reglab/statecodes huggingface dataset:
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 2 - ORGANIZATION AND CORPORATION POWERS OF BANKS › Section 26-210 - STOCKBOOK.

26-210. STOCKBOOK. A book shall be provided and kept by every bank in which shall be entered the names and residences of the stockholders thereof, the number of shares held by each, the time when such person became a stockholder, and also all transfers of stock, stating the time when made, the number of shares and by whom transferred. In all actions, suits and proceedings, said books shall be prima facie evidence of the facts therein stated.
The president, cashier or corporate secretary of every bank shall cause to be kept at all times in the principal place of business of the bank a full and correct list of the names and residences of all the shareholders. Such list shall be subject to the inspection of any stockholder of the bank and a stockholder may obtain a copy of such list upon paying the cost of the reproduction of the list.
History:
[26-210, added 1979, ch. 41, sec. 2, p. 72.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 2 - ORGANIZATION AND CORPORATION POWERS OF BANKS › Section 26-211 - STOCK-TRANSFERS.

26-211. STOCK-TRANSFERS. (1) The shares of stock of a bank shall be deemed personal property and shall be transferred on the books of the bank in such manner as the bylaws thereof shall direct.
(2) All transfers of voting securities of a bank by sale, gift or otherwise shall be reported to the director thirty (30) days prior to such transfer and shall be approved by the director prior to such transfer if, immediately after the transfer, the acquiring person or persons acting in concert will own, control, or hold with power to vote ten percent (10%) or more of any class of voting securities of the bank. The director may disapprove a transfer of voting securities if he finds that the transferee has been removed from a position as a director, officer or employee of a bank or other financial institution pursuant to an order of a state or federal agency, has been convicted of a felony or if in his opinion the transferee does not satisfy the requirements of a stockholder, director or officer as set out in section 26-202, Idaho Code. The provisions of this subsection shall not apply to a voting trust existing prior to July 1, 1978.
History:
[26-211, added 1979, ch. 41, sec. 2, p. 72; am. 1980, ch. 132, sec. 1, p. 291; am. 2015, ch. 204, sec. 5, p. 623.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 2 - ORGANIZATION AND CORPORATION POWERS OF BANKS › Section 26-212 - RIGHT OF EXAMINATION BY STOCKHOLDER.

26-212. RIGHT OF EXAMINATION BY STOCKHOLDER. No stockholder of any bank who is not a director shall have the right to inspect the books and records of such bank showing its transactions with any of its customers but any such stockholder shall have the right to inspect, during business hours, the daily statement showing the general assets and liabilities of such bank.
History:
[26-212, added 1979, ch. 41, sec. 2, p. 72.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 2 - ORGANIZATION AND CORPORATION POWERS OF BANKS › Section 26-214 - POWER OF BANKS TO GRANT OPTIONS TO PURCHASE OR SELL SHARES OF ITS STOCK TO ITS EMPLOYEES.

26-214. POWER OF BANKS TO GRANT OPTIONS TO PURCHASE OR SELL SHARES OF ITS STOCK TO ITS EMPLOYEES. (1) Any bank may grant options to purchase, sell or enter into agreements to sell, shares of its stock to its employees whether or not such transactions qualify for special tax treatment under the Internal Revenue Code of 1954 as defined in section 63-3004, Idaho Code, and regulations promulgated thereunder, provided that the following conditions are met:
(a) Application for approval shall be made to the director of the department of finance in the form of a letter accompanied by the following information:
1. Description of all material provisions of the plan.
2. Proposed notice of stockholders’ meeting, proxy and proxy statement.
3. The number of shares of authorized but unissued stock to be allocated to the plan.
4. Proposed amendments, if any, to articles of incorporation creating authorized but unissued stock and eliminating preemptive rights as to the shares reserved under the plan.
(b) The plan is administered by a committee, none of whose members may participate in the plan;
(c) The number of shares allocable to any person under the plan is reasonable in relation to the purpose of the plan and the needs of the bank; and
(d) In the case of a stock option plan, the number of shares subject to the plan is not unreasonable in relation to the bank’s capital structure and anticipated growth.
(2) (a) Employees’ stock option and stock purchase plans or agreements may provide that options may be exercisable or that shares may be purchased on any business day. Stock certificates representing the shares purchased pursuant to the exercise of options may be validly issued to such purchasers on receipt of the purchase price.
(b) The increase in capital represented by stock certificates issued pursuant to this section will not be applicable for the purposes of permitted investment in banking premises, permitted indebtedness, lending limits, branches, banking facilities and other like purposes until it has been duly paid in as part of the capital of such bank.
History:
[26-214, added 1979, ch. 41, sec. 2, p. 74.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 2 - ORGANIZATION AND CORPORATION POWERS OF BANKS › Section 26-215 - FEDERAL RESERVE — MEMBERSHIP.

