any state or federal regulatory or insuring agency lawfully requiring such disclosure;

(6) Is required by title 15, Idaho Code.

History:

[26-3507, added 2000, ch. 288, sec. 11, p. 986.]
Idaho Code § 26-31-205 — Idaho Code / Title 26 / Chapter 31 / Section 26-31-205
26-31-205 REMEDIES AVAILABLE TO THE DEPARTMENT.
Status: in_force

PART 2.

PROVISIONS APPLICABLE TO MORTGAGE BROKERS AND MORTGAGE LENDERS

26-31-205. REMEDIES AVAILABLE TO THE DEPARTMENT. (1) Whenever it appears to the director that any person subject to this part has engaged in or is about to engage in any act or practice constituting a violation of any provision of the truth in lending act, the real estate settlement procedures act, regulation X, regulation Z or of this part or any rule promulgated or order issued under this act and pertinent to this part, he may in his discretion bring an action in any court of competent jurisdiction, and upon a showing of any violation, there shall be granted any or all of the following:

(a) A writ or order restraining or enjoining, temporarily or permanently, any act or practice violating any provision of this part or any rule promulgated or order issued under this chapter and pertinent to this part, and to enforce compliance with this part or any rule promulgated or order issued under this chapter and pertinent to this part;

(b) An order that the person violating any provision of this part, or a rule promulgated or order issued under this chapter and pertinent to this part pay a civil penalty to the department in an amount not to exceed twenty-five thousand dollars ($25,000) for each violation;

(c) An order allowing the director to recover costs which may include investigative expenses and attorney's fees;

(d) An order granting a declaratory judgment that a particular act, practice or method is a violation of the provisions of this part;

(e) An order granting other appropriate remedies including restitution to borrowers for excess charges or actual damages.

(2) If the director finds that a person subject to this part has violated, is violating, or that there is reasonable cause to believe that a person is about to violate the provisions of this part, or any rule promulgated or order issued under this chapter and pertinent to this part, the director may, in his discretion, order the person to cease and desist from the violations.

History:

[26-31-205, added 2009, ch. 97, sec. 2, p. 290.]
Idaho Code § 26-710 — Idaho Code / Title 26 / Chapter 7 / Section 26-710
26-710 OWNERSHIP AND LEASING OF PROPERTY FOR CUSTOMERS.
Status: in_force

26-710. Ownership and leasing of property for customers. A bank may become the owner and lessor of personal property acquired upon the specific request and for the use of a customer and may incur such additional obligations as may be incident to becoming an owner and lessor of such property.

History:

[(26-710) 26-714, added 1979, ch. 41, sec. 2, p. 93; am. and redesig. 2004, ch. 159, sec. 10, p. 523.]
Idaho Code § 26-2119 — Idaho Code / Title 26 / Chapter 21 / Section 26-2119
26-2119 LOANS.
Status: in_force

26-2119. loans. (1) A credit union may make secured and unsecured loans to its members under policies established by the board. A person that is not a member of the credit union may serve as a co-borrower or guarantor on a loan to a member of the credit union. Each loan must be evidenced by records adequate to support enforcement or collection of the loan and any review of the loan by the director.

(2) A credit union may not extend credit to a director, executive officer, supervisory committee member, or credit committee member unless the extension of credit is made on substantially the same terms as those prevailing at the time for comparable transactions by the credit union with members generally.

(a) For the purposes of this section, "executive officer" means a person who participates or has authority to participate in policymaking functions of the credit union.

(b) A director, executive officer, supervisory committee member, or credit committee member may not participate in approving or disbursing a loan in which the director, executive officer, supervisory committee member, or credit committee member has a direct or indirect financial interest.

(c) This section shall not prohibit any extension of credit made pursuant to a benefit or compensation program adopted by the board of directors that:

(i) Is widely available to employees of the credit union; and

(ii) Does not give preference to any director, executive officer, supervisory committee member, or credit committee member over other employees of the credit union.

(3) A credit union may make loans to another credit union, federal credit union, or out-of-state credit union.

(4) A credit union may purchase loans made to its members if the credit union's underwriting policies would have permitted it to originate the loans.

(5) A credit union may purchase, in whole or in part, within the limitations of the board of directors' written purchase policies:

(a) A loan or group of loans of its members from any source, if they are loans the credit union is empowered to grant or the loan or loans are refinanced with the consent of the borrowers within sixty (60) days after they are purchased, so that they are loans it is empowered to grant;

(b) A loan or group of loans of a liquidating credit union's individual members from the liquidating credit union;

(c) Student loans from any source if the purchaser is granting student loans on an ongoing basis and if the purchase will facilitate the purchasing credit union's packaging of a pool of such loans to be sold or pledged on the secondary market. A pool must include a substantial portion of the credit union's members' loans and must be sold promptly; and

(d) Real estate-secured loans, from any source, if the purchaser is granting real estate-secured loans on an ongoing basis and if the purchase will facilitate the purchasing credit union's packaging of a pool of such loans to be sold or pledged on the secondary mortgage market. A pool must include a substantial portion of the credit union's members' loans and must be sold promptly.

(6) A credit union may sell in whole or in part, to any source, a loan to its members within the limitations of the board of directors' written sale policies, provided:

(a) The board of directors or investment committee approves the sale; and

(b) A written agreement and a schedule of the eligible obligations covered by the agreement are retained in the credit union's office.

(7) A credit union may purchase a participation interest in a loan from a credit union, credit union service organization, federally insured financial institution, and any state or federal government agency and its subdivision only if the loan is one the purchasing credit union is empowered to grant and the following additional conditions are satisfied:

(a) The purchase complies with all requirements to the same extent as if the purchasing credit union had originated the loan;

(b) The purchasing credit union has executed a written loan participation agreement with the originating lender and the agreement meets the minimum requirements for a loan participation agreement as described in paragraph (g) of this subsection;

(c) The originating lender retains an interest in each participated loan of at least ten percent (10%) of the outstanding balance of the loan through the life of the loan, unless a higher percentage is required under applicable state law;

(d) The borrower becomes a member of one of the participating credit unions before the purchasing credit union purchases a participation interest in the loan;

(e) The purchase complies with the purchasing credit union's internal written loan participation policy, which, at a minimum, must:

(i) Establish underwriting standards for loan participations;

(ii) Establish a limit on the aggregate amount of loan participations that may be purchased from any one (1) originating lender, not to exceed the greater of five million dollars ($5,000,000) or one hundred percent (100%) of the credit union's net worth, unless this amount is waived by the director;

(iii) Establish limits on the amount of loan participations that may be purchased by each loan type, not to exceed a specified percentage of the credit union's net worth; and

(iv) Establish a limit on the aggregate amount of loan participations that may be purchased with respect to a single borrower, or group of associated borrowers, not to exceed fifteen percent (15%) of the credit union's net worth, unless waived by the director;

(f) To seek a waiver from any of the limitations in subsection (7) of this section, a credit union must submit a written request to the director with a full and detailed explanation of why it is requesting the waiver. Within forty-five (45) days of receipt of a completed waiver request, including all necessary supporting documentation and, if appropriate, any written concurrence, the director shall provide the credit union a written response. The director's decision shall be based on safety and soundness and other considerations. A credit union may request the director to reconsider a denied waiver request or to file an appeal under the administrative procedures rules, or both; and

(g) A loan participation agreement must:

(i) Be properly executed by authorized representatives of all parties under applicable law;

(ii) Be properly authorized by the credit union's board of directors or, if the board has so delegated in its policy, a designated committee or senior management official under the credit union's bylaws and all applicable law;

(iii) Be retained, either in original or copied form, in the credit union's office; and

(iv) Include provisions that, at a minimum, address the following:

1. Prior to purchase, the identification of the specific loan participation or participations being purchased, either directly in the agreement or through a document that is incorporated by reference into the agreement;

2. The interest that the originating lender will retain in the loan to be participated through the life of the loan;

3. The location and custodian for original loan documents;

4. An explanation of the conditions under which parties to the agreement can gain access to financial and other performance information about a loan, the borrower, and the servicer so the parties can monitor the loan;

5. An explanation of the duties and responsibilities of the originating lender, servicer, and participants with respect to all aspects of the participation, including servicing, default, foreclosure, collection, and other matters involving the ongoing administration of the loan; and

6. Circumstances and conditions under which participants may replace the servicer.

(8) Any real estate-secured loans granted by a nonfederally insured credit union shall comply with the appraisal requirements for federally insured credit unions. The director may require any credit union to obtain an appraisal on any real estate-secured loan whenever the director believes it necessary to address safety and soundness concerns.

(9) Any officer, director, supervisory committee member, or credit committee member who knowingly permits a loan to be made or participates in a loan to a nonmember of the credit union, unless the loan to the nonmember is otherwise allowed in this chapter or by a rule pursuant to this chapter, shall be primarily liable to the credit union for the amount illegally loaned. The illegality of such loan shall not be a defense in any action by the credit union to recover the amount loaned.

History:

[26-2119, added 2020, ch. 230, sec. 6, p. 674.]
Idaho Code § 26-2402 — Idaho Code / Title 26 / Chapter 24 / Section 26-2402
26-2402 WHO MAY INCORPORATE.
Status: in_force

26-2402. Who may incorporate. Ten (10) or more persons, a majority of whom shall be residents of this state, who may desire to create an industrial development corporation under the provisions of this act, for the purpose of promoting, developing and advancing the prosperity and economic welfare of the state and, to that end, to exercise the powers and privileges hereinafter provided, may be incorporated by filing in the office of the secretary of state, as hereinafter provided, articles of incorporation. The articles of incorporation shall contain:

(1) The name of the corporation, which shall include the words "Industrial Development Corporation of Idaho."

(2) The location of the principal office of the corporation, but such corporation may have offices in such other places within the state as may be fixed by the board of directors.

(3) The purposes for which the corporation is founded, which shall be to promote, stimulate, develop and advance the business prosperity and economic welfare of Idaho and its citizens; to encourage and assist through loans, investments or other business transactions in the location of new business and industry in this state and to rehabilitate and assist existing business and industry; to stimulate and assist in the expansion of all kinds of business activity which will tend to promote the business development and maintain the economic stability of this state, provide maximum opportunities for employment, encourage thrift, and improve the standard of living of the citizens of this state; similarly, to cooperate and act in conjunction with other organizations, public or private, in the promotion and advancement of industrial, commercial, agricultural and recreational developments in this state; and to provide financing for the promotion, development, and conduct of all kinds of business activity in this state.

(4) The names and post-office addresses of the members of the first board of directors, who, unless otherwise provided by the articles of incorporation or the bylaws, shall hold office for the first year of existence of the corporation or until their successors are elected and have qualified.

(5) Any provision which the incorporators may choose to insert for the regulation of the business and for the conduct of the affairs of the corporation and any provision creating, dividing, limiting and regulating the powers of the corporation, the directors, stockholders or any class of the stockholders, including, but not limited to a list of the officers, and provisions governing the issuance of stock certificates to replace lost or destroyed certificates.

(6) The amount of authorized capital stock and the number of shares into which it is divided, the par value of each share and the amount of capital with which it will commence business and, if there is more than one (1) class of stock, a description of the different classes; the names and post-office addresses of the subscribers of stock and the number of shares subscribed by each. The aggregate of the subscription shall be the minimum amount of capital with which the corporation shall commence business which shall not be less than thirty thousand dollars ($30,000). The articles of incorporation may also contain any provision consistent with the laws of this state for the regulation of the affairs of the corporation.

(7) The articles of incorporation shall be in writing, subscribed by not less than five (5) natural persons competent to contract and acknowledged by each of the subscribers before an officer authorized to take acknowledgments and filed in the office of the secretary of state for approval. A duplicate copy so subscribed and acknowledged may also be filed.

(8) The articles of incorporation shall recite that the corporation is organized under the provisions of this act.

The secretary of state shall not approve articles of incorporation for a corporation organized under this act until a total of at least five (5) national banks, state banks, savings banks, industrial savings banks, federal savings and loan associations, domestic building and loan associations, or insurance companies authorized to do business within this state, or any combination thereof, have agreed in writing to become members of said corporation; and said written agreement shall be filed with the secretary of state with the articles of incorporation and the filing of same shall be a condition precedent to the approval of the articles of incorporation by the secretary of state. Whenever the articles of incorporation shall have been filed in the office of the secretary of state and approved by him and all taxes, fees and charges, have been paid, as required by law, the subscribers, their successors and assigns shall constitute a corporation, and said corporation shall then be authorized to commence business, and stock thereof to the extent herein or hereafter duly authorized may from time to time be issued.

History:

[(26-2402) 1963, ch. 273, sec. 2, p. 695; I.C., sec. 30-1502 (1963 Supp.); am. 1965, ch. 74, sec. 1, p. 117.]
Idaho Code § 26-2152 — Idaho Code / Title 26 / Chapter 21 / Section 26-2152
26-2152 INTERSTATE CREDIT UNIONS — APPROVAL — PERMIT — FEES — SUPERVISION.
Status: in_force

26-2152. Interstate credit unions — Approval — Permit — Fees — Supervision. (1) Provided that the membership limits as defined in section 26-2110, Idaho Code, are maintained:

(a) A credit union chartered under this chapter may operate in another state unless prohibited by the law of the other state. Idaho is the home state for any credit union chartered under this chapter.

(b) A credit union chartered under the laws of another state may operate in Idaho with the approval of the director on the terms and conditions provided in subsection (2) of this section. Idaho is the host state for any credit union chartered under the laws of any other state. The state which charters the credit union is the home state of the credit union.

(2) The director may issue a permit to a credit union chartered in another state to operate in this state in a manner consistent with the Idaho credit union act, provided that the credit union applies for such permit on a form approved by the director and has approval from the regulator of credit unions in its home state to operate in Idaho. A credit union for which Idaho is a host state shall acknowledge that Idaho laws relating to consumer protection apply to transactions with residents in Idaho. The credit union for which Idaho is a host state shall maintain its books and records in Idaho or in such other place as the director may agree in writing. The director may, pursuant to chapter 52, title 67, Idaho Code, suspend or revoke the permit of any credit union for which Idaho is the host state for any violation of the Idaho credit union act.

