Idaho Code § 26-3401 — Idaho Code / Title 26 / Chapter 34 / Section 26-3401
26-3401 TRUST BUSINESS AT A BRANCH OR TRUST OFFICE OR REPRESENTATIVE TRUST OFFICE.
Status: in_force

26-3401. Trust business at a branch or trust office or representative trust office. (1) An out-of-state trust institution may act as a fiduciary in this state or engage in a trust business in this state if it maintains a trust office in this state as permitted by this chapter, or a branch in this state.

(2) An out-of-state trust institution may not act as a fiduciary, but may otherwise engage in a trust business, at a representative trust office as permitted by this chapter.

History:

[26-3401, added 2000, ch. 288, sec. 10, p. 982.]
Idaho Code § 26-2910 — Idaho Code / Title 26 / Chapter 29 / Section 26-2910
26-2910 ISSUANCE OF LICENSE.
Status: in_force

26-2910. Issuance of license. (1) Upon the filing of a complete application, the director shall investigate the financial condition and responsibility, financial and business experience, character and general fitness of the applicant. The director may conduct an on-site investigation of the applicant, the actual cost of which shall be borne by the applicant. If the director finds that the applicant's business will be conducted honestly, fairly, and in a manner commanding the confidence and trust of the community, and that the applicant has fulfilled the requirements imposed in this chapter and has paid the required license fee, the director shall issue a license to the applicant authorizing the applicant to engage in the licensed activities in this state for a term of one (1) year. If these requirements have not been met, the director shall deny the application in writing setting forth the reasons for the denial.

(2) The director shall approve or deny every application for an original license within one hundred eighty (180) days from the date a complete application is submitted, which period may be extended by the written consent of the applicant. The director shall notify the applicant of the date when the application is deemed complete. In the absence of approval or denial of the application, or consent to the extension of the one hundred eighty (180) day period, the application is deemed approved and the director shall issue the license effective as of the first day after the one hundred eighty (180) day or extended period has elapsed.

(3) Any applicant aggrieved by a denial issued by the director under the provisions of this section may at any time within thirty (30) days from the date of receipt of written notice of the denial contest the denial by serving a response on the director. The director shall set a date for a hearing not later than sixty (60) days after service of the response, unless a later date is set with the consent of the denied applicant.

History:

[26-2910, added 1994, ch. 410, sec. 1, p. 1288.]
Idaho Code § 26-1216 — Idaho Code / Title 26 / Chapter 12 / Section 26-1216
26-1216 CARRYING AS ASSET PROPERTY NOT ACTUALLY OWNED.
Status: in_force

26-1216. Carrying as asset property not actually owned. It shall be unlawful for any bank or bank holding company to carry as an asset any note, obligation or security which is not the property of the bank or bank holding company; and any officer or employee of any such bank or bank holding company who places among the assets thereof any note, obligation or security which it does not actually own, or who represents to the director or any examiner appointed by him that any note, obligation or security carried among the assets of the bank or bank holding company is the property of said bank, when in fact such note, obligation or security is not owned by said bank or bank holding company shall be guilty of a misdemeanor.

History:

[26-1216, added 1979, ch. 41, sec. 2, p. 124.]
Idaho Code § 26-1003 — Idaho Code / Title 26 / Chapter 10 / Section 26-1003
26-1003 RECEIVING DEPOSITS WHEN INSOLVENT.
Status: in_force

26-1003. Receiving deposits when insolvent. The owners or officers of any bank or trust company who shall receive any deposits, knowing that such bank or trust company is insolvent, shall be guilty of a felony and punished, upon conviction thereof, by a fine not exceeding one thousand dollars ($1,000), or imprisonment in the state penitentiary not exceeding two (2) years, or both such fine and imprisonment, at the discretion of the court.

History:

[26-1003, added 1979, ch. 41, sec. 2, p. 103.]
Idaho Code § 26-2607 — Idaho Code / Title 26 / Chapter 26 / Section 26-2607
26-2607 ACQUISITION OF FAILING INSTITUTION.
Status: in_force

26-2607. Acquisition of failing institution. (1) Notwithstanding any provision of the laws of this state to the contrary, if the director determines, in his discretion, that an Idaho financial institution is in danger of failing, or takes possession of a failing Idaho financial institution pursuant to the provisions of title 26, Idaho Code, and if the director deems it to be in the public interest and necessary to protect depositors, creditors and other customers of that financial institution, the director may solicit offers from, and authorize or require the acquisition of such failing Idaho financial institution by a financial institution or financial institution holding company organized and operated under the laws of any state or the United States. Acquisition may be through merger, consolidation, purchase of all or substantially all of the assets and assumption of liabilities, or purchase of all or a controlling part of the shares of the acquired institution.

(2) The director may not, under this section, accept any offers from, or authorize or require any acquisition by a financial institution holding company as described in subsection (1) of this section, unless he finds that:

(a) The subsidiaries of the financial institution holding company have demonstrated an acceptable record of meeting the credit needs of the communities it serves; and

(b) The financial institution holding company and its subsidiaries have a record of sound performance, capital adequacy, financial capacity and efficient management such that the acquisition would not jeopardize the financial stability of the acquired institution and would not be detrimental to the interests of depositors, creditors, or other customers of the acquired institution or the public interest.

(3) To protect the interest of depositors, creditors and other customers of a failing Idaho financial institution, the director may waive any of the procedures set forth in section 26-2606, Idaho Code, or in any rule of the department if he deems it necessary to implement the purposes of this section.

History:

[26-2607, added 1985, ch. 185, sec. 1, p. 479; am. 1987, ch. 294, sec. 3, p. 628; am. 1995, ch. 99, sec. 18, p. 321.]
Idaho Code § 26-1603 — Idaho Code / Title 26 / Chapter 16 / Section 26-1603
26-1603 DEFINITIONS.
Status: in_force

26-1603. Definitions. As used in this chapter, and unless the context otherwise requires:

(1) "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.

(2) "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.

History:

[26-1603, added 1995, ch. 99, sec. 9, p. 306.]
Idaho Code § 26-906 — Idaho Code / Title 26 / Chapter 9 / Section 26-906
26-906 CONVERSION OF NATIONAL INTO STATE BANK.
Status: in_force

26-906. Conversion of national into state bank. (1) A national bank located in this state which follows the procedure prescribed by the laws of the United States to convert into a state bank, shall be granted a charter by the director unless he finds that the bank does not meet the standards as to location of offices, capital structure, and business experience and character of officers and directors for the incorporation of a state bank.

(2) The national bank may apply for such charter by filing with the director a certificate signed by its president and cashier and by a majority of the entire board of directors, setting forth the corporate action taken in compliance with the provisions of the laws of the United States governing the conversion of the national to a state bank, and the articles of incorporation, approved by the stockholders, for the government of the bank as a state bank.

History:

[26-906, added 1979, ch. 41, sec. 2, p. 99.]
Idaho Code § 26-3707 — Idaho Code / Title 26 / Chapter 37 / Section 26-3707
26-3707 ESCROW — TRUST — SURETY BOND — COLLECTION OF DEPOSITS.
Status: in_force

26-3707. Escrow — Trust — Surety bond — Collection of deposits. (1) A provider shall establish an escrow account with a bank or a trust company, that is located in Idaho, agreed upon by the provider and the resident. The terms of this escrow account shall provide that the total amount of any entrance fee received by the provider prior to the date the resident is permitted to occupy a living unit in the facility be placed in this escrow account. These funds may be released only as follows:

(a) If the entrance fee applies to a living unit that has been previously occupied in the facility, the entrance fee shall be released to the provider when the living unit becomes available for occupancy by the new resident;

(b) If the entrance fee applies to a living unit which has not been previously occupied by any resident, the entrance fee shall be released to the provider when the escrow agent is satisfied that:

(i) Construction or purchase of the living unit has been completed and an occupancy permit, if applicable, covering the living unit has been issued by the local government having authority to issue such permits;

(ii) A commitment has been received by the provider for any permanent mortgage loan, long-term financing or other source of capital and any conditions of the commitment prior to disbursement of funds thereunder have been substantially satisfied; and

(iii) Aggregate entrance fees received or receivable by the provider pursuant to binding continuing care retirement community contracts, plus the anticipated proceeds of any first mortgage loan, long-term financing commitment, or other source of capital, are equal to not less than ninety percent (90%) of the aggregate cost of constructing or purchasing, equipping and furnishing the facility plus not less than ninety percent (90%) of the funds estimated in the statement of anticipated source and application of funds submitted by the provider as that part of the disclosure statement required in section 26-3705, Idaho Code, to be necessary to fund start-up losses and assure full performance of the obligations of the provider pursuant to continuing care retirement community contracts.

(2) Upon receipt by the escrow agent of a request by the provider for the release of these escrow funds, the escrow agent shall approve release of the funds within five (5) working days unless the escrow agent finds that the requirements of subsection (1) of this section have not been met and notifies the provider of the basis for this finding. The request for release of the escrow funds shall be accompanied by any documentation the fiduciary requires.

(3) If the provider fails to meet the requirements for release of funds held in this escrow account within a time period the escrow agent considers reasonable, these funds shall be returned by the escrow agent to the persons who have made payment to the provider. The escrow agent shall notify the provider of the length of this time period when the provider requests release of the funds.

(4) An entrance fee held in escrow may be returned by the escrow agent to the person who made payment to the provider at any time upon receipt by the escrow agent of notice from the provider that this person is entitled to a refund of the entrance fee.

(5) In addition to the escrow requirement of this section, each provider shall provide a surety bond or an irrevocable letter of credit in a form acceptable to the department. Any surety bond offered as evidence of financial responsibility must be written by a company authorized to do business in this state. The bond must be in effect at any time that funds remain in escrow under the provisions of this section and shall be an amount not less than the aggregate value of all outstanding amounts in escrow.