26-215. FEDERAL RESERVE — MEMBERSHIP. Any bank shall have the power to subscribe to the capital stock and become a member of a federal reserve bank.
Any bank incorporated under the laws of this state which is or which becomes a member of a federal reserve bank is, by the bank act, vested with all powers conferred upon member banks of the federal reserve banks by the terms of the Federal Reserve Act as fully and completely as if such powers were specifically enumerated and described herein. All such powers shall be exercised subject to all restrictions and limitations imposed by the Federal Reserve Act, or by regulations of the Federal Reserve Board, made pursuant thereto. The right of the legislature to revoke or to amend the powers herein converted is, however, expressly reserved.
Compliance on the part of any such bank with the reserve requirements of the Federal Reserve Act shall be held to be in full compliance with those provisions of the laws of this state which require banks to maintain cash balances in their vaults or with other banks, and no such bank shall be required to carry or maintain reserve other than such as is required under the terms of the Federal Reserve Act. Any such bank shall continue to be subject to the supervision and examinations required by the laws of this state, except that the Federal Reserve Board shall have the right, if it deems necessary, to make examinations; and the authorities of this state having supervision over such bank may disclose to the Federal Reserve Board or to examiners duly appointed by it, all information in reference to the affairs of any bank which has become or desires to become a member of a federal reserve bank.
History:
[26-215, added 1979, ch. 41, sec. 2, p. 75.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 2 - ORGANIZATION AND CORPORATION POWERS OF BANKS › Section 26-216 - CUSTODIAL ACCOUNTS.

26-216. CUSTODIAL ACCOUNTS. A bank is authorized to act as custodian or fiduciary, and may receive reasonable compensation for so acting, under any written trust instrument or custodial agreement in connection with a tax-advantaged savings plan authorized under the Internal Revenue Code or chapter 30, title 63, Idaho Code, if the funds of such trust or funds subject to the custodial agreement are invested only in savings accounts or deposits in such bank or in obligations or securities issued by such bank. All funds held in such custodial or fiduciary capacity by any such bank may be commingled for appropriate purposes of investment, but individual records shall be kept by the custodian for each participant and shall show in proper detail all transactions engaged in under the authority of this section.
History:
[26-216, added 1979, ch. 41, sec. 2, p. 76; am. 2020, ch. 181, sec. 1, p. 557.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 2 - ORGANIZATION AND CORPORATION POWERS OF BANKS › Section 26-217 - BANKS EMPOWERED TO COMPLY WITH REQUIREMENTS FOR FEDERAL DEPOSIT INSURANCE.

26-217. BANKS EMPOWERED TO COMPLY WITH REQUIREMENTS FOR FEDERAL DEPOSIT INSURANCE. Any banking institution now or hereafter organized under the laws of this state is hereby empowered, on the authority of its board of directors, or a majority thereof, to enter into such contracts, incur such obligations and generally to do and perform any and all such acts and things whatsoever as may be necessary or appropriate in order to take advantage of any and all memberships, loans, subscriptions, contracts, grants, rights, or privileges, which may at any time be available or enure to banking institutions or to their depositors, creditors, stockholders, conservators, receivers or liquidators, by virtue of those provisions of section 8 of the federal "Banking Act of 1933" (sec. 12B of the Federal Reserve Act, as amended), which establish the Federal Deposit Insurance Corporation and provide for the insurance of deposits, or of any other provisions of that or of any other act or resolution of congress to aid, regulate or safeguard banking institutions and their depositors, including any amendments of the same or any substitutions therefor; also, to subscribe for and acquire any stock, debentures, bonds or other types of securities of the Federal Deposit Insurance Corporation and to comply with the lawful regulations and requirements from time to time issued or made by such corporation.
History:
[26-217, added 1979, ch. 41, sec. 2, p. 76.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 3 - BANK BRANCHES › Section 26-301 - BRANCH — REQUIREMENTS.

26-301. BRANCH — REQUIREMENTS. No bank shall maintain any branch except as provided for in this act. Any bank organized and chartered under the laws of Idaho may, upon written application to and with the approval of the director, establish and operate one (1) or more branches for the transaction of its business at any location. Any such bank may establish and operate a branch 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 and federal law. Any bank organized and chartered under the laws of another state or under federal law may establish and operate one (1) or more branches in Idaho as permitted by chapter 16, title 26, Idaho Code, and federal law.
History:
[26-301, added 1979, ch. 41, sec. 2, p. 76; am. 1995, ch. 99, sec. 3, p. 301; am. 2015, ch. 204, sec. 6, p. 623.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 3 - BANK BRANCHES › Section 26-302 - ESTABLISHMENT OF LOAN PRODUCTION OFFICES AUTHORIZED.

