Title 26 — BANKS AND BANKING

26-1703. Authority for operation of international banking offices. (1) An international banking corporation with a home state other than Idaho may establish and operate, directly or indirectly, a federal international bank institution in this state in accordance with applicable f…

26-1704. Application of this chapter. International banking corporations, other than federal international bank institutions, are subject to this chapter, except where it appears, from the context or otherwise, that a provision is clearly applicable only to banks or trust compani…

26-1705. Application of the Idaho business corporation act. Where not inconsistent with this chapter and the Idaho bank act, the provisions of the Idaho business corporation act shall apply to international banking corporations doing business in this state.

26-1706. Requirements for carrying on banking business. (1) No international banking corporation, other than a federal international bank corporation, shall transact a banking business or maintain in this state any office for carrying on a banking business or any part of a bankin…

26-1707. Actions against international banking corporations. (1) A "resident of this state" may maintain an action against an international banking corporation doing business in this state for any cause of action. For purposes of this subsection, the term resident of this state i…

26-1708. Application for license. (1) Every international banking corporation, before being licensed by the director to transact a banking business in this state as an international bank branch or as an international bank agency or before maintaining in this state any office to c…

26-1709. Effect, renewal, and revocation of licenses — Permissible activities. (1) When the director has issued a license to an international banking corporation, it may engage in the business authorized in this act at, and only at, the office specified in the license for a perio…

26-1710. Securities, bonds and other commercial paper to be held in this state. (1) An international banking corporation licensed under this chapter shall hold, at its office in this state, currency, bonds, notes, debentures, drafts, bills of exchange, or other evidence of indebt…

26-1711. Financial certification — Restrictions on investments, loans and acceptances. (1) Before opening an office in this state, and annually thereafter so long as a bank office is maintained in this state, an international banking corporation licensed under this act shall cert…

26-1712. Reports. An international banking corporation licensed under this act shall, at the times and in the form prescribed by the director, make written reports in the English language to the director, under the oath of one (1) of its officers, managers, or agents transacting …

26-1713. Dissolution. (1) When an international banking corporation licensed to maintain an international bank branch or an international bank agency in this state is dissolved or its authority or existence is otherwise terminated or canceled in the jurisdiction of its incorporat…

26-1714. International representative offices. (1) An international banking corporation that does not transact a banking business or any part of a banking business in or through an office in this state, but maintains an office in this state for other purposes is considered to hav…

26-1715. Rules. The department of finance may promulgate administrative rules necessary to implement this chapter.

26-1801. Short title. This chapter shall be known as the "Idaho Savings Bank Act."

26-1802. Purpose. The purpose of this act is to allow any federal savings bank, federal mutual savings bank or federal savings and loan association, located in Idaho to convert its charter to that of an Idaho bank, an Idaho stock savings bank or an Idaho mutual savings bank. Bank…

26-1803. Definitions. Unless the context requires otherwise, the terms below have the meaning assigned: (1) "Department" means the Idaho department of finance. (2) "Director" means the director of the Idaho department of finance. (3) "Mutual savings bank" means a savings bank own…

26-1804. Idaho bank act and general business corporation laws. (1) Except as otherwise provided in this chapter, the Idaho bank act shall apply to all corporations converted and operating under this act. (2) Except as otherwise provided herein or in the Idaho bank act, the genera…

26-1805. Prohibitions. Unless chartered under this act or federal law, it shall be unlawful for any person in this state to use in connection with a business name the term "savings bank" or words of similar import that lead the public reasonably to believe that the business so co…

26-1806. Insurance required. All savings banks shall obtain and maintain federal deposit insurance through an insurance corporation created by an act of Congress.

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

26-1808. Trust powers. Savings banks which have received a charter from the director authorizing the operation of a trust department may engage in the trust business in accordance with chapters 32 through 36, title 26, Idaho Code.

26-1809. Powers. In addition to the powers granted to banks under provisions of the Idaho bank act, and specifically section 26-1101, Idaho Code, savings banks may exercise any power or engage in any activity authorized either for federal savings banks or savings and loan associa…

26-1810. Demand deposits. Savings banks may accept deposits subject to withdrawal or to be paid upon checks of the depositor. All such deposits shall be payable on demand, without notice, except when the deposit agreement provides otherwise.