(3) The director shall assess fees as provided in section 26-2136, Idaho Code, to be paid by a credit union for which Idaho is the host state on the basis of the assets of the credit union which are derived from its operations in Idaho. The director, in his discretion, may adjust such fees according to the level of participation of the department in the supervision of the credit union.

(4) The director may enter into agreements with private share insurers and credit union regulators both with the federal government and in other states, to coordinate and facilitate regulation and supervision of interstate credit unions as permitted by section 26-2610, Idaho Code.

History:

[26-2152, added 1997, ch. 111, sec. 4, p. 271.]
Idaho Code § 26-213 — Idaho Code / Title 26 / Chapter 2 / Section 26-213
26-213 BOARD OF DIRECTORS — ELECTION, MEETINGS, DUTIES, LIABILITIES, OATH, REMOVAL — OFFICERS — ELECTION AND BOND.
Status: in_force

26-213. Board of directors — Election, meetings, duties, liabilities, oath, removal — Officers — Election and bond. (1) The affairs, business and property of a bank shall be managed and controlled by a board of not less than five (5) directors, who shall be elected by the stockholders at their regular stated annual meetings.

(2) No person shall be eligible to serve as a director of any bank organized or existing under the laws of this state, unless he shall be the owner in his own right of unhypothecated common stock of the bank in the amount of at least five hundred dollars ($500) par value. One (1) or more of the directors of a bank, the majority of the common stock of which is owned by a bank holding company, may satisfy the requirement of this subsection by owning in his own right at least five hundred dollars ($500) of the unhypothecated common stock of the bank holding company, either the par value or the book value.

(3) Any vacancy in the board of directors shall be filled by the board, and any directors so appointed shall hold office until the next annual meeting of stockholders. The board of directors shall, immediately following each annual meeting of stockholders, organize and elect a president, vice president, and cashier, who may also be the secretary and treasurer of the bank, and such other officers as shall be provided for in the bylaws, and shall fix the salary of all officers and employees or delegate such authority to its managing officer or officers. Directors of every bank shall hold at least six (6) meetings per year; provided, no more than ninety (90) days may elapse between board of directors meetings, and complete records of such meetings shall be entered in the minute book and signed by both the chairman and the secretary.

(4) Whenever a vote is taken upon any matter, a record shall be kept and entered in the minutes of those voting in the affirmative and those voting in the negative. At every meeting it shall be the duty of the directors to familiarize themselves with loans and investments made since the previous regular meeting, and any director may request a listing of all loans made since the previous regular meeting. It shall be the duty of the president and cashier to furnish such information to the directors. The directors shall familiarize themselves with the existing liabilities to the bank of every officer and director of their bank at least once during each calendar year. The minutes of the meeting shall record the approval or disapproval of loans, investments and liabilities of officers.

(5) Any director, officer or person who shall participate in any violation of the laws of this state relative to banks or banking shall be liable for all damages which said bank, its stockholders, depositors, or creditors shall sustain in consequence of such violation. It shall be the duty of every director of a bank personally to attend all meetings of the board of directors unless unavoidably detained therefrom. Any director who shall habitually absent himself from such meeting shall be deemed to have participated in any violation of law that may have occurred in his absence, and he shall not be permitted to set up such absence as a defense thereto.

(6) Every director shall take and subscribe an oath that he will diligently and honestly perform his duty in such office and will not knowingly violate or permit a violation of any provisions of the bank act, and such oath of office shall be transmitted to and filed with the department of finance. A director may be removed from office at any time for violation of his oath of office by the affirmative vote of two-thirds (2/3) of the entire board, exclusive of the director to be removed.

(7) Every active officer and employee of any bank in this state shall furnish a surety bond in the penal sum of fifty thousand dollars ($50,000) to the bank by which he is employed for the faithful performance of his duties, executed by a surety company authorized to do business in the state of Idaho as a surety. In lieu of the individual surety bonds required by this section, a bank may provide a bankers blanket or financial institution bond in a minimum amount of two hundred fifty thousand dollars ($250,000). The conditions of such bond, whether the instrument so describes the conditions or not, shall be that the principal shall protect the obligee against any loss or liability that the obligee may suffer or incur by reason of the acts of dishonesty of the principal.

(8) In lieu of the bonds required in subsection (7) of this section, a bank may, with the approval of the director of the department of finance, provide to the director a certificate of deposit issued by any other bank in the state of Idaho. The principal amount of the certificate of deposit shall be payable to the director and shall be in an amount to be determined by the director, but not less than two hundred fifty thousand dollars ($250,000). The interest on the certificate of deposit shall be payable to the bank providing the certificate of deposit to the director. The certificate of deposit shall be maintained at all times the bank is authorized to do business under this chapter, and for a period of time thereafter to be determined by the director, but not to exceed three (3) years.

(9) Every bank shall provide adequate insurance protection or indemnity against robbery and burglary and other similar insurable losses.

(10) All surety bonds shall be approved by and filed with the directors. The directors or the director may require an increase of the amount of any such bond whenever either the directors or the director deem necessary for the better protection of the bank.

History:

[26-213, added 1979, ch. 41, sec. 2, p. 73; am. 1986, ch. 316, sec. 1, p. 780; am. 1987, ch. 293, sec. 1, p. 623; am. 1991, ch. 145, sec. 1, p. 344; am. 1993, ch. 53, sec. 1, p. 137; am. 2007, ch. 126, sec. 1, p. 376; am. 2021, ch. 58, sec. 2, p. 187.]
Idaho Code § 26-711 — Idaho Code / Title 26 / Chapter 7 / Section 26-711
26-711 LENDING OF CREDIT — SURETYSHIP AND GUARANTYSHIP.
Status: in_force

26-711. Lending of credit — Suretyship and guarantyship. A bank may lend its credit, bind itself as a surety to indemnify another, or otherwise become a guarantor, only if it has a substantial interest in the performance of the transaction involved or has a segregated deposit sufficient in amount to cover the bank's total potential liability.

History:

[(26-711) 26-715, added 1979, ch. 41, sec. 2, p. 93; am. and redesig. 2004, ch. 159, sec. 11, p. 523.]
Idaho Code § 26-31-110 — Idaho Code / Title 26 / Chapter 31 / Section 26-31-110
26-31-110 FUNDING.
Status: in_force

PART 1.

GENERAL PROVISIONS

26-31-110. Funding. (1) Upon application for a mortgage broker, mortgage lender or mortgage loan originator license, and upon renewal of such licenses issued under this chapter, the applicant or person seeking renewal shall, in addition to paying the license application or renewal fee required under this chapter, pay a fee to the department through the NMLSR for deposit in the mortgage recovery fund as follows:

(a) Two hundred fifty dollars ($250) for home office locations of mortgage brokers and mortgage lenders licensed under part 2 of this chapter;

(b) One hundred fifty dollars ($150) for each branch office location of a mortgage broker or mortgage lender licensed under part 2 of this chapter; and

(c) One hundred dollars ($100) for each mortgage loan originator licensed under part 3 of this chapter.

(2) With respect to mortgage recovery fund fees payable at the time of annual license renewal for licensees under this chapter, the director may adjust the fees within the limits of subsection (1) of this section on a pro rata basis as necessary to maintain a balance of one million five hundred thousand dollars ($1,500,000) in the mortgage recovery fund, plus an additional amount of fifty thousand dollars ($50,000) as set forth in subsection (4) of this section.

(3) All interest that accrues in the mortgage recovery fund shall be added to the balance of the mortgage recovery fund.

(4) On an annual basis, the department may apply up to fifty thousand dollars ($50,000) of moneys accumulated in the mortgage recovery fund in excess of one million five hundred thousand dollars ($1,500,000) to:

(a) Fund the department's expenses in administering the mortgage recovery fund;

(b) Develop and implement consumer education concerning the residential mortgage industry;

(c) Contract for research projects for the state concerning the residential mortgage industry;

(d) Fund the training expenses of department staff members and its attorneys concerning the residential mortgage industry; and

(e) Publish and distribute educational materials to licensees and applicants for licensure under this chapter.

History:

[26-31-110, added 2009, ch. 97, sec. 2, p. 286.]
Idaho Code § 26-1018 — Idaho Code / Title 26 / Chapter 10 / Section 26-1018
26-1018 PAYMENT OF CLAIMS.
Status: in_force

26-1018. Payment of claims. Claims presented to the director prior to the expiration of the time fixed in the notice to creditors therefor, and allowed by him, shall be paid in the order of priority hereinafter fixed. Those filed after such expiration and prior to one (1) year thereafter shall be entitled, after they have been allowed by the director, to share in the distribution of the assets of the bank only to the extent of the assets undistributed in the hands of the director and available for the payment of claims of their order of priority at the time such claims are filed, but as against other claims of their same order of priority, on which dividends have been paid, they shall be entitled to payment in a proportionate amount before further payments are made on such other claims. All claims filed after the expiration of one (1) year following the date fixed in the notice to creditors as the time for presentation of claims are not entitled to be allowed or paid unless all other creditors' claims of any kind or character, except claims of shareholders, based on stock or assessments paid on stock, shall have been fully paid and discharged, and a surplus remains in the hands of the director, and then only from such surplus.

History:

[26-1018, added 1979, ch. 41, sec. 2, p. 109.]
Idaho Code § 26-3801 — Idaho Code / Title 26 / Chapter 38 / Section 26-3801
26-3801 SHORT TITLE.
Status: in_force

26-3801. SHORT TITLE. This chapter shall be known and may be cited as the "Transparency in Financial Services Act."

History:

[26-3801, added 2025, ch. 164, sec. 1, p. 785.]
Idaho Code § 26-2106 — Idaho Code / Title 26 / Chapter 21 / Section 26-2106
26-2106 AMENDMENT TO ARTICLES OF INCORPORATION AND BYLAWS — APPROVAL OF DIRECTOR — PROCEDURE.
Status: in_force

26-2106. AMENDMENT TO ARTICLES OF INCORPORATION AND BYLAWS — APPROVAL OF DIRECTOR — PROCEDURE. (1) A credit union's articles of incorporation may be amended as provided in the articles of incorporation with approval of the director. Amendments to the articles of incorporation must be submitted to the director for approval. Amendments to the articles of incorporation are deemed to be approved by the director if the director does not deny them within thirty (30) days following receipt of the proposed amendments. Amendments to a credit union's articles of incorporation must conform with section 26-2105, Idaho Code.

(2) Upon approval by the director, the credit union shall promptly deliver amendments to the articles of incorporation, including any necessary filing fees, to the secretary of state for filing. Amendments to the articles of incorporation are effective upon approval by the director unless the amendments specify a different effective date.

(3) A credit union's bylaws may be amended as provided in the bylaws. A copy of any amendments to the bylaws must be mailed by certified mail return receipt requested to the department of finance or emailed to the department of finance with request for confirmation of receipt within twenty (20) days after the adoption thereof. In either case, delivery is effective as of the date of the department's confirmation of receipt. Amendments to the bylaws become effective upon approval by the director unless the amendments specify a different date. Amendments to the bylaws are deemed to be approved by the director if the director does not deny them within thirty (30) days following receipt of the amendments.

History:

[26-2106, added 2020, ch. 230, sec. 2, p. 671; am. 2022, ch. 78, sec. 2, p. 218; am. 2024, ch. 130, sec. 3, p. 523.]
Idaho Code § 26-31-302 — Idaho Code / Title 26 / Chapter 31 / Section 26-31-302
26-31-302 PURPOSE OF THIS PART.
Status: in_force

PART 3.

PROVISIONS APPLICABLE TO MORTGAGE LOAN ORIGINATORS

26-31-302. purpose of this part. (1) The activities of mortgage loan originators and the origination or offering of financing for residential real property have a direct, valuable and immediate impact upon Idaho consumers, Idaho's economy, the neighborhoods and communities of Idaho, and the housing and real estate industry. The legislature finds that accessibility to mortgage credit is vital to the state's citizens. The legislature also finds that it is essential for the protection of the citizens of Idaho and the stability of Idaho's economy that reasonable standards for licensing and regulation of the business practices of mortgage loan originators be imposed. The legislature further finds that the obligations of mortgage loan originators to consumers in connection with originating or making residential mortgage loans are such as to warrant the regulation of the mortgage loan origination process. The purpose of this part is to protect consumers seeking mortgage loans and to ensure that the mortgage industry is operating without unfair, deceptive, and fraudulent practices on the part of mortgage loan originators. Therefore, the legislature establishes within this part an effective system of supervision of mortgage loan originators and enforcement authority, including:

(a) The authority of the director to issue licenses to conduct business under this part, and the authority to promulgate rules and adopt procedures necessary to the licensing of persons covered under this part;

(b) The authority of the director to deny, suspend, condition or revoke licenses issued under this part;

(c) The authority of the director to examine, investigate and conduct enforcement actions as necessary to carry out the intended purposes of this part, including the authority to subpoena witnesses and documents, enter orders, including cease and desist orders, order restitution and monetary penalties, and order the removal and ban of individuals from office or employment.

(2) The director shall have broad administrative authority to administer, interpret and enforce this part, and to promulgate rules and issue orders implementing this part, to carry out the intention of the legislature under this part.

History:

[26-31-302, added 2009, ch. 97, sec. 2, p. 296.]
Idaho Code § 26-2233 — Idaho Code / Title 26 / Chapter 22 / Section 26-2233
26-2233 LICENSEE ACCOUNTS REQUIRED.
Status: in_force

26-2233. Licensee accounts required. (1) Every licensee under this act that receives or holds funds belonging to another in connection with the business activities authorized by this act shall, in its own name, establish and maintain a separate trust account for deposit and remittance of such funds in a financial institution, the deposits of which are insured by the federal deposit insurance corporation. A licensee may not, directly or indirectly, misappropriate, misapply or borrow money held in trust.

(2) Every licensee under this act shall establish and maintain a separate business account for the licensee's business funds and moneys in a financial institution, the deposits of which are insured by the federal deposit insurance corporation.