History:

[26-3707, added 2005, ch. 265, sec. 15, p. 821.]
Idaho Code § 26-1605 — Idaho Code / Title 26 / Chapter 16 / Section 26-1605
26-1605 CONDITIONS.
Status: in_force

26-1605. Conditions. (1) The director shall not approve the acquisition of a bank, the home state of which is Idaho, if the statutes of the home state of the acquiring bank would not expressly allow a bank chartered in this state to acquire a bank in such state.

(2) Upon notification by a bank, the home state of which is Idaho, that such bank intends to operate a branch in another state, the department will have thirty (30) days within which to object or otherwise act upon such an acquisition.

(3) If the director finds a violation of Idaho law concerning the activities of a bank which has Idaho as a host state, or that such a bank is operating in an unsafe and unsound condition, the director may take any enforcement or corrective action authorized under the Idaho bank act. The director may limit the authority of any bank operating in Idaho to accept or retain deposits originating in Idaho if the bank is operating in an unsafe or unsound manner.

History:

[26-1605, added 1995, ch. 99, sec. 9, p. 307; am. 2015, ch. 204, sec. 25, p. 632.]
Idaho Code § 26-1813 — Idaho Code / Title 26 / Chapter 18 / Section 26-1813
26-1813 MUTUAL TO STOCK CONVERSIONS.
Status: in_force

26-1813. Mutual to stock conversions. A mutual savings bank may change its form of organization to that of a stock savings bank by filing an application with the director.

As part of the application, the savings bank will include a plan of conversion, which the director may approve, with or without amendment, if it appears that:

(1) After conversion the savings bank will be in sound financial condition;

(2) The conversion will be fair and equitable to the members of the savings bank and no person whether member, employee or otherwise, will receive any inequitable gain or advantage by reason of the conversion;

(3) The savings bank services provided to the public by the savings bank will not be adversely affected by the conversion;

(4) The plan has been approved by a vote of two-thirds (2/3) of the board of directors of the savings bank;

(5) All shares of stock issued in connection with the conversion are offered first to the members of the savings bank;

(6) All stock shall be offered to members of the savings bank and others under a formula and procedure that is fair and equitable and will be fairly disclosed to all interested persons; and

(7) The plan provides a statement as to whether stockholders shall have preemptive rights to acquire additional or treasury shares of the savings bank.

The plan shall be submitted to the members, but only after it has been approved by the director. After lawful notice to the members of the savings bank and full and fair disclosure, the substance of the plan must be approved by a majority of the total votes that members of the savings bank are eligible and entitled to cast. The vote by the members may be in person or by proxy. Any votes by proxy must be specific to the plan and not a general proxy. Following the vote of the members, the results of the vote certified by an appropriate officer of the savings bank shall be filed with the director. The director shall then either approve or disapprove the requested change in corporate form. After approval, the director shall supervise the conversion process and shall ensure that the process is conducted lawfully and under the approved plan.

History:

[26-1813, added 1997, ch. 310, sec. 3, p. 920.]
Idaho Code § 26-101 — Idaho Code / Title 26 / Chapter 1 / Section 26-101
26-101 TITLE.
Status: in_force

26-101. Title. This act, comprising chapters 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15, 16, 17, 18, 26, 32, 33, 34, 35 and 36, title 26, Idaho Code, as such chapters may be hereafter amended, shall be known as the "Idaho Bank Act" and shall be applicable to all corporations, copartnerships, cooperative associations and persons engaged in the business of banking in the state of Idaho.

History:

[26-101, added 1979, ch. 41, sec. 2, p. 63; am. 1995, ch. 99, sec. 1, p. 300; am. 1997, ch. 310, sec. 2, p. 917; am. 2000, ch. 288, sec. 1, p. 972.]
Idaho Code § 26-1709 — Idaho Code / Title 26 / Chapter 17 / Section 26-1709
26-1709 EFFECT, RENEWAL, AND REVOCATION OF LICENSES — PERMISSIBLE ACTIVITIES.
Status: in_force

26-1709. Effect, renewal, and revocation of licenses — Permissible activities. (1) When the director has issued a license to an international banking corporation, it may engage in the business authorized in this act at, and only at, the office specified in the license for a period not exceeding one (1) year from the date of the license or until the license is surrendered or revoked. No license is transferable or assignable. Every license shall be, at all times, conspicuously displayed in the place of business specified in the license.

(2) The international banking corporation may renew the license annually upon application to the director upon forms to be supplied by the director for that purpose. The application for renewal shall be submitted to the director no later than sixty (60) days before the expiration of the license. The license may be renewed by the director upon a determination, with or without examination, that the international banking corporation is in a safe and satisfactory condition, that it has complied with applicable requirements of law, and that the renewal of the license is proper and has been duly authorized by proper corporate action. Each application for renewal of an international banking corporation license shall be accompanied by an annual renewal fee to be determined by the director by rule.

(3) The director may revoke the license, with or without examination, upon a determination that the international banking corporation does not meet the criteria established by subsection (2) of this section for renewal of licenses.

(4) If the director refuses to renew the license and, as a result, the license is revoked, all the rights and privileges of the international banking corporation to transact the business for which it was licensed shall immediately cease, and the license shall be surrendered to the director within twenty-four (24) hours after written notice of the decision has been mailed by the director to the registered office of the international banking corporation set forth in its application, as amended, or has been personally delivered to any officer, director, employee, or agent of the international banking corporation who is physically present in this state.

(5) An international banking corporation licensed under this act to carry on business in this state as an international bank agency may conduct a general banking business through its international bank agency in the same manner as banks existing under the laws of this state, except that no international banking corporation shall, through its bank agency, exercise fiduciary powers or receive deposits, but may maintain for the account of others credit balances incidental to or arising out of the exercise of its lawful powers.

History:

[26-1709, added 1995, ch. 99, sec. 10, p. 311.]
Idaho Code § 26-1203 — Idaho Code / Title 26 / Chapter 12 / Section 26-1203
26-1203 FALSE STATEMENTS REGARDING BANKS AND TRUST COMPANIES — PENALTY.
Status: in_force

26-1203. False statements regarding banks and trust companies — Penalty. Any person who shall willfully and maliciously make, circulate or transmit to another or others any false statement, rumor, or suggestion, written, printed or by word of mouth, which is directly or by inference derogatory to the financial condition or affects the solvency or financial standing of any bank or trust company doing business in this state, or who shall counsel, aid, procure or induce another to start, transmit or circulate any such statement or rumor, shall be guilty of a felony.

History:

[26-1203, added 1979, ch. 41, sec. 2, p. 121; am. 2000, ch. 288, sec. 3, p. 973.]
Idaho Code § 26-2139 — Idaho Code / Title 26 / Chapter 21 / Section 26-2139
26-2139 CONVERSION.
Status: in_force

26-2139. Conversion. A state chartered credit union may be converted into a federal credit union by complying with the following requirements:

(a) The proposition for such conversion shall first be approved and a date set for a vote thereof by the members, either at a meeting to be held on such date or by a written ballot to be filed on or before such date, by a majority of the board of directors of the state chartered credit union. Written notice of the proposition and of the date set for the vote shall be delivered in person to each member, or mailed to each member at the address for such member appearing on the records of the credit union not more than twenty (20) nor less than five (5) days prior to such date. Approval of the proposition for conversion shall require the majority of those votes cast in person or in writing.

(b) A statement of results of the vote verified by the affidavits of the president or vice president and the secretary shall be filed with the director within ten (10) days after the vote is taken.

(c) Promptly after the vote is taken and in no event later than ninety (90) days thereafter if the proposition for conversion is approved by such vote, the credit union shall take such action as may be necessary under the federal law to make it a federal credit union, and within ten (10) days after the receipt of the federal charter, notice shall be filed with the director that the charter has been issued.

(d) Upon ceasing to be a state chartered credit union, such credit union shall no longer be subject to any of the provisions of this chapter.

A federally chartered credit union organized under the Federal Credit Union Act may be converted to a state chartered credit union by the following procedure: complying with all state requirements requisite to enabling it to meet proof of solvency and organization as required by this chapter.

When the director has been satisfied that all requirements of this chapter have been complied with, he shall approve the organizational certificate as a state chartered credit union as required by this chapter.

History:

[26-2139, added 1977, ch. 213, sec. 2, p. 604.]
Idaho Code § 26-2114A — Idaho Code / Title 26 / Chapter 21 / Section 26-2114A
26-2114A BOARD MEMBERS — QUALIFICATIONS.
Status: in_force

26-2114A. board members — QUALIFICATIONS. (1) A member of the board of directors must be a natural person and a member of the credit union. If a member of the board of directors ceases to be a member of the credit union, that person's service as a member of the board of directors shall terminate effective on termination of membership in the credit union.

(2)(a) If a member of the board of directors is absent from more than one-fourth (1/4) of the regular board meetings in any twelve (12) month period without being reasonably excused by the board, the member shall no longer serve on the board of directors.

(b) The board shall determine whether a member of the board is excluded from service pursuant to paragraph (a) of this subsection. After such determination has been made, the board secretary shall promptly notify the member of the board that such member shall no longer serve on the board. Failure to provide notice does not affect the termination of the member's service under paragraph (a) of this subsection.

(3) A member of the board of directors must meet any qualification requirements set forth in the credit union's bylaws. If the board determines that a member fails to meet such requirements, the member shall no longer serve on the board.

(4) The operating officers and employees of the credit union may not serve as members of the board of directors of the credit union.