26-1811. Mutual savings banks — Ownership — Membership — Directors — Capital. (1) Members of a mutual savings bank are the owners of the mutual savings bank and shall possess voting rights and any other rights as are provided in the articles of incorporation or bylaws of the mutu…

26-1812. Conversions. All conversions from one (1) form of charter to another issued by the department shall be approved in advance in writing by the director. All conversion applications filed with the director involving savings banks, including conversion applications under sec…

26-1813. Mutual to stock conversions. A mutual savings bank may change its form of organization to that of a stock savings bank by filing an application with the director. As part of the application, the savings bank will include a plan of conversion, which the director may appro…

26-1814. Acquisitions. All acquisitions shall be approved in advance in writing by the director. (1) A mutual or stock savings bank may acquire, as defined by section 26-2605, Idaho Code, a savings bank organized in the same form. (2) A stock savings bank may acquire or be acquir…

26-1815. Foreign savings and loan associations. A savings and loan association or savings bank chartered and operating under the laws of another state which has received a valid permit from the director of finance to do business as a savings and loan association or savings bank w…

26-2101. Scope. This chapter shall be known as the "Idaho Credit Union Act" and shall be applicable to all persons except federal credit unions, operating as credit unions in the state of Idaho and to such other persons as shall subject themselves to its provisions, and to such p…

26-2102. Purpose. The purpose of this chapter is to allow groups of persons with a common bond as provided in this chapter to form private nonprofit cooperative corporations to be known as credit unions, to provide an opportunity for its members to use and control their own money…

26-2103. Supplementary general principles of law applicable. Unless displaced by the particular provisions of this chapter, the Uniform Commercial Code, the Uniform Consumer Credit Code, the Idaho Securities Act, the corporation laws of this state and the principles of law and eq…

26-2104. Definition and use of terms. As used in this chapter, unless the context otherwise requires: (1) "Credit union" means a cooperative nonprofit corporation chartered under the provisions of this chapter. (2) "Director" means the director of the department of finance of the…

26-2105. Organization. (1) Any seven (7) or more residents of the jurisdiction of the state of Idaho, of legal age, who have a common bond referred to in section 26-2110, Idaho Code, may organize a credit union and become charter members thereof by: (a) Filing an application furn…

26-2106. AMENDMENT TO ARTICLES OF INCORPORATION AND BYLAWS — APPROVAL OF DIRECTOR — PROCEDURE. (1) A credit union’s articles of incorporation may be amended as provided in the articles of incorporation with approval of the director. Amendments to the articles of incorporation mus…

26-2107. Restrictions. Any person, corporation, copartnership or association, except a credit union organized under the provisions of this chapter, an interstate credit union with a permit issued under section 26-2152, Idaho Code, the federal credit union act, 48 Statute 1216 (19…

26-2108. POWERS. A credit union shall have power to: (1) Make contracts; (2) Sue and be sued in the name of the credit union; (3) Own, hold, or use any real or personal property or any interest therein that is necessary or incidental to the credit union’s operations, subject to t…

26-2109. POWER TO ACQUIRE AND HOLD REAL PROPERTY. (1) A credit union may invest in fixed assets necessary or related to its operations, subject to the following limitations: (a) The credit union’s net worth equals at least seven percent (7%) of total assets; (b) The board approve…

26-2110. Membership. (1) The membership of a credit union shall be limited to and consist of the subscribers to the articles of incorporation and such other persons having the common bond set forth in the articles of incorporation as have been duly admitted members, have paid the…

26-2111. EXPULSION AND WITHDRAWAL FROM FIELD OR MEMBERSHIP. A member may be expelled in accordance with the bylaws and any policies established by the board. The credit union shall notify a member of the expulsion, the reasons for the expulsion, and the process by which the membe…

26-2113. MEMBER VOTING. (1) No member may have more than one (1) vote. A natural person may not hold more than one (1) membership in a credit union on behalf of himself or herself. An organization having membership in a credit union may cast one (1) vote through a natural person …

26-2113A. ANNUAL MEMBERSHIP MEETINGS. (1) A credit union’s annual membership meeting shall be held at such time and in such manner as the board prescribes, as permitted in the bylaws, and shall be conducted according to the rules of procedure approved by the board. If the meeting…

26-2113B. SPECIAL MEMBERSHIP MEETINGS. (1) A special membership meeting of a credit union may be called by: (a) A majority vote of the board; (b) A majority vote of the supervisory committee to suspend a director for cause; or (c) A written petition signed or similarly authentica…

26-2114. BOARD OF DIRECTORS — ELECTION OF DIRECTORS — TERMS — VACANCIES — MEETINGS — RULES. (1) The business and affairs of a credit union shall be managed by a board of no fewer than five (5) and no more than fifteen (15) directors. (2) The directors must be elected by and from …

26-2114A. board members — QUALIFICATIONS. (1) A member of the board of directors must be a natural person and a member of the credit union. If a member of the board of directors ceases to be a member of the credit union, that person’s service as a member of the board of directors…

26-2114B. Officials — FIDUCIARY DUTY — reliance on INFORMATION. (1) Officials owe a fiduciary duty to the credit union and must discharge the duties of their respective positions: (a) In good faith; (b) With the care an ordinarily prudent person in a like position would exercise …

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 …

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 sub…

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 f…

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…

26-2119. loans. (1) A credit union may make secured and unsecured loans to its members under policies established by the board. A person that is not a member of the credit union may serve as a co-borrower or guarantor on a loan to a member of the credit union. Each loan must be e…