History:

[26-2233, added 1970, ch. 53, sec. 12, p. 118; am. 1983, ch. 252, sec. 1, p. 672; am. 1995, ch. 211, sec. 9, p. 720; am. 1997, ch. 370, sec. 6, p. 1181; am. 2008, ch. 347, sec. 16, p. 950.]
Idaho Code § 26-2120A — Idaho Code / Title 26 / Chapter 21 / Section 26-2120A
26-2120A LIMIT ON LOAN MATURITY.
Status: in_force

26-2120A. LIMIT ON LOAN MATURITY. The maturity of a loan to a member may not exceed fifteen (15) years except as follows:

(1) A credit union may make loans with maturities not to exceed twenty (20) years in the case of:

(a) A loan to finance the purchase of a manufactured home if the manufactured home will be used as the member's residence and the loan is secured by a first lien on the manufactured home, and the manufactured home meets the requirements for the deductibility of residential mortgage interest for income tax under the Internal Revenue Code;

(b) A second mortgage loan or a nonpurchase money first mortgage loan in the case of a residence on which there is no existing first mortgage, if the loan is secured by a residential dwelling that is the residence of the member; and

(c) A loan to finance the repair, alteration, or improvement of a residential dwelling that is the residence of the member.

(2) A credit union may make residential real estate loans on one-to-four family dwellings used as second or vacation residences, including an individual cooperative unit, and that are secured by a first lien upon such dwelling, with maturities not to exceed thirty (30) years.

(3) A credit union may make residential real estate loans to members, including loans secured by manufactured homes permanently affixed to the land, with maturities not to exceed forty (40) years, subject to the following conditions:

(a) The loan shall be made on a one-to-four family dwelling that is or will be the principal residence of the member, and the loan shall be secured by a perfected first lien in favor of the credit union on such dwelling, or a perfected first security interest in the case of either a residential cooperative or a leasehold or ground rent estate;

(b) The loan application shall be a completed standard federal housing administration, veterans administration, federal home loan mortgage corporation, federal national mortgage association, or federal home loan mortgage corporation/federal national mortgage association application form. In lieu of use of a standard application, the credit union may have a current attorney's opinion on file stating that the forms in use meet the requirements of applicable federal, state, and local laws;

(c) The security instrument and note shall be executed on the most current version of the federal housing administration, veterans administration, federal home loan mortgage corporation, federal national mortgage association, or federal home loan mortgage corporation/federal national mortgage association uniform instruments for the jurisdiction in which the property is located. In lieu of use of a standard security instrument and note, the credit union may have a current attorney's opinion on file stating that the security instrument and note in use meet the requirements of applicable federal, state, and local laws; and

(d) The loan shall be secured by a perfected first lien or first security interest in favor of the credit union supported by a properly executed and recorded security instrument.

(4) Lines of credit are not subject to a maturity limit except as determined by contract between the credit union and the member.

History:

[26-2120A, added 2020, ch. 230, sec. 9, p. 677.]
Idaho Code § 26-1215 — Idaho Code / Title 26 / Chapter 12 / Section 26-1215
26-1215 PENALTY FOR OFFICER OVERDRAWING ACCOUNT.
Status: in_force

26-1215. Penalty for officer overdrawing account. Any director, officer or employee of any bank or the bank holding company owning or controlling the bank who knowingly and consistently overdraws his or her account, or any officer or employee who allows such an overdraft shall be guilty of a misappropriation of the bank's funds and upon conviction thereof, shall be punished by a fine of not exceeding one thousand dollars ($1,000) or by imprisonment in the county jail for not more than one (1) year, or both such fine and imprisonment, in the discretion of the court.

History:

[26-1215, added 1979, ch. 41, sec. 2, p. 124.]
Idaho Code § 26-2240 — Idaho Code / Title 26 / Chapter 22 / Section 26-2240
26-2240 AGENT IDENTIFICATION — QUARTERLY NOTICE — FEE.
Status: in_force

26-2240. Agent identification — Quarterly notice — Fee. Each applicant for a license under this act, with its initial license application, and each licensee at annual renewal, shall file with the director a list of all agents including the name of each agent and any other identifying information the director may require. A fee of twenty dollars ($20.00) for each listed agent shall accompany the list. Each licensee shall notify the director in writing of any additions to its agent list no less often than every calendar quarter. A fee of twenty dollars ($20.00) shall be paid to the director for each additionally identified agent in the quarterly notification of additions to a licensee's agent list. An agent is not required to be listed, nor the fee paid therefor, unless the agent acted for the licensee for more than thirty (30) business days.

History:

[26-2240, added 1997, ch. 370, sec. 10, p. 1182; am. 2008, ch. 347, sec. 23, p. 954.]
Idaho Code § 26-2140 — Idaho Code / Title 26 / Chapter 21 / Section 26-2140
26-2140 CEASE AND DESIST ORDER — PENALTY.
Status: in_force

26-2140. Cease and desist order — Penalty. (1) If the director finds that any credit union has engaged in an unsafe or unsound practice in conducting the business of such credit union, or any person has violated any provision of this chapter, any rule or order issued under this chapter, any condition imposed in writing by the director, or any written agreement entered into with the director, the director may order the credit union or other person to cease and desist from any such violation or practice. Such order shall be issued pursuant to chapter 52, title 67, Idaho Code.

(2) After providing a notice and an opportunity for a public hearing pursuant to chapter 52, title 67, Idaho Code, the director may assess against and collect a civil money penalty from any credit union or from any director, officer, supervisory committee member, employee, agent, or other person participating in the conduct of the affairs of such credit union who:

(a) Engages or participates in any unsafe or unsound practice in connection with a credit union; or

(b) Violates or knowingly permits any person to violate any of the provisions of this chapter, any rule promulgated pursuant to this chapter, or any lawful order of the director issued pursuant to this chapter.

(3) A civil money penalty assessed pursuant to subsection (2) of this section shall not exceed one thousand dollars ($1,000) per day for each day such violation continues. No civil money penalty shall be assessed for the same act or practice if another government agency has taken similar action against the credit union or person to be assessed such civil money penalty. In determining the amount of the civil money penalty to be assessed, the director of the department of finance shall consider:

(a) The good faith of the credit union or person to be assessed with such civil money penalty;

(b) The gravity of the violation;

(c) Any previous violations by the credit union or person to be assessed with such civil money penalty;

(d) The nature and extent of any previous violations; and

(e) Such other matters as the director may deem appropriate.

(4) Upon waiver by the respondent of the right to a public hearing concerning an assessment of a civil money penalty, the hearing or portions thereof may be closed to the public when concerns arise about prompt withdrawal of moneys from or the safety and soundness of the credit union.

(5) For the purposes of this section, a violation shall include but is not limited to any action by any person alone or with another person that causes, brings about, or results in the participation in, counseling of, or aiding or abetting of a violation.

(6) The director may modify or set aside any order assessing a civil money penalty.

History:

[26-2140, added 1977, ch. 213, sec. 2, p. 604; am. 2020, ch. 214, sec. 5, p. 631.]
Idaho Code § 26-3205 — Idaho Code / Title 26 / Chapter 32 / Section 26-3205
26-3205 ACTIVITIES NOT REQUIRING A CHARTER.
Status: in_force

26-3205. Activities not requiring a charter. Notwithstanding any other provision of this act, a person does not engage in the trust business or in any other business in a manner requiring a charter under this act, or in an unauthorized trust activity by:

(1) Acting in a manner authorized by law and in the scope of authority as an agent of a trust institution with respect to an activity which is not an unauthorized trust activity;

(2) Obtaining trust business as a result of an existing attorney-client relationship or certified public accountant-client relationship;

(3) Acting as trustee under a deed of trust delivered only as security for the payment of money or for the performance of another act;

(4) Receiving and distributing rents and proceeds of sale as a licensed real estate broker on behalf of a principal in a manner authorized by the Idaho real estate commission;

(5) Engaging in a securities transaction or providing an investment advisory service as a licensed and registered broker-dealer, investment advisor or registered representative thereof, provided the activity is regulated by the Idaho department of finance or the securities and exchange commission;

(6) Engaging in the sale and administration of an insurance product by an insurance company or agent licensed by the Idaho department of insurance to the extent that the activity is regulated by the Idaho department of insurance;

(7) Engaging in the lawful sale of prepaid funeral contracts under a permit issued by the Idaho board of morticians or engaging in the lawful business of a perpetual care cemetery under the Idaho endowment care cemetery act;

(8) Acting as trustee under a voting trust as provided by the Idaho business corporation act;

(9) Acting as trustee by a public, private, or independent institution of higher education or a university system, including its affiliated foundations or corporations, with respect to endowment funds or other funds owned, controlled, provided to or otherwise made available to such institution with respect to its educational or research purposes;

(10) Engaging in other activities expressly excluded from the application of this act, by rule of the director;

(11) Acting as a fiduciary for relatives;

(12) Provided the company is a trust institution and is not barred by order of the director from engaging in a trust business in this state pursuant to section 26-1115, Idaho Code:

(a) Marketing or soliciting in this state through the mails, telephone, any electronic means or in person with respect to acting or proposing to act as a fiduciary outside of this state;

(b) Delivering money or other intangible assets and receiving the same from a client or other person in this state; or

(c) Accepting or executing outside of this state a trust of any client or otherwise acting as a fiduciary outside of this state for any client;

(13) Acting pursuant to court appointment as:

(a) A personal representative of a decedent's estate; or

(b) A guardian or conservator of an estate;

(14) Acting as a trustee, but only if such person is an individual and does not engage in the trust business as defined in section 26-3203(30), Idaho Code.

History:

[26-3205, added 2000, ch. 288, sec. 8, p. 979; am. 2016, ch. 44, sec. 1, p. 94; am. 2016, ch. 47, sec. 5, p. 105.]
Idaho Code § 26-2412 — Idaho Code / Title 26 / Chapter 24 / Section 26-2412
26-2412 ANNUAL FINANCIAL EXAMINATION.
Status: in_force

26-2412. Annual financial examination. The corporation shall be examined at least once annually by the director of the department of finance and shall make reports of its condition not less than annually to said director of the department of finance and more frequently upon call of the director of the department of finance, who in turn shall make copies of such reports available to the director of the department of insurance and the governor; and the corporation shall also furnish such other information as may from time to time be required by the director of the department of finance and secretary of state. The corporation shall pay the actual cost of said examinations. The director of the department of finance shall exercise the same power and authority over corporations organized under this act as is now exercised over banks and trust companies by the provisions of title 26, Idaho Code, where the provision of title 26, Idaho Code, are not in conflict with this act.

History:

[(26-2412) 1963, ch. 273, sec. 12, p. 695; I.C., sec. 30-1512 (1963 Supp.).]
Idaho Code § 26-2926 — Idaho Code / Title 26 / Chapter 29 / Section 26-2926
26-2926 PROMULGATION OF RULES.
Status: in_force

26-2926. Promulgation of rules. All rules promulgated by the director pursuant to authority conferred in this chapter will be in accordance with the Idaho administrative procedure act, chapter 52, title 67, Idaho Code. In addition thereto, at the time the director files a notice of proposed adoption, amendment or repeal of a rule for public comment, a copy of said notice will be sent by regular United States mail, postage prepaid, to all then current licensees and applicants for licenses under the provisions of this chapter.

History:

[26-2926, added 1994, ch. 410, sec. 1, p. 1295.]
Idaho Code § 26-1404 — Idaho Code / Title 26 / Chapter 14 / Section 26-1404
26-1404 COMPLIANCE AND APPROVAL WITH FINANCIAL INSTITUTION ACQUISITION ACT REQUIRED.
Status: in_force

26-1404. Compliance and approval with financial institution acquisition act required. No out-of-state financial institution or out-of-state financial institution holding company shall be allowed to join in an application for transfer of fiduciary capacities pursuant to the provisions of this chapter unless such out-of-state financial institution or out-of-state financial institution holding company first complies in full with the provisions of chapter 26, title 26, Idaho Code, and obtains approval of the director as specified in chapter 26, title 26, Idaho Code.

History:

[26-1404, added 1991, ch. 215, sec. 2, p. 518.]
Idaho Code § 26-2229A — Idaho Code / Title 26 / Chapter 22 / Section 26-2229A
26-2229A REQUIREMENT OF FAIR, OPEN, AND HONEST DEALING — PROHIBITED PRACTICES.
Status: in_force

26-2229A. Requirement of fair, open, and honest dealing — Prohibited practices. (1) Every licensee or person required to be licensed under this chapter and its agents shall deal openly, fairly, and honestly without deception in the conduct of its business activities in this state under this chapter.

(2) When not inconsistent with the statutes of this state, the provisions of the federal fair debt collection practices act, 15 U.S.C. 1692 et seq., as amended, may be enforced by the director against collection agencies licensed or required to be licensed under the provisions of this chapter.

(3) In every instance where a collection agency licensee has a managerial or financial interest in a creditor client, or where a creditor client has a managerial or financial interest in a collection agency licensee, disclosure of such interest must be made on each and every contact with a debtor in seeking to make a collection of any account, claim, or other indebtedness.

(4) No collection agency licensee, or collection agency required to be licensed under this chapter, or agent of such collection agency shall collect or attempt to collect any interest or other charges, fees, or expenses incidental to the principal obligation unless such interest or incidental fees, charges, or expenses:

(a) Are expressly authorized by statute;

(b) Are allowed by court ruling against the debtor;

(c) Are expressly authorized by the agreement creating the debt, except as otherwise prohibited by law. Provided, however, that no person shall collect any attorney's fees or litigation costs unless such attorney's fees or litigation costs are reasonable, are for actual attorney services performed, and are limited to those costs actually incurred;

(d) Have been judicially determined;

(e) Are provided for in a written form agreement that is signed by both the debtor and the licensee and has the prior approval of the director with respect to the terms of the agreement and amounts of the fees, interest, charges, and expenses; or

(f) Reasonably relate to the actual cost associated with processing a demand draft or other form of electronic payment on behalf of a debtor for a debt payment, provided that the debtor has preauthorized the method of payment and has been notified in advance that such payment may be made by reasonable alternative means that will not result in additional charges, fees, or expenses to the debtor.

(5) No person shall sell, distribute, or make use of solicitations, collection letters, demand forms, or other printed matter that are made similar to or resemble governmental forms or documents or legal forms used in civil or criminal proceedings.

(6) No person shall use any trade name, address, insignia, picture, emblem, or any other means that creates any impression that such person is connected with or is an agency of government.

(7) No person licensed or required to be licensed under this chapter shall misappropriate, transfer, or convert to his own use or benefit funds belonging to or held for another person in connection with business activities authorized under this chapter.