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.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 3 - BANK BRANCHES › Section 26-303 - SECTION CONCERNING BRANCH BANKS UNAFFECTED.

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.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 3 - BANK BRANCHES › Section 26-305 - RESPONSIBILITIES OF BANK.

26-305. RESPONSIBILITIES OF BANK. Any bank establishing a loan production office or mobile or temporary facility shall be responsible for all transactions of the loan production office or mobile or temporary facility, and for keeping accounts and books covering all business transactions of the loan production office or mobile or temporary facility.
History:
[26-305, added 1979, ch. 41, sec. 2, p. 77; am. 2015, ch. 204, sec. 10, p. 624.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 3 - BANK BRANCHES › Section 26-306 - MOBILE OR TEMPORARY FACILITY.

26-306. MOBILE OR TEMPORARY FACILITY. Mobile facilities or temporary facilities may be established with the approval of the director and under such conditions as the director may establish.
History:
[26-306, added 1979, ch. 41, sec. 2, p. 77; am. 2015, ch. 204, sec. 11, p. 625.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 3 - BANK BRANCHES › Section 26-311 - BRANCHES FOLLOWING RELOCATION.

26-311. BRANCHES FOLLOWING RELOCATION. Notwithstanding any other provision of law, a bank that relocates its main office from another state into Idaho pursuant to 12 U.S.C. 30, 12 U.S.C. 36, and section 26-1101, Idaho Code, shall continue to be authorized to establish and operate branches within this state as provided in section 26-301, Idaho Code, even if, after its relocation into Idaho, its home state as defined by section 26-1603, Idaho Code, becomes a state other than Idaho.
History:
[26-311, added 1997, ch. 225, sec. 2, p. 662.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 4 - BANK SERVICE CORPORATIONS › Section 26-401 - DEFINITIONS.

26-401. DEFINITIONS. As used in this section:
"Invest" includes any advance of funds to a bank service corporation, whether by the purchase of stock, the making of a loan, or otherwise, except a payment for rent earned, goods sold and delivered, or services rendered prior to the making of such payment;
"Applying bank" means a bank applying to a bank service corporation for bank services; and
"Stockholding bank" means a bank which owns stock of a bank service corporation.
History:
[26-401, added 1979, ch. 41, sec. 2, p. 80.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 4 - BANK SERVICE CORPORATIONS › Section 26-402 - INVESTMENT IN SERVICE CORPORATION.

26-402. INVESTMENT IN SERVICE CORPORATION. No limitation or prohibition otherwise imposed by any provision of the laws of the state of Idaho exclusively relating to banks shall prevent or prohibit any two (2) or more banks from investing not more than ten percent (10%) of the paid-in and unimpaired capital and unimpaired surplus of each of them in a bank service corporation.
History:
[26-402, added 1979, ch. 41, sec. 2, p. 80.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 4 - BANK SERVICE CORPORATIONS › Section 26-403 - BANKS JOINTLY HOLDING STOCK — EFFECT OF WITHDRAWAL BY ONE BANK.

26-403. BANKS JOINTLY HOLDING STOCK — EFFECT OF WITHDRAWAL BY ONE BANK. If stock in a bank service corporation has been held by two (2) banks, and one (1) of such banks ceases to utilize the services of the corporation and ceases to hold stock in it, and leaves the other as the sole stockholding bank, the corporation may nevertheless continue to function as such and the other bank may continue to hold stock in it.
History:
[26-403, added 1979, ch. 41, sec. 2, p. 80.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 4 - BANK SERVICE CORPORATIONS › Section 26-404 - DUTY OF BANK SERVICE CORPORATION NOT TO DISCRIMINATE — BURDEN OF PROOF.

26-404. DUTY OF BANK SERVICE CORPORATION NOT TO DISCRIMINATE — BURDEN OF PROOF. Whenever a bank, referred to in this section as an "applying bank," subject to examination by either the department of finance of the state of Idaho, or a federal bank supervisory agency, applies for a type of bank service for itself from a bank service corporation which supplies the same type of bank services to another bank, and the applying bank is competitive with any bank, referred to in this section as a "stockholding bank," which holds stock in such corporation, the corporation must offer to supply such services by either:
(a) issuing stock to the applying bank and furnishing bank services to it on the same basis as to the other banks holding stock in the corporation, or
(b) furnishing bank services to the applying bank at rates no higher than necessary to fairly reflect the cost of such services, including the reasonable cost of the capital provided to the corporation by its stockholders, at the corporation’s option, unless comparable services at competitive overall cost are available to the applying bank from another source, or unless the furnishing of the services sought by the applying bank would be beyond the practical capacity of the corporation. In any action or proceeding to enforce the duty imposed by this section, or for damages for the breach thereof, the burden shall be upon the bank service corporation to show such availability.
History:
[26-404, added 1979, ch. 41, sec. 2, p. 80.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 4 - BANK SERVICE CORPORATIONS › Section 26-405 - PROHIBITED ACTIVITIES.