History:

[26-2114A, added 2018, ch. 165, sec. 7, p. 332.]
Idaho Code § 26-1103 — Idaho Code / Title 26 / Chapter 11 / Section 26-1103
26-1103 REFUSAL TO SUBMIT TO EXAMINATION.
Status: in_force

26-1103. Refusal to submit to examination. Whenever any officer, director or employee of any bank or any data processor or other person or company having custody of books or records of any bank shall refuse to submit the books, papers and concerns of such bank to the inspection of the department of finance or refuse to be examined on oath touching the affairs or concerns of the bank, the director may, in his discretion, apply to the district court within the jurisdiction of which the home office of the bank is located for an injunction requiring the officer to allow such inspection. Upon application by the director, the court shall issue such an injunction.

History:

[26-1103, added 1979, ch. 41, sec. 2, p. 115.]
Idaho Code § 26-714 — Idaho Code / Title 26 / Chapter 7 / Section 26-714
26-714 ACCOUNT OF PERSON UNDER DISABILITY.
Status: in_force

26-714. Account of person under disability. Whenever any minor or any person under disability shall become a depositor, as defined in section 26-106, Idaho Code, in any bank in his or her name, such bank may pay such money on the check, order or endorsement of such depositor the same as in cases of depositors not under disability, and such payment shall be in all respects valid in law.

History:

[(26-714) 26-718, added 1979, ch. 41, sec. 2, p. 94; am. and redesig. 2004, ch. 159, sec. 14, p. 524.]
Idaho Code § 26-2134 — Idaho Code / Title 26 / Chapter 21 / Section 26-2134
26-2134 APPLICATION FEES.
Status: in_force

26-2134. Application fees. For the purpose of paying the costs incident to the ascertainment of whether articles of incorporation should be issued, the subscribers to any such articles of incorporation shall pay, at the time of filing their articles of incorporation with the director, a fee as fixed by the director, but not to exceed twenty-five dollars ($25.00), for the purpose of paying costs incident to the investigation of the application. All such fees shall be deposited with the state treasurer for the credit in the finance administrative account in the state dedicated fund.

History:

[26-2134, added 1977, ch. 213, sec. 2, p. 602; am. 1984, ch. 47, sec. 4, p. 78.]
Idaho Code § 26-2114 — Idaho Code / Title 26 / Chapter 21 / Section 26-2114
26-2114 BOARD OF DIRECTORS — ELECTION OF DIRECTORS — TERMS — VACANCIES — MEETINGS — RULES.
Status: in_force

26-2114. BOARD OF DIRECTORS — ELECTION OF DIRECTORS — TERMS — VACANCIES — MEETINGS — RULES. (1) The business and affairs of a credit union shall be managed by a board of no fewer than five (5) and no more than fifteen (15) directors.

(2) The directors must be elected by and from the membership in conjunction with the credit union's annual membership meeting. They shall hold their offices until their successors are elected or appointed.

(3) Directors shall be elected to terms of between one (1) and three (3) years, as provided in the bylaws. If the terms are longer than one (1) year, the directors must be divided into classes, and an equal number of directors, as nearly as possible, must be elected each year.

(4) Except as provided in subsection (5) of this section, any vacancy on the board must be filled by an interim director appointed by the board, unless the interim director would serve a term of fewer than ninety (90) days. Interim directors appointed to fill vacancies created by expansion of the board will serve until the next annual meeting of members. Other interim directors will serve out the unexpired term of the former director, unless provided otherwise in the credit union's bylaws.

(5) In the case of a merger between two (2) credit unions pursuant to section 26-2132, Idaho Code, a board member of the merging credit union may continue to serve as a board member of the continuing credit union for a period not to exceed the equivalent of the duration of his or her unexpired term on the board of the merging credit union, provided that the approved plan of merger or other agreement approved by the director provides for such service on the continuing credit union's board, with a corresponding expansion in the size of the continuing credit union's board not to exceed the limits under subsection (1) of this section.

(6)(a) The board must have at least six (6) regular meetings each year, with at least one (1) of these meetings held in each calendar quarter.

(b) The director may require the board to meet more frequently than six (6) times per year if the director finds it necessary in order to address matters the director determines necessitate more frequent meetings including, without limitation, evidence of any of the following:

(i) The credit union's current composite capital adequacy, asset quality, management, earnings, liquidity, and sensitivity to market risk (CAMELS) rating issued by the director is a "3," "4" or "5";

(ii) The credit union's current management component CAMELS rating issued by the director is a "3," "4" or "5";

(iii) The credit union's net worth ratio is less than seven percent (7%);

(iv) The credit union is currently in a troubled condition;

(v) In the judgment of the director, the credit union has committed an unsafe or unsound practice that has not been corrected to the satisfaction of the director and that continues to be a concern to the director, or the credit union is about to commit an unsafe or unsound practice; or

(vi) The credit union has been notified in writing by the director of a significant supervisory or financial concern.

(c) If the director determines, as set forth in paragraph (b) of this subsection, that a board of directors must meet more frequently than as set forth in paragraph (a) of this subsection, the director will send written notice to the board chair, with a copy to the credit union's manager, setting forth the director's findings underlying the determination and the required frequency of the board of directors meetings. This notice will remain in effect until rescinded in writing by the director.

History:

[26-2114, added 2018, ch. 165, sec. 6, p. 330; am. 2019, ch. 188, sec. 2, p. 596; am. 2022, ch. 78, sec. 10, p. 223.]
Idaho Code § 26-2408 — Idaho Code / Title 26 / Chapter 24 / Section 26-2408
26-2408 AMENDMENT TO ARTICLES OF INCORPORATION.
Status: in_force

26-2408. Amendment to articles of incorporation. The articles of incorporation may be amended by the votes of the stockholders and the members of the corporation, voting separately by classes, and such amendments shall require approval by the affirmative vote of two-thirds (2/3) of the votes to which the stockholders shall be entitled and two-thirds (2/3) of the votes to which the members shall be entitled; provided, that no amendment of the articles of incorporation which is inconsistent with the general purposes expressed herein or which authorizes any additional class of capital stock to be issued, or which eliminates or curtails the right of the director of the department of finance to examine the corporation or the obligation of the corporation to make reports as provided in section 26-2412, shall be made; and provided, further, that no amendment of the articles of incorporation which increases the obligation of a member to make loans to the corporation, or makes any change in the principal amount, interest rate, maturity date, or in the security or credit position of outstanding loan of a member to the corporation, or affects a member's right to withdraw from membership as provided herein, or affects a member's voting rights as provided herein, shall be made without the consent of each member affected by such amendment.

Within thirty (30) days after any meeting at which an amendment of the articles of incorporation has been adopted, articles of amendment signed and sworn to by the president, treasurer, and a majority of the directors, setting forth such amendment and due adoption thereof, shall be submitted to the secretary of state, which (who) shall examine them and if he finds that they conform to the requirements of this act, shall so certify and indorse his approval thereon. Thereupon, the articles of amendment shall be filed in the office of the secretary of state and no such amendment shall take effect until such articles of amendment shall have been filed as aforesaid.

History:

[(26-2408) 1963, ch. 273, sec. 8, p. 695; I.C., sec. 30-1508 (1963 Supp.).]
Idaho Code § 26-506 — Idaho Code / Title 26 / Chapter 5 / Section 26-506
26-506 CHANGE IN CONTROL.
Status: in_force

26-506. Change in control. All transfers of a major portion of the outstanding stock or trust certificates of a bank holding company by sale, gift, or otherwise shall be approved by the director prior to such transfer. For the purposes of this section, a major portion of the outstanding stock or trust certificates of a bank holding company is any number of any class of shares of a bank holding company the acquisition of which will result in a person acquiring the shares having voting control of the bank holding company. The director shall not approve a transfer of stock if he finds that the transferee has been removed from a position as a director, officer or employee of a bank holding company, a bank or other financial institution pursuant to an order of a state or federal agency. The director may disapprove a transfer of stock if in his opinion the transferee does not meet the requirements of a stockholder, director, or officer as set out in section 26-502, Idaho Code.

History:

[26-506, added 1979, ch. 41, sec. 2, p. 83.]
Idaho Code § 26-704 — Idaho Code / Title 26 / Chapter 7 / Section 26-704
26-704 DETERMINATION OF LIMITS OF LOANS AND INVESTMENTS OF BANKS.
Status: in_force

26-704. Determination of limits of loans and investments of banks. For the purpose of determining limitations on loans and investments the following items are to be disregarded:

(1) The sale of excess reserve funds by one (1) bank to another bank;

(2) The purchase of securities by a bank, under an agreement to resell at the end of a stated period; and

(3) The purchase of mortgage loans by a bank, under agreement to resell at the end of a stated period.

The director may, upon application by a bank, approve loans and investments in excess of the limitations provided in this chapter.

History:

[(26-704) 26-708, added 1979, ch. 41, sec. 2, p. 90; am. and redesig. 2004, ch. 159, sec. 4, p. 515.]
Idaho Code § 26-104 — Idaho Code / Title 26 / Chapter 1 / Section 26-104
26-104 SEVERABILITY.
Status: in_force

26-104. Severability. If any provision of this act or the application thereof to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of this act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.

History:

[26-104, added 1979, ch. 41, sec. 2, p. 63; am. 2015, ch. 244, sec. 8, p. 1011.]
Idaho Code § 26-2101 — Idaho Code / Title 26 / Chapter 21 / Section 26-2101
26-2101 SCOPE.
Status: in_force

26-2101. Scope. This chapter shall be known as the "Idaho Credit Union Act" and shall be applicable to all persons except federal credit unions, operating as credit unions in the state of Idaho and to such other persons as shall subject themselves to its provisions, and to such persons who shall by violating any of its provisions become subject to the penalties provided herein.

History:

[26-2101, added 1977, ch. 213, sec. 2, p. 582.]
Idaho Code § 26-3714 — Idaho Code / Title 26 / Chapter 37 / Section 26-3714
26-3714 CRIMINAL PENALTIES.
Status: in_force

26-3714. Criminal penalties. (1) Any person who willfully and knowingly violates any provision of this chapter, or any rule or order under the chapter, shall be guilty of a misdemeanor and be sentenced to pay a fine of not more than one thousand dollars ($1,000) or imprisonment for not more than one (1) year in the county jail or both for each violation.