(8) No credit repair organization licensed or required to be licensed under this chapter shall charge or receive money or other valuable consideration for the performance of any service the credit repair organization has agreed to perform for any consumer before such service is fully performed.

(9) No person licensed or required to be licensed under this chapter shall make a representation or statement of material fact, or omit to state a material fact, in connection with the offer, sale, or performance of any service authorized under this chapter, if the representation, statement, or omission is false or misleading or has the tendency or capacity to be misleading.

History:

[26-2229A, added 1973, ch. 263, sec. 2, p. 538; am. 1993, ch. 165, sec. 1, p. 417; am. 1995, ch. 211, sec. 6, p. 719; am. 1997, ch. 370, sec. 4, p. 1180; am. 2008, ch. 347, sec. 10, p. 946; am. 2022, ch. 286, sec. 4, p. 908.]
Idaho Code § 26-1811 — Idaho Code / Title 26 / Chapter 18 / Section 26-1811
26-1811 MUTUAL SAVINGS BANKS — OWNERSHIP — MEMBERSHIP — DIRECTORS — CAPITAL.
Status: in_force

26-1811. Mutual savings banks — Ownership — Membership — Directors — Capital. (1) Members of a mutual savings bank are the owners of the mutual savings bank and shall possess voting rights and any other rights as are provided in the articles of incorporation or bylaws of the mutual savings bank.

(2) The membership of a mutual savings bank shall consist of those persons who either:

(a) Hold deposit accounts in the mutual savings bank; or

(b) Borrow funds or become obligated on a loan from the mutual savings bank, for as long as the loan remains unpaid and the debtor remains liable to the mutual savings bank for repayment of the loan.

(3) The board of directors of a mutual savings bank shall be elected by the members at the annual meeting required by section 26-213, Idaho Code. Voting for directors by deposit account holders shall be weighted according to the total amount of deposit accounts held by the members, subject to any maximum number of votes per member which a mutual savings bank may provide in its articles of incorporation. Voting rights for borrowers shall be fully described in a detailed manner in the articles of incorporation of the mutual savings bank.

(4) Mutual savings banks operating under this chapter shall at all times maintain capital at a level determined by the director to be adequate for the safe and sound operation of the savings bank. In addition to the capital plan required to be submitted to the director by section 26-1812, Idaho Code, each mutual savings bank shall periodically revise its capital plan upon written request by the director. All capital plans are subject to the approval of the director. Either failing to maintain adequate capital or operating without an approved capital plan are both violations of this chapter and grounds for sanctions under chapter 11, title 26, Idaho Code.

History:

[26-1811, added 1997, ch. 310, sec. 3, p. 919.]
Idaho Code § 26-1705 — Idaho Code / Title 26 / Chapter 17 / Section 26-1705
26-1705 APPLICATION OF THE IDAHO BUSINESS CORPORATION ACT.
Status: in_force

26-1705. Application of the Idaho business corporation act. Where not inconsistent with this chapter and the Idaho bank act, the provisions of the Idaho business corporation act shall apply to international banking corporations doing business in this state.

History:

[26-1705, added 1995, ch. 99, sec. 10, p. 309.]
Idaho Code § 26-2716 — Idaho Code / Title 26 / Chapter 27 / Section 26-2716
26-2716 BUSINESS ACTIVITIES — CORPORATE POWERS.
Status: in_force

26-2716. Business activities — Corporate powers. (1) The business of a licensee shall be the business of providing financing assistance and management assistance to business firms. A licensee shall not engage in a business other than the business of providing financing assistance and management assistance to business firms.

(2) In addition to the powers and privileges provided to a licensee by this chapter, a licensee has all powers and privileges conferred by its incorporating statute which are not inconsistent with or limited by this chapter. The powers of a licensee include, but are not limited to, all of the following:

(a) To borrow money and otherwise incur indebtedness for its purposes, including issuance of corporate bonds, debentures, notes, or other evidence of indebtedness. A licensee's indebtedness may be secured or unsecured, and may involve equity features including, but not limited to, provisions for conversion to stock and warrants to purchase stock.

(b) To make contracts. Such contracts may include contracts to provide management assistance to business firms, which contracts shall be in writing, and the terms of which shall govern all aspects of the relationship between the licensee and the business firm regarding the management assistance provided by the licensee.

(c) To incur and pay necessary and incidental operating expenses.

(d) To purchase, receive, hold, lease, or otherwise acquire, or to sell, convey, mortgage, lease, pledge, or otherwise dispose of, real or personal property, together with rights and privileges that are incidental and appurtenant to these transactions of real or personal property, if the real or personal property is for the licensee's use in operating its business or if the real or personal property is acquired by the licensee from time to time in satisfaction of debts or enforcement of obligations.

(e) To make donations for charitable, educational, research, or similar purposes.

(f) To implement a reasonable and prudent policy for conserving and investing its money before the money is used to provide financing assistance to business firms or to pay the expenses of the licensee.

History:

[26-2716, added 1989, ch. 252, sec. 1, p. 612; am. 2002, ch. 145, sec. 6, p. 410.]
Idaho Code § 26-2505 — Idaho Code / Title 26 / Chapter 25 / Section 26-2505
26-2505 ADMINISTRATION — ENFORCEMENT — ACTIONS FOR MONETARY RELIEF.
Status: in_force

26-2505. Administration — Enforcement — Actions for monetary relief. (1) The director of the Idaho department of finance shall have the power to administer and enforce the provisions of this chapter. Whenever it appears to the director that a loan broker has violated section 26-2503, Idaho Code, the director shall have the powers and remedies set forth in sections 67-2754, 67-2755, 67-2757, 67-2758 and 67-2759, Idaho Code.

(2) The receiving of any fee, interest or other charge in violation of this chapter shall also be deemed an unfair and deceptive practice in violation of the Idaho consumer protection act; provided however, no person aggrieved by a violation of this chapter can recover or attempt to recover monetary relief under both this chapter and the Idaho consumer protection act, but rather such person must elect whether to file an action pursuant to this chapter or the Idaho consumer protection act.

History:

[26-2505, added 1979, ch. 298, sec. 1, p. 781; am. 1992, ch. 28, sec. 3, p. 90; am. 2005, ch. 265, sec. 19, p. 826.]
Idaho Code § 26-2904 — Idaho Code / Title 26 / Chapter 29 / Section 26-2904
26-2904 EXEMPTIONS.
Status: in_force

26-2904. Exemptions. (1) This chapter shall not apply to:

(a) The United States or any department, agency or instrumentality of the United States;

(b) The United States post office;

(c) The state or any political subdivision of the state; and

(d) Banks, credit unions, savings and loan associations, savings banks or mutual banks organized under the laws of any state or the United States, provided that they do not issue or sell payment instruments through authorized delegates who are not banks, credit unions, savings and loan associations, savings banks or mutual banks; and

(2) Authorized representatives of a licensee, acting within the scope of authority conferred by a written contract conforming to the requirements of section 26-2918, Idaho Code, shall not be required to obtain a license pursuant to this chapter.

History:

[26-2904, added 1994, ch. 410, sec. 1, p. 1284.]
Idaho Code § 26-105 — Idaho Code / Title 26 / Chapter 1 / Section 26-105
26-105 EFFECT OF ACT ON EXISTING BANKS.
Status: in_force

26-105. Effect of act on existing banks. The powers, privileges, duties and restrictions heretofore conferred and imposed upon any bank now existing and doing business under the laws of this state, are hereby abridged, enlarged or modified as each particular case may require to conform with the provisions of this chapter.

History:

[26-105, added 1979, ch. 41, sec. 2, p. 63.]
Idaho Code § 26-2135 — Idaho Code / Title 26 / Chapter 21 / Section 26-2135
26-2135 BOOKS AND RECORDS.
Status: in_force

26-2135. Books and records. The books and records of a credit union shall be kept in accordance with generally accepted accounting principles and by procedures approved by the director. Every credit union shall keep correct and complete books of accounts, minutes of meetings of members and directors and shall make such books and records and accounts available for examination. The books of account and records shall not be removed from the principal place of business without the consent of the director.

If a credit union utilizes the data processing services of another company the providing of such services by the other corporation shall be subject to the approval of the director and the director shall have the power to require the servicing company to provide such information as the director requires in a form required by the director. Any company providing data processing services for credit unions must agree to provide the director with information for purposes of examination which the director may by rule or regulation require in a form required by the director.

History:

[26-2135, added 1977, ch. 213, sec. 2, p. 602.]
Idaho Code § 26-2713 — Idaho Code / Title 26 / Chapter 27 / Section 26-2713
26-2713 SURRENDER OF LICENSE.
Status: in_force

26-2713. Surrender of license. (1) Upon approval of a two-thirds (2/3) vote of its board of directors and after complying with subsection (2) of this section, a licensee may apply to the director to have the director accept the surrender of the licensee's license. If the director determines that the requirements of this section have been satisfied, the director shall approve the application unless in the opinion of the director the purpose of the application is to evade a current or prospective action by the director pursuant to this chapter.

(2) Not less than sixty (60) days before filing an application with the director under subsection (1) of this section, a licensee shall notify all of its shareholders and all of its creditors of its intention to file the application. Each creditor shall be notified of the right to comment to the director. Each shareholder shall be notified of the right to file with the licensee an objection to the proposed surrender of the license within the sixty (60) day period and shall be advised that, if the shareholder files an objection, the shareholder should send a copy of the objection to the director. If shareholders representing twenty percent (20%) of the outstanding voting securities of the licensee file an objection, the licensee shall not proceed with the application under subsection (1) of this section unless the application is approved by a vote of shareholders representing two-thirds (2/3) of the outstanding voting securities of the licensee.

History:

[26-2713, added 1989, ch. 252, sec. 1, p. 610.]
Idaho Code § 26-902 — Idaho Code / Title 26 / Chapter 9 / Section 26-902
26-902 RESULTING STATE BANK.
Status: in_force

26-902. Resulting state bank. Upon approval by the director, banks may be merged to result in a state bank or a national bank may convert into a state bank as hereafter prescribed, except that the action by a national bank shall be taken in the manner prescribed by and shall be subject to limitations and requirements imposed by the law of the United States which shall also govern the rights of its dissenting stockholders.

History:

[26-902, added 1979, ch. 41, sec. 2, p. 97.]
Idaho Code § 26-2710 — Idaho Code / Title 26 / Chapter 27 / Section 26-2710
26-2710 PRELIMINARY APPROVAL — DENIAL IN WRITING — POSTING OF LICENSE.
Status: in_force

26-2710. Preliminary approval — Denial in writing — Posting of license. (1) A person may apply to the director for preliminary approval of an application for a license. Notwithstanding that commitments to invest in the equity of the applicant have not been obtained and that all directors and officers of the applicant have not been identified, the director may grant preliminary approval. In issuing an order granting preliminary approval, the director shall indicate that, for the director to determine that the requirements of section 26-2709, Idaho Code, are satisfied, final approval is conditioned on review by the director of the applicant's completion of fund-raising, including the controlling persons, and review by the director of the completion of the roster of directors and officers. If an application for preliminary approval has been granted, before granting final approval of the application for a license, the director may request an updated balance sheet and such other information considered relevant by the director.

(2) If a person files an application under this section, the fee required in section 26-2705(1)(a), Idaho Code, is payable at the time the application is filed with the director.

(3) If the director denies an application under this section or section 26-2709, Idaho Code, the director shall provide the applicant with a written statement explaining the basis for the denial.

(4) If an application for a license is approved and all conditions precedent to the issuance of that license are fulfilled, the director shall issue a license to the applicant. A licensee shall post the license in a conspicuous place in the licensee's principal office. A license is not transferable or assignable.

History:

[26-2710, added 1989, ch. 252, sec. 1, p. 609.]
Idaho Code § 26-909 — Idaho Code / Title 26 / Chapter 9 / Section 26-909
26-909 DISSENTING STOCKHOLDERS.
Status: in_force

26-909. Dissenting stockholders. (1) A dissenting stockholder of a state bank shall be entitled to receive the value in cash of only those shares which were voted against a merger to result in a state bank, against the conversion of a state bank into a national bank or against a sale of all or substantially all of the state bank's assets, and only if written demand thereupon is made to the resulting state or national bank at any time within thirty (30) days after the effective date of the merger or conversion accompanied by the surrender of the stock certificates. The value of such shares will be determined, as of the date of the stockholders' meeting approving the merger or conversion, by three (3) appraisers, one (1) to be selected by the vote of the owners of two-thirds (2/3) of the shares involved at a meeting called by the director on ten (10) days' notice, one (1) by the board of directors of the resulting state or national bank, and the third by the two (2) so chosen. The valuation agreed upon by any two (2) appraisers shall govern. If any necessary appraiser is not appointed within sixty (60) days after the effective date of the merger or conversion, the director shall make the necessary appointment, or if the appraisal is not completed within ninety (90) days after the merger or conversion becomes effective, the director shall cause an appraisal to be made.

(2) The merger agreement may fix an amount which the merging banks consider to be the fair market value of the shares of a merging or a converting bank at the time of the stockholders' meeting approving the merger or conversion, which the resulting bank will pay dissenting stockholders of that bank entitled to payment in cash. The amount due under such accepted offer or under the appraisal shall constitute a debt of the resulting state or national bank.

(3) The expenses of appraisal shall be paid by the resulting state bank except when the value fixed by the appraiser does not exceed the value fixed by the merger agreement in which case one-half (1/2) of the expenses shall be paid by the resulting bank and one-half (1/2) by the dissenting stockholders requesting the appraisal in proportion to their respective holdings.

History:

[26-909, added 1979, ch. 41, sec. 2, p. 101.]
Idaho Code § 26-1011 — Idaho Code / Title 26 / Chapter 10 / Section 26-1011
26-1011 FEDERAL DEPOSIT INSURANCE CORPORATION — RIGHT TO ACT AS RECEIVER OR LIQUIDATOR.
Status: in_force

26-1011. Federal Deposit Insurance Corporation — Right to act as receiver or liquidator. The Federal Deposit Insurance Corporation created by section 8 of the federal "Banking Act of 1933" (section 12B of the Federal Reserve Act, as amended) is hereby authorized and empowered to be and act without bond as receiver or liquidator of any banking institution, the deposits in which are to any extent insured by said corporation, and which shall have been closed on account of inability to meet the demands of its depositors, in lieu of the director of finance, but only if and when requested so to do by said director.