26-405. PROHIBITED ACTIVITIES. No bank service corporation may engage in any revenue producing activity other than the performance of bank services for banks and, to an extent not exceeding one-half (1/2) of its total activity, the performance of similar services for persons or organizations other than banks.
History:
[26-405, added 1979, ch. 41, sec. 2, p. 81.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 5 - BANK HOLDING COMPANIES › Section 26-501 - DEFINITIONS.

26-501. DEFINITIONS. As used in this chapter, unless the context otherwise requires:
(1) "Bank" shall mean any bank chartered under this act.
(2) "Company" shall mean any corporation, business trust, association, or similar organization but shall not include:
(a) An individual; or
(b) Any corporation the majority of shares of which are owned by the United States or any state.
(3) "Business trust" shall mean a business organization wherein a business or other property is conveyed to trustees who manage the business or other property for the benefit of the certificate or shareholders of the trust. Business trust shall not include a voting trust.
(4) "Bank holding company" shall mean any company:
(a) Which directly or indirectly owns or controls twenty-four percent (24%) or more of the voting shares of a bank;
(b) Which controls in any manner the election of the majority of the directors of a bank; or
(c) For the benefit of whose shareholders or members twenty-four percent (24%) or more of the voting shares of a bank is held by trustees;
For the purposes of any proceeding under subsection (4)(b) of this section, there is a presumption that any company which directly or indirectly owns, controls or has power to vote less than five percent (5%) of the voting shares of a bank does not have control over that bank; and
(5) Notwithstanding the foregoing:
(a) No estate, trust, guardianship, or conservatorship or fiduciary thereof shall be a bank holding company by virtue of its ownership or control of shares of stock of a bank unless such trust is a business trust or a voting trust which by its terms or by law does not expire within ten (10) years from the effective date of the voting trust;
(b) No company shall be a bank holding company by virtue of its ownership or control of shares acquired by it in connection with its underwriting of bank shares and which are held only for such period of time as will permit the sale thereof on a reasonable basis; and
(c) No company shall be a bank holding company by virtue of its ownership or control of shares acquired and held in the ordinary course of securing or collecting a debt previously contracted in good faith and which are held only for such period of time as will permit the sale thereof on a reasonable basis.
(6) "Financial holding company" shall mean a bank holding company that, notwithstanding subsection (4) of this section, may engage in any activity, and may acquire and retain the shares of any company engaged in any activity, that the director determines, by rule or order:
(a) To be financial in nature or incidental to such financial activity; or
(b) Is complementary to a financial activity and does not pose a substantial risk to the safety or soundness of depository institutions or the financial system in general.
History:
[26-501, added 1979, ch. 41, sec. 2, p. 81; am. 2001, ch. 137, sec. 1, p. 496.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 5 - BANK HOLDING COMPANIES › Section 26-502 - APPROVAL OF BANK HOLDING COMPANY.

26-502. APPROVAL OF BANK HOLDING COMPANY. Every bank holding company hereafter formed shall register with the department of finance and receive the approval of the director to become a bank holding company. The director shall approve an application to form a bank holding company if he finds that the persons who are officers, directors or stockholders are of such character and fitness that a bank or banks acquired by the bank holding company will be operated in a safe, prudent and profitable manner. The application shall include such information with respect to the financial condition and operations, management, and intercompany relationships of the bank holding company and its subsidiaries and related matters, as the director may deem necessary or appropriate. The director may, in his discretion, accept copies of federal registration in lieu of state requirements.
History:
[26-502, added 1979, ch. 41, sec. 2, p. 82.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 5 - BANK HOLDING COMPANIES › Section 26-503 - APPROVAL TO ACQUIRE A BANK — REQUIREMENTS — APPROVAL TO COMMENCE ACTION OR ACQUIRE A COMPANY.

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.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 5 - BANK HOLDING COMPANIES › Section 26-505 - DIRECTOR OF FINANCE — REPORTS — REQUIREMENTS.

26-505. DIRECTOR OF FINANCE — REPORTS — REQUIREMENTS. The director may require reports made under oath to be filed in the department of finance to keep it informed as to the operation of any bank holding company. The director may make examinations of each bank holding company and each subsidiary thereof under the provisions of section 26-1102, Idaho Code, the actual cost of which may be assessed against and paid by such holding company. The director may accept reports of examinations made by the federal reserve board, the comptroller of the currency, or the federal deposit insurance corporation in lieu of making an examination by the department.
History:
[26-505, added 1979, ch. 41, sec. 2, p. 83; am. 2001, ch. 137, sec. 3, p. 498.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 5 - BANK HOLDING COMPANIES › Section 26-506 - CHANGE IN CONTROL.