(2) The director may refer such evidence as is available concerning violations of the provisions of this chapter or of any rule or order hereunder to the attorney general or the proper prosecuting attorney who may, with or without such a reference, institute the appropriate criminal proceedings under this chapter.

(3) Nothing in this chapter limits the power of the state to punish any person for any conduct which constitutes a crime under any other statute.

History:

[26-3714, added 2005, ch. 265, sec. 15, p. 824.]
Idaho Code § 26-503 — Idaho Code / Title 26 / Chapter 5 / Section 26-503
26-503 APPROVAL TO ACQUIRE A BANK — REQUIREMENTS — APPROVAL TO COMMENCE ACTION OR ACQUIRE A COMPANY.
Status: in_force

26-503. Approval to acquire a bank — Requirements — Approval to commence action or acquire a company. (1) A bank holding company shall apply to the department of finance and receive the approval of the department of finance prior to acquiring a bank. The application shall include such information with respect to the financial condition and operations, management and intercompany relationships of the bank to be acquired and the holding company as the director may deem necessary or appropriate. In considering an application to acquire a bank, the director shall consider at least:

(a) The financial condition of the bank holding company and any banks already owned by the holding company;

(b) The probable effect of the acquisition on the holding company, any banks already owned by the holding company and the bank which is to be acquired; and

(c) The effect of the acquisition on competition in the providing of banking services.

(2) A financial holding company shall apply to the department of finance and receive the approval of the department of finance prior to commencing any activity or acquiring any company as described in section 26-501(6), Idaho Code.

History:

[26-503, added 1979, ch. 41, sec. 2, p. 82; am. 2001, ch. 137, sec. 2, p. 497.]
Idaho Code § 26-1807 — Idaho Code / Title 26 / Chapter 18 / Section 26-1807
26-1807 QUALIFICATION AS THRIFT INSTITUTION.
Status: in_force

26-1807. Qualification as thrift institution. All savings banks shall qualify for and maintain the status of a thrift institution under the internal revenue code of 1986 and any amendments thereto.

History:

[26-1807, added 1997, ch. 310, sec. 3, p. 919.]
Idaho Code § 26-2613 — Idaho Code / Title 26 / Chapter 26 / Section 26-2613
26-2613 BANKS AS “ISSUING PUBLIC CORPORATIONS.”
Status: in_force

26-2613. Banks as "issuing public corporations." Notwithstanding any other provision of law, banks chartered by the state of Idaho and bank holding companies as defined in section 26-501, Idaho Code, shall be considered "issuing public corporations" as used in chapters 16 and 17, title 30, Idaho Code.

History:

[26-2613, added 1995, ch. 99, sec. 24, p. 323.]
Idaho Code § 26-31-107 — Idaho Code / Title 26 / Chapter 31 / Section 26-31-107
26-31-107 CHARGES FOR PARTICIPATION IN THE NMLSR.
Status: in_force

PART 1.

GENERAL PROVISIONS

26-31-107. CHARGES FOR PARTICIPATION IN THE NMLSR. Mortgage brokers, mortgage lenders and mortgage loan originators who seek to obtain or retain a license under this chapter shall pay the charges imposed and retained by the NMLSR to fund the expenses associated with an applicant's or licensee's participation in the NMLSR.

History:

[26-31-107, added 2009, ch. 97, sec. 2, p. 285.]
Idaho Code § 26-31-312 — Idaho Code / Title 26 / Chapter 31 / Section 26-31-312
26-31-312 NATIONWIDE MORTGAGE LICENSING SYSTEM AND REGISTRY INFORMATION CHALLENGE PROCESS.
Status: in_force

PART 3.

PROVISIONS APPLICABLE TO MORTGAGE LOAN ORIGINATORS

26-31-312. NATIONWIDE MORTGAGE LICENSING SYSTEM AND REGISTRY INFORMATION CHALLENGE PROCESS. The director shall establish a process whereby mortgage loan originators may challenge the information entered into the NMLSR by the director.

History:

[26-31-312, added 2009, ch. 97, sec. 2, p. 303.]
Idaho Code § 26-1604 — Idaho Code / Title 26 / Chapter 16 / Section 26-1604
26-1604 MERGER AND BRANCHING APPROVAL.
Status: in_force

26-1604. Merger and branching approval. (1) A bank whose home state is a state other than Idaho may acquire control of, acquire all or part of the assets of, or merge with a bank whose home state is Idaho. Except as authorized in this chapter, chapter 3, title 26, Idaho Code, or federal law, no bank, the home state of which is a state other than Idaho, may establish or maintain an office or branch in this state, or conduct the business of banking in this state.

(2) A bank whose home state is Idaho may acquire control of, acquire all or part of the assets of, or merge with a bank whose home state is a state other than Idaho. Except as authorized in this chapter, chapter 3, title 26, Idaho Code, or federal law, no bank, the home state of which is Idaho, may establish or maintain an office or branch in other states.

(3) A bank whose home state is a state other than Idaho may establish a branch in Idaho if the bank's primary federal regulator and home state regulator have approved the bank's application to do the same. At least thirty (30) days prior to opening a branch in Idaho, a bank whose home state is a state other than Idaho shall:

(a) Provide a copy of its branch application to the director;

(b) File or register with the Idaho secretary of state as a foreign corporation and provide a copy of such registration and any certificate of authority issued by the Idaho secretary of state to the director; and

(c) Appoint a registered agent for service of process in Idaho and provide the director and the Idaho secretary of state with the name and address of such registered agent.

(4) A bank with a home state other than Idaho shall apply to and receive the approval of the director prior to any acquisition transaction which, if approved, would result in a bank, the home state of which is Idaho, becoming a branch or branches of the out-of-state bank. The director may accept copies of applications for such transactions made to other state or federal bank supervisory agencies. Without the prior approval of the director pursuant to this chapter, any merger transaction between a bank chartered in this state and any out-of-state bank is unlawful.

(5) A bank, the home state of which is Idaho, shall apply to and receive the approval of the director prior to any merger transaction which, if approved, would result in a bank chartered by or located in another state becoming a branch or branches of the bank whose home state is Idaho.

History:

[26-1604, added 1995, ch. 99, sec. 9, p. 306; am. 1997, ch. 225, sec. 4, p. 663; am. 2015, ch. 204, sec. 24, p. 631.]
Idaho Code § 26-1007 — Idaho Code / Title 26 / Chapter 10 / Section 26-1007
26-1007 RESUMPTION AFTER CLOSING.
Status: in_force

26-1007. Resumption after closing. After the director has taken possession of any bank, he may permit such bank to resume business upon such conditions as may be approved by him.

History:

[26-1007, added 1979, ch. 41, sec. 2, p. 104.]
Idaho Code § 26-1109 — Idaho Code / Title 26 / Chapter 11 / Section 26-1109
26-1109 BOOKS AND ACCOUNTS.
Status: in_force

26-1109. Books and accounts. Whenever it appears to the department of finance that any bank does not keep books and accounts in such manner as to enable it to readily ascertain the true condition of such bank, or that such books and accounts are not kept in a manner which will minimize, as far as possible, loss through dishonesty of its officers or employees or otherwise, the department shall have power to require the officers of such bank or any of them, to open and keep such books or accounts as the department may, in its discretion, determine and prescribe for the purpose of keeping accurate and convenient records of the transactions and accounts of such bank.

The directors of any bank shall, within ten (10) days from receipt by the bank of a written statement from the department that the bank's internal auditing procedures are inadequate or deficient in any respect in the opinion of the department, retain, at the bank's sole expense, an independent licensed certified public accountant, approved by the director, to forthwith make an audit of the bank, and upon completion thereof a certified copy of the audit shall be delivered to the department.

History:

[26-1109, added 1979, ch. 41, sec. 2, p. 116.]
Idaho Code § 26-2223 — Idaho Code / Title 26 / Chapter 22 / Section 26-2223
26-2223 COLLECTION AGENCY, DEBT COUNSELOR, CREDIT COUNSELOR, OR CREDIT REPAIR ORGANIZATION — LICENSE REQUIRED.
Status: in_force

26-2223. Collection agency, debt counselor, credit counselor, or credit repair organization — License required. No person shall without complying with the terms of this act and obtaining a license from the director:

(1) Operate as a collection agency, debt counselor, credit counselor, or credit repair organization in this state.

(2) Engage, either directly or indirectly, in this state in the business of collecting or receiving payment for others of any account, bill, claim or other indebtedness.

(3) Solicit or advertise in this state to collect or receive payment for another of any account, bill, claim or other indebtedness.

(4) Sell or otherwise distribute in this state any system or systems of collection letters or similar printed matter where the name of any person other than the particular creditor to whom the debt is owed appears.

(5) Engage in any activity in this state which indicates, directly or indirectly, that a third party is or may be involved in effecting any collections.

(6) Engage or offer to engage in this state, directly or indirectly, in the business of collecting any form of indebtedness for that person's own account if the indebtedness was acquired from another person and if the indebtedness was either delinquent or in default at the time it was acquired.

(7) Engage or offer to engage in this state in the business of receiving money from debtors for application or payment to or prorating of a debt owed to, any creditor or creditors of such debtor, or engage or offer to engage in this state in the business of providing counseling or other services to debtors in the management of their debts, or contracting with the debtor to effect the adjustment, compromise, or discharge of any account, note or other indebtedness of the debtor.

(8) Engage or offer to engage in this state in the business of selling, providing or performing services to improve any consumer's credit record, credit history or credit rating, or providing advice or assistance to any consumer with regard to his credit record, credit history or credit rating.

