reglab/statecodes huggingface dataset:
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2115 - OFFICERS.

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.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2116 - BOARD OF DIRECTORS — POWERS AND DUTIES.

26-2116. BOARD OF DIRECTORS — POWERS AND DUTIES. (1) The business and affairs of a credit union shall be managed by the board of directors of the credit union. The duties of the board include, but are not limited to, the duties enumerated in this section. The duties listed in subsection (2) of this section may not be delegated by the credit union’s board of directors. The duties listed in subsection (3) of this section may be delegated to a committee, officer or employee, with appropriate reporting to the board.
(2) The board shall:
(a) Retain the chief executive officer, or equivalent officer as specified in the bylaws, and set the chief executive officer’s compensation;
(b) Set the minimum amount of funds in a share account, if any, required for membership;
(c) Establish policies governing the operation of the credit union;
(d) Establish the conditions under which a member may be expelled for cause;
(e) Approve an annual operating budget for the credit union;
(f) Designate those persons or positions authorized to execute or certify documents or records on behalf of the credit union;
(g) Review the supervisory committee’s annual report; and
(h) Authorize the conveyance of real property and buildings.
(3) In addition, unless delegated, the board shall:
(a) Determine the maximum amount of shares and deposits that a member may hold in the credit union;
(b) Set the rate of interest on deposits, including nonmember deposits, and the rate of dividends on shares and authorize the payment of dividends on shares;
(c) Approve the charge-off of credit union losses;
(d) Determine the investment of surplus funds of the credit union in investments permitted by this chapter;
(e) Fill vacancies on all committees; and
(f) Authorize the credit union to borrow or lend money as needed to carry on the functions of the credit union.
History:
[26-2116, added 2018, ch. 165, sec. 12, p. 333.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2117 - PENALTIES FOR OFFICIAL MISCONDUCT.

26-2117. PENALTIES FOR OFFICIAL MISCONDUCT. Any officer, director, or committee member or loan officer of a credit union who knowingly permits a loan to be made or participates in a loan to a nonmember is guilty of a misdemeanor and shall be primarily liable to the credit union for the amount thus illegally loaned and the illegality of such a loan shall be no defense in any action of the credit union to recover on the loan.
Any officer, director, committee member, agent or employee who knowingly makes or subscribes to false entries or exhibits a false or fictitious paper, instrument, or security to a person authorized to examine the credit union books and records shall be guilty of a felony.
Any officer, director, committee member, agent or employee who receives payments on shares knowing the credit union is insolvent shall be guilty of a misdemeanor.
History:
[26-2117, added 1977, ch. 213, sec. 2, p. 592.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2118 - CREDIT COMMITTEE — APPOINTMENT — DUTIES.

26-2118. CREDIT COMMITTEE — APPOINTMENT — DUTIES. (1) The board may appoint a credit committee. The credit committee shall have the general supervision of all loans to members. It shall be the duty of the credit committee to review all applications for loans, to ascertain whether the loan would be for a provident or productive purpose, to determine whether the applicant qualifies for the loan under the credit union’s loan and underwriting policies, and to determine whether the security offered, in the credit committee’s judgment, is sufficient, and whether the requested terms of the loan are in accordance with the credit union’s loan and underwriting policies.
(2) The credit committee shall meet as often as necessary and at least once each month to review delinquent loans. The credit committee shall keep a record of all actions taken at each meeting and shall submit a written report to the members at the annual meetings and to the board monthly.
(3) The credit committee, upon approval by the board, may appoint one (1) or more loan officers to act under the supervision of the credit committee, and a loan officer, when appointed, may make loans without the necessity for a meeting or of approval by any members of the credit committee, as provided in the bylaws. No more than one (1) member of the credit committee may serve in the position of loan officer. No individual shall have authority to disburse funds of the credit union for any loan that has been approved by him in his capacity as loan officer, except that the loan officer may disburse loans approved by him that are fully secured by shares or that do not exceed the credit union’s unsecured loan limit set by the board of directors.
(4) No member of the credit committee may serve as a member of the board of directors or supervisory committee while serving as a member of the credit committee.
History:
[26-2118, added 2018, ch. 165, sec. 14, p. 334.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2120 - LIMIT ON LOAN AMOUNT — LOANS TO ONE BORROWER.