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.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 5 - BANK HOLDING COMPANIES › Section 26-507 - VIOLATION — PENALTY.

26-507. VIOLATION — PENALTY. Any person who willfully violates any provision of this chapter shall be guilty of a felony.
History:
[26-507, added 1979, ch. 41, sec. 2, p. 83.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 6 - RESERVES, SURPLUS AND DIVIDENDS › Section 26-601 - RESERVE.

26-601. RESERVE. Every bank organized under the laws of this state and authorized to receive deposits shall comply with the reserve requirements of the Federal Reserve act.
History:
[26-601, added 1979, ch. 41, sec. 2, p. 86; am. 1981, ch. 8, sec. 1, p. 15; am. 2008, ch. 140, sec. 5, p. 404.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 6 - RESERVES, SURPLUS AND DIVIDENDS › Section 26-602 - DIMINUTION OF RESERVE.

26-602. DIMINUTION OF RESERVE. (1) When the reserve of any bank falls below the amount required by section 26-601, Idaho Code, for any reporting period, the bank shall immediately restore its reserve to the amount required by section 26-601, Idaho Code, and in addition:
(a) If a bank is deficient in reserve for two (2) nonconsecutive reporting periods in a calendar year, the bank shall pay to the department of finance at the end of the second reporting period a fine of three hundred dollars ($300).
(b) If a bank is deficient in reserves for three (3) nonconsecutive reporting periods in a calendar year, the bank shall pay to the department of finance at the end of the third reporting period a fine equal to five percent (5%) of the dollar amount by which it was deficient in reserves for the third reporting period or five hundred dollars ($500), whichever is greater.
(c) If a bank is deficient in reserves for more than three (3) nonconsecutive reporting periods or for two (2) or more consecutive reporting periods in a calendar year, the director shall proceed as provided in section 26-1115, Idaho Code. The bank shall not increase its loans or discounts until its reserve is fully restored and the director may by order set a minimum level of cash reserves which the bank must maintain until such time as the director has reason to believe that the bank will comply with the reserve requirements of section 26-601, Idaho Code.
(2) The penalties set out in subsection (1) of this section are not exclusive. The director may in proper cases proceed in his discretion as provided in section 26-1115, Idaho Code, or chapter 10, title 26, Idaho Code.
History:
[26-602, added 1979, ch. 41, sec. 2, p. 86; am. 2008, ch. 140, sec. 6, p. 405.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 6 - RESERVES, SURPLUS AND DIVIDENDS › Section 26-604 - DIVIDENDS — SURPLUS.

26-604. DIVIDENDS — SURPLUS. No dividend shall be declared or paid by any bank until a surplus equal to twenty percent (20%) of the paid-in capital stock of such bank has been built up. Thereafter, the board of directors of any bank may declare a dividend of so much of its net profits as it shall deem expedient; but before any such dividend is declared or paid, not less than one-fifth (1/5) of the net profits of the bank for such period as is covered by the dividend shall be carried to the surplus fund until such surplus fund shall amount to fifty percent (50%) of the paid-in common stock. Any loss sustained by any bank in excess of its undivided profits may be charged to its surplus account, provided that its surplus funds shall thereafter be reimbursed from its earnings in the manner above provided. If such surplus fund is reduced below an amount equal to twenty percent (20%) of the common stock, no further dividend shall be declared or paid until such surplus is restored to that amount, and thereafter dividends shall only be declared and paid in the amount and in the manner above provided until such surplus shall be restored to an amount equal to fifty percent (50%) of the common stock.
The directors knowingly voting for any dividend in violation of any of the provisions of this section shall be jointly and severally liable, civilly, for any and all dividends so declared, and in addition thereto, shall be guilty of a misdemeanor.
History:
[26-604, added 1979, ch. 41, sec. 2, p. 87.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 7 - LIMITATIONS ON LOANS, INVESTMENTS, AND PRACTICES › Section 26-701 - INVESTMENT OF FUNDS — CERTAIN LOANS PROHIBITED.

26-701. INVESTMENT OF FUNDS — CERTAIN LOANS PROHIBITED. No bank shall employ its moneys, directly or indirectly, in trade or commerce, by buying and selling goods, chattels, wares and merchandise, except to the extent national banks are so authorized if approved by the director. A bank may hold and sell all kinds of property which may come into its possession as collateral security for loans, or any ordinary collection of debts, as prescribed by law. Any goods, chattels, wares or merchandise coming into the possession of any bank as collateral security or as a result of collection of debts shall be disposed of as soon as possible and shall not be considered as a part of the bank’s assets after the expiration of two (2) years from the date of acquirement. The words "goods and chattels" as used in this section shall not be construed to include bonds and securities.
History:
[26-701, added 1979, ch. 41, sec. 2, p. 87; am. 1993, ch. 53, sec. 3, p. 141.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 7 - LIMITATIONS ON LOANS, INVESTMENTS, AND PRACTICES › Section 26-702 - BANK STOCK.