The director of the department of finance may, in his discretion, in the event of such closing tender to said corporation the appointment as receiver or liquidator of such banking institution, in his stead, and if the corporation accepts said appointment, the corporation shall have and possess all the rights, powers and privileges provided by the laws of this state with respect to the director of the department of finance acting as receiver or liquidator of a banking institution, and be subject to all the duties of such receiver or liquidator, except insofar as such rights, powers, privileges or duties are in conflict with the provisions of subsection (1) of section 12B of the Federal Reserve Act, as amended (section 8 of the "Banking Act of 1933").

The corporation shall not, however, without the consent of the director of the department of finance, continue to act as receiver or liquidator of any banking institution after the amount of the insured deposit liability of such banking institution, paid or assumed by the corporation, and the costs of liquidation paid or assumed by it have been repaid it, or after funds are available therefor.

History:

[26-1011, added 1979, ch. 41, sec. 2, p. 106.]
Idaho Code § 26-2118 — Idaho Code / Title 26 / Chapter 21 / Section 26-2118
26-2118 CREDIT COMMITTEE — APPOINTMENT — DUTIES.
Status: in_force

26-2118. CREDIT COMMITTEE — APPOINTMENT — DUTIES. (1) The board may appoint a credit committee. The credit committee shall have the general supervision of all loans to members. It shall be the duty of the credit committee to review all applications for loans, to ascertain whether the loan would be for a provident or productive purpose, to determine whether the applicant qualifies for the loan under the credit union's loan and underwriting policies, and to determine whether the security offered, in the credit committee's judgment, is sufficient, and whether the requested terms of the loan are in accordance with the credit union's loan and underwriting policies.

(2) The credit committee shall meet as often as necessary and at least once each month to review delinquent loans. The credit committee shall keep a record of all actions taken at each meeting and shall submit a written report to the members at the annual meetings and to the board monthly.

(3) The credit committee, upon approval by the board, may appoint one (1) or more loan officers to act under the supervision of the credit committee, and a loan officer, when appointed, may make loans without the necessity for a meeting or of approval by any members of the credit committee, as provided in the bylaws. No more than one (1) member of the credit committee may serve in the position of loan officer. No individual shall have authority to disburse funds of the credit union for any loan that has been approved by him in his capacity as loan officer, except that the loan officer may disburse loans approved by him that are fully secured by shares or that do not exceed the credit union's unsecured loan limit set by the board of directors.

(4) No member of the credit committee may serve as a member of the board of directors or supervisory committee while serving as a member of the credit committee.

History:

[26-2118, added 2018, ch. 165, sec. 14, p. 334.]
Idaho Code § 26-2606 — Idaho Code / Title 26 / Chapter 26 / Section 26-2606
26-2606 REQUIREMENTS FOR ACQUISITION.
Status: in_force

26-2606. Requirements for acquisition. No person shall effect any of the transactions described in section 26-2605, Idaho Code, or make any public offer to do so unless it shall first have complied with the provisions of chapters 5 and 9, title 26, Idaho Code, and this section.

(1) An applicant must request authorization to engage in any of the transactions described in section 26-2605, Idaho Code, shall pay such application fee as the director may prescribe for such transactions and shall file with the director:

(a) An application in such form as the director may prescribe;

(b) Such other information as the director may require pursuant to any rule, or which he determines to be necessary to allow him to make the findings in the case of any specific transactions which are required in this section;

(c) Unless the applicant is an Idaho resident, a domestic corporation or a foreign corporation qualified to do business in this state, a written consent to service of process in any action or suit arising out of or in connection with said proposed action, said service to be on a resident of this state;

(d) A written undertaking on the part of the applicant to provide the director, if requested, the financial institution holding company examination records and any and all examination reports of such financial institution holding company subsidiaries as the director may designate.

(2) The director may, as a condition upon acceptance of an application as complete or upon approval of an application, require cooperation from the administrative regulator or regulators of the out-of-state financial institution holding company and its subsidiaries involved in the transaction.

(3) Within thirty (30) days of acceptance of the application as complete, the director shall act upon the application by approving or disapproving it and shall state in writing his findings of fact, conclusions and order. The director may approve an application subject to such terms and conditions as he may consider necessary to protect the public interest and carry out the purposes of this chapter. The director may not approve an application for a transaction in which the applicant is a foreign corporation which has not qualified to do business in this state under title 30, Idaho Code, and which is required to do so.

(4) The director shall disapprove any application filed under this section if he finds:

(a) That the proposed transaction would be detrimental to the safety and soundness of the applicant or to any Idaho financial institution or Idaho financial institution holding company which is a party to the proposed transaction or to a subsidiary or affiliate of that institution or holding company;

(b) The applicant, its executive officers, directors or principal shareholders do not have a record of sound performance, efficient management, financial responsibility and integrity such that it would be against the interest of the depositors, other customers, creditors or shareholders of an Idaho financial institution or an Idaho financial institution holding company, or against the public interest to authorize the proposed transaction;

(c) The financial condition of the applicant or any Idaho financial institution or Idaho financial institution holding company which is a party to or participant in the proposed transaction is such that the financial stability of such applicant or other institution or holding company might be jeopardized or the interests of depositors or other customers of such applicant or other institutions or holding companies might be prejudiced;

(d) The Idaho financial institution to be acquired has been chartered and actively engaged in business for less than five (5) years prior to the date of the application;

(e) The consummation of the proposed transaction will tend substantially to lessen competition within this state unless the director finds that the anticompetitive effects of the proposed transaction are clearly outweighed by the benefit of meeting the convenience and needs of the community to be served; or

(f) The applicant has not established a record of meeting the credit needs of the communities which it or its subsidiary financial institution(s) services.

(5) Subsection (4)(d) of this section shall not be construed as prohibiting either:

(a) The approval of the acquisition of any Idaho financial institution or Idaho financial institution holding company formed solely to facilitate the acquisition of all of the voting shares of an Idaho financial institution which itself has been chartered and actively engaged in business for five (5) years or more prior to the date of the application; or

(b) The acquisition of an Idaho financial institution holding company which has been in existence for less than five (5) years if each of the financial institutions controlled by the financial institution holding company have been chartered and actively engaged in business for five (5) years or more.

History:

[26-2606, added 1985, ch. 185, sec. 1, p. 477; am. 1995, ch. 99, sec. 17, p. 319.]
Idaho Code § 26-2123 — Idaho Code / Title 26 / Chapter 21 / Section 26-2123
26-2123 SHARES AND CERTIFICATES OF DEPOSIT.
Status: in_force

26-2123. Shares and certificates of deposit. A share may be in increments of five dollars ($5.00) with a minimum of five dollars ($5.00) and a maximum of twenty-five dollars ($25.00) as the board of directors shall establish. The shares of a credit union shall all be common shares of one (1) class and have a par value as established by the board and bylaws. A member may purchase shares which will earn dividends as duly established by the board pursuant to section 26-2130, Idaho Code. Members may also purchase certificates of deposit which will be for a specified length of time and earn interest with a guaranteed rate to be established by the board of directors pursuant to section 26-2130, Idaho Code. No certificate shall be issued to denote ownership of a share of the credit union. Shares paid for may be transferred in such manner as the bylaws may prescribe.

In the event of default the credit union shall have and may exercise a lien on the shares and deposits of any member for any sum due the credit union from said member or for any loan made to, cosigned or endorsed by him. Christmas clubs, vacation clubs, travel clubs and other thrift organizations within the membership, which shall have the prior approval of the director of finance, may be established by the board of directors.

History:

[26-2123, added 1977, ch. 213, sec. 2, p. 596.]
Idaho Code § 26-2501 — Idaho Code / Title 26 / Chapter 25 / Section 26-2501
26-2501 DEFINITION.
Status: in_force

26-2501. Definition. "Loan broker" means any person, corporation, partnership or other business entity which offers for compensation, in this state, to arrange for a loan or other extension of credit. "Loan broker" includes a person, corporation, partnership or other business entity which, for compensation or for no compensation, advertises, solicits, or offers to make or to obtain for others a loan or other extension of credit.

History:

[26-2501, added 1979, ch. 298, sec. 1, p. 780; am. 2005, ch. 265, sec. 18, p. 826.]
Idaho Code § 26-3705 — Idaho Code / Title 26 / Chapter 37 / Section 26-3705
26-3705 DISCLOSURE STATEMENT OF FINANCIAL RESPONSIBILITY.
Status: in_force

26-3705. Disclosure statement of financial responsibility. As a condition to registration with the department, each provider must file evidence of financial responsibility. Said evidence shall be on registration forms provided by the director. The registration forms shall request such information as the director, in his discretion, shall deem appropriate to carry out the functions of this chapter. The director shall require, however, the following information to be included on the provider's statement of financial responsibility:

(1) The names and business addresses of the officers, directors, trustees, managing or general partners, any person having a ten percent (10%) or greater equity or beneficial interest in the provider, and any person who will be managing the facility on a day-to-day basis, and a description of these persons' interests in or occupations with the provider.

(2) Information as follows on all persons named in response to the information required in subsection (1) of this section:

(a) A description of the business experience of this person, if any, in the operation or management of similar facilities;

(b) The name and address of any professional service, firm, association, trust, partnership, or corporation in which this person has, or which has in this person, a ten percent (10%) or greater interest and which it is presently intended shall currently or in the future provide goods, leases, or services to the facility, or to residents of the facility, of an aggregate value of five hundred dollars ($500) or more within any year, including a description of the goods, leases, or services and the probable or anticipated cost thereof to the facility, provider, or residents or a statement that this cost cannot presently be estimated; and

(c) A description of any matter in which the person: (i) has been convicted, or found guilty of, or received a withheld judgment for a felony, or been held liable, or enjoined in a civil action by final judgment, which civil action involved fraud, embezzlement, fraudulent conversion, or misappropriation of property; or (ii) is subject to a currently effective injunctive or restrictive court order in any action involving fraud, embezzlement, fraudulent conversion, or misappropriation of property; or (iii) within the past five (5) years, had any local, state or federal license or permit suspended or revoked as a result of fraud, embezzlement, fraudulent conversion, or misappropriation of property.

(3) A statement as to whether the provider is, or is not affiliated with, an eleemosynary or other nonprofit organization, the extent of the affiliation, if any, the extent to which the affiliate organization will be responsible for the financial and contract obligations of the provider, and the provision of the federal Internal Revenue Code, if any, under which the provider or affiliate is exempt from the payment of income tax.

(4) A detailed description of all fees required of residents, including the entrance fee and periodic charges, if any. The description shall include, but not be limited to:

(a) The circumstances under which the resident will be permitted to remain in the facility in the event of financial difficulties of the resident;

(b) The terms and conditions under which a contract for continuing care at the facility may be canceled by the provider or by the resident, and the conditions under which all or any portion of the entrance fee will be refunded in the event of cancellation of the contract by the provider or by the resident or in the event of the death of the resident prior to or following occupancy of a living unit;

(c) The manner by which the provider may adjust periodic charges or other recurring fees and the limitations on these adjustments, if any; and, if the facility is already in operation, or if the provider or manager operates one (1) or more similar continuing care locations within this state, tables shall be included showing the frequency and average dollar amount of each increase in periodic charges, or other recurring fees at each facility or location for the previous five (5) years, or such shorter period as the facility or location may have been operated by the provider or manager.

(5) The health and financial conditions required for an individual to be accepted as a resident and to continue as a resident once accepted, including the effect of any change in the health or financial condition of a person between the date of entering a contract for continuing care and the date of initial occupancy of a living unit by that person.

(6) The provisions that have been made or will be made to provide reserve funding or security to enable the provider to perform its obligations fully under contracts to provide continuing care at the facility, including the establishment of escrow accounts, trusts, or reserve funds, together with the manner in which these funds will be invested, and the names and experience of any individuals in the direct employment of the provider who will make the investment decisions.

(7) Certified financial statements of the provider, including (i) a balance sheet as of the end of the most recent fiscal year, and (ii) income statements for the three (3) most recent fiscal years of the provider or such shorter period of time as the provider shall have been in existence. The director shall only accept certified financial statements that have been prepared and certified by or under the direction of a certified public accountant. If the provider's fiscal year ended more than one hundred twenty (120) days prior to the date the disclosure statement is recorded, interim financial statements as of a date not more than ninety (90) days prior to the date of recording the statement shall be included, but need not be certified.

(8) A summary of a report of an actuary, updated every five (5) years, that estimates the capacity of the provider to meet its contract obligation to the residents. Disclosure statements of continuing care facilities established prior to January 1, 1988, do not need an actuary report or summary until January 1, 1993.

(9) If operation of the facility has not yet commenced, a detailed and itemized statement of the anticipated source and application of the funds used or to be used in the purchase or construction of the facility. Said statements shall also include a detailed and itemized estimate of the funds, if any, that are anticipated to be necessary to fund start-up losses and provide reserve funds to assure full performance of the obligations of the provider under contracts for the provision of continuing care.

(10) Pro forma annual income statements and balance sheets for the facility for a period of not less than five (5) fiscal years with supporting documentation as the director may, in his discretion, require.

(11) All material information relevant to a decision of a prospective resident to enter into a continuing care contract with the provider, whether or not specifically requested by the director.

(12) All other information required by the director.

(13) The cover page of the disclosure statement shall state, in a prominent location and in boldface type, the date of the disclosure statement, the last date through which that disclosure statement may be delivered if not earlier revised, and that the delivery of the disclosure statement to a contracting party before the execution of a contract for the provision of continuing care is required by this chapter but that the disclosure statement has not been reviewed or approved by any government agency or representative to ensure accuracy or completeness of the information set out.

(14) A copy of the standard form of contract for continuing care used by the provider shall be attached to and be considered a part of the disclosure statement.