26-2120. LIMIT ON LOAN AMOUNT — LOANS TO ONE BORROWER. (1) Unless otherwise provided in this chapter or by a rule pursuant to this chapter, no loan may be made to any borrower if the loan would cause the borrower and any associated borrowers to be indebted to the credit union on all types of loans in an aggregated amount exceeding one hundred thousand dollars ($100,000) or fifteen percent (15%) of the net worth of the credit union, whichever is greater, without the approval of the director.
(a) This section does not apply to a corporate credit union.
(b) Two (2) borrowers are "associated" for the purposes of this section if any of the following factors are present:
(i) One (1) of them will derive a direct benefit from the credit union’s loan to the other. For this purpose, the term "direct benefit" means that the loan proceeds or assets purchased with those proceeds will be transferred to the other party other than in a bona fide arm’s-length transaction where the proceeds are used to acquire property, goods, or services;
(ii) Loan proceeds for each of them are used to purchase interests in the same enterprise, and the borrowers will in the aggregate own more than fifty percent (50%) of the ownership interests in such enterprise. In such case, the borrowers are considered associated only to the extent of the loans made to purchase interests in the same enterprise;
(iii) The borrowers are related directly or indirectly through common control and either borrower derives fifty percent (50%) or more of its income from the other. For this purpose, "control" means that a person directly or indirectly owns or has the power to vote twenty-five percent (25%) or more of the ownership interest of an organization, controls the election of a majority of the directors, managers, trustees, or other persons exercising similar functions of an organization, or has the power to exercise a controlling influence over the management or policies of the organization;
(iv) The expected source of repayment is the same for each borrower, and no individual borrower has a separate source of income from which the loan may be paid, taking into account the borrower’s other obligations; or
(v) One (1) borrower is generally liable for the obligations or actions of the other.
(2) The limit on a loan amount in this section does not apply to any loan that is fully secured by shares or deposits.
History:
[26-2120, added 2020, ch. 230, sec. 8, p. 676; am. 2022, ch. 111, sec. 12, p. 376.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2121 - SUPERVISORY COMMITTEE — MEMBERSHIP — TERMS — VACANCIES.

26-2121. SUPERVISORY COMMITTEE — MEMBERSHIP — TERMS — VACANCIES. (1) A supervisory committee of at least three (3) members must be appointed by the board as provided in the bylaws. Members of the supervisory committee shall serve a term of one (1) to three (3) years, unless sooner removed under this chapter or until their successors are qualified and elected or appointed. The members of the supervisory committee shall be divided into classes so that as equal a number as is possible is appointed each year.
(2) At least one (1) supervisory committee member may attend each regular meeting of the board. However, supervisory committee members may be excluded from executive sessions of board meetings.
(3)(a) If a supervisory committee member is absent from more than one-fourth (1/4) of the committee meetings in any twelve (12) month period without being reasonably excused by the committee, the member shall no longer serve as a member of the committee.
(b) The supervisory committee shall promptly notify the member that such member shall no longer serve as a committee member. Failure to provide notice does not affect the termination of the member’s service under paragraph (a) of this subsection.
(4) A supervisory committee member must be a natural person and a member of the credit union. If a member of the supervisory committee ceases to be a member of the credit union, the member shall no longer serve as a committee member.
(5) Any vacancy on the committee must be filled by an interim member appointed by the board.
(6) No operating officer or employee of a credit union may serve on the credit union’s supervisory committee. No more than one (1) director may be a member of the supervisory committee at the same time. No member of the supervisory committee may serve on the credit committee or investment committee of the credit union while serving on the supervisory committee. No board officer of a credit union may serve as the chairperson of the supervisory committee.
History:
[26-2121, added 2018, ch. 165, sec. 16, p. 334.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2121A - SUPERVISORY COMMITTEE DUTIES.

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.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2121B - SUSPENSION OF MEMBERS OF THE BOARD BY SUPERVISORY COMMITTEE — FOR CAUSE.

26-2121B. SUSPENSION OF MEMBERS OF THE BOARD BY SUPERVISORY COMMITTEE — FOR CAUSE. (1) The supervisory committee may, for cause, suspend a member of the board, until a special membership meeting called for that purpose is held in accordance with the requirements of section 26-2113B, Idaho Code. The members participating in that meeting shall vote whether to remove the suspended person or persons.
(2) For purposes of this section, "cause" means demonstrated financial irresponsibility, a breach of fiduciary duty to the credit union, or activities which, in the judgment of the supervisory committee, create a material risk to the credit union.
History:
[26-2121B, added 2018, ch. 165, sec. 18, p. 336.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2121C - SUSPENSION OF MEMBERS OF THE BOARD OR SUPERVISORY COMMITTEE BY BOARD — FOR CAUSE.