26-702. BANK STOCK. (1) Except as provided in subsection (2) of this section, no bank shall accept as collateral, nor make any loans or discounts on the security of nor purchase any shares of its own capital stock. No bank shall purchase the shares of any other bank wherever organized, or situated, except stock of federal reserve banks. A bank may acquire a security interest in or purchase its own stock if the acquisition is necessary to prevent loss upon a debt previously contracted in good faith and the stock so purchased or acquired shall within six (6) months from the date of acquirement be sold or disposed of at public or private sale. After the expiration of six (6) months any such stock shall not be considered as a part of the assets of such bank.
(2) With the written approval of the director, a bank may redeem or otherwise purchase shares of its own capital stock if the director finds that such redemption or purchase does not impair the capital structure of the bank as required by section 26-205, Idaho Code, is for legitimate corporate purposes and not for speculation, is not for an unreasonable price, does not conflict with the articles of incorporation or the bylaws of the bank, and is not otherwise detrimental to the bank or to the public interest. Legitimate corporate purposes for acquiring and holding of treasury stock may include:
(a) To have shares available for use in connection with employee stock option, bonus, purchase or similar plans;
(b) To sell to a director for the purpose of acquiring qualifying shares;
(c) To purchase a director’s qualifying shares upon cessation of the director’s service in that capacity if there is no ready market for the shares;
(d) To reduce the number of shareholders to qualify as a subchapter S corporation;
(e) To reduce costs associated with shareholder communications and meetings;
(f) To facilitate a bank’s shareholder dividend reinvestment plan; or
(g) Any other legitimate corporate purpose as may be approved by the director.
History:
[26-702, added 1979, ch. 41, sec. 2, p. 88; am. 1986, ch. 58, sec. 1, p. 167; am. 2008, ch. 140, sec. 7, p. 405.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 7 - LIMITATIONS ON LOANS, INVESTMENTS, AND PRACTICES › Section 26-703 - REAL ESTATE LOANS.

26-703. REAL ESTATE LOANS. Any bank may make real estate loans secured by liens upon improved real estate, including improved farm land and improved business and residential properties, as are consistent with safe and sound banking practices. A loan secured by real estate within the meaning of this section shall be in the form of an obligation or obligations secured by mortgage, trust deed, or other such instrument which shall constitute a lien upon real estate.
History:
[26-703, added 1979, ch. 41, sec. 2, p. 88; am. 2004, ch. 159, sec. 2, p. 515; am. 2007, ch. 126, sec. 3, p. 378.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 7 - LIMITATIONS ON LOANS, INVESTMENTS, AND PRACTICES › Section 26-704 - DETERMINATION OF LIMITS OF LOANS AND INVESTMENTS OF BANKS.

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.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 7 - LIMITATIONS ON LOANS, INVESTMENTS, AND PRACTICES › Section 26-706 - LOANS TO OFFICERS AND DIRECTORS.

26-706. LOANS TO OFFICERS AND DIRECTORS. Except as authorized under this section, no bank may extend credit in any manner to any of its own executive officers. Any extension of credit under this section must be approved by the board of directors of the bank, and may be made only if such credit extension comports with the principles of safety and soundness and is in compliance with regulation O of the board of governors of the federal reserve system, 12 CFR 215. Each executive officer and director who receives an extension of credit from the bank shall submit a personal financial statement to the chief executive officer of the bank at least once during each calendar year and such financial statement shall be made available to federal or state regulatory agencies upon request by the agency.
History:
[(26-706) 26-710, added 1979, ch. 41, sec. 2, p. 91; am. 1990, ch. 93, sec. 1, p. 193; am. 1995, ch. 99, sec. 4, p. 301; am. and redesig. 2004, ch. 159, sec. 6, p. 521; am. 2007, ch. 126, sec. 4, p. 378.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 7 - LIMITATIONS ON LOANS, INVESTMENTS, AND PRACTICES › Section 26-708 - VALUATION OF ASSETS.

26-708. VALUATION OF ASSETS. No bank shall enter or at any time carry on its books any of its assets at a valuation exceeding their actual cost to the bank; nor shall the value of any of its assets be increased on the books of the bank without the written consent of the director. Additional charges, delinquency charges and other similar charges on consumer credit transactions permitted by and made in compliance with the Idaho Credit Code and added to the principal balance of the loan, shall not come within the prohibition of this section.
History:
[(26-708) 26-712, added 1979, ch. 41, sec. 2, p. 93; am. and redesig. 2004, ch. 159, sec. 8, p. 523; am. 2008, ch. 140, sec. 8, p. 406.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 7 - LIMITATIONS ON LOANS, INVESTMENTS, AND PRACTICES › Section 26-709 - STATUTORY BAD DEBT.

