Title 26 — BANKS AND BANKING

26-2701. Purpose of chapter. The purposes of this chapter are to: (1) Promote economic development by encouraging the formation of business and industrial development corporations, a new type of private institution, to help meet the financing assistance and management assistance …

26-2702. Definitions. For the purposes of this chapter: (1) "Advisor" means a person who regularly provides legal, accounting, or management services or advice to a licensee. (2) "Affiliate" means, if used with respect to a specified person other than a natural person, a person c…

26-2703. Powers of director. (1) The director shall administer this chapter. The director may issue orders and promulgate rules that, in the opinion of the director, are necessary to execute, enforce, and effectuate the purposes of this chapter. Any rules promulgated shall be pro…

26-2704. Applications — Investigations — Service of process. (1) An application filed with the director under this chapter shall be in such a form and contain such information as the director may require. (2) The director may make public or private investigations within or outsid…

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

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

26-2707. Annual report to legislature required. (1) The director shall publish annually and provide to the house business committee and senate commerce and labor committee, or the appropriate germane legislative committees, information on the impact of this chapter in promoting e…

26-2708. Annual license review by director. (1) The director shall examine each licensee not less than once each calendar year to determine whether or not the licensee is in compliance with the provisions of this chapter. (2) The director may at any time examine a licensee or sub…

26-2709. Requirements for licensure. (1) An Idaho corporation may apply to the director for licensure as a BIDCO. A person other than an Idaho corporation shall not apply for a license. (2) After a review of information regarding the directors, officers, and controlling persons o…

26-2710. Preliminary approval — Denial in writing — Posting of license. (1) A person may apply to the director for preliminary approval of an application for a license. Notwithstanding that commitments to invest in the equity of the applicant have not been obtained and that all d…

26-2711. Use of Bidco name restricted — Exception. (1) Except as otherwise provided in subsection (2) of this section, a person transacting business in this state, other than a licensee, shall not use a name or title which indicates that the person is a business and industrial de…

26-2712. Dual licensure — Exceptions. (1) An Idaho corporation that is licensed under another law of this state or under any law of the United States may apply for and be issued a license under this chapter unless the transaction of business by that corporation as a licensee unde…

26-2713. Surrender of license. (1) Upon approval of a two-thirds (2/3) vote of its board of directors and after complying with subsection (2) of this section, a licensee may apply to the director to have the director accept the surrender of the licensee’s license. If the director…

26-2714. Corporate name — Directors — Dividends — Restriction on use of public moneys. (1) The corporate name of each licensee may include the phrase "Business and Industrial Development Corporation" or may include the word "BIDCO." A licensee shall not transact business under a …

26-2715. Offices — Location. (1) A licensee shall maintain not less than one (1) office in this state. (2) A licensee, with the approval of the director, may maintain an office at any place outside this state. (3) Each office of a licensee shall be located in a place which is rea…

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

26-2717. Forms of financial and management assistance — Interest rates. (1) A licensee may determine the form and the terms and conditions for financing assistance provided by that licensee to a business firm including, but not limited to, forms such as loans; purchase of debt in…

26-2718. BIDCO acquiring another firm — Application — Requirements. (1) Either by itself or in concert with a director, officer, principal shareholder, or affiliate; another licensee; or a director, officer, principal shareholder, or affiliate of another licensee, a licensee shal…

26-2719. Sound business practices required. (1) A licensee shall transact its business in a safe and sound manner and shall maintain itself in a safe and sound condition. (2) In determining whether a licensee is transacting business in a safe and sound manner or has committed an …

26-2720. Conflict of interest — Defined. (1) For purposes of this section: (a) "Associate" means that term as defined in section 26-2702, Idaho Code. (b) "Relative" means parent, child, sibling, spouse, father-in-law, mother-in-law, son-in-law, brother-in-law, daughter-in-law, si…

26-2721. Acquisition of Bidco — Approval required. (1) Without the prior approval of the director, a person shall not acquire control of a licensee. (2) With respect to an application for approval to acquire control of a licensee, if the director determines, that the applicant an…

26-2722. Merger — Requirements — Applications. (1) A licensee shall not merge with another corporation unless: (a) The licensee is the surviving corporation and the merger is approved by the director. (b) The licensee is a disappearing corporation, the surviving corporation is a …

26-2723. Violation of chapter — Director’s powers — Hearings — Cease and desist. (1) If in the opinion of the director, a person violates, or there is reasonable cause to believe that a person is about to violate the provisions of this chapter, the director may bring an action in…

26-2724. Violation of chapter — Removal of subject person. (1) The director may issue an order removing a subject person of a licensee from his office, if any, with the licensee and prohibiting the subject person from further participating in any manner in the conduct of the busi…

26-2725. Indictment or conviction of a crime — Removal of subject person. (1) If the director determines that a subject person of a licensee has been indicted by a grand jury or has been bound over for trial by a court for a crime involving dishonesty or breach of trust, and that…

26-2726. Disclosure to shareholders — Board of directors. (1) If, in the opinion of the director, disclosure to shareholders regarding a matter is warranted, the director may require a licensee, in such a form and manner as the director may specify, to disclose to the shareholder…

26-2727. Order to refrain from offering financial assistance — Conditions — Hearing. (1) The director may issue an order directing a licensee to refrain from providing any additional financing assistance and management assistance to business firms if, in the opinion of the direct…

26-2728. Appointment of trustee — Liquidation of the Bidco — Procedure. (1) If the director finds that any of the factors set forth in section 26-2727, Idaho Code, are true with respect to a licensee and that it is necessary for the protection of the interests of the licensee or …

26-2729. Violation of chapter — Civil penalties. (1) If, after notice and the opportunity for a hearing, the director finds that a person has violated the provisions of this chapter, he may order that person to pay to the director a civil penalty in the amount the director specif…

26-2730. Prohibited acts — Exceptions — Penalties. (1) A person shall not willfully make an untrue statement of a material fact in an application or report filed with the director under this chapter, or willfully omit to state in such an application or report a material fact requ…

26-2731. Construction — Promulgation of rules — Applicability of chapter. This chapter shall be liberally construed to accomplish its purposes. A proceeding to promulgate rules or a proceeding regarding civil penalties under section 26-2729, Idaho Code, shall be subject to the ad…

26-2732. Short title. This chapter may be cited as the "Business and Industrial Development Corporation Act."