26-2121C. SUSPENSION OF MEMBERS OF THE BOARD OR SUPERVISORY COMMITTEE BY BOARD — FOR CAUSE. (1) The board may, for cause, suspend a member of the board or a member of the supervisory committee until a special membership meeting, called for that purpose, is held. The membership meeting must be held within ninety (90) days after the suspension. The members attending the meeting shall vote whether to remove a suspended party.
(2) For purposes of this section, "cause" means demonstrated financial irresponsibility, a breach of fiduciary duty to the credit union, or activities which, in the judgment of the board, create a material risk to the credit union.
History:
[26-2121C, added 2018, ch. 165, sec. 19, p. 336.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2121D - REMOVAL OF DIRECTOR OR SUPERVISORY COMMITTEE MEMBER.

26-2121D. REMOVAL OF DIRECTOR OR SUPERVISORY COMMITTEE MEMBER. (1) The members of a credit union may remove a director of the credit union at a special membership meeting held in accordance with section 26-2113B, Idaho Code, and called for that purpose. If the members remove a director, the members may at the same special membership meeting elect an interim director to complete the remainder of the former director’s term of office or authorize the board to appoint an interim director as provided in section 26-2114, Idaho Code.
(2) If at any time, because of the removal of one (1) or more credit union directors under this chapter, the board of directors of a credit union has less than a quorum of directors, all powers and functions vested in or exercisable by the board vest in and are exercisable by the director or directors remaining until such a time as there is a quorum on the board of directors. If all of the directors of a credit union are removed under this chapter, the director of the department of finance shall appoint persons to serve temporarily as directors of the credit union until such a time as their respective successors take office.
(3) The members of a credit union may remove a supervisory committee member at a special membership meeting held in accordance with section 26-2113B, Idaho Code, and called for that purpose. If the members remove a supervisory committee member, the members may at the same special membership meeting elect an interim supervisory committee member to complete the remainder of the former supervisory committee member’s term of office or authorize the supervisory committee to appoint an interim supervisory committee member as provided in section 26-2121, Idaho Code.
History:
[26-2121D, added 2018, ch. 165, sec. 20, p. 337.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2122 - COMPENSATION — CREDIT UNION MANAGER, EMPLOYMENT.

26-2122. COMPENSATION — CREDIT UNION MANAGER, EMPLOYMENT. No officer, director, or committee member may be compensated, directly or indirectly, for his services as such; provided, however, an elected member of the board of directors may serve as a part-time treasurer and receive a salary for his services. This shall not be construed to prevent reimbursement of directors and committee members for actual expenses they may incur in carrying out the duties of their office. The board may authorize the employment of a credit union manager and other employees as needed to conduct the business of the credit union. The board shall establish the compensation to be paid to the manager and any other employees of the credit union which shall be charged as an expense of the credit union. In the event the board of directors authorizes the employment of a manager of the credit union, the manager may not be a member of the board of directors. The credit union may provide group hospitalization and group health and accident insurance for the directors, officers and committee members which will not be considered compensation.
History:
[26-2122, added 1977, ch. 213, sec. 2, p. 595.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2123 - SHARES AND CERTIFICATES OF DEPOSIT.

26-2123. SHARES AND CERTIFICATES OF DEPOSIT. A share may be in increments of five dollars ($5.00) with a minimum of five dollars ($5.00) and a maximum of twenty-five dollars ($25.00) as the board of directors shall establish. The shares of a credit union shall all be common shares of one (1) class and have a par value as established by the board and bylaws. A member may purchase shares which will earn dividends as duly established by the board pursuant to section 26-2130, Idaho Code. Members may also purchase certificates of deposit which will be for a specified length of time and earn interest with a guaranteed rate to be established by the board of directors pursuant to section 26-2130, Idaho Code. No certificate shall be issued to denote ownership of a share of the credit union. Shares paid for may be transferred in such manner as the bylaws may prescribe.
In the event of default the credit union shall have and may exercise a lien on the shares and deposits of any member for any sum due the credit union from said member or for any loan made to, cosigned or endorsed by him. Christmas clubs, vacation clubs, travel clubs and other thrift organizations within the membership, which shall have the prior approval of the director of finance, may be established by the board of directors.
History:
[26-2123, added 1977, ch. 213, sec. 2, p. 596.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2124 - JOINT ACCOUNTS.