History:

[26-2223, added 1970, ch. 53, sec. 2, p. 118; am. 1990, ch. 346, sec. 2. p. 932; am. 2002, ch. 190, sec. 2, p. 546; am. 2008, ch. 347, sec. 2, p. 940.]
Idaho Code § 26-903 — Idaho Code / Title 26 / Chapter 9 / Section 26-903
26-903 MERGER PROCEDURE — RESULTING STATE BANK.
Status: in_force

26-903. Merger procedure — Resulting state bank. (1) The board of directors of each merging state bank shall, by a majority of the entire board, approve a merger agreement which shall contain:

(a) A statement or recital that the agreement is subject to approval by the director and by the stockholders of each merging bank.

(b) The name of each merging bank and location of each office.

(c) With respect to the resulting bank:

1. the name and location of the principal and the other offices;

2. the name and residence of each director to serve until the next annual meeting of the stockholders;

3. the name and residence of each officer;

4. the amount of capital, the number of shares and the par value of each share;

5. the amount, terms, and preferences if preferred stock is to be issued; and

6. the amendments to its charter and bylaws.

(d) Provisions governing:

1. the manner of converting the shares of the merging banks into shares of the resulting state bank or into shares of a bank holding company; and

2. the manner of disposing of the shares of the resulting state bank or of the bank holding company not taken by the dissenting stockholders of each merging bank.

(e) Such other provisions as the director may require to enable him to discharge his duties with respect to the merger.

(2) After approval by the board of directors of each merging state bank, the merger agreement shall be submitted to the director for approval, together with certified copies of the authorizing resolutions of each board of directors showing approval by a majority of the entire board of each merging state bank and evidence of proper action by the board of directors of any merging national bank.

(3) After receipt by the director of the papers specified in subsection (a), the director shall approve or disapprove the merger agreement. The director shall approve the agreement if it finds that:

(a) The resulting state bank meets the requirements as to the formation of a new state bank.

(b) The agreement provides an adequate capital structure including surplus in relation to the deposit liabilities of the resulting state bank and its other activities which are to continue or are to be undertaken.

(c) The agreement is fair.

(d) The merger is not contrary to the public interest.

(4) If the director disapproves an agreement, the objections shall be stated in writing and the merging banks shall be given an opportunity to amend the merger agreement to obviate such objections.

History:

[26-903, added 1979, ch. 41, sec. 2, p. 97.]
Idaho Code § 26-2919 — Idaho Code / Title 26 / Chapter 29 / Section 26-2919
26-2919 AUTHORIZED REPRESENTATIVE CONDUCT.
Status: in_force

26-2919. Authorized representative conduct. (1) An authorized representative shall not make any fraudulent or false statement or misrepresentation to a licensee or to the director.

(2) All money transmission or sale or issuance of payment instrument activities conducted by authorized representatives shall be strictly in accordance with the licensee's written procedures provided to the authorized representative.

(3) An authorized representative shall remit all money owing to the licensee in accordance with the terms of the contract between the licensee and the authorized representative.

(4) All funds, less fees, received by an authorized representative of a licensee from the sale or delivery of a payment instrument issued by a licensee or received by an authorized representative for transmission shall, from the time such funds are received by such authorized representative until such time when the funds or an equivalent amount are remitted by the authorized representative to the licensee, constitute trust funds owned by and belonging to the licensee. If an authorized representative commingles any such funds with any other funds owned or controlled by the authorized representative, all commingled proceeds and other property shall be impressed with a trust in favor of the licensee in an amount equal to the amount of the proceeds due the licensee.

(5) An authorized representative shall report to the licensee the theft or loss of payment instruments within twenty-four (24) hours from the time he knew or should have known of such theft or loss.

History:

[26-2919, added 1994, ch. 410, sec. 1, p. 1293.]
Idaho Code § 26-2915 — Idaho Code / Title 26 / Chapter 29 / Section 26-2915
26-2915 MAINTENANCE OF RECORDS.
Status: in_force

26-2915. Maintenance of records. (1) Each licensee shall make, keep, and preserve the following books, accounts and other records for a period of three (3) years:

(a) A record or records of payment instruments sold;

(b) A general ledger containing all asset, liability, capital, income and expense accounts, which general ledger shall be posted at least monthly;

(c) Settlement sheets, if received from authorized representatives;

(d) Bank statements and bank reconciliation records;

(e) Records of outstanding payment instruments;

(f) Records of each payment instrument paid within the three (3) year period;

(g) A list of the names and addresses of all of the licensee's authorized representatives, as well as copies of each authorized representative's contract; and

(h) All reports required by federal currency reporting, recordkeeping, and suspicious transaction reporting requirements as set forth in 31 U.S.C. sec. 5311, 31 CFR part 103 (2000), and other federal and state laws pertaining to money laundering.

(2) Maintenance of such documents as are required in this section in a photographic or other similar form shall constitute compliance with the provisions of this section.

(3) Records may be maintained at a location other than at a location within this state so long as they are made accessible to the director on seven (7) days' written notice.

History:

[26-2915, added 1994, ch. 410, sec. 1, p. 1291; am. 2005, ch. 142, sec. 2, p. 439.]
Idaho Code § 26-302 — Idaho Code / Title 26 / Chapter 3 / Section 26-302
26-302 ESTABLISHMENT OF LOAN PRODUCTION OFFICES AUTHORIZED.
Status: in_force

26-302. establishment of loan production offices authorized. A bank may, after providing notice to the director, establish and maintain one (1) or more loan production offices at any location in the state of Idaho.

(1) A loan production office when so established may conduct any of the following activities:

(a) Solicit loans on behalf of the bank;

(b) Provide information on loans, rates and terms;

(c) Accept loan applications and supporting documents;

(d) Review and process loan applications for compliance with underwriting standards and completeness of documents;

(e) Approve loan applications;

(f) Conduct loan closing activities, such as the execution of promissory notes and deeds of trust; and

(g) Engage in other loan production office activities that the bank's primary state or federal regulator has approved for banks subject to its supervision.

(2) A loan production office shall not have the power to solicit, receive or accept money or its equivalent on deposit, or disburse loan funds to customers.

(3) A bank that desires to establish a loan production office in this state shall provide written notice to the director of its intent to do so no later than thirty (30) days prior to opening the loan production office. The notice to the director shall provide the following information:

(a) The name of the bank and address of the main office;

(b) The city and street address of the loan production office;

(c) The activities proposed to be conducted at the loan production office, including the types of loans to be solicited and originated at the office; and

(d) Any additional relevant information required by the director.

(4) Following a bank's establishment of a loan production office in this state, a bank shall give notice to the director of any relocation or closure of the office, the date of the relocation or closure and the disposition of any records previously maintained at the loan production office.

(5) Each loan production office shall be subject to examination and supervision by the director in the same manner and to the same extent as the bank.

(6) A state bank may establish and operate a loan production office in a state other than Idaho, provided that the bank shall comply with all applicable provisions of Idaho law, the law of the other state where the loan production office will be located and federal law.

(7) Each loan production office operating in Idaho on July 1, 2015, shall provide written notice to the director containing the information required in subsection (3) of this section on or before August 1, 2015.

History:

[26-302, added 2015, ch. 204, sec. 8, p. 624.]
Idaho Code § 26-2415 — Idaho Code / Title 26 / Chapter 24 / Section 26-2415
26-2415 DISSOLUTION.
Status: in_force

26-2415. Dissolution. The corporation may upon the affirmative vote of two-thirds (2/3) of the votes to which the stockholders shall be entitled and two-thirds (2/3) of the votes to which the members shall be entitled dissolve said corporation as provided by sections 30-1-82 through 30-1-93, Idaho Code, insofar as those sections are not in conflict with the provisions of this act. Upon any dissolution of the corporation, none of the corporation's assets shall be distributed to the stockholders until all sums due the members of the corporation as creditors thereof have been paid in full.

History:

[(26-2415) 1963, ch. 273, sec. 15, p. 695; I.C., sec. 30-1515 (1963 Supp.); am. 1980, ch. 197, sec. 25, p. 452.]
Idaho Code § 26-2102 — Idaho Code / Title 26 / Chapter 21 / Section 26-2102
26-2102 PURPOSE.
Status: in_force

26-2102. Purpose. The purpose of this chapter is to allow groups of persons with a common bond as provided in this chapter to form private nonprofit cooperative corporations to be known as credit unions, to provide an opportunity for its members to use and control their own money in order to improve their economic and social condition, to promote thrift at a reasonable rate of return and provide a source of credit at fair and reasonable rates of interest to those persons included in the common bond.

History:

[26-2102, added 1977, ch. 213, sec. 2, p. 582.]
Idaho Code § 26-3609 — Idaho Code / Title 26 / Chapter 36 / Section 26-3609
26-3609 CONTINUED OPERATION.
Status: in_force

26-3609. Continued operation. Any bank chartered to operate a trust department on July 1, 2000, is hereby authorized to continue to operate a trust department after July 1, 2000; provided that such bank must conform its trust department operations with the provisions of this act.

History:

[26-3609, added 2000, ch. 288, sec. 12, p. 990.]
Idaho Code § 26-2706 — Idaho Code / Title 26 / Chapter 27 / Section 26-2706
26-2706 REQUIRED RECORDKEEPING — INDEPENDENT AUDIT — APPLICATION TO OUTSIDE RECORDKEEPERS — REPORT REQUIRED.
Status: in_force

26-2706. Required recordkeeping — Independent audit — Application to outside recordkeepers — Report required. (1) A licensee shall make and keep books, accounts, and other records in such a form and manner as the director may require. These records shall be kept at such a place and shall be preserved for such a length of time as the director may specify.

(2) The director may require by order that a licensee write down any asset on its books and records to a valuation which represents its then value. In addition, the director may require an appraisal of any assets of a licensee by an independent appraiser approved by the director.

