Title 26 — BANKS AND BANKING

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. …

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 orga…

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 …

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 b…

26-705. Loans to one person. (1) The total loans and extensions of credit by a bank to a person outstanding at one (1) time, shall at no time exceed twenty percent (20%) of the capital structure of such bank. (2) "Borrower" means a person who is named as a borrower or debtor in a…

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 …

26-707. Real estate holdings. A bank may purchase, acquire, hold and convey real estate for the following purposes only: (1) Such as shall be necessary for the convenient transaction of its business, including at the same location as its banking offices’ other property to rent as…

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.…

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 an…

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 su…

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 suf…

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 sta…

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…

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 …

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…