26-2124. JOINT ACCOUNTS. A member may designate any person or persons to hold shares, deposits, and thrift club accounts with him in joint tenancy with the right of survivorship; but no joint tenant, unless a member in his own right, shall be permitted to vote, obtain loans, or hold office. Payment of part or all of such accounts to any of the joint tenants shall, to the extent of such payment, discharge the liability to all.
No credit union organized under the laws of this state shall be required to recognize the claim of any third party of any of the above such accounts or withhold payment of any such accounts to the depositor or to his order, unless and until the credit union is served with citation or other appropriate process issuing out of a court of competent jurisdiction in connection with a suit instituted by such third party for the purpose of recovering or establishing an interest in such above accounts.
Such above accounts issued by any credit union organized under the laws of this state in the name of two (2) or more persons or to two (2) or more persons or the survivor of either, may be withdrawn on the signature of either party of whom such accounts were issued, or in whose name such accounts were made, and no recovery shall be had against such credit union for amounts so paid. When such accounts are issued in the name of two (2) or more persons or in the name of their survivor, the survivor of either party shall have power to act in all matters relating to such accounts whether the other person or persons named in such accounts be living or dead. The repurchase or withdrawal value of such accounts issued in joint names and dividends thereon, or other rights relating thereto, may be paid or delivered, in whole or in part, to any such person who shall make requests therefor, whether the other person or persons be living or dead. The payment or delivery to any such person, on a receipt or acquittance signed by any such person, to whom any such payment or any such delivery of rights be made, shall be valid and sufficient release and discharge of any such credit union for the payment or delivery so made.
History:
[26-2124, added 1977, ch. 213, sec. 2, p. 596.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2125 - MINORS.

26-2125. MINORS. Shares, deposits or thrift club accounts may be issued in the name of a minor and such above accounts may be withdrawn by such minor and payments made on such withdrawals shall be valid.
History:
[26-2125, added 1977, ch. 213, sec. 2, p. 597.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2126 - TRUST ACCOUNTS.

26-2126. TRUST ACCOUNTS. Share [Shares] may be issued in the name of a member in trust for a beneficiary, including a minor, but no beneficiary, unless a member in his own right, may be permitted to vote, obtain loans, hold office or be required to pay an entrance fee. Payment of part or all of such shares to such member shall, to the extent of such payment, discharge the liability of the credit union to the member and the beneficiary, and the credit union shall be under no obligation to see the application of such payment. In the event of the death of the member, and if shares are so issued or held and the credit union has been given no other written evidence of the existence or terms of any trust, such shares and any dividends or interest thereon shall be paid to the beneficiary.
History:
[26-2126, added 1977, ch. 213, sec. 2, p. 597.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2128 - LIQUIDITY REQUIREMENTS.

26-2128. LIQUIDITY REQUIREMENTS. (a) Every credit union shall have on hand as a liquidity reserve an amount equal to four percent (4%) of its outstanding shares, certificates of deposit, and certificates of indebtedness. Share or deposit accounts from which a member may withdraw funds by the use of a negotiable instrument shall be subject to the liquidity reserve requirements of subsection (b) of this section and not to the liquidity reserve requirements of this subsection. Said liquidity reserves, except as hereinafter otherwise provided, shall be kept in cash on hand or on deposit subject to check or draft, with any bank or banks or corporate credit union located in the state of Idaho, which shall have been approved by the director as liquidity reserve depositories and shall be computed monthly as follows: on the basis of average daily bank deposits and average daily cash on hand.
(b) Every credit union which provides for its member’s share or deposit accounts from which the member may withdraw funds by the use of negotiable instrument shall have on hand as a liquidity reserve in addition to the liquidity reserve required by subsection (a) of this section an amount equal to ten percent (10%) of its share and deposit accounts which are subject to withdrawal by the use of negotiable instrument. Said liquidity reserves shall be kept in cash on hand or on deposit subject to check or draft, with any bank or banks or corporate credit union located in the state of Idaho which shall have been approved by the director as liquidity reserve depositories and shall be computed monthly as follows: on the basis of average daily bank or corporate credit union deposits, and average daily cash on hand.
(c) Certificates of deposit issued by the Idaho Corporate Credit Union may be included in meeting the requirements of this section. To the extent a credit union is required to maintain reserves pursuant to the monetary control act of 1980 and the implementing regulations of the board of governors of the federal reserve system, as the same is presently enacted and as it may be amended in the future, the reserves required to be so maintained shall be considered as a part of, and not in addition to, the liquidity reserves required by this section.
History:
[26-2128, added 1977, ch. 213, sec. 2, p. 598; am. 1979, ch. 230, sec. 1, p. 629; am. 1981, ch. 260, sec. 1, p. 551; am. 1991, ch. 236, sec. 3, p. 569.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2129 - RESERVE REQUIREMENTS.