26-709. STATUTORY BAD DEBT. Every bank carrying any bad debt, or a debt of doubtful value, as an asset shall, upon the request or demand of the director, collect the same or put it in good bankable condition or charge it out of its books. Any debt on which interest is past due and unpaid for a period of six (6) months, unless the same is well secured and in process of collection, shall be considered a bad debt within the meaning of this section.
History:
[(26-709) 26-713, added 1979, ch. 41, sec. 2, p. 93; am. and redesig. 2004, ch. 159, sec. 9, p. 523.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 7 - LIMITATIONS ON LOANS, INVESTMENTS, AND PRACTICES › Section 26-710 - OWNERSHIP AND LEASING OF PROPERTY FOR CUSTOMERS.

26-710. OWNERSHIP AND LEASING OF PROPERTY FOR CUSTOMERS. A bank may become the owner and lessor of personal property acquired upon the specific request and for the use of a customer and may incur such additional obligations as may be incident to becoming an owner and lessor of such property.
History:
[(26-710) 26-714, added 1979, ch. 41, sec. 2, p. 93; am. and redesig. 2004, ch. 159, sec. 10, p. 523.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 7 - LIMITATIONS ON LOANS, INVESTMENTS, AND PRACTICES › Section 26-711 - LENDING OF CREDIT — SURETYSHIP AND GUARANTYSHIP.

26-711. LENDING OF CREDIT — SURETYSHIP AND GUARANTYSHIP. A bank may lend its credit, bind itself as a surety to indemnify another, or otherwise become a guarantor, only if it has a substantial interest in the performance of the transaction involved or has a segregated deposit sufficient in amount to cover the bank’s total potential liability.
History:
[(26-711) 26-715, added 1979, ch. 41, sec. 2, p. 93; am. and redesig. 2004, ch. 159, sec. 11, p. 523.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 7 - LIMITATIONS ON LOANS, INVESTMENTS, AND PRACTICES › Section 26-712 - VALIDITY OF TRANSACTIONS.

26-712. VALIDITY OF TRANSACTIONS. Nothing in any law of this state shall in any manner whatsoever affect the validity of, or render void or voidable, the payment, certification or acceptance of a check or other negotiable instrument, or any other transaction by a bank in this state, because done or performed during any time other than regular banking hours.
History:
[(26-712) 26-716, added 1979, ch. 41, sec. 2, p. 93; am. 1993, ch. 52, sec. 2, p. 135; am. and redesig. 2004, ch. 159, sec. 12, p. 523.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 7 - LIMITATIONS ON LOANS, INVESTMENTS, AND PRACTICES › Section 26-713 - ADVERSE CLAIM TO BANK DEPOSIT.

26-713. ADVERSE CLAIM TO BANK DEPOSIT. Notice to any bank of an adverse claim to a deposit standing on its books to the credit of any person shall not require the bank to recognize the adverse claim unless the adverse claimant shall:
(1) Procure a restraining order, injunction or other appropriate process against the bank from a court of competent jurisdiction wherein the person to whose credit the deposit stands is made a party and served with summons; or
(2) Execute to said bank, in a form and with sureties acceptable to the bank, a bond indemnifying the bank from any and all liability, loss, damage, costs and expenses for and on account of the payment of such adverse claim or the dishonor of the check or other order of the person to whose credit the deposit stands on the books of the bank.
This section shall not apply in any instance where the person to whose credit the deposit stands is a fiduciary for such adverse claimant, and the facts constituting such relationship and the facts showing reasonable cause for belief on the part of the claimant that the fiduciary is about to misappropriate the deposit, are made to appear by the affidavit of the claimant.
History:
[(26-713) 26-717, added 1979, ch. 41, sec. 2, p. 94; am. and redesig. 2004, ch. 159, sec. 13, p. 524.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 7 - LIMITATIONS ON LOANS, INVESTMENTS, AND PRACTICES › Section 26-714 - ACCOUNT OF PERSON UNDER DISABILITY.

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.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 7 - LIMITATIONS ON LOANS, INVESTMENTS, AND PRACTICES › Section 26-715 - BRANCH OR OFFICE AT WHICH INSTRUMENTS ARE TO BE PRESENTED MUST BE INDICATED.