History:

[26-3705, added 2005, ch. 265, sec. 15, p. 817.]
Idaho Code § 26-2228 — Idaho Code / Title 26 / Chapter 22 / Section 26-2228
26-2228 POWERS OF THE DIRECTOR.
Status: in_force

26-2228. Powers of the director. In addition to any other duties authorized by law, the director shall:

(1) Administer and enforce the provisions and requirements of this act;

(2) Conduct investigations and issue subpoenas as necessary to determine whether a person has violated any provision of this act, rule or order hereunder;

(3) Conduct examinations of the books and records of licensees related to business activities authorized under this act and conduct investigations as necessary and proper for the enforcement of the provisions of this act, rules or orders hereunder;

(4) Pursuant to chapter 52, title 67, Idaho Code, issue orders and promulgate rules that, in the opinion of the director, are necessary to execute, enforce and effectuate the purposes of this act; and

(5) Require that all funds collected by the department under this act be deposited into the finance administrative account pursuant to section 67-2702, Idaho Code.

History:

[26-2228, added 1970, ch. 53, sec. 7, p. 118; am. 1974, ch. 24, sec. 23, p. 744; am. 1974, ch. 154, sec. 6, p. 1379; am. 1995, ch. 211, sec. 4, p. 717; am. 2008, ch. 347, sec. 8, p. 944.]
Idaho Code § 26-1024 — Idaho Code / Title 26 / Chapter 10 / Section 26-1024
26-1024 DISPOSITION OF ASSETS REMAINING AFTER PAYMENT OF CLAIMS.
Status: in_force

26-1024. Disposition of assets remaining after payment of claims. Whenever the director has paid to each and every depositor and creditor of such bank whose claims shall have been duly approved and allowed as herein provided, the full amount thereof, and shall have made provisions for unclaimed and unpaid deposits and disputed claims and deposits, and shall have paid all the expenses of liquidation or, if the assets of said bank be insufficient for making said payments, then, whenever the director has liquidated all available assets and disbursed the same as herein provided, the director shall make application to the district court of the county in which such bank is located, or the judge thereof in chambers for an order authorizing the director, if there be remaining assets on hand, to surrender the same to the directors of said bank in office at the time of closing the same, as trustees for stockholders, or to such other person or persons, if any, as have been designated as trustees by the stockholders at a meeting lawfully called and assembled for such purpose, in like manner as any other stockholders' meeting. Said order shall also provide that upon the surrender of said assets, as in said order directed, and where there are no remaining assets, then, upon the entry of the order, the director shall be discharged from all further liability or responsibility in connection with the assets and affairs of said bank and that the charter of said bank shall be forfeited. The court may require such trustees to give bond in such amount as the court may fix, conditioned for the faithful performance of their duties. It shall be the duty of the said trustee or trustees to complete the liquidation of any remaining assets as rapidly as may be and to distribute the proceeds of the same among the stockholders according to their respective rights. On application for such order, the bank shall be made a party by notice issued on order of the court or judge, in lieu of summons, but served in like manner, and the hearing of any such application may be had at any time in court or in chambers, as the court may order, after five (5) days' notice of the hearing.

History:

[26-1024, added 1979, ch. 41, sec. 2, p. 112.]
Idaho Code § 26-2127 — Idaho Code / Title 26 / Chapter 21 / Section 26-2127
26-2127 INVESTMENT OF FUNDS.
Status: in_force

26-2127. INVESTMENT OF FUNDS. (1) A credit union's board of directors must establish a written investment policy consistent with this chapter and other applicable laws and regulations.

(2) A credit union may invest its funds in any of the following, as long as the investments are deemed prudent by the board:

(a) (i) Loans held by credit unions, out-of-state credit unions, or federal credit unions; and

(ii) Loans to members held by other lenders, with approval of the director;

(b) Bonds, securities, or other investments that are fully guaranteed as to principal and interest by the United States government;

(c) General obligations of this state and its political subdivisions;

(d) Obligations issued by corporations designated under 31 U.S.C. 9101, or obligations, participations, or other instruments issued and guaranteed by the federal housing administration, veterans administration, federal home loan mortgage corporation, federal national mortgage association, or federal home loan mortgage corporation/federal national mortgage association, or other government-sponsored enterprise;

(e) Share or deposit accounts of other financial institutions, the accounts of which are federally insured or insured or guaranteed by another insurer or guarantor approved by the director. The shares and deposits made by a credit union under this subsection may exceed the insurance or guarantee limits established by the organization insuring or guaranteeing the institution into which the shares or deposits are made;

(f) Common trust or mutual funds whose investment portfolios consist of securities issued or guaranteed by the federal government or an agency of the government;

(g) Shares or other interests offered by a registered investment company or collective investment fund, if the company or fund restricts the investment portfolio to investments and investment transactions that are permissible for credit unions, as evidenced by its prospectus or other appropriate documentation;

(h) Debt or equity issued by an organization owned by a credit union trade association whose members include Idaho credit unions, in an aggregate amount not to exceed one percent (1%) of the net worth of the credit union;

(i) Stocks, shares, membership units, or other ownership interests in corporations, limited liability companies, or mutual associations, and loans to such organizations in an aggregate amount not to exceed thirty-five percent (35%) of the credit union's net worth or two and one-half percent (2.5%) of the credit union's assets, whichever is less. Investments and loans to any one (1) organization are limited to ten percent (10%) of the credit union's net worth. The principal purpose of the investment must be to enhance the credit union's operations or the products and services it makes available to members. Investments and loans authorized pursuant to this paragraph must satisfy one (1) of the following criteria:

(i) The ownership of such organizations or membership of such mutual associations, as applicable, is primarily confined to credit unions or organizations of credit unions;

(ii) The organizations are formed primarily to service credit unions or their members or otherwise to assist credit union operations; or

(iii) The organization is engaged in, planning, or developing activity that is incidental to or complementary to the credit union's operations and the investment is approved by the director. Activity is incidental or complementary to the credit union's operations if it would be performed for or provided to the credit union, or if it would be performed for or provided to the credit union's members in relation to products, services, or activity that the credit union performs for or provides to its members. The investment shall be made for the purpose of aiding the credit union in achieving its business, operational, or service objectives and shall not be made for speculative investment purposes.

(3) A credit union may not invest in any of the following:

(a) A federal depository institution or state depository institution as those terms are defined in the federal deposit insurance act, 12 U.S.C. 1813; or

(b) A bank holding company or savings bank holding company as those terms are defined in the federal bank holding company act, 12 U.S.C. 1841.

(4) The director may authorize credit unions to purchase investments not listed above by rule or upon written application.

(5) If a credit union has lawfully made an investment that later becomes impermissible because of a change in circumstances or law, and the director finds that this investment will have an adverse effect on the safety and soundness of the credit union, then the director may require that the credit union develop a reasonable plan for the divestiture of the investment.

(6) A credit union other than a corporate credit union shall not invest an amount that exceeds twenty-five percent (25%) of its net worth in an obligor or affiliate of the obligor. This subsection does not apply to the extent that the investment is insured or guaranteed by the United States government or an agency of the United States government or a state or local government or that the investment is in a corporate credit union.

(7) A credit union shall maintain files containing credit and other information adequate to demonstrate evidence of prudent business judgment in exercising the investment powers granted under this act or by rule, order, or declaratory ruling of the director.

History:

[26-2127, added 2020, ch. 230, sec. 11, p. 678; am. 2024, ch. 130, sec. 7, p. 526.]
Idaho Code § 26-2234 — Idaho Code / Title 26 / Chapter 22 / Section 26-2234
26-2234 EXAMINATIONS, INVESTIGATIONS, RECORDS AND PAYMENT OF FUNDS.
Status: in_force

26-2234. Examinations, investigations, records and payment of funds. (1) The director or his duly authorized representative may make an annual examination, or more frequently in the director's discretion, of the licensee's business locations from which activities authorized under this act are conducted, and for that purpose the director shall have free access during normal business hours to the offices and places of business, and to the books, creditors' accounts, trust accounts, business accounts, records, papers, files, safes and vaults used by a licensee for its operations under this act.

(2) The director may conduct public or private investigations and examinations within or outside of this state which the director considers necessary or appropriate to determine whether a person has violated, is violating, or is about to violate this act or a rule adopted or order issued under this act, or to aid in the enforcement of this act. For that purpose the director shall have free access during normal business hours to the offices and places of business, and to the books, creditors' accounts, trust accounts, business accounts, records, papers, files, safes and vaults used by a licensee for its operations under this act.

(3) The cost of examination and any investigation shall be paid to the director by each licensee so examined or investigated and the director may maintain an action for the recovery of such costs against the licensee or against the surety providing the bond to indemnify the state for such expenditures as required by this act. The cost shall be fixed annually by the director, but shall not exceed fifty dollars ($50.00) per hour.

(4) Each collection agency licensee shall acknowledge in writing each account received for collection and shall maintain a record of such account, and shall make a permanent record of all sums collected and of all disbursements made. Every collection agency licensee shall keep and preserve all records relating to accounts received for collection, moneys collected, receipts, and disposal or disbursement of all creditors' funds for a period of three (3) years after the final disposition of any account. It shall be unlawful for any person to intentionally make any false entry, omit to make a necessary entry, mutilate, secrete away, destroy or otherwise dispose of any record referenced in this subsection, provided a record may be disposed of after the three (3) year period heretofore provided.

(5) Every collection agency licensee shall, within thirty (30) days following the end of each calendar month, remit to his creditor clients all funds due them resulting from collections made by the licensee during said calendar month. Such licensees shall provide each of their creditor clients a written statement of all moneys collected on behalf of such creditor clients and any payments made to such creditor clients within thirty (30) days following the end of each calendar month.

(6) Every licensee shall maintain books and records, including financial records in accordance with generally accepted accounting principles, in a manner that will enable the director to determine whether the licensee is complying with the provisions of this act.

(7) The director may impound the accounts, including all operating and trust accounts held in any financial institution, of any licensee or person required to be licensed under this act who receives, holds or disburses consumer funds, if the director deems it in the public interest and good cause exists therefor, in accordance with section 67-5247, Idaho Code.

History:

[26-2234, added 1970, ch. 53, sec. 13, p. 118; am. 1974, ch. 24, sec. 25, p. 744; am. 1993, ch. 165, sec. 2, p. 418; am. 2002, ch. 190, sec. 5, p. 548; am. 2008, ch. 347, sec. 17, p. 951.]
Idaho Code § 26-3203 — Idaho Code / Title 26 / Chapter 32 / Section 26-3203
26-3203 DEFINITIONS.
Status: in_force

26-3203. Definitions. The following definitions shall be liberally construed to accomplish the purposes of this act. In this act, unless the context otherwise requires:

(1) "Account" means the client relationship established with a trust institution involving the transfer of funds or property to the trust institution, including a relationship in which the trust company acts as trustee, executor, administrator, guardian, custodian, conservator, bailee, receiver, registrar, or agent, but excluding a relationship in which the trust institution acts solely in an advisory capacity.

(2) "Act as a fiduciary" or "acting as a fiduciary" means to:

(a) Accept or execute trusts, including to:

(i) Act as trustee under a written agreement;

(ii) Receive money or other property in its capacity as trustee for investment in real or personal property;

(iii) Act as trustee and perform the fiduciary duties committed or transferred to it by order of a court of competent jurisdiction;

(iv) Act as trustee of the estate of a deceased person; or

(v) Act as trustee for a minor or incapacitated person;

(b) Administer in any other fiduciary capacity real or tangible personal property; or

(c) Act pursuant to order of court of competent jurisdiction as executor or administrator of the estate of a deceased person or as a guardian or conservator for a minor or incapacitated person.

(3) "Authorized trust institution" means any state trust company, trust office or representative trust office.

(4) "Bank" has the meaning set forth in 12 U.S.C. 1813(h); provided that the term "bank" shall not include any "foreign bank" as defined in 12 U.S.C. 3101(7), except for any such foreign bank organized under the laws of a territory of the United States, Puerto Rico, Guam, American Samoa or the Virgin Islands, the deposits of which are insured by the federal deposit insurance corporation.

(5) "Bank supervisory agency" means:

(a) Any agency of another state with primary responsibility for chartering and supervising a trust institution; and

(b) The office of the comptroller of the currency, the federal deposit insurance corporation, the board of governors of the federal reserve system, the office of thrift supervision and any successor to these agencies.

(6) "Branch" with respect to a depository institution has the meaning set forth in section 26-106, Idaho Code.

(7) "Charter" means the authority issued by the director or a bank supervisory agency authorizing a trust institution to act as a fiduciary in its home state.

(8) "Client" means a person to whom a trust institution owes a duty or obligation under a trust or other account administered by the trust institution or as an advisor or agent, regardless of whether the trust institution owes a fiduciary duty to the person. The term includes the noncontingent beneficiaries of an account.

(9) "Company" includes a bank, trust company, corporation, limited liability company, partnership, association, business trust or another trust.

(10) "Department" means the Idaho department of finance.

(11) "Depository institution" means any company chartered to act as a fiduciary and included for any purpose within any of the definitions of "insured depository institution" as set forth in 12 U.S.C. 1813(c)(2) and (3).

(12) "Director" means the director of the department of finance.

(13) "Foreign bank" means a foreign bank, as defined in section 1(b)(7) of the international banking act of 1978, chartered to act as a fiduciary in a state other than this state.

(14) "Home state" means:

(a) With respect to a federally chartered trust institution and a foreign bank, the state in which such institution maintains its principal office; and

(b) With respect to any other trust institution, the state which chartered such institution.

(15) "Home state regulator" means the bank supervisory agency with primary responsibility for chartering and supervising an out-of-state trust institution.

(16) "Host state" means a state, other than the home state of a trust institution, or a foreign country in which the trust institution maintains or seeks to acquire or establish an office.

(17) "New trust office" means a trust office located in a host state which:

(a) Is originally established by the trust institution as a trust office; and

(b) Does not become a trust office of the trust institution as a result of:

(i) The acquisition of another trust institution or trust office of another trust institution; or

(ii) A merger, consolidation, or conversion involving any such trust institution or trust office.

(18) "Office" with respect to a trust institution means the principal office, a trust office or a representative trust office, but not a branch.

(19) "Out-of-state bank" means a bank chartered to act as a fiduciary in any state or states other than this state.

(20) "Out-of-state trust company" means either a trust company that is not a state trust company or a savings association whose principal office is not located in this state.

(21) "Out-of-state trust institution" means a trust institution that is not a state trust institution.