26-2129. RESERVE REQUIREMENTS. (a) At the end of each accounting period the gross income shall be determined. From this amount there shall be set aside, as a regular reserve against losses on loans and against such other losses as may be specified in rules prescribed under this chapter, sums in accordance with the following:
(1) A credit union in operation for more than four (4) years and having assets of five hundred thousand dollars ($500,000) or more shall set aside: (i) ten per cent (10%) of gross income until the regular reserve plus the allowance for loan loss account shall equal four per cent (4%) of the total of outstanding loans and risk assets, then (ii) five per cent (5%) of gross income until the regular reserve plus the allowance for loan loss account shall equal six per cent (6%) of the total of outstanding loans and risk assets.
(2) A credit union in operation less than four (4) years or having assets of less than five hundred thousand dollars ($500,000) shall set aside: (i) ten per cent (10%) of gross income until the regular reserve plus the allowance for loan loss account shall equal seven and one-half per cent (7.5%) of the total of outstanding loans and risk assets, then (ii) five per cent (5%) of gross income until the regular reserve plus the allowance for loan loss account shall equal ten per cent (10%) of the total of outstanding loans and risk assets.
(3) Risk assets do not include loans fully secured by member savings and loans guaranteed by an agency of the state or federal government, to the extent of such guarantee.
(4) Whenever the regular reserve plus the allowance for loan loss account falls below the stated per cent of the total outstanding loans and risk assets, it shall be replenished by regular contributions in such amounts as may be needed to maintain the stated reserve goals.
(b) The director, in his discretion, may decrease the reserve requirements set forth in subsection (a) of this section when in his opinion such a decrease is necessary or desirable. The director may also require special reserves to protect the interests of members either by rule if it is to be generally applied, or by order for an individual credit union in a particular case.
History:
[26-2129, added 1991, ch. 236, sec. 5, p. 570.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2130 - DIVIDENDS.

26-2130. DIVIDENDS. (1) After allocation to required reserves, the board of directors may, at the end of any dividend period duly established, declare a dividend to be paid on shares or share certificates from undivided earnings as the bylaws may provide. Dividends may be paid at various rates, or not paid at all, with due regard to the conditions that pertain to each class of share.
(2) Subject to the approval of the board of directors, accounts closed between dividend periods may be credited with dividends at the rate set by the board of directors.
(3) Extraordinary dividends must be calculated on a rational means determined by the board of directors. For purposes of this section, "extraordinary dividends" means all irregularly scheduled and declared dividends.
History:
[26-2130, added 2020, ch. 230, sec. 13, p. 679.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2131 - SHARE REDUCTION.

26-2131. SHARE REDUCTION. Whenever the losses of any credit union, resulting from a depreciating in value of its loans or investments or otherwise, exceed its undivided earnings and reserve fund so that the estimated value of its assets is less than the total amount due the shareholders, the credit union may, by a majority vote of the entire membership, order a reduction in the shares of each of its shareholders to divide the loss proportionately among the members. If thereafter the credit union shall realize from such assets a greater amount than was fixed by the order of reduction, such excess shall be divided among the shareholders whose assets were reduced, but only to the extent of such reduction.
History:
[26-2131, added 1977, ch. 213, sec. 2, p. 600.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2132 - MERGER.