(3) The director may require a licensee to file with the director, not more than ninety (90) days after the close of each calendar year or a longer period if specified by the director, an audit report containing all of the following:

(a) Financial statements, including balance sheet, statement of income or loss, statement of changes in capital accounts, and statement of changes in financial position or, for a licensee that is an Idaho nonprofit corporation, comparable financial statements for, or as of the end of, the calendar year, prepared with an audit by an independent certified public accountant or an independent public accountant subject to approval by the director in accordance with generally accepted accounting principles.

(b) An unqualified report, certificate, or opinion of the independent certified public accountant or independent public accountant subject to approval by the director who performs the audit, stating that the financial statements were prepared in accordance with generally accepted accounting principles.

(c) Other information that the director may require.

(4) If a person other than a licensee makes or keeps the books, accounts, or other records of that licensee, this chapter applies to that person with respect to the performance of those services and with respect to those books, accounts, and other records to the same extent as if that person were the licensee.

(5) If a person other than an affiliate or subsidiary of a licensee makes or keeps any of the books, accounts, or other records of that affiliate or subsidiary, this chapter applies to that person with respect to those books, accounts, and other records to the same extent as if that person were the affiliate or subsidiary.

(6) If the director considers it expedient, the director may require any particular licensee to obtain the approval of the director before permitting another person to make or keep any of the books, accounts, or other records of the licensee.

(7) Each licensee, each affiliate of a licensee, and each subsidiary of a licensee shall file with the director such reports as and when the director may require. A report shall be in such a form and shall contain such information as the director may require.

History:

[26-2706, added 1989, ch. 252, sec. 1, p. 606; am. 2001, ch. 86, sec. 1, p. 221.]
Idaho Code § 26-1006 — Idaho Code / Title 26 / Chapter 10 / Section 26-1006
26-1006 TAKING POSSESSION OF BANK — NOTICE.
Status: in_force

26-1006. Taking possession of bank — Notice. On taking possession of the assets and business of the bank, the director shall, in addition to posting notice thereof, on the front door of such bank, as aforesaid, also notify personally or by telephone or mail or by public announcement through the news media, all correspondent banks, and any and all persons or corporations known to him to be holding or in possession of, any of the estate of such bank.

History:

[26-1006, added 1979, ch. 41, sec. 2, p. 103.]
Idaho Code § 26-2107 — Idaho Code / Title 26 / Chapter 21 / Section 26-2107
26-2107 RESTRICTIONS.
Status: in_force

26-2107. Restrictions. Any person, corporation, copartnership or association, except a credit union organized under the provisions of this chapter, an interstate credit union with a permit issued under section 26-2152, Idaho Code, the federal credit union act, 48 Statute 1216 (1934), 73 Statute (1959), 12 U.S.C. 192, or the Idaho credit union league, a recognized chapter of the Idaho credit union league, using a name or title containing the words "credit union" or any derivation thereof or representing themselves in their advertising or otherwise conducting business as a credit union shall be fined not more than one thousand dollars ($1,000) or imprisoned not more than one (1) year, or both, and may be permanently enjoined from using such words in its name.

History:

[26-2107, added 1977, ch. 213, sec. 2, p. 585; am. 1997, ch. 111, sec. 2, p. 270.]
Idaho Code § 26-1206 — Idaho Code / Title 26 / Chapter 12 / Section 26-1206
26-1206 PENALTY FOR UNLAWFUL HYPOTHECATION OF ASSETS.
Status: in_force

26-1206. Penalty for unlawful hypothecation of assets. Any officer or employee of any bank or the bank holding company owning or controlling the bank, doing business in this state who, except in the manner authorized by law or the contract of the parties, hypothecates, pledges or in any way alienates any notes, stocks, bonds, mortgages, securities or any other property coming into his hands or into the possession of said bank as collateral, for safekeeping or in any other manner, and to which the bank has not acquired full title, shall be guilty of theft, and upon conviction thereof shall be punished as provided in section 18-2408, Idaho Code.

History:

[26-1206, added 1979, ch. 41, sec. 2, p. 122; am. 1998, ch. 337, sec. 3, p. 1083.]
Idaho Code § 26-911 — Idaho Code / Title 26 / Chapter 9 / Section 26-911
26-911 BOOK VALUE OF ASSETS.
Status: in_force

26-911. Book value of assets. Without approval by the director no asset shall be carried on the books of the resulting or purchasing bank at a valuation higher than that on the books of the merging or converting bank at the time of its last examination by a state or national bank examiner before the effective date of the merger or conversion.

History:

[26-911, added 1979, ch. 41, sec. 2, p. 102.]
Idaho Code § 26-2237 — Idaho Code / Title 26 / Chapter 22 / Section 26-2237
26-2237 FEES — DISPOSITION OF FUNDS.
Status: in_force

26-2237. Fees — Disposition of funds. All fees provided for in this act shall be paid to the director and by him remitted to the state treasurer pursuant to section 59-1014, Idaho Code, and all such funds shall be deposited to the credit of the finance administrative account in the state dedicated fund.

History:

[26-2237, added 1970, ch. 53, sec. 16, p. 118; am. 1974, ch. 24, sec. 27, p. 744; am. 1984, ch. 47, sec. 10, p. 83; am. 2008, ch. 347, sec. 20, p. 953.]
Idaho Code § 26-2504 — Idaho Code / Title 26 / Chapter 25 / Section 26-2504
26-2504 FEES RECOVERABLE.
Status: in_force

26-2504. Fees recoverable. A person damaged as a result of a violation of the provisions of this chapter may recover from the loan broker the amount of the fee thus paid, plus damages in the amount of twice the fee.

History:

[26-2504, added 1979, ch. 298, sec. 1, p. 781; am. 1992, ch. 28, sec. 2, p. 89.]
Idaho Code § 26-3502 — Idaho Code / Title 26 / Chapter 35 / Section 26-3502
26-3502 APPLICATION FOR CHARTER.
Status: in_force

26-3502. Application for charter. An application for a state trust company or trust department charter shall be in writing and in such form as the director shall prescribe, verified under oath and supported by such information, data and records as the director may require.

History:

[26-3502, added 2000, ch. 288, sec. 11, p. 985.]
Idaho Code § 26-102 — Idaho Code / Title 26 / Chapter 1 / Section 26-102
26-102 PURPOSE OF THE ACT.
Status: in_force

26-102. Purpose of the act. The purposes of this act are to provide for:

(1) Safe and prudent conduct of the banking business for the benefit of depositors and shareholders.

(2) Maintenance of public confidence in banks.

(3) An opportunity for banks to remain competitive with each other, with financial institutions existing under other laws of this state and to encourage the continuation, maintenance and preservation of the dual banking system.

History:

[26-102, added 1979, ch. 41, sec. 2, p. 63.]
Idaho Code § 26-2232 — Idaho Code / Title 26 / Chapter 22 / Section 26-2232
26-2232 COLLECTION AGENCY SURETY BONDS.
Status: in_force

26-2232. Collection agency surety bonds. (1) Upon approval of the application and prior to the issuance of a license under this act, the applicant shall file in the department of finance a surety bond in a form prescribed by the director. The bond shall be executed by the applicant as principal and by a surety company authorized to do business in this state, and shall be for the term of the license issued to the applicant. In lieu of the bond required by this section, a certificate of deposit issued by a financial institution authorized to conduct business in Idaho may be provided to the director in the same principal amount as required for the bond. The interest on the certificate of deposit shall be payable to the licensee. The certificate of deposit shall be maintained at all times during which the licensee is authorized to do business under this act. The certificate of deposit must provide that it will remain in effect for at least three (3) years following discontinuance of operations, unless released earlier by the director when all statutory requirements have been met.

(2) The surety bond shall be executed to the state of Idaho in the sum of fifteen thousand dollars ($15,000) or upon renewal in such larger sum as hereinafter provided. In any case where a licensee or its representatives have failed to account for and pay over the proceeds of any collection made or money received for payment or prorating to creditors, or have failed to return to a debtor any sum received that was not to be applied to his debts, the creditor or debtor shall have in addition to all other legal remedies a right of action in his own name on such bond without the necessity of joining the licensee in such action. The bond shall be continuous in form and shall remain in full force and effect for the license period. The surety may cancel the bond provided that the surety shall in such event provide the licensee and the director with notice no less than thirty (30) days prior to cancellation of said bond. Such notice shall be by registered or certified mail with request for a return receipt and addressed to the licensee at its main office and to the director. In no event shall the liability of the surety for any and all claims against the bond exceed the face amount of such bond.

(3) Upon renewal of a license, the licensee shall supply the director with a statement of the preceding year's net collections. The amount of the bond upon renewal shall be in the amount of fifteen thousand dollars ($15,000), or two (2) times the average monthly net collections for the preceding year computed to the next highest one thousand dollars ($1,000), whichever sum is greater, up to a maximum of one hundred thousand dollars ($100,000).

History:

[26-2232, added 1970, ch. 53, sec. 11, p. 118; am. 1987, ch. 296, sec. 1, p. 632; am. 1987, ch. 301, sec. 1, p. 639; am. 1999, ch. 277, sec. 1, p. 691; am. 2008, ch. 347, sec. 13, p. 948.]
Idaho Code § 26-1210 — Idaho Code / Title 26 / Chapter 12 / Section 26-1210
26-1210 BANK OFFICERS AND DIRECTORS TO REPORT FELONIES.
Status: in_force

26-1210. Bank officers and directors to report felonies. It shall be the duty of every officer or director of any bank to report promptly every violation or apparent violation of any of the banking laws of this state which is defined as a felony under the laws of this state, of which he has knowledge, to the director of the department of finance or his duly authorized agent or agents, immediately upon the discovery thereof. Every such person who intentionally withholds such a report, or fails to make a prompt report of any such violation with the intent to injure, deceive or defraud such bank or any of its depositors, creditors or stockholders, or the director of the department of finance or his duly authorized agent or agents shall be guilty of a misdemeanor.