(22) "Person" means an individual, a company or any other legal entity.

(23) "Principal office" with respect to:

(a) A state trust company, means a location registered with the director as the state trust company's home office at which:

(i) The state trust company does business;

(ii) The state trust company keeps its corporate books and a set of its material records, including material fiduciary records; and

(iii) At least one (1) executive officer of the state trust company maintains an office.

(b) A trust institution other than a state trust company, means its principal place of business in the United States.

(24) "Representative trust office" means an office at which a trust institution has been authorized by the director to engage in a trust business other than acting as a fiduciary.

(25) "Savings association" means a depository institution that is neither a bank nor a foreign bank.

(26) "State" means any state of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands and the Northern Mariana Islands.

(27) "State bank" means:

(a) A bank which has received a charter from the director authorizing it to operate a trust department; or

(b) A foreign bank as defined in section 1(b)(7) of the international banking act of 1978 chartered to act as a fiduciary in this state.

(28) "State trust company" means a corporation organized under this act and chartered to act as a fiduciary by the state, including a trust company organized under the laws of this state before the effective date of this act.

(29) "State trust institution" means a trust institution having its principal office in this state.

(30) "Trust business" means the holding out by a person to the public by advertising, solicitation or other means that the person is available to perform any service of a fiduciary in this or another state including, but not limited to:

(a) Acting as a fiduciary; or

(b) To the extent not acting as a fiduciary, any of the following:

(i) Receiving for safekeeping personal property of every description;

(ii) Acting as assignee, bailee, conservator, custodian, escrow agent, registrar, receiver or transfer agent; or

(iii) Acting as financial advisor, investment advisor or manager, agent or attorney-in-fact in any agreed upon capacity.

(31) "Trust company" means a state trust company or any other company chartered to act as a fiduciary that is neither a depository institution nor a foreign bank.

(32) "Trust institution" means a depository institution, foreign bank, state bank or trust company.

(33) "Trust office" means an office, other than the principal office, at which a trust institution is licensed by the director to act as a fiduciary.

(34) "Unauthorized trust activity" means:

(a) A person, other than one identified in section 26-3204(1), Idaho Code, acting as a fiduciary within this state;

(b) A person engaging in a trust business in this state at any office of such person that is not its principal office, if it is a state trust institution, or that is not a trust office or a representative trust office of such person, unless the person has been authorized by the director, in his discretion, to engage in a trust business in this state in another manner and upon such conditions as he may require; or

(c) An out-of-state trust institution engaging in a trust business in this state at any time an order issued by the director pursuant to section 26-1115, Idaho Code, is in effect.

History:

[26-3203, added 2000, ch. 288, sec. 8, p. 975; am. 2016, ch. 47, sec. 4, p. 102.]
Idaho Code § 26-2406 — Idaho Code / Title 26 / Chapter 24 / Section 26-2406
26-2406 DURATION OF MEMBERSHIP.
Status: in_force

26-2406. Duration of membership. Membership in the corporation shall be for the duration of the corporation; provided, that upon written notice given to the corporation five (5) years in advance, a member may withdraw from membership in the corporation at the expiration date of such notice.

A member shall not be obligated to make any loans to the corporation pursuant to calls made subsequent to notice of the intended withdrawal of said member.

History:

[(26-2406) 1963, ch. 273, sec. 6, p. 695; I.C., sec. 30-1506 (1963 Supp.).]
Idaho Code § 26-2111 — Idaho Code / Title 26 / Chapter 21 / Section 26-2111
26-2111 EXPULSION AND WITHDRAWAL FROM FIELD OR MEMBERSHIP.
Status: in_force

26-2111. EXPULSION AND WITHDRAWAL FROM FIELD OR MEMBERSHIP. A member may be expelled in accordance with the bylaws and any policies established by the board. The credit union shall notify a member of the expulsion, the reasons for the expulsion, and the process by which the member may challenge the expulsion and seek reinstatement. The credit union shall, upon the request of the expelled member in accordance with this section, allow the member to challenge the expulsion and seek reinstatement as a member. A member who withdraws from membership or whose membership is otherwise terminated pursuant to the bylaws or who is expelled is not relieved of any liability to the credit union.

History:

[26-2111, added 2022, ch. 78, sec. 7, p. 222.]
Idaho Code § 26-206 — Idaho Code / Title 26 / Chapter 2 / Section 26-206
26-206 PREFERRED STOCK.
Status: in_force

26-206. Preferred stock. (1) Subject to the provisions of the bank act, and by and with the approval and consent of the director, any bank now or hereafter incorporated under the laws of this state may issue such part of its capital as is approved by the director as preferred stock having such special rights, preferences, privileges, immunities, qualifications and restrictions as to voting, dividends, redemption, retirement, participation in corporate assets, not common to other stock, as provided in its articles of incorporation as hereafter adopted or amended, and as are not inconsistent with the provisions of the bank act and the provisions of its articles of incorporation or amendments thereto.

(2) Dividends on preferred stock may be declared and paid only from net profits as defined by section 26-106, Idaho Code, but such net profits may be current profits or those accumulated as surplus. No dividend shall be declared nor paid, any retirement or redemption of such stock be made, nor any other distribution or payment of corporate assets made thereon or therefor at any time when the total common stock and surplus is below or will be thereby reduced below the minimum common stock required by law plus a surplus fund equal to ten percent (10%) of such minimum common stock or the amount of common stock required by the director at the time the bank's charter was issued plus a surplus fund equal to ten percent (10%) of such required common stock.

(3) Preferred stock under the provisions of this act must be subscribed and paid for at not less than par value.

(4) Except as otherwise provided in the bank's articles of incorporation or by the bank act, preferred stock authorized by this act is capital and shall be considered as such in computing the capital structure of the bank within the meaning of all provisions of the bank act.

History:

[26-206, added 1979, ch. 41, sec. 2, p. 71; am. 2020, ch. 82, sec. 15, p. 190.]
Idaho Code § 26-2243 — Idaho Code / Title 26 / Chapter 22 / Section 26-2243
26-2243 PROPERTY RIGHT IN ACCOUNTS — PRACTICE OF LAW PROHIBITED.
Status: in_force

26-2243. Property right in accounts — Practice of law prohibited. A licensee under this act shall have a property right in any account assigned to it for collection; provided, however, no right herein granted shall authorize such licensee to engage in the practice of law.

History:

[26-2243, added 1970, ch. 53, sec. 22, p. 118; am. 2008, ch. 347, sec. 24, p. 954.]
Idaho Code § 26-2702 — Idaho Code / Title 26 / Chapter 27 / Section 26-2702
26-2702 DEFINITIONS.
Status: in_force

26-2702. Definitions. For the purposes of this chapter:

(1) "Advisor" means a person who regularly provides legal, accounting, or management services or advice to a licensee.

(2) "Affiliate" means, if used with respect to a specified person other than a natural person, a person controlling or controlled by that specified person, or a person controlled by a person who also controls the specified person.

(3) "Associate" means, if used with respect to a licensee:

(a) A controlling person, director, officer, agent, or advisor of that licensee.

(b) A director, officer, or partner of a person referred to in paragraph (a).

(c) A person who controls, is controlled by, or is under common control with a person referred to in paragraph (a) directly or indirectly through one or more intermediaries.

(d) Any close relative of any person referred to in paragraph (a).

(e) A person of which a person referred to in paragraphs (a) through (d) is a director or officer.

(f) A person in which a person referred to in paragraphs (a) through (d), or any combination of those persons acting in concert, owns or controls, directly or indirectly, a twenty percent (20%) or greater equity interest.

(g) A person who is in a relationship referred to in this subsection, within six (6) months before or after a licensee provides financing assistance, shall be considered to be in that relationship as of the date that licensee provides that financing assistance.

(h) If a licensee, in order to protect its interests, designates a person to serve as a director of, officer of, or in any capacity in the management of a business firm to which that licensee provides financing assistance, that person shall not, on that account, be considered to have a relationship with that business firm. This subdivision does not apply if the person has, directly or indirectly, any other financial interest in the business firm or if the person, at any time before the licensee provides the financing assistance, served as a director of, officer of, or in any other capacity in the management of the business firm for a period of thirty (30) days or more.

(4) "BIDCO" means a business and industrial development corporation licensed under this chapter.

(5) "Business firm" means a person that transacts business on a regular and continual basis, or a person that proposes to transact business on a regular and continual basis.

(6) "Close relative" means parent, child, sibling, spouse, father-in-law, mother-in-law, son-in-law, brother-in-law, daughter-in-law, or sister-in-law.

(7) "Closing services" means services performed in connection with the providing of financing assistance. Closing services includes, but is not limited to, appraising property and preparing credit reports. Closing services does not include a service performed after the providing of financing assistance.

(8) "Control" means, if used with respect to a specified person, the power to direct or cause the direction of, directly or indirectly through one or more intermediaries, the management and policies of that specified person, whether through the ownership of voting securities; by contract, other than a commercial contract for goods or nonmanagement services; or otherwise. A natural person shall not be considered to control a person solely on account of being a director, officer, or employee of that person. A person who, directly or indirectly, owns of record or beneficially holds with power to vote, or holds proxies with discretionary authority to vote, twenty percent (20%) or more of the then outstanding voting securities issued by a corporation shall be rebuttably presumed to control that corporation.

(9) "Controlling person" means, if used with respect to a specified person, a person who controls that specified person, directly or indirectly through one or more intermediaries.

(10) "Corporate name" means the name of a corporation as set forth in the articles of incorporation of that corporation.

(11) "Department" means the department of finance.

(12) "Director" means the director of the department of finance.

(13) "Idaho corporation" means a corporation incorporated pursuant to title 30, Idaho Code.

(14) "Idaho nonprofit corporation" means a not-for-profit corporation incorporated pursuant to title 30, Idaho Code.

(15) "Incorporating statute" means that part of title 30, Idaho Code, under which a licensee is incorporated.

(16) "Insolvent" means a licensee that ceases to pay its debts in the ordinary course of business, that cannot pay its debts as they become due, or whose liabilities exceed its assets.

(17) "Interests of the licensee" includes the interests of shareholders of the licensee.

(18) "License" means a license issued under this chapter authorizing an Idaho corporation to transact business as a BIDCO.

(19) "Licensee" means an Idaho corporation which is licensed under this chapter.

(20) "Officer" means:

(a) If used with respect to a corporation, a person appointed or designated as an officer of that corporation by or pursuant to applicable law or the articles of incorporation, or bylaws of that corporation, or a person who performs with respect to that corporation functions usually performed by an officer of a corporation.

(b) If used with respect to a specified person other than a natural person or a corporation, a person who performs with respect to that specified person functions usually performed by an officer of a corporation with respect to that corporation.

(21) "Order" means an approval, consent, authorization, exemption, denial, prohibition, or requirement applicable to a specific case issued by the director. Order includes a condition of a license and an agreement made by a person with the director under this chapter.

(22) "Person" means an individual, proprietorship, joint venture, partnership, trust, business trust, syndicate, association, joint stock company, corporation, cooperative, government, agency of a government, or any other organization. If used with respect to acquiring control of or controlling a specified person, person includes a combination of two (2) or more persons acting in concert.

(23) "Principal shareholder" means a person that owns, directly or indirectly, of record or beneficially, securities representing ten percent (10%) or more of the outstanding voting securities of a corporation.

(24) "Short-term financing assistance" means financing assistance with a term of not more than five (5) years.

(25) "Subject person" means a controlling person, subsidiary, or affiliate of a licensee; a director, officer, or employee of a licensee or of a controlling person, subsidiary, or affiliate of a licensee; or any other person who participates in the conduct of the business of a licensee.

(26) "Subsidiary" means, if used with respect to a licensee, a company or business firm which the licensee holds control of as permitted by section 26-2718(1)(b), (c) or (d), Idaho Code.

(27) "This chapter" includes an order issued or rule promulgated under this chapter.

History:

[26-2702, added 1989, ch. 252, sec. 1, p. 602.]
Idaho Code § 26-1214 — Idaho Code / Title 26 / Chapter 12 / Section 26-1214
26-1214 OVERDRAFTS.
Status: in_force

26-1214. Overdrafts. Any officer or employee of any bank who shall pay out the funds of any bank upon the check, order or draft of any individual, firm, corporation or association, which has not on deposit with such bank a sum equal to such check, order or draft shall be personally liable to it for the amount so paid, unless the drawer of such check, order or draft has previously arranged with the board of directors for credit sufficient to cover such amount. Provided, that the board of directors may ratify such overdraft and relieve such liability.

Whenever the overdrafts of the depositors of any bank doing business under this chapter are, in the opinion or judgment of the director of the department of finance, excessive or of long standing, he may require such bank to either collect or materially reduce the same or secure notes in lieu (of) thereof.

History:

[26-1214, added 1979, ch. 41, sec. 2, p. 123.]
Idaho Code § 26-2612 — Idaho Code / Title 26 / Chapter 26 / Section 26-2612
26-2612 SEVERABILITY.
Status: in_force

26-2612. Severability. If any court of competent jurisdiction shall adjudge to be invalid or unconstitutional any clause, sentence, paragraph, section or part of this chapter, such judgment or decree shall not affect, impair, invalidate or nullify the remainder of this chapter, but the effect thereof shall be confined to the clause, sentence, paragraph, section or part of this chapter so adjudged to be invalid or unconstitutional.

History:

[I.C. sec. 26-2612, as added by 1985, ch. 185, sec. 1, p. 474; am. 1987, ch. 294, sec. 4, p. 625; am. 1995, ch. 99, sec. 23, p. 323.]
Idaho Code § 26-2114B — Idaho Code / Title 26 / Chapter 21 / Section 26-2114B
26-2114B OFFICIALS — FIDUCIARY DUTY — RELIANCE ON INFORMATION.
Status: in_force

26-2114B. Officials — FIDUCIARY DUTY — reliance on INFORMATION. (1) Officials owe a fiduciary duty to the credit union and must discharge the duties of their respective positions:

(a) In good faith;

(b) With the care an ordinarily prudent person in a like position would exercise under similar circumstances; and

(c) In a manner the official reasonably believes to be in the best interests of the credit union.