26-2132. MERGER. Any credit union may, with the approval of the director, merge with another credit union under the existing charter of such other credit union. The director shall not approve a merger if the effect of the merger would be to provide a broader common bond than allowable under section 26-2110, Idaho Code. The merger may be based upon any plan agreed to by the majority of the board of directors of each credit union joining in the merger, and approved by the affirmative vote of the majority of the members of each such credit union at meetings of the members called for such purpose. Any member not present at the meeting may, within the next twenty (20) days, vote by signing a statement on a form prescribed by the board of directors and such vote shall have as full force and effect as if cast at the meeting. If any such member does not vote within the twenty (20) day period, he shall be deemed to be in favor of the merger. After such agreement by the directors and approval by the members of each credit union, the president and secretary of each credit union shall execute a certificate of merger which shall set forth at least all of the following:
(a) The time and place of the meeting of the board of directors at which the plan was agreed upon.
(b) The vote in favor of adoption of the plan.
(c) A copy of the resolution or other action by which the plan was agreed upon.
(d) The time and place of the meeting of the members at which the plan agreed upon was approved.
(e) The vote by which the plan was approved by the members.
Such certificates and a copy of the plan of the merger shall be forwarded to the director and if approved, a copy of the certificate shall be filed with the county clerk of the county in which each credit union participating in the merger has its principal place of business, and then filed with the director, whereupon the charter of the merged credit union as a legal entity separate from the surviving credit union shall terminate.
Upon any such merger so affected, all property, property rights, and interests of the merged credit union, shall vest in the surviving credit union without deed, endorsement or other instrument of transfer, and all debts, obligations and liabilities of the merged credit union shall be deemed to have been assumed by the surviving credit union whose charter the merger has affected.
This section shall be construed, when possible, to permit a credit union chartered under the Federal Credit Union Act to merge with one chartered under this chapter, or to permit one chartered under this chapter to merge with one chartered under the Federal Credit Union Act.
History:
[26-2132, added 1977, ch. 213, sec. 2, p. 601.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2133 - REPORTS — FINANCIAL AND STATISTICAL DATA.

26-2133. REPORTS — FINANCIAL AND STATISTICAL DATA. Each credit union shall timely file with the director any financial and statistical report or other information that a federally insured state-chartered credit union is required to file with the national credit union administration. Each report must be certified by the principal operating officer of the credit union. In addition, a credit union shall file reports as may be required by the director.
History:
[26-2133, added 2020, ch. 230, sec. 15, p. 680.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2134 - APPLICATION FEES.

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.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2135 - BOOKS AND RECORDS.

26-2135. BOOKS AND RECORDS. The books and records of a credit union shall be kept in accordance with generally accepted accounting principles and by procedures approved by the director. Every credit union shall keep correct and complete books of accounts, minutes of meetings of members and directors and shall make such books and records and accounts available for examination. The books of account and records shall not be removed from the principal place of business without the consent of the director.
If a credit union utilizes the data processing services of another company the providing of such services by the other corporation shall be subject to the approval of the director and the director shall have the power to require the servicing company to provide such information as the director requires in a form required by the director. Any company providing data processing services for credit unions must agree to provide the director with information for purposes of examination which the director may by rule or regulation require in a form required by the director.
History:
[26-2135, added 1977, ch. 213, sec. 2, p. 602.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2136 - FEES.

26-2136. FEES. (1) On or before February 15 of each calendar year, the director shall fix and collect from each credit union an assessment fee based upon the total assets of the credit union as of December 31 of the previous calendar year, which fees shall not exceed the amounts set forth in the following schedule:
TOTAL ASSETS
FEE
$50,000 or less
$50.00 + $1.00 per thousand dollars
of assets
Over $50,000 and not over
$100,000
$100.00 + $.99 per thousand dollars
of assets in excess of $50,000
Over $100,000 and not over
$250,000
$149.00 + $.94 per thousand dollars
of assets in excess of $100,000
Over $250,000 and not over
$1 million
$291.00 + $.89 per thousand dollars
of assets in excess of $250,000
Over $1 million and not over
$2 million
$958.00 + $.80 per thousand dollars
of assets in excess of $1 million
Over $2 million and not over
$5 million
$1,758.00 + $.61 per thousand dollars
of assets in excess of $2 million
Over $5 million and not over
$8 million
$3,588.00 + $.48 per thousand dollars
of assets in excess of $5 million
Over $8 million
$5,028.00 + $.35 per thousand dollars
of assets in excess of $8 million
(2) All fees, fines, examination and miscellaneous charges collected by the director pursuant to the Idaho credit union act shall be deposited into the finance administrative account pursuant to section 67-2702, Idaho Code.
History:
[26-2136, added 1977, ch. 213, sec. 2, p. 603; am. 1980, ch. 168, sec. 1, p. 360; am. 1984, ch. 47, sec. 5, p. 79; am. 1999, ch. 202, sec. 1, p. 545; am. 2020, ch. 214, sec. 1, p. 625.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2136C - DISCLOSURE OF CONFIDENTIAL INFORMATION BY THE DEPARTMENT — PENALTY.