History:

[26-1210, added 1979, ch. 41, sec. 2, p. 123.]
Idaho Code § 26-3605 — Idaho Code / Title 26 / Chapter 36 / Section 26-3605
26-3605 SUBPOENA POWER — EXAMINATION UNDER OATH.
Status: in_force

26-3605. Subpoena power — Examination under oath. The director shall have the power to subpoena witnesses, compel their attendance, require the production of evidence, administer oaths, and examine any person under oath in connection with any subject related to a duty imposed or a power vested in the director by this act.

History:

[26-3605, added 2000, ch. 288, sec. 12, p. 990.]
Idaho Code § 26-303 — Idaho Code / Title 26 / Chapter 3 / Section 26-303
26-303 SECTION CONCERNING BRANCH BANKS UNAFFECTED.
Status: in_force

26-303. Section concerning branch banks unaffected. The sections of this chapter relating to loan production offices and mobile or temporary facilities shall not be construed to modify or repeal section 26-301, Idaho Code, and the terms "loan production office," "mobile facility" and "temporary facility" as used in the bank act shall not be construed to mean branch bank.

History:

[26-303, added 1979, ch. 41, sec. 2, p. 77; am. 2015, ch. 204, sec. 9, p. 624.]
Idaho Code § 26-2725 — Idaho Code / Title 26 / Chapter 27 / Section 26-2725
26-2725 INDICTMENT OR CONVICTION OF A CRIME — REMOVAL OF SUBJECT PERSON.
Status: in_force

26-2725. Indictment or conviction of a crime — Removal of subject person. (1) If the director determines that a subject person of a licensee has been indicted by a grand jury or has been bound over for trial by a court for a crime involving dishonesty or breach of trust, and that the fact that the person continues to be a subject person of the licensee may threaten the interests of the licensee or may threaten to impair public confidence in the licensee, the director may issue an order suspending the subject person from his office, if any, with the licensee and prohibiting the subject person from further participating in any manner in the conduct of the business of the licensee, except with the consent of the director.

(2) If the director determines that a subject person or former subject person of a licensee to whom an order was directed under subsection (1) of this section, or another subject person of a licensee, has been convicted of, entered a plea of guilty to, has been found guilty of a crime which is punishable by imprisonment for a term of not less than one (1) year and which involves dishonesty or breach of trust, and that the fact that the person continues to be or will resume to be a subject person of the licensee may threaten the interests of the licensee or may threaten to impair public confidence in the licensee, the director may issue an order suspending or removing the subject person or former subject person from his office, if any, with the licensee and prohibiting the subject person from further participating in any manner in the conduct of the business of the licensee, except with the prior consent of the director.

(3) Within thirty (30) days after an order is issued under subsection (1) or (2) of this section, the subject person of a licensee to whom the order is directed may file with the director an application for a hearing on the order. If the director fails to commence a hearing within fifteen (15) business days after the application is filed or within a longer period to which the subject person consents, the order shall be considered rescinded. Upon the conclusion of the hearing, the director shall affirm, modify, or rescind the order. A subject person or former subject person of a licensee to whom an order is directed under subsection (1) or (2) of this section may petition for judicial review of the order pursuant to chapter 52, title 67, Idaho Code.

(4) The fact that a subject person of a licensee charged with a crime involving dishonesty or breach of trust is not convicted of the crime shall not preclude the director from issuing an order concerning the subject person under any other provision of this chapter.

(5) A person to whom an order is directed under this section may apply to the director to modify or rescind the order. The director shall not modify or rescind the order unless the director determines that it is in the public interest to do so and that it is reasonable to believe that the person, if and when he or she becomes a subject person of a licensee, will comply with this chapter.

(6) As used in this section, "office," if used with respect to a licensee, means the position of director, officer, or employee of the licensee or of a subsidiary of the licensee.

History:

[26-2725, added 1989, ch. 252, sec. 1, p. 620; am. 2002, ch. 145, sec. 11, p. 416.]
Idaho Code § 26-1012 — Idaho Code / Title 26 / Chapter 10 / Section 26-1012
26-1012 CLOSED BANK — FEDERAL DEPOSIT INSURANCE CORPORATION FURNISHING FUNDS FOR PAYMENT OF INSURED DEPOSIT LIABILITIES — SUBROGATION.
Status: in_force

26-1012. Closed bank — Federal Deposit Insurance Corporation furnishing funds for payment of insured deposit liabilities — Subrogation. Whenever any banking institution shall have been closed as aforesaid, and said Federal Deposit Insurance Corporation shall pay or make available for payment the insured deposit liabilities of such closed institution, the corporation, whether or not it shall have become receiver or liquidator of such closed banking institution, as herein provided, shall be subrogated to all rights against such closed banking institution, of the owners of such deposits, in the same manner and to the same extent as subrogation of the corporation is provided for in subsection (1) of section 12B of said Federal Reserve Act, as amended (being section 8 of said "Banking Act of 1933") in the case of the closing of a national bank, provided, that the rights of depositors and other creditors of such closed institution shall be determined in accordance with the applicable provisions of the laws of this state.

History:

[26-1012, added 1979, ch. 41, sec. 2, p. 107.]
Idaho Code § 26-2115 — Idaho Code / Title 26 / Chapter 21 / Section 26-2115
26-2115 OFFICERS.
Status: in_force

26-2115. OFFICERS. (1) Within ten (10) days following the organizational meeting and after each annual membership meeting, the board shall elect from among its members a chair of the board, one (1) or more than one (1) vice-chair and a secretary. The board shall also elect other board officers as provided for in the credit union's bylaws for transacting the business of the board of the credit union. The terms of the board officers shall be one (1) year or until their successors are qualified and elected, unless sooner removed as provided in this chapter. All board officers must be elected members of the board.

(2) The chair and secretary shall execute a certificate of election on a form approved by the department of finance, which certificate shall set forth the names and addresses of the officers, members of the board of directors and committee members elected or appointed. One (1) copy of the certificate of election shall be filed with the department of finance within ten (10) days after such election or appointment.

(3) The board may designate as many operating officers as it deems necessary for conducting the business of the credit union including, but not limited to, a president or chief executive officer who shall be in charge of the credit union's day-to-day operations.

(4) A credit union may use any titles it chooses for the officials holding the positions described in this section as long as such titles are not misleading.

History:

[26-2115, added 2018, ch. 165, sec. 10, p. 333.]
Idaho Code § 26-2705 — Idaho Code / Title 26 / Chapter 27 / Section 26-2705
26-2705 FEES.
Status: in_force

26-2705. Fees. (1) The director shall set the fees required under this chapter at a level sufficient to cover the department's expenses which arise due to the administration of the provisions of this chapter provided, the fees shall be set within the parameters set forth in this section.

(a) The fee for filing an application for a license shall not exceed twenty-five hundred dollars ($2,500).

(b) The fee for filing an application for approval to acquire control of a licensee shall not exceed twelve hundred and fifty dollars ($1,250).

(c) The fee for filing an application for approval for a licensee to merge with another corporation, an application for approval for a licensee to purchase all or substantially all of the business of another person, or an application for approval for a licensee to sell all or substantially all of its business or of the business of any of its offices to another licensee shall not exceed twelve hundred and fifty dollars ($1,250). If two (2) or more applications relating to the same merger, purchase, or sale are filed, the fee for filing each application shall be the quotient determined by dividing the applicable fee set by the director by the number of the applications.

(d) The annual fee for a licensee shall not exceed twenty-five hundred dollars ($2,500), payable on or before June 30 of each year.

(e) Whenever the director examines a licensee or a subsidiary of a licensee, within ten (10) days after receiving a statement from the director, the licensee shall pay a fee established by the director based on the number of examiner hours used for the examination, plus travel expenses. Examiner time shall be billed at a rate not less than twenty-five dollars ($25.00) per hour and not more than forty dollars ($40.00) per hour.

(2) A fee for filing an application with the director is nonrefundable and shall be paid at the time the application is filed with the director.

(3) A fee collected under this section shall be deposited into the finance administrative account pursuant to section 67-2702, Idaho Code. Money in this account shall be used only for the operation of the department.

History:

[26-2705, added 1989, ch. 252, sec. 1, p. 606.]
Idaho Code § 26-2121A — Idaho Code / Title 26 / Chapter 21 / Section 26-2121A
26-2121A SUPERVISORY COMMITTEE DUTIES.
Status: in_force

26-2121A. SUPERVISORY COMMITTEE DUTIES. (1) The supervisory committee of a credit union shall:

(a) Meet at least quarterly;

(b) Keep fully informed as to the financial condition of the credit union and the decisions of the credit union's board;

(c) Perform or arrange for an annual audit of the credit union's financial statements and provide any related findings and recommendations to the board;

(d) Make or cause to be made a verification of member accounts as follows:

(i) At least annually by statistical sampling, with the sampling method to provide for:

1. Random selection;

2. A sample that is representative of the population from which it was selected;

3. An equal chance of selecting each dollar in the population;

4. Sufficient accounts in both number and scope on which to base conclusions concerning management's financial reporting objectives; and

5. Additional procedures to be performed if evidence provided by confirmation alone is not sufficient; or

(ii) At least annually by nonstatistical sampling conducted by an independent person licensed as an accountant in the state of Idaho, using nonstatistical sampling methods consistent with generally accepted auditing standards if such methods provide for:

1. Sufficient accounts in both number and scope on which to base conclusions concerning management's financial reporting objectives to provide assurance that the general ledger accounts are fairly stated in relation to the financial statements taken as a whole;

2. Additional procedures to be performed by the accountant if evidence provided by confirmations alone is not sufficient; and

3. Documentation of the sampling procedures used and of their consistency with generally accepted auditing standards, to be provided to the department upon request; or

(iii) At least every two (2) years by controlled verification of all member accounts;

(e) Review or arrange to have reviewed annually the effectiveness of the credit union's internal controls;

(f) Report its findings and recommendations to the board;

(g) Provide an annual written report to members at each annual membership meeting on the credit union's financial condition;

(h) Perform or arrange for additional audits as requested by the board or management or as deemed necessary by the supervisory committee and provide any related findings and recommendations to management or the board as deemed appropriate by the supervisory committee;

(i) Monitor the implementation of management responses to material adverse findings in audits and regulatory examinations;

(j) Implement a process for the supervisory committee to receive and respond to whistleblower complaints; and

(k) Perform any additional duties as specified by the board or in the credit union's bylaws.