(2) In discharging the duties of an official, the official is entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by:

(a) One (1) or more officers or employees of the credit union whom the official reasonably believes to be reliable and competent in the matters presented;

(b) Legal counsel, public accountants or other persons as to matters the official reasonably believes are within the person's professional or expert competence; or

(c) A committee of the board of directors or supervisory committee of which the official is not a member if the official reasonably believes the committee merits confidence.

(3) An official is not acting in good faith if the official has knowledge concerning the matter in question that makes reliance otherwise permitted by subsection (2) of this section unwarranted.

(4) An official is not liable for any action taken as a director, or any failure to take any action, if the director performed the duties of the director's office in compliance with this section.

(5) As used in this section, "official" means a member of the board of directors, board officer, supervisory committee member or senior operating officer of the credit union.

History:

[26-2114B, added 2018, ch. 165, sec. 8, p. 332.]
Idaho Code § 26-1017 — Idaho Code / Title 26 / Chapter 10 / Section 26-1017
26-1017 CLAIMS — ALLOWANCE AND REJECTION.
Status: in_force

26-1017. Claims — Allowance and rejection. The director shall reject or allow all claims in (the) whole or in part, and on each claim allowed shall designate the order of its priority. If a claim is rejected or an order of priority allowed lower than that claimed, notice shall be given the claimant personally or by certified mail with a return receipt requested and an affidavit of the service of such notice, which shall be prima facie evidence thereof, filed in the office of the director. The action of the director shall be final unless an action be brought by the claimant against the bank in the proper court of the county where the bank is located within ninety (90) days after such service to fix the amount of the claim and its order of priority or either. An appeal from the director's allowance, either as to priority or amount, may also be taken to the district court of such county by any party in interest by serving on the director notice thereof, stating the grounds of objection and filing the same in said court within thirty (30) days after allowance. Within five (5) days after such notice, the director shall file in the court, and serve on the appellant, a copy of the claim and his reasons for allowance. The court or judge shall, after five (5) days' notice of time and place of hearing on the issues thus made, hear the proof of the parties and enter judgment reversing, affirming or modifying the director's action.

History:

[26-1017, added 1979, ch. 41, sec. 2, p. 108.]
Idaho Code § 26-2918 — Idaho Code / Title 26 / Chapter 29 / Section 26-2918
26-2918 AUTHORIZED REPRESENTATIVE CONTRACTS.
Status: in_force

26-2918. Authorized representative contracts. Licensees desiring to conduct licensed activities through authorized representatives shall authorize such representative to operate pursuant to an express written contract, which shall provide the following:

(1) That the licensee appoints the person as its representative with authority to engage in money transmission on behalf of the licensee;

(2) That neither a licensee nor an authorized representative may authorize subrepresentatives without the written consent of the director;

(3) That licensees are subject to supervision and regulation by the director;

(4) An acknowledgement that the authorized representative consents to the director's inspection, with or without prior notice to the licensee or authorized representative(s), of the books and records of authorized representative(s) of the licensee when the director has a reasonable basis to believe that the licensee or authorized representative is in violation of the provisions of this chapter; and

(5) That authorized representatives are under a duty to act only as authorized under the contract with the licensee and that an authorized representative that exceeds its authority is subject to cancellation of its contract and disciplinary action by the director.

History:

[26-2918, added 1994, ch. 410, sec. 1, p. 1292.]
Idaho Code § 26-106 — Idaho Code / Title 26 / Chapter 1 / Section 26-106
26-106 DEFINITIONS.
Status: in_force

26-106. Definitions. As used in this act, unless the context or subject matter otherwise requires:

(1) "Bank" means any person engaged in soliciting, receiving or accepting money or its equivalent on deposit as a regular business whether or not such deposit, however evidenced, is made subject to check or draft or other order.

(2) "Banking business" means the soliciting, receiving or accepting of money or its equivalent on deposit as a regular business whether such deposit is made subject to check or draft or is evidenced by a certificate of deposit, a passbook, a note, a receipt, or other writing; provided, that nothing herein shall apply to or include money or its equivalent left in escrow or left with an agent pending investment in real estate or securities for or on account of his principal.

(3) "Bank service corporation" means a corporation organized to perform bank services for two (2) or more banks, each of which owns part of the capital stock of such corporation, and which are subject to examination by either the department of finance of the state of Idaho or a federal bank supervisory agency.

For the purpose of this definition, "bank services" means services such as check and deposit sorting and posting, computation and posting of interest and other credits and charges, preparation and mailing of checks, statements, notices, and similar items, or any other clerical, bookkeeping, accounting, statistical, or similar functions performed for a bank.

(4) "Borrowing" means any nondeposit liability.

(5) "Branch" means any location except a loan production office, mobile or temporary facility, customer-bank communication terminal or bank service corporation at which a bank performs any or all functions of a bank.

(6) "Capital" means the amount of unimpaired paid-up common stock plus the amount of paid-up preferred stock issued and unimpaired.

(7) "Capital note" means a convertible or nonconvertible note of a bank subordinated as to principal and interest to the depositors of the bank and containing such conditions as the director may require.

(8) "Capital structure" means the total of the capital, surplus, undivided profits and subordinated capital notes and contingency reserves of the bank or such other account as determined by the director of the department of finance, less intangible assets.

(9) "Common stock" means the stock of a banking corporation other than preferred stock.

(10) "Commercial paper" means a short-term negotiable instrument arising out of a commercial transaction; provided however, that commercial paper shall not be construed to be a deposit as defined in this act.

(11) "Converting bank" means a bank converting from a state to a national bank, or the reverse.

(12) "Demand deposit" means all deposits except time deposits.

(13) "Deposit" means the act of placing or lodging money in the custody of a person, for safety or convenience whether interest-bearing or not, to be withdrawn at the will of the depositor or under rules, terms and regulations agreed upon by the depositor and the depository. If the context requires, deposit may also mean the money so deposited or the credit the depositor receives for it.

(14) "Depositor" means any person who deposits money.

(15) "Director" means the director of the department of finance.

(16) "Dissenting stockholder" means a stockholder dissenting and voting his dissent as provided in this act.

(17) "Executive officer" means each officer of a bank, who by virtue of his position, has both voice in the formulation of the policy of the bank and responsibility for the implementation of such policy.

(18) "Federal funds" means member bank deposits at federal reserve banks.

(19) "Federal reserve act" means and includes the act of congress of the United States approved December 23, 1913, as amended.

(20) "Federal reserve bank" means a federal reserve bank created and organized under the authority of the federal reserve act.

(21) "Federal reserve board" means the board of governors of the federal reserve system created and described in the federal reserve act.

(22) "Federal bank supervisory agency" means the comptroller of the currency, the board of governors of the federal reserve system, or the board of directors of the federal deposit insurance corporation.

(23) "Fiduciary" means trustee, agent, executor, administrator, personal representative, committee, guardian or conservator for a minor or other incompetent person, receiver, trustee in bankruptcy, assignee for creditors or any holder of a similar position of trust.

(24) "Home state" means:

(a) With respect to a state chartered bank, the state from which the bank received the charter under which it operates.

(b) With respect to a national bank, the state in which the main office of the national bank is located.

(25) "Host state" means, with respect to any bank, a state other than the home state of the bank in which the bank maintains or seeks to establish and maintain a branch.

(26) "Member bank" means any national bank or state bank which has become or which becomes a member of one (1) of the federal reserve banks created by the federal reserve act.

(27) "Merger" means the union of two (2) or more bank corporations by the transfer of property of all to one (1) of them. As used in this act, "merger" includes a consolidation.

(28) "Merging bank" means a party to a merger.

(29) "Mobile or temporary facility" means a place of business of a bank from which the bank performs limited activities for limited periods of time.

(30) "National bank" means a bank organized under the laws of the United States and issued an organization certificate by the comptroller of the currency.

(31) "Net demand deposits" means the total of the bank's demand deposits after subtracting from the deposit balance due to any bank the deposit balance due from the same bank (other than trust funds deposited by either bank) and any cash items in the process of collection due from or due to such banks shall be included in determining such net balance, except that balances of time deposits of any bank and any balances standing to the credit of private banks, of banks in foreign countries, of foreign branches of other American banks, and of American branches of foreign banks shall be reported gross without any such subtraction, and excluding any deposits received in any office of the bank for deposits in any other office of the bank. The amount of trust funds held in the bank's own trust department, which the bank keeps segregated and apart from its general assets and does not use in the conduct of its business, shall not be included as net deposits.

(32) "Net profits" means profits remaining after the deduction of all expenses including depreciation, losses, or doubtful assets, as required by the director of the department of finance, interest, and taxes accrued or due.

(33) "Person" means an individual, sole proprietorship, partnership, joint venture, association, trust, estate, business trust, corporation, limited liability company, not-for-profit corporation, sovereign government or agency, instrumentality, or political subdivision thereof, or any similar entity or organization.

(34) "Preferred stock" means a class of the stock of a banking corporation issued in accordance with section 26-206, Idaho Code, which is accorded a preference or priority over the common stock of the corporation.

(35) "Resulting bank" means the bank resulting from a merger or conversion.

(36) "Savings deposit" means a deposit:

(a) That consists of funds deposited to the credit of or in which the entire beneficial interest is held by one (1) or more individuals, or a corporation, association, or other organization operated primarily for religious, philanthropic, charitable, educational, fraternal, or other similar purposes and not operated for profit; or that consists of funds deposited to the credit of or in which the entire beneficial interest is held by the United States, any state of the United States, or any county, municipality, or political subdivision thereof, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, American Samoa, Guam, or political subdivision thereof; or that consists of funds deposited to the credit of, or in which any beneficial interest is held by a corporation, association, or other organization not qualifying above to the extent such funds do not exceed one hundred fifty thousand dollars ($150,000) per such depositor at a bank; and

(b) With respect to which the depositor is not required by the deposit contract but may at any time be required by the bank to give notice in writing of an intended withdrawal not less than thirty (30) days before such withdrawal is made and which is not payable on a specified date or at the expiration of a specified time after the date of deposit.

(37) "State bank" means any bank chartered by the state of Idaho.

(38) "Time certificate of deposit" means a deposit evidenced by a negotiable or nonnegotiable instrument which provides on its face that the amount of such deposit is payable to bearer or to any specified person or to his order:

(a) On a certain date, specified in the instrument, not less than thirty (30) days after the date of the deposit; or

(b) At the expiration of a certain specified time not less than thirty (30) days after date of the instrument; or

(c) Upon notice in writing which is actually required to be given not less than thirty (30) days before the date of repayment; and

(d) In all cases only upon presentation and surrender of the instrument.

(39) "Time deposit" means time certificates of deposit, time deposits open account, and savings deposits.

(40) "Time deposits open account" means a deposit, other than a time certificate of deposit, with respect to which there is in force a written contract with the depositor that neither the whole nor any part of such deposit may be withdrawn, by check or otherwise, prior to the date of maturity, which shall be not less than thirty (30) days after the date of the deposit, or prior to the expiration of the period of notice which must be given by the depositor in writing not less than thirty (30) days in advance of withdrawal.

(41) "Trust department" means the division of a bank which has been granted trust powers by the director of finance.

History:

[26-106, added 1979, ch. 41, sec. 2, p. 64; am. 2004, ch. 159, sec. 1, p. 512; am. 2015, ch. 204, sec. 2, p. 618; am. 2016, ch. 47, sec. 3, p. 99.]
Idaho Code § 26-1202 — Idaho Code / Title 26 / Chapter 12 / Section 26-1202
26-1202 UNAUTHORIZED USE OF NAME — WAIVER BY DIRECTOR.
Status: in_force

26-1202. unauthorized use of name — waiver by director. (1) With the exception of the persons defined in subsection (2) of this section, no person may advertise or transact business in this state under a name or title that contains the word "bank," "banker," "bancorp," "savings bank," "trust company," or a word or words of similar import, unless the person has been granted a charter to engage in banking or trust business in this state by the director, or unless the director has granted the person a waiver from this prohibition as set forth in this section.

(2) The foregoing prohibition shall not apply to a national bank, federal thrift or federal savings bank, bank holding company or a state-chartered bank or trust company located in another state that has obtained all approvals that may be required under the law as a prerequisite to doing business in this state.

(3) The director may grant a waiver to allow the use of the word "bank," "banker," "bancorp," "savings bank," "trust company" or a word or words of similar import if:

(a) The person is not engaged in banking or trust business;

(b) The name or title used is not likely to deceive or mislead an individual to believe that the person is engaged in banking or trust business;

(c) The name or title, or a name or title similar to it, is not already used by another person doing business in this state; and

(d) The name or title does not suggest or imply that the person is engaged in unlawful conduct.

(4) Should the director grant a waiver as set forth in subsection (3) of this section, the director may condition or restrict the use of the name or title as he finds necessary in order to protect the public.

(5) In the event the use of a name or title is prohibited as set forth in this section and that none of the exceptions set forth in subsection (2) of this section apply, and the director has not granted a waiver to the prohibition as set forth in subsection (3) of this section, the Idaho secretary of state shall not be obligated to file any documents, records, articles or certificates that the person using or desiring to use the prohibited name or title requests the Idaho secretary of state to file.

(6) Any person who willfully violates the foregoing prohibition is guilty of a felony.

History:

[26-1202, added 2015, ch. 204, sec. 21, p. 630.]
Idaho Code § 26-806 — Idaho Code / Title 26 / Chapter 8 / Section 26-806
26-806 GIVING SECURITY FOR DEPOSIT PROHIBITED.
Status: in_force

26-806. Giving security for deposit prohibited. It shall be unlawful for any bank to pledge, mortgage or hypothecate to any depositor any of its real or personal property as security for any deposit except money of the United States, the state of Idaho and its political subdivisions, and deposits for which security is required by any law of the United States, or required or permitted by any other statute of this state. Any pledge, mortgage or hypothecation made in violation hereof shall be unenforceable and void and any person, firm or corporation, holding or receiving any security or securities mortgaged or hypothecated, pledged or attempted to be pledged, shall, upon demand of any officer, director or stockholder of the bank or the director, be required forthwith to make return thereof, and the repayment of any deposit shall not be prerequisite to the recovery of any property so unlawfully pledged, hypothecated or mortgaged.

History:

[26-806, added 1979, ch. 41, sec. 2, p. 96; am. 1998, ch. 406, sec. 1, p. 1262.]