26-2136C. DISCLOSURE OF CONFIDENTIAL INFORMATION BY THE DEPARTMENT — PENALTY. (1) The department of finance, its director, employees, and former employees shall not disclose to any person or agency any fact or information obtained in the course of business of the department under this chapter, except in the course of their official duties for the department and in the following cases:
(a) When, by the provisions of this chapter or chapter 1, title 74, Idaho Code, it is made the duty of the department to make public records and publish the same;
(b) When the department is required by law to take special action regarding the affairs of any credit union;
(c) When called as a witness in any criminal proceeding in a court of competent jurisdiction, provided that the court must review such information in chambers to determine the necessity of disclosing such information, and subject to the privilege provided by sections 26-1111(3) and 26-2136B, Idaho Code;
(d) When, in the case of a problem credit union, it is necessary or advisable, in the discretion of the director, for the good of the public or of the depositors; or
(e) When, in the discretion of the department, it is advisable to disclose any such information to a state or federal credit union supervisory agency.
(2) Any person who violates the provisions of this section shall be guilty of a felony, and conviction shall subject the offender to a forfeiture of his office or employment.
History:
[26-2136C, added 2020, ch. 214, sec. 4, p. 630.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2137 - FALSE REPORTS.

26-2137. FALSE REPORTS. Any person, firm, corporation, or association which maliciously and knowingly spreads false reports about the management or finances of any credit union shall be guilty of a misdemeanor.
History:
[26-2137, added 1977, ch. 213, sec. 2, p. 603.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2138 - TAXATION.

26-2138. TAXATION. A credit union shall be deemed an institution for savings and, together with all the accumulations therein, shall not be subject to taxation except as to real estate owned. The shares of a credit union shall not be subject to a stock transfer tax when issued by the corporation or when transferred from one (1) member to another.
History:
[26-2138, added 1977, ch. 213, sec. 2, p. 603.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2139 - CONVERSION.

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.]
2023 Idaho Code › Title 26 - BANKS AND BANKING › Chapter 21 - IDAHO CREDIT UNION ACT › Section 26-2140 - CEASE AND DESIST ORDER — PENALTY.

26-2140. CEASE AND DESIST ORDER — PENALTY. (1) If the director finds that any credit union has engaged in an unsafe or unsound practice in conducting the business of such credit union, or any person has violated any provision of this chapter, any rule or order issued under this chapter, any condition imposed in writing by the director, or any written agreement entered into with the director, the director may order the credit union or other person to cease and desist from any such violation or practice. Such order shall be issued pursuant to chapter 52, title 67, Idaho Code.
(2) After providing a notice and an opportunity for a public hearing pursuant to chapter 52, title 67, Idaho Code, the director may assess against and collect a civil money penalty from any credit union or from any director, officer, supervisory committee member, employee, agent, or other person participating in the conduct of the affairs of such credit union who:
(a) Engages or participates in any unsafe or unsound practice in connection with a credit union; or
(b) Violates or knowingly permits any person to violate any of the provisions of this chapter, any rule promulgated pursuant to this chapter, or any lawful order of the director issued pursuant to this chapter.
(3) A civil money penalty assessed pursuant to subsection (2) of this section shall not exceed one thousand dollars ($1,000) per day for each day such violation continues. No civil money penalty shall be assessed for the same act or practice if another government agency has taken similar action against the credit union or person to be assessed such civil money penalty. In determining the amount of the civil money penalty to be assessed, the director of the department of finance shall consider:
(a) The good faith of the credit union or person to be assessed with such civil money penalty;
(b) The gravity of the violation;
(c) Any previous violations by the credit union or person to be assessed with such civil money penalty;
(d) The nature and extent of any previous violations; and
(e) Such other matters as the director may deem appropriate.
(4) Upon waiver by the respondent of the right to a public hearing concerning an assessment of a civil money penalty, the hearing or portions thereof may be closed to the public when concerns arise about prompt withdrawal of moneys from or the safety and soundness of the credit union.
(5) For the purposes of this section, a violation shall include but is not limited to any action by any person alone or with another person that causes, brings about, or results in the participation in, counseling of, or aiding or abetting of a violation.
(6) The director may modify or set aside any order assessing a civil money penalty.
History:
[26-2140, added 1977, ch. 213, sec. 2, p. 604; am. 2020, ch. 214, sec. 5, p. 631.]