(2) The supervisory committee may in its sole discretion retain, at the credit union's expense, independent counsel or other professional advisors or consultants as necessary to perform the duties under this section.

History:

[26-2121A, added 2018, ch. 165, sec. 17, p. 335; am. 2019, ch. 188, sec. 3, p. 597.]
Idaho Code § 26-2917 — Idaho Code / Title 26 / Chapter 29 / Section 26-2917
26-2917 SUSPENSION OR REVOCATION OF LICENSES.
Status: in_force

26-2917. Suspension or revocation of licenses. After notice and opportunity for hearing, the director may suspend or revoke a licensee's license if the director finds that:

(1) Any fact or condition exists that, if it had existed at the time when the licensee applied for a license, would have been grounds for denying such application;

(2) The licensee's net worth becomes inadequate and the licensee, after ten (10) days' written notice from the director, fails to take such steps as the director deems necessary to remedy such deficiency;

(3) The licensee violates any provisions of this chapter or any rule or order of the director under the provisions of this chapter or is convicted of a violation of a state or federal money laundering or terrorism law;

(4) The licensee is conducting its business in an unsafe or unsound manner;

(5) The licensee is insolvent;

(6) The licensee has suspended payment of its obligations, has made an assignment for the benefit of its creditors, or has admitted in writing its inability to pay its debts as they become due;

(7) The licensee has applied for an adjudication of bankruptcy, reorganization, arrangement or other relief under any bankruptcy;

(8) The licensee refuses to permit the director to make any examination authorized in this chapter;

(9) The licensee willfully fails to make any report required in this chapter; or

(10) The licensee, any person who exercises any managerial authority over the licensee's activities, or any of its executive officers or other persons in control of the licensee are listed or become listed on the "specially designated nationals and blocked persons" list prepared by the United States department of the treasury as a potential threat to commit terrorist acts or to finance terrorist acts.

History:

[26-2917, added 1994, ch. 410, sec. 1, p. 1292; am. 2005, ch. 142, sec. 4, p. 440.]
Idaho Code § 26-3002 — Idaho Code / Title 26 / Chapter 30 / Section 26-3002
26-3002 DEFINITIONS.
Status: in_force

26-3002. Definitions. As used in this chapter and unless the context otherwise requires:

(1) "Debit card transaction" means the purchase of either goods or services, or both, whereby payment is made through the means of a point of sale or other payment system maintained by the college or university which results in a charge to a credit balance maintained by a registered student or a member of its faculty or staff with the college or university business office.

(2) "University debit card" means a card issued by a college or university located in this state to a registered student or a member of its faculty or staff which permits such persons to draw against funds on deposit with the college or university business office for the purchase of goods or services.

(3) "University debit card program" means a financial arrangement whereby a college or university allows a registered student or a member of its faculty or staff to place funds on deposit with the college or university business office against which such persons may draw, through a debit card transaction, for the purchase of either goods or services or both.

History:

[26-3002, added 1995, ch. 133, sec. 1, p. 579.]
Idaho Code § 26-2153 — Idaho Code / Title 26 / Chapter 21 / Section 26-2153
26-2153 SHARE AND DEPOSIT INSURANCE.
Status: in_force

26-2153. Share and deposit insurance. (1) Not later than January 1, 1986, a state chartered credit union shall apply for and obtain insurance on shares and deposits as provided by the national credit union administration under title II of the federal credit union act (12 U.S.C. section 1781 et seq.), or alternatively, a form of comparable insurance approved by the director. This requirement does not apply to a credit union with debt and equity capital consisting primarily of funds from other credit unions.

(2) A credit union which has been denied a commitment for such insurance shall within thirty (30) days after the denial, commence steps to either liquidate, or merge with an insured credit union, or apply in writing to the director for additional time to obtain an insurance commitment.

The director shall grant one or more extensions of time to obtain the insurance upon satisfactory evidence that the credit union has made or is making a substantial effort to achieve the conditions precedent to issuance of the insurance.

(3) No credit union shall be granted a charter by the director unless such credit union has obtained insurance of its member share and deposit accounts.

(4) (a) Notwithstanding the above, a credit union whose members, after being fully informed on the subject, vote, by a simple majority of those members present at a meeting called for such purpose, to not obtain share insurance, shall not be required to obtain such insurance as condition precedent to doing business in this state.

(b) In those credit unions in which the membership has voted to reject the need for share insurance, the rejection shall be placed before the membership for reconsideration at least biannually thereafter.

(c) Should the membership of a credit union, in which the need for share insurance has been rejected, determine, as provided above, that the need for share insurance does exist, the credit union shall, within thirty (30) days following the date of the meeting held for the purpose of voting on the subject, make application for and obtain insurance as provided above.

(d) Those credit unions whose members have voted to remain uninsured shall disclose to their members, on a regular and periodic basis, that their shares and deposits in that credit union are not protected by share insurance and the procedures required by this section.

(5) The director may make available reports of condition and examination findings to the national credit union administration or to any qualified insuring organization and may accept any report of examination made on behalf of such agency or organizations. The director may appoint an official of the national credit union administration or of any qualified insuring organization as a liquidating agent of an insured credit union.

History:

[26-2153, added 1984, ch. 59, sec. 1, p. 107.]
Idaho Code § 26-2912 — Idaho Code / Title 26 / Chapter 29 / Section 26-2912
26-2912 EXTRAORDINARY REPORTING REQUIREMENTS.
Status: in_force

26-2912. Extraordinary reporting requirements. Within fifteen (15) days of the occurrence of any one (1) of the events listed below, a licensee shall file a written report with the director describing such event:

(1) The filing for bankruptcy or reorganization by the licensee;

(2) The institution of revocation or suspension proceedings against the licensee by any state or government authority with regard to the licensee's money transmission activities;

(3) Any felony indictment, complaint or information of the licensee or any of its key officers or directors; or

(4) Any felony conviction of the licensee or any of its key officers or directors.

History:

[26-2912, added 1994, ch. 410, sec. 1, p. 1290.]
Idaho Code § 26-3509 — Idaho Code / Title 26 / Chapter 35 / Section 26-3509
26-3509 LOANS TO DIRECTORS, OFFICERS OR EMPLOYEES PROHIBITED — LOANS TO AFFILIATES OR SUBSIDIARIES PROHIBITED.
Status: in_force

26-3509. Loans to directors, officers or employees prohibited — Loans to affiliates or subsidiaries prohibited. (1) A state trust company or bank having a trust department shall not make any loan to any director, officer or employee of the trust institution or to any affiliate or subsidiary corporation or to any director, officer or employee of an affiliate or subsidiary corporation from its trust funds. A state trust company or bank having a trust department shall not permit any director, officer, employee, affiliate or subsidiary corporation to become indebted to it in any manner out of its trust funds unless specifically authorized to do so by the terms of the trust.

(2) This section shall not prevent the maintenance by a state trust company of its trust funds in time or demand deposits in an affiliate which is a bank, or a trust department of a bank from maintaining its trust funds in the bank in accordance with section 26-3508, Idaho Code.

History:

[26-3509, added 2000, ch. 288, sec. 11, p. 987.]
Idaho Code § 26-3305 — Idaho Code / Title 26 / Chapter 33 / Section 26-3305
26-3305 OUT-OF-STATE OFFICES.
Status: in_force

26-3305. Out-of-state offices. (1) A state bank, a state trust company or a savings association chartered under the laws of this state may establish and maintain a new trust office or a representative trust office or acquire and maintain an office in a state other than this state. Such a trust institution desiring to establish or acquire, and maintain, an office in another state under this section shall file a notice with the director on a form prescribed by the director, which shall set forth the name of the trust institution, the location of the proposed office, whether the office will be a trust office or a representative trust office, and whether the laws of the jurisdiction where the office will be located permit the office to be maintained by the trust institution, furnish a copy of the resolution adopted by the board authorizing the out-of-state office, and pay the filing fee, if any, prescribed by the director.

(2) The trust institution may commence business at the additional office on the thirty-first day after the date the director receives the notice, unless the director specifies an earlier or later date.

(3) The thirty (30) day period of review may be extended by the director on a determination that the written notice raises issues that require additional information or additional time for analysis. If the period of review is extended, the trust institution may establish the additional office only on prior written approval by the director.

(4) The director may deny approval of the additional office if the director finds that the trust institution lacks sufficient financial resources to undertake the proposed expansion without adversely affecting its safety or soundness or that the proposed office would be contrary to the public interest. In acting on the notice, the director shall consider the views of the appropriate bank supervisory agencies.

History:

[26-3305, added 2000, ch. 288, sec. 9, p. 982.]
Idaho Code § 26-2611 — Idaho Code / Title 26 / Chapter 26 / Section 26-2611
26-2611 NO REPEAL BY IMPLICATION.
Status: in_force

26-2611. No repeal by implication. Nothing contained in this chapter, or any amendment thereto, shall be construed to amend or modify the provisions of any other chapter of this title governing the supervision or regulation of financial institutions and financial institution holding companies or the organization and powers of the department of finance and the director with respect thereto as may be provided in such other chapter.

History:

[26-2611, added 1985, ch. 185, sec. 1, p. 481; am. 1995, ch. 99, sec. 22, p. 323.]