26-715. BRANCH OR OFFICE AT WHICH INSTRUMENTS ARE TO BE PRESENTED MUST BE INDICATED. All checks, drafts, bills of exchange or other orders for the payment of money drawn against any bank operating branch banks shall indicate the particular bank and branch at which the same are to be presented for payment or acceptance.
History:
[(26-715) 26-719, added 1979, ch. 41, sec. 2, p. 94; am. and redesig. 2004, ch. 159, sec. 15, p. 524.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 8 - LIMITATIONS ON BORROWING MONEY AND PLEDGING ASSETS › Section 26-801 - BORROWING MONEY — LIMITATIONS.

26-801. BORROWING MONEY — LIMITATIONS. At no time shall the total borrowings of any bank exceed in the aggregate an amount equal to the capital structure of the bank, except with the consent of the director.
For the purpose of computing total borrowings the following items shall not be included:
(1) Federal funds purchased.
(2) The sale of securities by a bank, under an agreement to repurchase at the end of a stated period.
(3) Borrowings from the federal reserve system.
(4) The sale of mortgage loans by a bank, under agreement to repurchase at the end of a stated period.
(5) Money borrowed to meet seasonal requirements.
(6) Money borrowed to meet unexpected withdrawals.
(7) Capital notes issued in accordance with section 26-802, Idaho Code.
(8) Borrowing from federal home loan banks.
The total of all borrowings by a bank including those items excluded from the computation of total borrowings may not exceed in the aggregate an amount equal to two and one-half (2 1/2) times the capital structure of the bank, except with the consent of the director.
Whenever it shall appear to the director that a bank is borrowing money in excess of the above limitation, or for purposes other than as specified above, he may require it to reduce such borrowings within a time to be fixed by him.
History:
[26-801, added 1979, ch. 41, sec. 2, p. 94; am. 2004, ch. 159, sec. 16, p. 524; am. 2007, ch. 126, sec. 5, p. 378.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 8 - LIMITATIONS ON BORROWING MONEY AND PLEDGING ASSETS › Section 26-802 - ISSUANCE OF CONVERTIBLE OR NONCONVERTIBLE CAPITAL DEBENTURES AND NOTES.

26-802. ISSUANCE OF CONVERTIBLE OR NONCONVERTIBLE CAPITAL DEBENTURES AND NOTES. The issuance of convertible or nonconvertible capital debentures and notes by banks in accordance with normal business considerations is permissible.
With the consent of the director, every bank is, however, authorized to issue and sell its capital notes or debentures, for all capital purposes, in an amount not to exceed one hundred percent (100%) of its unimpaired, paid-in capital stock, plus fifty percent (50%) of its unimpaired surplus fund. A bank may, with the approval of stockholders owning two-thirds (2/3) of the stock of the bank, entitled to vote, or without such approval if authorized by its articles of incorporation, issue convertible or nonconvertible capital debentures and notes in such amounts and under such terms and conditions as shall be approved by the director.
History:
[26-802, added 1979, ch. 41, sec. 2, p. 95.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 8 - LIMITATIONS ON BORROWING MONEY AND PLEDGING ASSETS › Section 26-803 - BORROWING FROM FEDERAL AGENCIES.

26-803. BORROWING FROM FEDERAL AGENCIES. With the consent of the director, a bank may borrow from any agency of the United States. The limitations imposed on borrowing by this chapter shall not apply to borrowings under this section.
History:
[26-803, added 1979, ch. 41, sec. 2, p. 95.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 8 - LIMITATIONS ON BORROWING MONEY AND PLEDGING ASSETS › Section 26-804 - BORROWING MONEY — ACCOUNTING.

26-804. BORROWING MONEY — ACCOUNTING. No officer or employee of any bank shall issue the note of such corporation for money borrowed or rediscount any of its paper, or pledge or hypothecate any of its assets, except when authorized by resolution of its board of directors, or by an authorized committee thereof.
All borrowings shall be carried on the books of the bank, and in all reports of such bank under liabilities.
All rediscounted paper containing the endorsement of or guarantee of the bank discounting the same, except when endorsed without recourse, shall be carried on the books of the bank and in all reports of such bank under liabilities as "rediscounts," until the same are actually paid by the makers, other than by renewal, or the rediscounting bank itself takes up the paper.
History:
[26-804, added 1979, ch. 41, sec. 2, p. 95.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 8 - LIMITATIONS ON BORROWING MONEY AND PLEDGING ASSETS › Section 26-805 - EXTENT ASSETS MAY BE PLEDGED.

26-805. EXTENT ASSETS MAY BE PLEDGED. No bank, banker or bank officer shall, except as otherwise authorized by law, pledge or hypothecate as collateral security for money borrowed, its assets in a ratio exceeding one and one-half (1 1/2) times the amount borrowed (except as otherwise authorized by the director).
History:
[26-805, added 1979, ch. 41, sec. 2, p. 96.]